**Registered number: 12323109 Charity number: 1187584** ## **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **UNAUDITED** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** **FOR THE PERIOD ENDED 31 MARCH 2021** **LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)** ## **CONTENTS** ||Page| |---|---| |**Reference and administrative details of the company, its Trustees and advisers**|1| |**Chairman's statement**|2 - 3| |**Trustees' report**|4 - 9| |**Independent examiner's report**|10| |**Statement of financial activities**|11| |**Balance sheet**|12 - 13| |**Statement of cash flows**|14| |**Notes to the financial statements**|15 - 33| **(a company limited by guarantee)** ## **LIFESPRING CHURCH AND CENTRE** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE PERIOD ENDED 31 MARCH 2021** |**Trustees**|M G Phillips, Chairman (appointed 19 November 2019, resigned 29 June 2021)| |---|---| ||M Danatt (appointed 19 November 2019, resigned 15 May 2020)| ||C M T M Northey (appointed 19 November 2019)| ||E Phillips, Vice Chairman (appointed 19 November 2019)| ||B Whitworrh (appointed 19 November 2019)| ||C Maddison (appointed 19 November 2019)| ||R Brightwell (appointed 19 November 2019, resigned 27 October 2020)| ||J Troop (appointed 8 September 2020)| ||D Simpson (appointed 8 September 2020)| |**Company registered**
**number**
12323109
**Charity registered**
**number**
1187584
**Registered office**
Sherwood Drive
New Ollerton
Nottinghamshire
NG22 9PP
**Company secretary**
M G Phillips
**Chief executive officer**
M G Phillips
**Accountant**
Jonathan Wilson
Chartered Accountant
Cromwell House
68 West Gate
Mansfield
Nottinghamshire
NG18 1RR
**Bankers**
The Co-operative Bank PLC
P O Box 250
Skelmerdale
WN8 6WWT
NatWest Bank PLC
Bede House
11 Western Boulevard
Leicester
LE2 7EJ|| Page 1 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **CHAIRMAN'S STATEMENT FOR THE PERIOD ENDED 31 MARCH 2021** The chairman presents his statement for the period. Lifespring in the Dukeries changed its name on 31 August 2020 following a merger between the Church and Lifespring Centre. The transition to the new arrangement was very smooth. Oasis Café became “Oasis Café Ollerton Limited”, a subsidiary Company of Lifespring Church and Centre. However, the café remained closed due to the pandemic. The world entered an exceedingly difficult time starting in March 2020 with the arrival of COVID 19. However, the Church continued to respond wonderfully to the challenges thrown up by the pandemic and carry out its mission to the community. The Church has a social mission as well as a spiritual mission and they both work together. The “spiritual” work of the Church was severely hampered when all “in person” meetings were cancelled. The Church was able to meet “in person” during the Autumn but had to close again with the second lockdown. The leaders, along with our wonderful Technology, Music, and other teams, were able to run services on “Facebook Live” and “Zoom”. Our prayer meeting was held on Zoom on Friday mornings; our teaching sessions continued to go out on “Facebook Live” on Thursday evenings and we held a Sunday morning service broadcast live on Facebook at 11am. The services continued to be very well attended. We encouraged fellowship and connection between the members of the Church through one-to-one phone calls, Zoom, WhatsApp, text, and other electronic means. The Church leadership relied heavily on technology and email to conduct business meetings. The Social Mission of the Church was achieved through the CAR project (see elsewhere on this report). The leases on our Charity shops are in the process of being negotiated as both have expired. It is hoped agreements will be signed soon. When the Church went into lockdown, members of staff were put on flexible furlough, and this helped the Church keep these employees on payroll. At our Church Council meeting on 8 September 2020, I informed the Church that I would be stepping aside from the role of Senior Leadership and the role of Chairman in June 2021. I wanted to give the Church Council time to recruit and appoint a new Senior Pastor. The Constitution of Lifespring Church and Centre allows the Trustees and Leadership to put a process in place for the appointment of a Senior Leader in the Church. It does not set out any specifics, simply that the Trustees should take appropriate action to secure a qualified candidate. Consequently, the Elders met several times to discuss a way forward. They decided to ask Liz Phillips to come forward for interview. Interview was arranged for 8 December 2020. Roy Todd and John Pettifor were approached to be on the interview panel alongside Joy Troop and Derrick Simpson. At the following Church Council on 15 December 2020, Joy and