**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **LIFESPRING TRUST**
## **CHARITY REGISTRATION No: 296276**
Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
## **LIFESPRING TRUST**
## **CONTENTS**
|Pages 3 to 5|Report of the Trustees for the Year Ended 31 December 2019|
|---|---|
|Page 6|Statement of Financial Activities|
|Page 7|Balance Sheet|
|Pages 8 to 14|Notes to the Financial Statements|
|Page 15|Independent Examiner's Report to the Trustees|
2
**LIFESPRING TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
**REFERENCE AND ADMINISTRATIVE INFORMATION CHARITY NUMBER** 296276 **OTHER NAME** LifeSpring Church **START OF FINANCIAL YEAR** 1st January 2020 **END OF FINANCIAL YEAR** 31st December 2020
**TRUSTEES AT 31ST DECEMBER 2020** Mr Luke Ellis
Mr Kim Wheeler (resigned 8th August 2020) Mrs Catherine Peirce Mr Richard Matthews (appointed January 2020; resigned December 2020) Mrs June Bugenyi (appointed January 2020) Mr David Cornelius (appointed January 2020)
## **TRUSTEES APPOINTED AFTER THE BALANCE SHEET DATE**
**PRINCIPLE ADDRESS** 143-145 Oxford Road Reading, RG1 7UY. **PRIMARY BANKERS** HSBC 26-28 Broad Street Reading, RG1 2BU. **SOLICITORS** Hewetts 55/57 London Street Reading, RG1 4PS. **ACCOUNTANTS** Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane, Bosham West Sussex PO18 8NF
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The existing trustees appoint any new trustees following the provisions laid out in the organisation's governing instrument.
**GOVERNING INSTRUMENT** Declaration of Trust dated 2nd February 1987 as amended 16th July 1996 and 27th December, supplementary deed dated 14th October 1997.
**LEGAL STATUS** Unincorporated Charity
**OBJECTS** The advancement of the Christian religion and other charitable purposes.
**SPECIFIC INVESTMENT POWERS** The Trustees have the power to invest in such assets as they in their absolute discretion think fit.
## **TRUSTEES SELECTION METHOD**
The selection method is appointment by the leadership team headed by the Pastor, Neville Hollands.
3
**LIFESPRING TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
The accounts have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP (FRS102)).
## **OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT**
Door of Hope continued to support recovering addicts, resident in Hope House and elsewhere in the local area through support
The trustees confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the Trust's aims and objectives, in planning future activities, and in setting the policy's for the year.
## **REVIEW OF ACHIEVEMENTS AND PERFORMANCE**
Door of Hope continued to support recovering addicts, resident in Hope House and elsewhere in the local area through support groups. Some of the men moved on to independent accommodation and regular voluntary and paid work. Jim & Heather Herring oversee the project. Voluntary work opportunities were provided by Cafe 12, a LifeSpring Church cafe project to serve and reach out to the local community, as well as other local Christian charity projects.
## **FINANCIAL REVIEW**
## **Any funds in deficit, reasons and any action being taken**
Surplus of £77,409 in 2020 (surplus of £86,465 in 2019).
## **POLICIES**
## **Reserves**
At the balance sheet date the Charity unrestricted free reserves totalled: £ 527,574 2019: £ 450,165
The trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The trustees will endeavour not to set aside funds unnecessarily.
4
**LIFESPRING TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **PLANS FOR THE FUTURE**
The Trust will continue to run Door of Hope, the Reading residential house providing help and support for those recovering from drug and alcohol addictions.
## **POST BALANCE SHEET EVENTS (COVID-19)**
The Trustees have reviewed the 2020 accounts in light of the ongoing COVID-19 pandemic, which is a non-adjusting post balance sheet event for LifeSpring Trust. Whilst government restrictions have limited physical interaction with the Hope House residents and other support group members for much of the period since March 2020, the occupancy of Hope House has remained consistent, as has the income from occupancy rentals and donations. No significant additional expenditure has resulted from the restrictions and as a result there is no reason to anticipate any adverse change to the financial position of the Trust.
