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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 02763068 (England and Wales)
REGISTERED CHARITY NUMBER: 1015804

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

MUSTARD SEED TRUST (MARLBOROUGH)

MUSTARD SEED TRUST (MARLBOROUGH)

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Page
Report of the Trustees 1 to 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9 to 10
Notes to the Financial Statements 11 to 18
MUSTARD SEED TRUST (MARLBOROUGH) (REGISTERED NUMBER: 02763068)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2021

ThetrusteeswhoarealsodirectorsofthecharityforthepurposesoftheCompaniesAct2006, present
theirreportwiththefinancialstatementsofthecharityfortheyearended31March2021.The trustees
haveadoptedtheprovisionsofAccountingandReportingbyCharities:Statementof Recommended
PracticeapplicabletocharitiespreparingtheiraccountsinaccordancewiththeFinancial Reporting
Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal objective of the Trust is the advancement of the Christian religion.

Public benefit

TheTrusteeshaveconsideredtheCharityCommission'sgeneralguidanceonpublicbenefitand its
supplementary guidance on the advancement of religion for the public benefit.
Thecharitycarriesoutawiderangeofactivitiesinpursuanceofitscharitableaimsthatdeliver public
benefit.TheTrusteesconsiderthattheseactivitiesprovidebenefittobothChristiansandthe wider
community.  The Trust:
TheTrusteeshavegivendueregardtoguidanceissuedbytheCharityCommissionindeciding what
activities the charity should undertake.

Volunteers

TheTrustreliesuponthecommitmentofsupportersandvoluntaryhelpfromthecommunity.The Trust
alsorelieson voluntaryhelp fromthe Managerwho is one of the co-foundersand remainsa key person in
the running of the Trust.  The Trustees are also volunteers.
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MUSTARD SEED TRUST (MARLBOROUGH) (REGISTERED NUMBER: 02763068)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENT AND PERFORMANCE

Charitable activities

InadditiontomakingChristianbooks,cardsandliteratureavailabletothepublicforpurchase and
providing information, in the year ended 31 March 2021, the Trust also:
DuetotheCovidpandemicwehavenotbeenabletohosteventsinpersonandthereforewewere not
able to:
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MUSTARD SEED TRUST (MARLBOROUGH) (REGISTERED NUMBER: 02763068)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW

Financial results 2021

TheTrustachievedanetincomeof£18,673fortheyearended31stMarch2021(2020:anetdeficit of
£3,808).This is after the inclusionof the donationunder Gift Aid of £1,189(2020:£nil) from the connected
Coffeeshop,MustardSeed (Marlborough)Ltd, the receiptof GovernmentCovidSupportGrantsof £19,431
(2020:£nil) and a reductionin operatingcosts of £8,371made possibleby the flexibilityand help from staff
and volunteers and by the understanding and support from the landlords.
Therefore,althoughthewholeoftheyearwasseverelyimpactedbytheeffectoftheCovid19 Pandemic,
theresultfortheyearwasmuchbetterthanwasexpectedat thestartoftheyear.TheTrusteesare very
thankful for all the support received.
ThesalesoftheconnectedCoffeeshopweresimilarlyaffectedbeingonly20%ofnormalduetothe social
distancingrulesandNationalLockdownscausedbytheCovidpandemic.Attheendofthefinancial year
the Coffeeshopwas in factclosedand had been closedsince1 Januarydue to a lockdown,it re-opened on
12April2021.Duetotheflexibilityandhelpfromstaffandvolunteers,theunderstandingand support
from the landlordsand the receiptof payrollsupportfrom the Governmentunder the. HMRC Job retention
Scheme,the Coffeeshopwas able to reduceits operatingcostsby £29,019,and therebycontinuedto  trade
and made a small taxable profit which was donated to the Trust.
The combinedresultof the Bookshopand the Coffeeshopfor the yearwas a net incomeof £17,880 (2020:
net loss of £400).
Betweenthe end of the financialyear and the date these accountswere approvedtradinghas continued to
beverydifficultduetothesocialrestrictionscausedbyCovid19.Thisisexpectedtocontinuewell into
2022.  The future remains uncertain.
The Trust continuesto receivevitalsupportfromthe landlords.The Trusteesare pleasedto reportthat the
landlordshaveconfirmedtheywillcontinuetoprovidesupportuntil31March2022,atwhichtime the
situation will be reviewed.
The Trustees are thankful for all the support, in all its many forms, that the Trust continues to receive.
The Trusteesand Managementwill continueto seek ways to maintainour Christianpresencenear the  High
Street.