Derrick relayed the views of the interview panel that Liz was eminently suitable to carry on the work at Lifespring and met the requirements of the job description and scriptural qualifications. The panel recommended Liz to the Church Council for ratification. There was opportunity for open discussion. No concerns were raised and there was unanimous agreement to offer the job to Liz (subject to positive feedback from the membership). The Trustees met on 10 March 2021 to discuss the feedback and make a final decision about offering the job to Liz Phillips. The feedback from the membership was overwhelmingly positive. Questions were asked about Page 2 **(a company limited by guarantee)** ## **LIFESPRING CHURCH AND CENTRE** ## **CHAIRMAN'S STATEMENT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021** women in church leadership, what would happen to Warsop, what was the process for appointment, why there was only one person invited to interview and will the new Senior Pastor have an assistant? The Trustees concluded that the comments/feedback were about points of theology/process rather than concerns about Liz’s appointment. Liz and Mike left the room while a final discussion took place. When Liz was invited back into the room, she was offered the post of Senior Leader subject to a contract being drawn up and agreed. Liz accepted the position and would come into post on 1 July 2021. Note: I was not involved in any of the discussions or decisions about Liz’s appointment because of a conflict of interest. As I sign off as Chairman, I would like to extend a huge thank you to all the Trustees and members of the Church, past and present, for their wisdom, patience, and tenacity in serving the wonderful vision of Lifespring Church and for working with me over the past 25 years or so. I will continue to serve the Church in my capacity as a Trustee. M G Phillips - Chairman Date: 3 September 2021 Page 3 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **TRUSTEES' REPORT FOR THE PERIOD ENDED 31 MARCH 2021** The trustees present their annual report together with the financial statements of the company for the period from 19 November 2019 to 31 March 2021. The annual report serves the purposes of both a trustees' report and a directors' report under company law. The trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Since the company qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted. ## **Objectives and activities** ## **a. Policies and objectives** The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives. In setting objectives and planning for activities, the trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. ## **b. Strategies for achieving objectives** Charitable objects - To advance the Christian Faith - To relieve sickness and financial hardship - To advance education ## **c. Activities undertaken to achieve objectives** - Sunday morning Facebook Live service conducted from Ollerton - Make Lunch (during school holidays) - Mid-week Teaching session delivered via Facebook - Prayer meeting on Zoom on Friday morning. - Charitable giving (at home) - Support for overseas mission - Training events and leadership courses (on Zoom) - CAR (Community Action Project): - Delivering food hampers - Providing autism packs to children - Distributing children’s activity packs - Making social phone calls to those isolating - Distribution of Christmas hampers. Page 4 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021** ## **Objectives and activities (continued)** ## **d. Volunteers** The Church leaders recognise the wonderful contribution made by volunteers during the pandemic. They worked tirelessly and consistently during the lockdowns to make sure isolating people had food and someone to talk to on the telephone. These volunteers care about our community and want to make people’s lives better by sharing the love of God and meeting needs. They sacrifice their time, talents, and finances to do so. It is estimated that the Church benefited by hundreds of hours voluntary service each week during the pandemic and more than 70 volunteers were involved. These volunteer hours are invaluable and without them the Church would be greatly impoverished. Thank you very much. These are the main areas they worked in when the Church was open for “in person” services: - Stewarding and welcome - Music team - Various ministry teams – preaching, prayer, offering etc. - Church Council, Planning; and - Leading Virtual Pastoral Groups Volunteers who worked for the CAR Project: - Taking phone calls for help - Procuring food - Preparing food - Packing hampers - Delivering hampers - Preparing autism and children’s activity packs - Leading and managing the project - Administration ## **Achievements and performance** ## **a. Main