As of the signature date of these accounts, we continue to have sufficient reserves to cover anticipated expenses for the foreseeable future and as a result believe that LifeSpring Trust remains a going concern.
## **Trustees' responsibilities in relation to the financial statements**
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and the United Kingdom Accounting Standards. The law applicable to charities in England and Wales requires the trustee(s) to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements the trustees are required to:
• select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the financial statements; and
- • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **SIGNATURE AND DECLARATION**
**Declaration:** I declare, in my capacity of Charity Trustee, that:
- the Trustees have approved the report above; and
- • have authorised me to sign it on their behalf.
**Full name :** Mr David Cornelius **Date :** 31/08/2021
**Signature: D Cornelius**
5
## **LIFESPRING TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **For The Year Ended 31st December 2020**
|Notes
**Income**
Donations and legacies
3
Income from charitable activities
4
Investment income
5
**Total income**
**Expenditure**
Expenditure on charitable activities
6
**Total expenditure**
**Net income/expenditure**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds:**
Total Funds Brought Forward
**Total Funds Carried Forward**|Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
87,265
-
87,265
102,176
60,294
-
60,294
52,631
14
-
14
32
147,573
-
147,573
154,839
70,164
-
70,164
68,374
70,164
-
70,164
68,374
77,409
-
77,409
86,465
-
-
-
-
77,409
-
77,409
86,465
450,165
-
450,165
363,700
527,574
-
527,574
450,165|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.
6
## **LIFESPRING TRUST**
## **BALANCE SHEET As At 31 December 2020**
|Note
**Fixed Assets**
Tangible assets
14
**Total fixed assets**
**Current Assets**
Debtors
15
Cash at bank and in hand
**Total Current Assets**
**Liabilities**
Creditors: falling due within 1 year
16
**Net Current Assets/(Liabilities)**
**Total assets less current liabilities**
17
**Net assets**
**Funds of the Charity**
19
Unrestricted income funds
Restricted income funds
**Total Charity Funds**
Creditors: amounts falling
due after more than 1 year|Unrestricted
Restricted
31-Dec-20
31-Dec-19
Funds
Funds
Total
Total
£
£
£
£
608,522
608,522
608,522
-
-
-
-
23,267
-
23,267
24,187
23,267
-
23,267
24,187
12,859
-
12,859
23,059
10,408
-
10,408
1,128
618,930
-
618,930
609,650
91,356
-
91,356
159,485
527,574
-
527,574
450,165
527,574
-
527,574
450,165
-
-
-
-
527,574
-
527,574
450,165|
|---|---|
The notes on pages 8 to 14 form part of these financial statements.
Approved by the Trustees on the 31st August 2021
Signed on their behalf by Trustee D Cornelius
Print Name: MR DAVID CORNELIUS
7
## **LIFESPRING TRUST NOTES TO THE FINANCIAL STATEMENTS**
## **1. Accounting policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **a) Basis of preparation**
The accounts have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP (FRS102)).
Lifespring Church meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.
Preparation of the accounts is on a going concern basis. The Trustees are of the view that the level of reserves will support the charity going forward.
## **b) Income**
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income, its receipt is probable and the amount can be quantified with reasonable accuracy.
## **c) Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
## **d) Fund accounting**
Unrestricted funds are available to spend on activities that further any purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **e) Expenditure**
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
## **f) Tangible fixed assets**
Tangible fixed assets are stated at cost less depreciation. Assets costing less than £500 are written off in the year of purchase. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life as follows: Freehold property - 0%
## **2. Legal status of the charity**
The charity is an unincorporated charitable trust.
8
## **LIFESPRING TRUST NOTES TO THE FINANCIAL STATEMENTS**
## **3. Income from donations and legacies**
|**Donations**
Donations and gifts
Donated services (Lifespring Church)
11
Gift aid received
Other
Total|Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
15,602
-
15,602
15,110
70,348
-
70,348
84,384
782
-
782
1,574
454
-
454
1,108
87,265
-
87,265
102,176|
|---|---|
The income from donations and gifts was £15,602 (2019 : £15,110) of which £0 was restricted (2019 : £0).
