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2022-03-31-accounts

Registered number: 12323109 Charity number: 1187584

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

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
Trustees' report 3 - 8
Independent examiner's report 9
Statement of financial activities 10
Balance sheet 11 - 12
Notes to the financial statements 13 - 34

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees M G Phillips, Vice Chair
C M T M Northey, Treasurer
E Phillips, Chair
B Whitworrh
C Maddison
J Troop
D A Simpson
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
E 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 YEAR ENDED 31 MARCH 2022

The chairman presents his statement for the year.

The arrival of COVID-19 in March 2020 marked the beginning of an extremely difficult for the world and Church. The last two years have been the most difficult and challenging years in the history of the church.

During this financial year, church life and activities returned to normal as soon as the government withdrew pandemic legislation in July. Up to that point our services and activities were all COVID-19 compliant. We socially distanced, face coverings were obligatory, we adopted a one-way system and hand washing and sanitisation points were available throughout the building.

“In-person” Church services were held at Sherwood Drive in New Ollerton and at Church Warsop. Most people returned to church, but many did not attend as frequently as before the pandemic. Therefore, Sunday service attendance declined somewhat. Our Service continued to go out on “Facebook Live”. The congregation in Church Warsop suffered the most, and Sunday meetings were discontinued at the end of the accounting period with the aim of starting a new congregation as soon as conditions were more favourable again.

All the groups who had rented the Centre returned and we managed to secure some funding from Nottinghamshire County Council to incentivise groups to come back. The Oasis Café reopened in October 2021 when it was safe again. During the pandemic we decided to convert the café from a trade-only café to a training café for people with special needs. We had five students in training, two paid members of staff and eight volunteers.

Our aim this year has been to help those in need in our community by continuing to run a food bank (CAR Project) and working with councils, schools, local community groups and agencies. The project has a manager and eleven volunteers and is open on Mondays, Wednesdays and Fridays. The group from St Michael's Church, Farnsfield, have been brilliant in their support. We were funded for the year by Nottinghamshire County Council.

The leases for our two charity shops were renewed in June for six years, with a break every two years. Mike Phillips stepped down from the role of Senior Leadership and the role of Chairperson in June 2021. The Church Council established a procedure for the appointment of a new Senior Leader. The Council followed the procedure and carried out due diligence and I (Liz Phillips) was appointed as the new Senior Leader on 10 March 2021. I was formally inducted into my new role on 4 July 2021. The Church Council offered Mike the position of Assistant Minister.

I am pleased to report that the church was in a healthy position at the end of the accounting period. This is due to the fact that we have a number of revenue streams, all of which were brought back into operation when the government regulations were withdrawn. The Furlough scheme, the Sunday offerings, the income from Gift Aid, income from renting out the Centre and the income from the Charity shops all contributed to the church being in a stable position at the end of the accounting period. Furlough finished at the end of September 2021 and the Church was in a position to meet all its commitments.

I want to say a special thank you to all our volunteers who are the true “heroes” of the work we do.

E Phillips - Chairperson Date: 27 September 2022

Page 2

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022

The trustees present their annual report together with the financial statements of the company for the year from 1 April 2021 to 31 March 2022. 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

c. Activities undertaken to achieve objectives

Page 3

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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. They continue to fulfil this role now that the government restrictions have been lifted. 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:

Volunteers who worked for the CAR Project:

Achievements and performance

a. Main achievements of the company

2021 - 2022, the main activities undertaken for the public benefit in relation to our charitable purposes were: -

  1. Community Action Response

The CAR project continues to respond to the impacts of COVID -19 that continue to be felt in the community. This project served towns and villages in North Nottinghamshire - all in our catchment area. The Methodist Food Bank, which had been a valuable resource for the community for ten years, closed. The CAR project continued to supply their clients. Nottinghamshire County Council and Coalfields Regeneration Trust provided funding. Food donations from the community were high and the project was able to meet the high demand.