achievements of the company** 2020 - 2021, the main activities undertaken for the public benefit in relation to our charitable purposes were: - ## **1. Community Action Response** The new merged charity called “Lifespring Church and Centre” carried on the work of Lifespring in the Dukeries and the work carried out by Lifespring Centre, including the cafe. However, the café stayed closed due to COVID 19. The building remained available as a response centre for COVID 19 and the work of the Community Action Response (CAR for short) continued unabated. This project was replicated in our building in Church Warsop, and the project served towns and villages across the north of Nottinghamshire – all within our catchment area. This work: - Provided emergency food hampers for those in crisis due to COVID 19. - Supported the lonely, isolated and those with mental health problems through phone-to-phone support and mental health packs and supported “walk outs”. Page 5 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021** ## **Achievements and performance (continued)** - Signposted to professional agencies where that was deemed necessary. The project worked with up to 70 volunteers and distributed 130,000 meals between 23 March 2020 and 31 March 2021. We received strong support from Nottinghamshire County Council, our local Councillor Mike Pringle, the Town Hall in Ollerton and local people and organisations. In Warsop, the support from Mansfield District Council and local councillors and organisations was very much appreciated. We had a plan at the beginning, but the changing nature of the pandemic meant we had to be flexible and respond to emerging needs. For example, it became clear the mental health was a major issue, so we had to respond accordingly by creating mental health packs and involving other professional organisations where appropriate. Children in lockdown posed another challenge as did parents with autistic children, so we developed the appropriate resources that could be dropped off. ## **2. Make Lunch** The Make Lunch project is a nationwide initiative offering a free hot meal to children from low-income families during the school holidays. This project has been running at Lifespring since 2014. Since families were unable to come into the Church Centre, Make Lunch was integrated with the CAR project so that families still received food through our delivery service. ## **3. Christmas** Hampers and Christmas Hampers: In December 2020, we distributed 153 Christmas Hampers to people in special circumstances and 30 to the homeless in Mansfield. Toys for Children: We worked in conjunction with #MissionChristmas to ensure that children in our local area who were referred by local organisations, received a toy and did not go without. We worked in partnership with local agencies such as Social Services, to ensure that the most vulnerable families were provided for. ## **4. Gas & Electric Payments** We continued to support several families with Gas and Electric grants donated by our Turnaround Charity shops. ## **5. Charity Shops (Turnaround)** Our two Charity shops opened when permitted to do so by Government guidelines. They provide donated quality goods at a very affordable price, especially for families on low incomes. - The shops serve as a contact point for the community. - They provide opportunities for people to serve the community. - They create wealth for local and overseas causes. The Trustees received regular reports concerning the performance of the shops and were very encouraged. The shops were able to continue to pay the rent and overheads during lockdown thanks to government grants from Newark and Sherwood District Council. Page 6 ## **LIFESPRING CHURCH AND CENTRE** ## **(a company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021** ## **Achievements and performance (continued)** ## **6. Warsop Congregation** The congregation at Warsop continued to meet when permitted on Wednesday afternoons for Worship and Word **.** ## **7. In other Events:** - Joy Troop and Derrick Simpson were appointed to the Church Council on 8 September 2020. - The Church Council agreed to open a new savings account with Kingdom Bank. The balance from the old account to be transferred to the new one. - The Church Council discussed the COVID risk assessment for the Church building and Charity shops several times as the situation changed during year. On each occasion, the Church followed Government guidance. - Reviewed the process for appointing a Senior Leader with a view to future appointments. - Monitored carefully the income and expenditure of the church at each meeting to ensure that the church remained sustainable during this difficult period. ## **b. Fundraising activities and income