Investment policy

TheTrusteesbelievethatthepolicyofplacingsurplusfundsondepositwithlocalbanksandCCLA is
sufficient for the purpose of the Charity, given its size.

Reserves policy

TheTrusteesconsiderthataprudentleveloffreereservesfortheTrustiereservesoverandabove the
amountinvestedin net tangiblefixedassetsand stock,shouldequateto betweenthreeand six months of
theexpectedcombinedoperatingexpenditureofboththeTrustandtheCoffeeShop.Thereason for
reservingthe combinedoperatingcostsis that the majorpart of the sharedexpenseswould be incurred by
the Trust alone if the Coffeeshop, Mustard Seed (Marlborough) Ltd, were to cease to trade.
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MUSTARD SEED TRUST (MARLBOROUGH) (REGISTERED NUMBER: 02763068)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2021

At 31 March2021the freereservesof £52,997(approx12 months)areabovethe targetrangeof £13,000
to£26,000.TheTrusteesarecomfortablewiththislevelofreservesasthisenablestheTrusttoadjust its
cost structureshould this prove necessaryand allow the Trust to continueits activitiesin the event that the
Coffee Shop did, for some unforeseen reason such as the Covid Pandemic, cease to trade.

FUTURE PLANS

TheTrustplanstocontinueitsobjectiveofadvancingknowledgeandunderstandingoftheChristian faith,
andtogivingexpressiontoChristianhospitalitythroughtheoperationofitsChristianBookshop and
connectedCoffeeShop.It plansto continueto providelocalchurchesand Christiangroupswith resources
and information to help them in their Christian mission. To further this end:

The Trust will:

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

TheTrustisestablishedasacompanylimitedbyguaranteeandisregisteredasacharitywiththe Charity
Commission.TheaffairsoftheTrustaregovernedbyitsMemorandumandArticlesofAssociation. The
liability of the Members in the event of the Trust being wound up is limited to a sum not exceeding £1.

Recruitment and appointment of new trustees

TheTrusteesaredirectorsforthepurposesofcompanylawandTrusteesforthepurposesofcharity law.
New Trusteesare appointedby resolutionof the Boardof Trusteesand continuein officeuntil resignation.
There is no minimum or maximum term of appointment.
Potentialnew trusteesare chosenin orderto complementthe skillsof the existingTrusteesand to provide
somerepresentationofthevariousChristianChurchesintheMarlborougharea.Potentialtrustees are
invitedtoattendoneortwoTrusteeBoardMeetingstohelpdecideonbothsideswhether the
appointment would be appropriate.

Organisational structure

The Trust operatesa ChristianBookshopin Marlboroughand leasespremisesthat are sharedwith a  Coffee
Shop, also owned by the Trustees.The CoffeeShop operatesin supportof the Bookshopand donatesall of
its taxableprofitsto the Bookshop.The CoffeeShop servescoffee,beverages,cakesand light lunches, and
provides an environment that fosters and supports the aims of the Trust.
TheTrustreliesverymuchonthehelpofvolunteersandadedicatedstaff.TheTrusteesexpress their
thankstothestaffandtothevolunteersforallthesupportthathasbeenprovided,andcontinuesto be
provided, in so many ways.
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MUSTARD SEED TRUST (MARLBOROUGH) (REGISTERED NUMBER: 02763068)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Induction and training of new trustees

TheCompanySecretaryis responsiblefortheinductionof anynewTrusteewhichinvolvesawarenessof a
Trustee'sresponsibilities,thegoverningdocument,administrativeprocedures,andthehistory and
philosophicalandreligiousapproachoftheTrust.AnewTrusteereceivescopiesoftheprevious year's
annualreportandaccountsandcopyoftheCharityCommissionleaflet"TheEssentialTrustee:What you
need to know, What you need to do".