This work provided food hampers for people in crisis due to the ongoing impact of COVID 19. It supported lonely, isolated people and people with mental health problems through telephone support and mental health packages in addition to food hampers. The project signposted to professional services when deemed necessary.

The project worked with up to 30 volunteers and distributed 70,000 meals between 1 April 2021 and 31 March

Page 4

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (continued)

2022.

We received strong support from Nottinghamshire County Council and Coalfields Regeneration Trust, both of whom provided financial support. We were also supported by our local Councillor Mike Pringle, Ollerton Town Hall and local residents and organisations. In Warsop, support from Mansfield District Council and local councillors and organisations was very welcome.

2. Make Lunch

The Make Lunch project is a nationwide initiative that provides a free hot meal to children from low-income families during the school holidays. This project has been running at Lifespring since 2014. Families were unable to come to the Church Centre during COVID -19, but as the year progressed the situation normalised, and the project ran on Tuesdays at Church Warsop and Wednesdays at Ollerton. On the days that Make Lunch was open, an average of 25 children were looked after.

3. Christmas

In December 2021 we distributed 200 Christmas hampers to people in special circumstances. The ROB (Recycling Ollerton and Boughton) was a fantastic help in providing trucks and volunteers to deliver the hampers. Fifteen volunteers organised and packed all the hampers in one day.

4. 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.

5. Gas & Electric Payments

We continued to support several families with Gas and Electric grants donated by our Turnaround Charity shops.

6. 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 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.

7. Community Cafe

Oasis Café Ollerton Limited is a subsidiary company of Lifespring Church and Centre. The Café is a training centre for people with learning disabilities and disadvantaged persons within a realistic working environment. The Cafe offers work placements and teaches skills in independent living.

Page 5

(a company limited by guarantee)

LIFESPRING CHURCH AND CENTRE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (continued)

Church Council Matters

During the year, the Church Council:

  1. Carefully monitored the income and expenditure of the church at each meeting to ensure that the church remained sustainable during this difficult period.

  2. Looked carefully at projected budgets and cash flow to make sure the Council was able to meet the salary levels agreed for employed staff.

  3. Drew up contracts of employment for all four paid members of staff and agreed the salary levels for them.

  4. Employed Mike Phillips as Associate Pastor on 16 hours per week and Sarah Troop in the café on 16 hours per week.

  5. Agreed two new leases for the Charity shops.

  6. Reviewed the COVID-19 risk assessment.

  7. Liaised with Mansfield District Council about the possibility of an asset transfer of a disused Community Centre in Church Warsop and we reached an agreement in principle to buy the property for £1.00. We raised £3500 towards a feasibility study and paid an architect £735 for the pre-feasibility costs. However, news came through recently that the Centre was vandalised and burnt down. The project is on hold waiting to see what Mansfield District Council want to do.

  8. Established a sub-committee to look especially at finances

  9. Agreed a Financial Manual and Procedures document.

  10. Agreed various donations to good causes from the profits of the Charity shops.

  11. Agreed to have CCTV installed in our Charity shop at Clipstone.

  12. Monitored Health and Safety and maintenance of all equipment.

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.

Page 6

(a company limited by guarantee)

LIFESPRING CHURCH AND CENTRE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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.

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. When the café opened in October the Trustees employed a café manager. 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 give serious consideration to the recommendations made by the Assemblies of God salaries committee. 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 7

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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 to bring the congregations back together following the pandemic. We aim to relaunch small groups in September and take on a Families and Community worker as soon as possible. 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 27 September 2022 and signed on their behalf by:

E Phillips

(Chair of Trustees)

Page 8

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2022

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 year ended 31 March 2022.