generation** Lifespring Church and Centre is very careful and sensitive in how we raise funds. We do not employ or work with professional fundraisers, nor do we solicit donations on the street, via phone calls or letters. We invite those who are part of our church to support the work and where a person is not able to financially support the work we respect this. ## **Financial review** ## **a. Going concern** After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies. ## **b. Reserves policy** The trust carries reserves sufficient to ensure that it has funds available to enable it to meet its aims and objectives. The trustees have examined the charity's requirements for reserves in light of the main risks to the organisation. It has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be three months of expenditure. The reserves are needed to meet the working capital requirements of the charity and the Management Committee are confident that at this level they would be able to continue the current activities of the charity in the event of a significant drop in funding. ## **c. Principal risks and uncertainties** The company has adopted the policies of internal controls recommended in the Charity Commission's Booklet CCS "Internal Financial Controls for Charities" wherever possible, and relevant action is taken to address any risks that are highlighted. Page 7 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021** ## **Structure, governance and management** ## **a. Constitution** Lifespring Church and Centre is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association. ## **b. Methods of appointment or election of trustees** The management of the company is the responsibility of the trustees who are elected and co-opted under the terms of the Memorandum of Association. New trustees are nominated by the existing trustees. ## **c. Organisational structure and decision-making policies** During the year, Lifespring had one full time employed worker – the Pastor and a part time Assistant Pastor as well as an Administrator. All other workers at Lifespring are volunteers and none of the volunteers received payment for running any of the mentioned groups. ## **d. Policies adopted for the induction and training of trustees** The chair of the trustees is responsible for the induction of any new trustees. This involves awareness of trustee responsibilities, the governing document, administrative procedures, the history and philosophical approach to the organisation. A new trustee would receive a copy of the previous year's financial statements together with a copy of the Charity Commission leaflet "The Essential Trustee: What You Need To Know". ## **e. Pay policy for key management personnel** The trustees make recommendations for the salary scales for all staff and for specific salaries on those scales for senior staff. The trustees consider the recommendations for any individuals in their absence. ## **f. Related party relationships** The charity owns 100% of the issued share capital of Oasis Cafe Ollerton Limited, the trading subsidiary that was set up to provide the cafe facility at the church. ## **g. Financial risk management** The trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. Page 8 ## **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021** ## **Plans for future periods** The charity will continue to serve the needs of the people of Ollerton and Warsop. The Leaders continue to steer the Churches through the pandemic and bring the congregations back together. We aim to relaunch small groups, youth and children’s work and reopen the café. We will continue to expand the work of the Church, both spiritually and socially and we are looking particularly at developing further the work in Church Warsop. I am delighted to be part of such a thriving and productive ministry and Church. Every blessing in Christ, Approved by order of the members of the board of trustees on 3 September 2021 and signed on their behalf by: **M G Phillips** (Chair of Trustees) Page 9 **LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)** ## **INDEPENDENT EXAMINER'S REPORT FOR THE PERIOD ENDED 31 MARCH 2021** ## **Independent examiner's report to the trustees of Lifespring Church and Centre ('the company')** I report to the charity trustees on my examination of the accounts of the company for the period ended 31 March 2021. ## **Responsibilities and basis of report** As the trustees of the company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** Since the company'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 ICAEW, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. 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. This report is made solely to the company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the company's trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's trustees as a body, for my work or for this report. Signed: Jonathan Wilson Dated: 6 September 2021 Chartered Accountant Mansfield Page 10 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE PERIOD ENDED 31 MARCH 2021** |**Note**
