ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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 |
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| 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 |
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LIFESPRING TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
REFERENCE AND ADMINISTRATIVE INFORMATION CHARITY NUMBER 296276 OTHER NAME LifeSpring Church START OF FINANCIAL YEAR 1st January 2021 END OF FINANCIAL YEAR 31st December 2021 TRUSTEES AT 31ST DECEMBER 2021 Mr Luke Ellis Mrs Catherine Peirce Mr David Cornelius Ms Elizabeth Monger (appointed 9th June 2021) Mr Oluwasegun Olojo-Kosoko (appointed 11th July 2021) Mrs June Bugenyi (resigned 9th February 2022) 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.
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LIFESPRING TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
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 groups, despite the restrictions imposed by the Coronavirus regulations. Jim and Heather Herring continue to oversee the project and where practical voluntary work opportunities have been provided by Café 12, a LifeSpring Church project to serve and reach out to the local community, together with other local Christian charity projects.
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, despite the varying restrictions imposed by the Coronavirus regulations. The restrictions on meeting others during 2021 thankfully recognised the significant need for this group to meet in person and so the various recovery groups were able to continue with minimal limitations. Jim and Heather Herring continue to oversee the project and where practical voluntary work opportunities have been provided by Café 12, a LifeSpring Church project to serve and reach out to the local community, together with other local Christian charity projects.
FINANCIAL REVIEW
Any funds in deficit, reasons and any action being taken
Surplus of £21,593 in 2021 (surplus of £77,409 in 2020).
POLICIES
Reserves
At the balance sheet date the Charity unrestricted free reserves totalled:
£ 549,167 2020: £ 527,574
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.
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LIFESPRING TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
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 2021 accounts in light of the ongoing COVID-19 pandemic, which is a non-adjusting post balance sheet event for LifeSpring Trust. Whilst government restrictions limited physical interaction with the Hope House residents and other support group members for much of the early part of 2021, 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:
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select suitable accounting policies and then apply them consistently;
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• observe the methods and principles of the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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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
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• 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:
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the Trustees have approved the report above; and
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• have authorised me to sign it on their behalf.
Signature: D Cornelius
Full name : Mr David Cornelius Date :…...................
22/09/22
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LIFESPRING TRUST
STATEMENT OF FINANCIAL ACTIVITIES
For The Year Ended 31st December 2021
| 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 2021 2020 £ £ £ £ 17,406 83 17,489 87,265 70,895 - 70,895 60,294 1 - 1 14 88,302 83 88,385 147,573 66,709 83 66,792 70,164 66,709 83 66,792 70,164 21,593 - 21,593 77,409 - - - - 21,593 - 21,593 77,409 527,574 - 527,574 450,165 549,167 - 549,167 527,574 |
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The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.
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LIFESPRING TRUST
BALANCE SHEET As At 31 December 2021
| 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-21 31-Dec-20 Funds Funds Total Total £ £ £ £ 608,522 608,522 608,522 - - - - 35,200 - 35,200 23,267 35,200 - 35,200 23,267 12,466 - 12,466 12,859 22,734 - 22,734 10,408 631,256 - 631,256 618,930 82,089 - 82,089 91,356 549,167 - 549,167 527,574 549,167 - 549,167 527,574 - - - - 549,167 - 549,167 527,574 |
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The notes on pages 8 to 14 form part of these financial statements.
Approved by the Trustees on the …...........................22/09/22 Signed on their behalf by Trustee D Cornelius Print Name: MR DAVID CORNELIUS
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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.
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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 Post box Other Total |
Unrestricted Restricted TOTAL TOTAL Funds Funds 2021 2020 £ £ £ £ 15,841 - 15,841 15,602 - - - 70,348 1,025 - 1,025 782 - 83 83 79 540 - 540 454 17,406 83 17,489 87,265 |
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The income from donations and gifts was £15,841 (2019 : £15,602) of which £0 was restricted (2020 : £0).
The Trust did not receive any income from donated services in financial year ended 31st December 2021 (2020: £70,348 mortgage payments paid by Lifespring Church on behalf of Lifespring Trust).
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 2021 2020 £ £ £ £ 8,100 - 8,100 6,000 62,795 - 62,795 54,294 70,895 - 70,895 60,294 Unrestricted Restricted TOTAL TOTAL Funds Funds 2021 2020 £ £ £ £ 1 - 1 14 1 - 1 14 |
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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 Printing, Postage and Stationery |
Unrestricted Restricted TOTAL TOTAL Funds Funds 2021 2020 £ £ £ £ 159 - 159 157 - - - 280 39,111 - 39,111 38,295 24,642 - 24,642 26,473 1,829 - 1,829 3,925 - - - 13 - 83 83 79 968 - 968 942 66,709 83 66,792 70,164 Support Governance Total Basis of Apportionment £ £ £ - 960 960 Direct cost 8 - 8 8 960 968 |
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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 £ £ £ 66,784 - 66,784 - - - 8 - 8 67,752 - 67,752 |
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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 2021 2020 £ £ £ £ 1,829 - 1,829 3,925 960 - 960 942 2,789 - 2,789 4,867 |
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9. Analysis of staff costs, trustee remuneration and expenses and the cost of key management personnel
| Salary Support Payments to LifeSpring Church | 2021 2020 £ £ 39,111 38,295 39,111 38,295 |
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No employees received emoluments in excess of £60,000. No staff are paid on a self employed basis as at the balance sheet date (2020 : nil).
The Door of Hope regular staff are paid by Lifespring Church charity and this charity sends salary support payments towards the cost. In 2021 payments totalling £39,111 were sent (2020: £38,295).
10. Trustee remuneration and expenses
| Number of Trustees who were paid out of income Nature of the expenses - related party employment and expenses |
2021 2020 Nil Nil - - |
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| 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 £600 (2020: £960).
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 |
39,111 -£ 39,111 -£ |
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There were no outstanding balances with related parties as at 31 December 2021.
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LIFESPRING TRUST NOTES TO THE FINANCIAL STATEMENTS
12. Grants
The charity makes small gifts but does not grant fund activities (2020: 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 2021 Additions Disposals As at 31 December 2021 Depreciation: As at 1st January 2021 Charge for the year Disposals As at 31 December 2021 Net book value: As at 1st January 2021 As at 31 December 2021 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 31.12.2021 31.12.2020 £ £ - - - - - - 31.12.2021 31.12.2020 £ £ 960 942 11,506 11,917 12,466 12,859 |
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The charity has one mortgage in place at 31st December 2021:
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 2021 the balance outstanding was £93,595.
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LIFESPRING TRUST NOTES TO THE FINANCIAL STATEMENTS
17. Creditors: amounts falling due in more than 1 year
| Mortgages | 31.12.2021 31.12.2020 £ £ 82,089 91,356 82,089 91,356 |
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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 |
2021 2020 527,574 450,165 88,302 147,573 (66,709) (70,164) - - 21,593 77,409 549,167 £ 527,574 £ |
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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 |
2021 2020 - - - - - - - - - - £ - £ |
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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 |
2021 2020 - - 83 79 (83) (79) - - - - - £ - £ |
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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 31.12.2021 £ £ £ £ 608,522 - - 608,522 22,734 - - 22,734 - - - - - - - - (82,089) - - (82,089) 549,167 - - 549,167 |
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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 2021.
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: .............................23 September 2022
Independent Examiners Ltd
Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
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