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

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: 4 October 2022

Chartered Accountant

Mansfield

Page 9

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Receipt of related charities' net assets
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net income/(expenditure)
Transfers between funds
20
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
75,523
10,398
99,238
9
-
185,168
33,855
126,575
160,430
24,738
23,584
48,322
690,448
48,322
738,770		 Restricted
funds
2022
£
-
24,691
-
-
-
24,691
-
42,514
42,514
(17,823)
(23,584)
(41,407)
66,700
(41,407)
25,293		 Total
funds
2022
£
75,523
35,089
99,238
9
-
209,859
33,855
169,089
202,944
6,915
-
6,915
757,148
6,915
764,063		 Total
funds
2021
£
38,303
100,605
21,117
2
717,468
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 year.

The notes on pages 13 to 34 form part of these financial statements.

Page 10

(a company limited by guarantee) REGISTERED NUMBER: 12323109

LIFESPRING CHURCH AND CENTRE

BALANCE SHEET AS AT 31 MARCH 2022

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
Net current assets
Creditors: amounts falling due after more
than one year
18
Total net assets
Charity funds
Restricted funds
20
Unrestricted funds
20
Total funds		 1,000
4,415
171,952
177,367
(14,973)		 2022
£
704,371
1
704,372
162,394
(102,703)
764,063
25,293
738,770
764,063		 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 11

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee) REGISTERED NUMBER: 12323109

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022

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 year 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 27 September 2022 and signed on their behalf by:

E Phillips (Chair of Trustees)

The notes on pages 13 to 34 form part of these financial statements.

Page 12

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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 maintain 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.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

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.

Page 13

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.4 Expenditure (continued)

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.

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 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.

1.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £100 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

1.7 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.

1.8 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.

Page 14

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.9 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.

1.10 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.

1.11 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.

1.12 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.

1.13 Operating leases

Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

1.14 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 year.

Page 15

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.15 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.

1.16 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 16

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

3. Income from donations and legacies

Unrestricted
funds
2022
£
Donations
Offerings
43,668
Ghana donations
600
Gift Aid
18,635
Special offerings
1,075
Grants
CJRS income
4,875
Newark and Sherwood - Restart Grant
6,670
75,523
Total 2021
38,303		 Total
funds
2022
£
43,668
600
18,635
1,075
4,875
6,670
75,523
38,303		 Total
funds
2021
£
24,019
350
588
7,361
5,985
-
38,303

4. Income from charitable activities

Unrestricted
funds
2022
£
CAR income
-
Active Partners income
-
Church activities
2,970
Church events
5
Other church income
6,070
Miscellaneous church income
127
Solar panels income
829
Chetwode Foundation
-
Sundry income
397
10,398
Total 2021
9,874		 Restricted
funds
2022
£
21,191
-
-
-
-
-
-
3,500
-
24,691
90,731		 Total
funds
2022
£
21,191
-
2,970
5
6,070
127
829
3,500
397
35,089
100,605		 Total
funds
2021
£
83,331
7,400
3,423
1,000
3,052
1,789
610
-
-
100,605

Page 17

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

5. Income from other trading activities

Income from fundraising events

Unrestricted
funds
2022
£
Turnaround charity shops
63,043
Room hire and associated income
32,795
Sales
-
Fundraising
3,400
99,238
Total 2021
21,117		 Total
funds
2022
£
63,043
32,795
-
3,400
99,238
21,117		 Total
funds
2021
£
11,180
7,677
860
1,400
21,117

6. Investment income

Unrestricted
funds
2022
£
Investment income - local cash
9
Total 2021
2		 Total
funds
2022
£
9
2		 Total
funds
2021
£
2

Page 18

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. Receipt of related charities' net assets

Receipt of related charities' net assets
Total 2021		 Unrestricted
funds
2022
£
-
717,468		 Total
funds
2022
£
-
717,468		 Total
funds
2021
£
717,468

This relates to the transfer of net assets on the merger of Lifespring in the Dukeries and Lifespring Centre on 31 August 2020.

This comparative has been separately analysed out to highlight the exceptional nature of the above transaction.

