2022-12-31-accounts

Light and Life Free Methodist Church Lancashire

Charity No. 1197687

Trustees' Report and Unaudited Accounts

31 December 2022

Light and Life Free Methodist Church Lancashire Contents

	Pages
Trustees' Annual Report	3
Independent Examiner's Report	4
Statement of Financial Activities	5
Balance Sheet	6
Notes to the Accounts	7 to 11
Detailed Statement of Financial Activities	12 to 13

Page 1

Light and Life Free Methodist Church Lancashire Trustees Annual Report

The trustees present their report with the unaudited financial statements of the charity for the year ended 31 December 2022.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity No. 1197687

Principal Office

Gillow Green Stony Lane Clifton Hill Forton, Preston PR3 0AQ

Trustees

The following trustees served during the year:

D.J. Cronin B.C. Gregory G.M. Whitaker

Accountants

Kernow Accountancy Kernow House 17 Green Lane Penryn TR10 8QQ

OBJECTIVES AND ACTIVITIES

THE MAIN OBJECTS OF L&L ARE TO ADVANCE THE CHRISTIAN FAITH IN LANCASHIRE AND THE SURROUNDING AREA FOR THE BENEFIT OF THE PUBLIC IN PARTICULAR BUT NOT EXCLUSIVELY THROUGH THE HOLDING OF REGULAR WORSHIP, PRAYER MEETINGS, BIBLE STUDY/CHRISTIAN FELLOWSHIP GROUPS, PROVIDING PASTORAL CARE, AND CARRYING OUT OUTREACH THROUGH COMMUNITY-BASED EVENTS AND ACTIVITIES

Statement of trustees' responsibilities in relation to the financial statements

The charity trustees are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

Signed on behalf of the charity's trustees

G.M. Whitaker Trustee 02 November 2023

Page 2

Light and Life Free Methodist Church Lancashire Independent Examiners Report

Independent Examiner's Report to the trustees of Light and Life Free Methodist Church Lancashire

I report to the trustees on my examination of the financial statements of Light and Life Free Methodist Church Lancashire for the year ended 31 December 2022.

Responsibilities and basis of report

As the charity's trustees you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

• the accounting records were not kept in respect of the charity as required by section 130 of the Act; or

• the financial statements do not accord with those records; or

• the financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Kernow Accountancy Kernow House 17 Green Lane Penryn

TR10 8QQ 02 November 2023

Page 3

Light and Life Free Methodist Church Lancashire Statement of Financial Activities

for the year ended 31 December 2022

Notes Income and endowments from: Donations and legacies 2 Charitable activities 3 Total Expenditure on: Charitable activities 4 Other 6 Total Net gains on investments Net income Transfers between funds Net income before other gains/(losses) Other gains and losses Net movement in funds Reconciliation of funds: Total funds carried forward		Unrestricted funds	Total funds 2022 £ 47,986 26,935 74,921 19,515 21,950 41,465 - 33,456 - 33,456 33,456 33,456
		2022
		£
		47,986
		26,935
		74,921
		19,515
		21,950
		41,465
		-
		33,456
		-
		33,456
		33,456
		33,456

Page 4

Light and Life Free Methodist Church Lancashire Balance Sheet

at 31 December 2022

at 31 December 2022
Charity No. 1197687 Current assets Cash at bank and in hand Creditors:Amount falling due within one year 8 Net current assets Total assets less current liabilities Net assets excluding pension asset or liability Total net assets The funds of the charity Restricted funds 9 Unrestricted funds 9 General funds Reserves 9 Total funds	2022 £ 33,819
	33,819 (364)
	33,456 33,456
	33,456
	33,456
	33,456
	33,456
	33,456

Approved by the trustees on 02 November 2023

And signed on their behalf by:

G.M. Whitaker Trustee 02 November 2023

Page 5

Light and Life Free Methodist Church Lancashire Notes to the Accounts

for the year ended 31 December 2022

• 1 Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic if Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

• Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.

• Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.

• Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

Income

• Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.

• Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA.

• Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income.

• Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material.

Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 6

Light and Life Free Methodist Church Lancashire Notes to the Accounts

Expenditure

• Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.

• Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.

• Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.

• Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.

• Other expenditure These are support costs not allocated to a particular activity.

Taxation

The charity is exempt from tax on its charitable activities.

Freehold investment property

Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Trade and other debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Page 7

Light and Life Free Methodist Church Lancashire Notes to the Accounts

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.

All exchange differences are are taken into account in arriving at net income/expenditure.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the charity in independently administered funds.

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

• 2 Income from donations and legacies

Donations Gift Aid	Unrestricted £ 41,480 6,506 47,986	Total 2022 £ 41,480 6,506
		47,986

Page 8

Light and Life Free Methodist Church Lancashire Notes to the Accounts

3 Income from charitable activities

Charitable activities 4 Expenditure on charitable activities Expenditure on charitable activities Charitable activities Grants made Governance costs 5 Analysis of grants Activity or programme Missional giving Activity or programme Missional giving 6 Other expenditure Employee costs Motor and travel costs General administrative costs	Unrestricted £ 26,935 26,935 Unrestricted £ 17,380 2,135 19,515 Grants to Individuals £ 2,135 2,135 Grant funding of activities £ 2,135 2,135 Unrestricted £ 19,402 52 2,496 21,950	Total 2022 £ 26,935
		26,935
		Total 2022 £ 17,380 2,135
		19,515
		Total 2022 £ 2,135
		2,135
		Total 2022 £ 2,135
		2,135
		Total 2022 £ 19,402 52 2,496
		21,950

Page 9

Light and Life Free Methodist Church Lancashire Notes to the Accounts

7 Staff costs Salaries and wages No employee received emoluments in excess of £60,000. 8 Creditors: amounts falling due within one year Other taxes and social security 9 Movement in funds Restricted funds: Unrestricted funds: General funds Total funds 10 Analysis of net assets between funds Net current assets 11 Reconciliation of net debt Cash and cash equivalents Net debt	2022 18,759 18,759 2022 £ 364 364 Incoming resources (including other gains/losses ) £ 74,921 74,921	Resources expended £ (41,465) (41,465) Unrestricted funds £ 33,455 33,455 Cash flows £	At 31 December 2022 £ 33,456
			33,456
			Total £ 33,455
			33,455
			At 31 December 2022 £
		33,819	33,819
		33,819 33,819	33,819
			33,819

Page 10

Light and Life Free Methodist Church Lancashire Detailed Statement of Financial Activities

for the year ended 31 December 2022

Income and endowments from: Donations and legacies Donations Gift Aid Charitable activities Charitable activities Total income and endowments Expenditure on: Charitable activities Charitable activities Grants made Total of expenditure on charitable activities Employee costs Salaries/wages Staff training Motor and travel costs Travel and subsistence General administrative costs, including depreciation and amortisation Bank charges Equipment expensed General insurances Stationery and printing Total of expenditure of other costs Total expenditure Net gains on investments Net income Net income before other gains/(losses)	Unrestricted funds 2022 £ 41,480 6,506 47,986 26,935 26,935 74,921 17,380 2,135 19,515 19,515 18,759 643 19,402 52 52 515 427 436 1,118 2,496 21,950 41,465 - 33,456 33,456	Total funds 2022 £ 41,480 6,506
		47,986
		26,935
		26,935
		74,921 17,380 2,135
		19,515
		19,515 18,759 643
		19,402
		52
		52
		515 427 436 1,118
		2,496
		21,950
		41,465 -
		33,456
		33,456

Page 11

Light and Life Free Methodist Church Lancashire Detailed Statement of Financial Activities

Light and Life Free Methodist Church Lancashire Detailed Statement of Financial Activities
Other Gains Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward	- 33,456 - 33,456	-
		33,456
		-
		33,456

Page 12