The income from donated services represents £70,348 of mortgage payments and £0 of accountancy fees paid by Lifespring Church on behalf of Lifespring Trust (2019: £83,368 mortgage payments and £1,016 accountancy fees).
## **4. Income from charitable activities**
|Events, activities and fundraising
Door of Hope project income
Total
**5. Investment income**
Interest received
Total
The investment income arises from money held in
interest bearing deposit accounts.|Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
6,000
-
6,000
3,960
54,294
-
54,294
48,671
60,294
-
60,294
52,631
Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
14
-
14
32
14
-
14
32|
|---|---|
9
## **LIFESPRING TRUST NOTES TO THE FINANCIAL STATEMENTS**
## **6a. Expenditure on charitable activities**
|_Direct charitable activities_
Buildings
Counselling
Door of Hope - Salary support
9,11
Door Of Hope - Other expenditure
Mortgage interest
Pastoral, Church and community
Post Box
_Governance and Support_
Office and administration
6b
Total
**6b) Analysis of governance and support costs**
Independent examiners fees|Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
157
-
157
154
280
-
280
25
38,295
-
38,295
28,216
26,473
-
26,473
30,547
3,925
-
3,925
7,484
13
-
13
-
79
-
79
-
942
-
942
1,948
70,164
-
70,164
68,374
Support
Governance
Total
Basis of
Apportionment
£
£
£
942
-
942
Direct cost
942
-
942|
|---|---|
## **7. Summary analysis of expenditure on charitable activities**
This table shows the cost of the main charitable activities including support costs and grant funding to third parties.
|Activity or programme
Direct charitable activities
Charitable grants
(note 12)
Governance and Support costs|Church activities
Grant making
Total
and community
activities
initiatives
£
£
£
69,222
-
69,222
-
-
-
942
-
942
70,164
-
70,164|
|---|---|
10
## **LIFESPRING TRUST NOTES TO THE FINANCIAL STATEMENTS**
## **8. Net income/(expenditure) for the year**
|This is stated after charging:
Bank mortgage interest payable
Independent Examiner's remuneration
Total|Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
3,925
-
3,925
7,484
942
-
942
1,948
4,867
-
4,867
9,432|
|---|---|
**9. Analysis of staff costs, trustee remuneration and expenses and the cost of key management personnel**
|Salary Support Payments to LifeSpring Church|2020
2019
£
£
38,295
28,216
38,295
28,216|
|---|---|
No employees received emoluments in excess of £60,000. No staff are paid on a self employed basis as at the balance sheet date (2019 : nil).
The Door of Hope regular staff are paid by Lifespring Church charity and this charity sends salary support payments towards the cost. In 2020 payment totalling £38,295 were sent (2019: £28,216).
## **10. Trustee remuneration and expenses**
|Number of Trustees who were paid out of income
Nature of the expenses - related party employment and expenses|2020
2019
Nil
Nil
-
-|
|---|---|
|Total amount paid
£|-
-|
No other payments were made to trustees or any persons connected with them during this financial period. No material transaction took place between the organisation and a trustee or any person connected with them.
The total amount donated as unconditional donations by Trustees and Related Parties to the charity during this financial year was £960 (2019: £1,430).
## **11. Donated Services**
On the 1st November 2012 all activities from Lifespring Trust started to be transferred to Lifespring Church (registered charity number 1148013).
In 2013 the first transfer comprised the newly purchased property asset 'The Pavilion', Reading. In 2014 all other activity bar that of the project 'Door of Hope', was transferred.
In this financial year the following transactions between the two entities have been recorded:
|LifeSpring Trust salary support payments
**Donated Services - Paid**
LifeSpring Church mortgage support payments
**Donated services - Received**|38,295
-£
38,295
-£
70,348
£
70,348
£|
|---|---|
There were no outstanding balances with related parties as at 31 December 2020.
11
## **LIFESPRING TRUST NOTES TO THE FINANCIAL STATEMENTS**
## **12. Grants**
The charity makes small gifts but does not grant fund activities (2019: nil).