**Income from:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
**Total income**
**Expenditure on:**
Raising funds
7
Charitable activities
8
**Total expenditure**
**Net income**
Transfers between funds
19
**Net movement in funds**
**Reconciliation of funds:**
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
**755,771**
**9,874**
**21,117**
**2**
**786,764**
**15,598**
**67,482**
**83,080**
**703,684**
**(13,236)**
**690,448**
**690,448**
**690,448**|**Restricted**
**funds**
**2021**
**£**
**-**
**90,731**
**-**
**-**
**90,731**
**-**
**37,267**
**37,267**
**53,464**
**13,236**
**66,700**
**66,700**
**66,700**|**Total**
**funds**
**2021**
**£**
**755,771**
**100,605**
**21,117**
**2**| |---|---|---|---| ||||**877,495**| ||||**15,598**
**104,749**| ||||**120,347**| ||||**757,148**
**-**| ||||**757,148**| ||||**757,148**| ||||**757,148**| The Statement of financial activities includes all gains and losses recognised in the period. The notes on pages 15 to 33 form part of these financial statements. Page 11 **(a company limited by guarantee) REGISTERED NUMBER: 12323109** ## **LIFESPRING CHURCH AND CENTRE** ## **BALANCE SHEET AS AT 31 MARCH 2021** |**Note**
**Fixed assets**
Tangible assets
12
Investments
13
**Current assets**
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one year
16
**Net current assets**
Creditors: amounts falling due after more than one year
17
**Total net assets**
**Charity funds**
Restricted funds
19
Unrestricted funds
19
**Total funds**|**2,000**
**4,596**
**142,257**
**148,853**
**(7,457)**|**2021**
**£**
**721,480**
**1**
**721,481**
**141,396**
**(105,729)**
**757,148**
**66,700**
**690,448**
**757,148**| |---|---|---| Page 12 **LIFESPRING CHURCH AND CENTRE (a company limited by guarantee) REGISTERED NUMBER: 12323109** ## **BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021** The company was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit for the period in question in accordance with section 476 of Companies Act 2006. The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the trustees on 03 September 2021 and signed on their behalf by: ## **M G Phillips** (Chair of Trustees) The notes on pages 15 to 33 form part of these financial statements. Page 13 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 MARCH 2021** |**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Cash flows from financing activities**
Cash inflows from new borrowing
Repayments of borrowing
Bank loan interest
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the period**
Cash and cash equivalents at the beginning of the period
**Cash and cash equivalents at the end of the period**
The notes on pages 15 to 33 form part of these financial statements|**2021**
**£**
**765,591**
**(730,959)**
**(730,959)**
**109,087**
**(3,731)**
**2,269**
**107,625**
**142,257**
**-**
**142,257**| |---|---| Page 14 **LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **1. Accounting policies** ## **1.1 Basis of preparation of financial statements** The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Lifespring Church and Centre 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. ## **1.2 Going concern** At the date of signing there is a degree of uncertainty about the economic impact of COVID-19. The trustees continue to monitor the position closely however they believe that the charity will return to its current level of activity and they therefore continue to adopt the going concern basis. ## **1.3 Income** All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. ## **1.4 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Expenditure on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. Page 15 **LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **1. Accounting policies (continued)** ## **1.4 Expenditure (continued)** Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. ## **1.5 Government grants** Government grants relating to tangible fixed assets are treated as deferred income and released to the statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the statement of financial activities as the related expenditure is incurred. ## **1.6 Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. ## **1.7 Tangible fixed assets and depreciation** Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following bases: |Freehold property|- 2% straight line| |---|---| |Fixtures and fittings|- 20% or 1/3 straight line| ## **1.8 Investments** Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the