8. Expenditure on raising funds

Turnaround shops expenditure

Unrestricted
funds
2022
£
Premises and maintenance costs
30,092
Operational costs
3,013
Administration costs
750
33,855
Total 2021
15,598		 Total
funds
2022
£
30,092
3,013
750
33,855
15,598		 Total
funds
2021
£
15,127
267
204
15,598

Page 19

(a company limited by guarantee)

LIFESPRING CHURCH AND CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

9. Analysis of charitable expenditure

Direct costs
Total 2021		 Activities
undertaken
directly
2022
£
162,059
95,519		 Support
costs
2022
£
7,030
9,230		 Total
funds
2022
£
169,089
104,749		 Total
funds
2021
£
104,749

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
Chetwode Foundation costs
Promotional materials		 Total
funds
2022
£
46,148
17,891
40,963
816
24,344
12,723
5,482
3,521
6,243
1,383
1,330
735
480
162,059		 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 20

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

9. Analysis of charitable expenditure (continued)

Analysis of support costs

Independent examiner fees
Legal fees
Morgage interest
Website costs
Office costs		 Total
funds
2022
£
1,880
855
3,973
322
-
7,030		 Total
funds
2021
£
2,474
3,390
2,269
540
557
9,230

10. Independent examiner's remuneration

2022 2021
£ £
Fees payable to the company's independent examiner for the independent
examination of the company's annual accounts 1,500 1,800
Fees payable to the company's independent examiner in respect of:
All other services not included above 380 674

Page 21

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

11. Staff costs

2022
£
Wages and salaries
45,155
Contribution to defined contribution pension schemes
993
46,148
The average number of persons employed by the company during the year was as follows:
2022
No.
Charitable activities
4		 2021
£
23,536
175
23,711
2021
No.
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,

12. Trustees' remuneration and expenses

During the year, 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:

2022 2021
£ £
M G Phillips Remuneration 12,067 11,711
E Phillips Remuneration 22,738 5,559
Pension contributions paid 682 175
C M T M Northey Remuneration 9,307 5,145
Pension contributions paid 279 -

During the year ended 31 March 2022, expenses totalling £NIL were reimbursed or paid directly to trustee (2021 - £NIL).

Page 22

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13. Tangible fixed assets

Cost or valuation
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Freehold
property
£
713,933
-
713,933
8,329
14,279
22,608
691,325
705,604		 Fixtures and
fittings
£
17,025
782
17,807
1,149
3,612
4,761
13,046
15,876		 Total
£
730,958
782
731,740
9,478
17,891
27,369
704,371
721,480

The total potential liability owed to the secured creditors at 31 March 2022 amounted to £105,164 which represents 14.93% of the net book value of the tangible fixed assets at that date.

Page 23

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

14.
Fixed asset investments
Cost or valuation
At 1 April 2021
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
15.
Stocks
Finished goods and goods for resale
16.
Debtors
Due within one year
Trade debtors
Concessionary loans
Other debtors
Prepayments and accrued income
Tax recoverable
Grants receivable		 2022
£
1,000
2022
£
-
1,740
65
500
2,110
-
4,415		 Investments
in
subsidiary
companies
£
1
1
1
1
2021
£
2,000
2021
£
192
2,000
577
1,000
-
827
4,596

Page 24

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

17. Creditors: amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Resources deferred during the year		 2022
£
2,461
1,731
573
264
9,944
14,973
2022
£
6,300		 2021
£
1,896
485
-
918
4,158
7,457
2021
£
-

The loan from Kingdom Bank, the aggregate of which amounts to £105,164 is secured on the freehold property by way of a fixed and floating charge.