Related parties

The CoffeeShop is a separatetradingcompanycalledMustardSeed (Marlborough)Ltd.It is ownedby the
Trustees and is therefore a connected trading company.
MustardSeedTrustoperatesinTheBoathouse,apropertywhichisownedbyMrsRMauriceandMr M
Reynolds,whoarethe landlords.MrsR Maurice,togetherwithMrsD Reynolds,werethe foundersof the
Charity.MrsR Mauricecontinuestobe a keyvolunteerandis theManageroftheCharity.The landlords
havecommittedtoprovidethepremisestotheTrustonastablebasisatalevelofrentthatisbelow the
marketrate;thisisdeterminedonathreeyearlycommercialrentreview.Underthetermsofthe lease,
thelandlordsareresponsibleforstructuralandexternalmaintenanceandanycapitalworksthat enhance
the value of the building.  Please also refer to Note 14 of the financial statements.
TheTrustreliesonvoluntaryhelpfromMrsRMauriceastheManagerwhoremainsakeypersonin the
running of the Trust.
TheTrusteesandtheManagerarevolunteersanddidnotreceiveanyremunerationintheyearfor their
services to the Trust or in the previous year.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02763068 (England and Wales)

Registered Charity number

1015804

Registered office

1 Farrar Drive
Marlborough
Wiltshire
SN8 1TP

Trustees

Mr R Wheeler
Mr N Larkey
Mr R Mann
Mrs C Piercy-Buehrer
Ms S M Wylie
Dr P Tulloch (appointed 29.1.21)

Company Secretary

Dr P Tulloch
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MUSTARD SEED TRUSr MARLBOROUGH 27 REGlSrERED_NUMB.ER:￿￿￿L REPORT OF TH_E TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 REFERENCE AND ADMINISThATIVE DETAILS Independent Examiner Garry Pells 37 Vespasian Road Marlborough Wiltshire SN8 2FB Treasurer Mrs R Maurice Manager Mrs R Maurice Bankers HSBC Bank Ltd Unit 6The Lock Canal Walk Swindon SNI ILD Th15 repon has been prepared in attordante with the Special provisions of Part 15 of the Companies Act 2006 relating to small companie Approved by order of the board of trustees on and signed on its behalf by: MrR eler-

DEPENDENT EXAMINER'S REPORTTO THE MUSTARD SEED TRUST MARLBOROUGH . OF ' Independent examinerfs report to the trustee5 of Mustard Seed Trust (Marlborough) I'the Company'l I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021. Re5ponsibllitles and basls of report A5 the charity's trLtstees of the Company land akn its directors for the purposes of company lawl you are responsible for the preparation of the accounts in aCcor(lan￿ with the requirements of the Companies Act 20061'the 2(ffi Act'l. Having satisfied myself that the accounts of the C(Knpany are not required to be audited under Part 16 of the 2(K￿ Act and are eligible for independent examination. I report in respect of my examination of your charity's accounts as cdrried out under sertion 145 of the Charities Act 2011 l*he 2011 Act'l. In carrying out my examination I have followed the Direction5 gFven by the tharity Commission under Section 145151 Ibl 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: accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act,. or the accounts do not accord with those records: or the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts grve a true and fair view which is not a matter considered as part of an independent examination- or the accounts have not been prepared in accordarKe with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities lapplic3ble to charities preparing thelr accounts in accordan￿ wrth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFR5 10211- I have no concerns and have come across no other tnatteis ITr connection with the examination to which attention should be drawn in this report in ordei to enable a proper understanding of the accounts to be reached. Garry Pells 37 Vespasian Road Marlborough Wiltshire 5N8 2FB Date..