statement of financial activities. Investments in subsidiaries are valued at cost less provision for impairment. Page 16 **LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **1. Accounting policies (continued)** ## **1.9 Stocks** Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. ## **1.10 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. ## **1.11 Cash at bank and in hand** Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **1.12 Liabilities and provisions** Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost. ## **1.13 Financial instruments** The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **1.14 Operating leases** Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the lease term. ## **1.15 Pensions** The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the period. Page 17 **LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **1. Accounting policies (continued)** ## **1.16 Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. ## **1.17 Concessionary loans** The company has taken advantage of Section 34 of FRS102 to recognise loans to and from public benefit entities as concessionary loans. As such the company initially recognises and measures the loan at the amount receivable, in the balance sheet. In subsequent years, the carrying value is adjusted to reflect repayments and any accrued interest, where applicable and adjusted if necessary for any impairment. ## **2. General information** Lifespring Centre and Centre is a company limited by guarantee, registered in England and Wales, registration number 12323109 and a charitable company registered with The Charity Commission, registration number 1187584. Page 18 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **3. Income from donations and legacies** |**Unrestricted**
**funds**
**2021**
**£**
**Donations**
Donated from Lifespring in the Dukeries and Lifespring Centre
717,468
Offerings
24,019
Ghana donations
350
Gift Aid
588
Special offerings
7,361
CJRS income
5,985
755,771|**Total**
**funds**
**2021**
**£**
**717,468**
**24,019**
**350**
**588**
**7,361**
**5,985**| |---|---| ||**755,771**| ## **4. Income from charitable activities** |**Unrestricted**
**funds**
**2021**
**£**
CAR income
-
Active Partners income
-
Church activities
3,423
Church events
1,000
Other church income
3,052
Miscellaneous church income
1,789
Solar panels income
610
9,874|**Restricted**
**funds**
**2021**
**£**
83,331
7,400
-
-
-
-
-
90,731|**Total**
**funds**
**2021**
**£**
**83,331**
**7,400**
**3,423**
**1,000**
**3,052**
**1,789**
**610**| |---|---|---| |||**100,605**| Page 19 **LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **5. Income from other trading activities** ## **Income from fundraising events** |**Unrestricted**
**funds**
**2021**
**£**
Turnaround charity shops
11,180
Room hire and associated income
7,677
Sales
860
Fundraising
1,400
21,117|**Total**
**funds**
**2021**
**£**
**11,180**
**7,677**
**860**
**1,400**| |---|---| ||**21,117**| ## **6. Investment income** ||**Total**| |---|---| ||**funds**| ||**2021**| ||**£**| |Investment income - local cash|**2**| Page 20 **LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **7. Expenditure on raising funds** ## **Turnaround shops expenditure** |**Unrestricted**
**funds**
**2021**
**£**
Premises and maintenance costs
15,127
Operational costs
267
Administration costs
204
15,598|**Total**
**funds**
**2021**
**£**
**15,127**
**267**
**204**| |---|---| ||**15,598**| Page 21 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **8. Analysis of charitable expenditure** |Direct costs
**Analysis of direct costs**
Staff costs
Depreciation
CAR expenses
Active Partners expenses
Premises and maintenance costs
Overseas and other support costs
Activity costs
Affiliation costs
Administration costs
Training costs
Other expenditure|**Activities**
**undertaken**
**directly**
**2021**
**£**
95,519|**Support**
**costs**
**2021**
**£**
9,230|**Total**
**funds**
**2021**
**£**
**104,749**| |---|---|---|---| ||||**Total**
**funds**
**2021**
**£**
**23,711**
**9,478**
**34,267**
**3,000**
**12,413**
**4,438**
**2,367**
**2,349**
**2,284**
**432**
**780**| ||||**95,519**| Page 22 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **8. Analysis of charitable expenditure (continued)** ## **Analysis of support costs** |Independent examiner fees
Legal fees
Morgage interest
Website costs
Office costs|**Total**