Page 25

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

18. 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		 2022
£
102,703
2022
£
2,461
7,383
92,859		 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:

2022 2021
£ £
Payable or repayable by instalments 92,859 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 £105,164 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 YEAR ENDED 31 MARCH 2022

19. 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		 2022
£
171,952
2022
£
105,164		 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 £105,164 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 YEAR ENDED 31 MARCH 2022

20. Statement of funds

Statement of funds - current year

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		 Balance at 1
April 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		 Income
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
185,168
185,168		 Expenditure
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(160,430)
(160,430)		 Transfers
in/out
£
(11,818)
(1,515)
(120)
(250)
(272)
(20)
(50)
(360)
(209)
88
-
(998)
4,781
(306)
4,096
(6,953)
30,537
23,584		 Balance at
31 March
2022
£
586,161
-
109
705
-
-
-
-
188
7,039
200
1,314
5,493
494
5,779
607,482
131,288
738,770

Page 28

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Statement of funds (continued)

Restricted funds
CAR project
Active Partners project
Chetwode Foundation
Total of funds		 Balance at 1
April 2021
£
62,300
4,400
-
66,700
757,148		 Income
£
21,191
-
3,500
24,691
209,859		 Expenditure
£
(40,963)
(816)
(735)
(42,514)
(202,944)		 Transfers
in/out
£
(23,584)
-
-
(23,584)
-		 Balance at
31 March
2022
£
18,944
3,584
2,765
25,293
764,063

Page 29

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Statement of funds (continued)

Statement of funds - prior year

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
Restricted funds
CAR project
Active Partners project		 Income
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
786,764
786,764
83,331
7,400
90,731		 Expenditure
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(83,080)
(83,080)
(34,267)
(3,000)
(37,267)		 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)
13,236
-
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
62,300
4,400
66,700

Page 30

(a company limited by guarantee)

LIFESPRING CHURCH AND CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Statement of funds (continued)

Total of funds 877,495 (120,347) - 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 property. 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.

Page 31

LIFESPRING CHURCH AND CENTRE

(a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
704,371
Fixed asset investments
1
Current assets
152,074
Creditors due within one year
(14,973)
Creditors due in more than one year
(102,703)
738,770
Analysis of net assets between funds - prior year
Unrestricted
funds
2021
£
Tangible fixed assets
721,480
Fixed asset 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
2022
£
-
-
25,293
-
-
25,293
Restricted
funds
2021
£
-
-
66,700
-
-
66,700		 Total
funds
2022
£
704,371
1
177,367
(14,973)
(102,703)
764,063
Total
funds
2021
£
721,480
1
148,853
(7,457)
(105,729)
757,148

Page 32

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

22. 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 £993 (2021 - £175). £264 (2021 - £67) was payable to the fund at the balance sheet date and is included in creditors.

23. Operating lease commitments

At 31 March 2022 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2022
£
29,114
-
29,114		 2021
£
4,023
42,720
46,743

The following lease payments have been recognised as an expense in the statement of financial activities:

2022 2021
£ £
Operating lease rentals 22,969 13,673
Changes in lease payments arising from COVID-19 related rent
concessions - -

24. 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.

25. Related party transactions

During the period the charity has received £6,000 for service charges for use of the freehold property from Oasis Cafe Ollerton Limited, the company's trading subsidiary.

There is an amount of £1,740 (2021 - £2,000) owing to the company at 31 March 2022 from the trading subsidiary.

There are no further related party transactions that require disclosure apart from those given above.

Page 33

LIFESPRING CHURCH AND CENTRE (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

26. 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.

27. Principal subsidiaries

The following was a subsidiary undertaking of the company:

Name Company Registered office or principal Principal activity
number place of business
Oasis Cafe Ollerton Limited 12503702 Sherwood Drive, New Ollerton, Cafe
Newark, Nottinghamshire, NG22
9PP.
Class of Holding
shares
Ordinary 100%

The financial results of the subsidiary for the year were:

Name Income Expenditure Profit/(Loss) Net assets
£ £ / Surplus/ £
(Deficit) for
the year
£
Oasis Cafe Ollerton Limited 37,962 29,017 8,945 8,946

Page 34