## **13. Corporation tax**
The charity is exempt from tax on income and gains falling within section 505 of the taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
## **14. Tangible fixed assets**
|Cost:
As at 1st January 2020
Additions
Disposals
As at 31 December 2020
Depreciation:
As at 1st January 2020
Charge for the year
Disposals
As at 31 December 2020
Net book value:
As at 1st January 2020
As at 31 December 2020
**15. Debtors & prepayments**
Tax recoverable
Other charity debtors
**16. Creditors: amounts falling due within 1 year**
Independent Examiners Fees
Mortgages|Land &
Buildings
Total
Title:BK400830
£
£
608,522
608,522
-
-
-
-
608,522
608,522
-
-
-
-
-
-
-
-
608,522
608,522
608,522
608,522
31.12.2020
31.12.2019
£
£
-
-
-
-
-
-
31.12.2020
31.12.2019
£
£
942
930
11,917
22,129
12,859
23,059|
|---|---|
The charity has one mortgage in place at 31st December 2020:
A first mortgage is provided by HSBC Bank plc on the freehold property, 140 Tilehurst Road, Reading. The original £140,000 draw down was on 6th October 2005. Additional draw downs totalling £110,000 were taken in 2005 and 2006. The mortgage was taken out to purchase a larger property for the Door of Hope project and to complete extension works to this new property. At 31st December 2020 the balance outstanding was £103,273.
A second mortgage was provided by HSBC Bank plc on the freehold property, 140 Tilehurst Road, Reading. The original draw down of £150,000 was on 7th February 2012. A lump sum of £66,093 was paid off the mortgage balance during 2020 in addition to the agreed monthly repayments. The mortgage was fully repaid by 31st December 2020.
2019: A third mortgage of £50,000 initially agreed for a period of 20 years (starting in November 2012 and provided by HSBC Bank plc) being equity release in the property 140 Tilehurst Road, Reading for was drawn down in January 2013, and was repaid in full by 31st December 2019.
12
## **LIFESPRING TRUST NOTES TO THE FINANCIAL STATEMENTS**
## **17. Creditors: amounts falling due in more than 1 year**
|Mortgages|31.12.2020
31.12.2019
£
£
91,356
159,485
91,356
159,485|
|---|---|
## **18. Analysis of charitable funds**
## **Analysis of movements in unrestricted funds:**
## **General fund**
The free reserves of the charity after allowing for all designated funds.
|Balance at 1st January
Income
Expenditure
Transfers between funds
Movement in funds
Total general reserves at 31st December|**2020**
**2019**
450,165
363,700
147,573
154,839
(70,164)
(68,374)
-
-
77,409
86,465
527,574
£
450,165
£|
|---|---|
## **Analysis of movements in restricted funds:**
## **Special Collections**
The special collections fund tracks one-off giving for restricted purposes and the corresponding expenditure by the charity. Full details are recorded for each within the charity records and bookkeeping.
|Balance at 1st January
Income
Expenditure
Transfers between funds
Movement in funds
Balance as at 31st December|**2020**
**2019**
-
-
-
-
-
-
-
-
-
-
£
-
£|
|---|---|
## **Post Box fund**
This is a holding account for making transfers between funds.
|Balance at 1st January
Income
Expenditure
Transfers between funds
Movement in funds
Balance as at 31st December|**2020**
**2019**
-
-
-
-
-
-
-
-
-
-
-
£
-
£|
|---|---|
13
## **LIFESPRING TRUST NOTES TO THE FINANCIAL STATEMENTS**
## **19. Analysis of net assets between funds**
|Fixed assets:
Net current assets:
General
Special Collections
Post Box fund
Long term liabilities:|General
Designated
Restricted
TOTAL
Fund
Reserves
Reserves
31.12.2020
£
£
£
£
608,522
-
-
608,522
10,408
-
-
10,408
-
-
-
-
-
-
-
-
(91,356)
-
-
(91,356)
527,574
-
-
527,574|
|---|---|
14
## **INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS**
I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31st December 2020.
As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).
## **Responsibilties and basis of report**
I report in respect of my examination of the Trust’s accounts 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 confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
-
the accounting records were not kept in accordance with section 130 of the Charities Act; or · the accounts did not accord with the accounting records; or
· the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
Name: J Irvinesmith FCIE
Date: 8th September 2021
Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
15