**funds**
**2021**
**£**
**2,474**
**3,390**
**2,269**
**540**
**557**| |---|---| ||**9,230**| ## **9. Independent examiner's remuneration** ||**2021**| |---|---| ||**£**| |Fees payable to the company's independent examiner for the independent examination of|| |the company's annual accounts|**1,800**| |Fees payable to the company's independent examiner in respect of:|| |All other services not included above|**674**| Page 23 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **10. Staff costs** |||**2021**| |---|---|---| |||**£**| |Wages and salaries||**23,536**| |Contribution to defined contribution pension schemes||**175**| |||**23,711**| |The average number of persons employed by the company during the period was as follows:||| |||**2021**| |||**No.**| |Charitable activities||**4**| |No employee received remuneration amounting to more than £60,000 in either year.||| Key management are the charity's trustees and the disclosure of their remuneration is given in note 11, ## **11. Trustees' remuneration and expenses** During the period, one or more trustees has been paid remuneration or has received other benefits from an employment with the company. The remuneration or other benefits were paid in respect of their employment by the company under a legal authority 6)(g)(ii) in the company's Memorandum of Association. The value of trustees' remuneration and other benefits was as follows: |||**2021**| |---|---|---| |||**£**| |M G Phillips|Remuneration|**11,711**| |E Phillips|Remuneration|**5,559**| ||Pension contributions paid|**175**| |C M T M Northey|Remuneration|**5,145**| During the period ended 31 March 2021, no trustee expenses have been incurred. Page 24 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **12. Tangible fixed assets** |**Cost or valuation**
Additions
At 31 March 2021
**Depreciation**
Charge for the period
At 31 March 2021
**Net book value**
At 31 March 2021|**Freehold**
**property**
**£**
**713,933**
**713,933**
**8,329**
**8,329**
**705,604**|**Fixtures and**
**fittings**
**£**
**17,025**
**17,025**
**1,149**
**1,149**
**15,876**|**Total**
**£**
**730,958**| |---|---|---|---| ||||**730,958**| ||||**9,478**| ||||**9,478**| ||||**721,480**| The total potential liability owed to the secured creditors at 31 March 2021 amounted to £107,625 which represents 14.92% of the net book value of the tangible fixed assets at that date. ## **13. Fixed asset investments** |**Cost or valuation**
At 31 March 2021
**Net book value**
At 31 March 2021|**Trade**
**investments**
**£**| |---|---| ||**1**| ||**1**| Page 25 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **14. Stocks** ||**2021**| |---|---| ||**£**| |Finished goods and goods for resale|**2,000**| ## **15. Debtors** |**Due within one year**
Trade debtors
Concessionary loans
Other debtors
Grants receivable|**2021**
**£**
**192**
**3,000**
**577**
**827**| |---|---| ||| ||**4,596**| ## **16. Creditors: amounts falling due within one year** |Bank loans
Trade creditors
Other creditors
Accruals and deferred income|**2021**
**£**
**1,896**
**485**
**918**
**4,158**| |---|---| ||| ||**7,457**| The loan from Kingdom Bank, the aggregate of which amounts to £107,625 is secured on the freehold property by way of a fixed and floating charge. Page 26 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **17. Creditors: amounts falling due after more than one year** |Bank loans
Included within the above are amounts falling due as follows:
**Between one and two years**
Bank loans
**Between two and five years**
Bank loans
**Over five years**
Bank loans|**2021**
**£**
**105,729**| |---|---| ||**2021**
**£**
**1,896**| ||**5,688**| ||**98,145**| |The aggregate amount of liabilities payable or repayable wholly or in|part more than five years after the| |---|---| |reporting date is:|| ||**2021**| ||**£**| |Payable or repayable by instalments|**98,145**| The loan from Kingdom Bank is repayable over 26 years 11 months starting in March 2020 at a monthly amount of £532.96 and the interest rate chargeable is 3.75%. The loan from Kingdom Bank, the aggregate of which amounts to £107,625 is secured on the freehold property by way of a fixed and floating charge. Page 27 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **18. Financial instruments** |**Financial assets**
Financial assets measured at fair value through income and expenditure
**Financial liabilities**
Other financial liabilities measured at fair value through income and expenditure|**2021**
**£**
**142,257**| |---|---| ||**2021**
**£**
**107,625**| Financial assets measured at fair value through income and expenditure comprise the bank and cash balances. Other financial liabilities measured at fair value through income and expenditure comprise the loan finance provided by Kingdom Bank. The loan is repayable over 26 years 11 months starting in March 2020 at a monthly amount of £532.96 and the interest rate chargeable is 3.75%. The aggregate amounts to £107,625 is secured on the freehold property by way of a fixed and floating charge. Page 28 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **19. Statement of funds** ## **Statement of funds - current period** |**Unrestricted funds**
**Designated funds**
Freehold Property Fund
Warsop contribution to wages
Ladies Ministry
Boys Brigade
Community Fund CAR
Warsop Hampers
Denise Morgan Fund
Warsop Make Lunch CAR
Warsop Youth and Children
Vision
Freedom Cafe - Warsop
Weddings and Party Money
Memory Cafe
Make Lunch CAR
Oasis Hub
**General funds**
General Fund
**Total Unrestricted funds**|**Income**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**786,764**
**786,764**|**Expenditure**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**(83,080)**
**(83,080)**|**Transfers**
**in/out**
**£**
**597,979**
**1,515**
**229**
**955**
**272**
**20**
**50**
**360**
**397**
**6,951**
**200**
**2,312**
**712**
**800**
**1,683**
**614,435**
**(627,671)**
**(13,236)**|**Balance at**
**31 March**
**2021**
**£**
**597,979**
**1,515**
**229**
**955**
**272**
**20**
**50**
**360**
**397**
**6,951**
**200**
**2,312**
**712**
**800**
**1,683**| |---|---|---|---|---| |||||**614,435**| |||||**76,013**| |||||**690,448**| Page 29 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **19. Statement of funds (continued)** |**Restricted funds**
CAR project
Active Partners project
**Total of funds**|**Income**
**£**
**83,331**
**7,400**
**90,731**
**877,495**|**Expenditure**
**£**
**(34,267)**
**(3,000)**
**(37,267)**
**(120,347)**|**Transfers**
**in/out**
**£**
**13,236**
**-**
**13,236**
**-**|**Balance at**
**31 March**
**2021**
**£**
**62,300**
**4,400**| |---|---|---|---|---| |||||**66,700**| |||||**757,148**| Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objects of the charity. The Freehold Property Fund represents the amount of charity funds locked up in freehold property held for operational purposes, and is equivalent to its year-end book amount less the loans outstanding on the freehold properrty. This fund is unwound by transfers to the General Fund to reflect usage on an annual basis. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. ## **20. Analysis of net assets between funds** ## **Analysis of net assets between funds - current period** |**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
721,480
Trade investments
1
Current assets
82,153
Creditors due within one year
(7,457)
Creditors due in more than one year
(105,729)
690,448|**Restricted**
**funds**
**2021**
**£**
-
-
66,700
-
-
66,700|**Total**
**funds**
**2021**
**£**
**721,480**
**1**
**148,853**
**(7,457)**
**(105,729)**| |---|---|---| |||**757,148**| Page 30 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **21. Reconciliation of net movement in funds to net cash flow from operating activities** |Net income for the period (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
(Increase) in debtors
Increase in creditors
**Net cash provided by operating activities**|**2021**
**£**
**757,148**| |---|---| ||**9,478**
**(6,596)**
**5,561**| ||| ||**765,591**| |**22.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**23.**
**Analysis of changes in net debt**|**2021**
**£**
**142,257**| |---|---| ||| ||**142,257**| ||| |Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year|**Cash flows**
**£**
**142,257**
**(1,896)**
**(105,729)**
**34,632**|**At 31 March**
**2021**
**£**
**142,257**
**(1,896)**
**(105,729)**| |---|---|---| |||**34,632**| Page 31 **LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **24. Pension commitments** The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £175. £67 was payable to the fund at the balance sheet date and is included in creditors. ## **25. Operating lease commitments** At 31 March 2021 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows: |Later than 1 year and not later than 5 years
Later than 5 years|**2021**
**£**
**4,023**
**42,720**| |---|---| ||| ||**46,743**| The following lease payments have been recognised as an expense in the statement of financial activities: ||**2021**| |---|---| ||**£**| |Operating lease rentals|**13,673**| |Changes in lease payments arising from COVID-19 related rent concessions|**-**| ## **26. Members' liability** Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member. ## **27. Related party transactions** During the period the charity has received £3,500 for service charges for use of the freehold property from Oasis Cafe Ollerton Limited, the company's trading subsidiary. There is an amount of £5,000 owing to the company at 31 March 2021 from the trading subsidiary. There are no further related party transactions that require disclosure apart from those given above. Page 32 **LIFESPRING CHURCH AND CENTRE** **(a company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021** ## **28. Merger of charities** The charity was created as a result of the merger between two related charities, Lifespring in the Dukeries and Lifespring Centre on 31 August 2020. Page 33