MUSTARD SEED TRUST (MARLBOROUGH)

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2021

31.3.21 31.3.20
Unrestricted Total
funds funds
Notes £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 1,366 232
Charitable activities
Bookshop sales 13,029 28,805
Investment income 3 16 81
Other income 4 19,431 -
Total 33,842 29,118
EXPENDITURE ON
Charitable activities 5
Cost bookshop sales items sold 8,385 17,271
Bookshop operating expenses 6,784 15,155
Total 15,169 32,426
NET INCOME/(EXPENDITURE) 18,673 (3,308)
RECONCILIATION OF FUNDS
Total funds brought forward 43,389 46,697
TOTAL FUNDS CARRIED FORWARD 62,062 43,389
The notes form part of these financial statements
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MUSTARD SEED TRUST (MARLBOROUGH) (REGISTERED NUMBER: 02763068)

BALANCE SHEET

31 MARCH 2021

31.3.21
Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
9
2,736
CURRENT ASSETS
Stocks
10
10,002
Debtors
11
8,166
Cash at bank
44,146
62,314
CREDITORS
Amounts falling due within one year
12
(2,988)
NET CURRENT ASSETS
59,326
TOTAL ASSETS LESS CURRENT LIABILITIES
62,062
NET ASSETS
62,062
FUNDS
13
Unrestricted funds
62,062
TOTAL FUNDS
62,062
31.3.20
Total
funds
£
3,247
9,058
5,925
25,721
40,704
(562)
40,142
43,389
43,389
43,389
43,389
The charitablecompanyis entitledto exemptionfromauditunderSection477of the CompaniesAct 2006
for the year ended 31 March 2021.
Themembershavenotrequiredthecompanytoobtainanauditofitsfinancialstatementsforthe year
ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
The notes form part of these financial statements
continued...
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MUSTARD SEE MARLBO GisfERED NUMBER: 027 HE￿. continued These finartcial statements have been prepared in accordance with the provisions applicable to charitable companies subjert to the small companie5 regime. The financi statements We￿ approved by the Board of Trustees and authorised for issue on . and were signed on Its behalf by: t1 MrR The notes form part of these financial statements -iO-

MUSTARD SEED TRUST (MARLBOROUGH)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

Thefinancialstatementsofthecharitablecompany,whichisapublicbenefitentityunderFRS 102,
havebeenpreparedinaccordancewiththeCharitiesSORP(FRS102)'AccountingandReporting by
Charities:StatementofRecommendedPracticeapplicabletocharitiespreparingtheiraccounts in
accordancewiththeFinancialReportingStandardapplicableintheUKandRepublicofIreland (FRS
102)(effective1 January2019)',FinancialReportingStandard102'The FinancialReporting Standard
applicablein theUK andRepublicofIreland'andtheCompaniesAct2006.Thefinancial statements
have been prepared under the historical cost convention.
The accounts have been prepared on a going concern basis.

Income

Allincomeis recognisedin theStatementofFinancialActivitiesoncethecharityhasentitlement to
the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilitiesarerecognisedasexpenditureassoonasthereisalegalorconstructive obligation
committingthe charityto that expenditure,it is probablethat a transferof economicbenefitswill be
requiredinsettlementandtheamountoftheobligationcanbemeasuredreliably.Expenditure is
accountedforonanaccrualsbasisandhasbeenclassifiedunderheadingsthataggregateall cost
relatedtothecategory.Wherecostscannotbedirectlyattributedtoparticularheadingsthey have
been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciationisprovidedonfixedassetssoastosoastowritethemoffovertheirexpected useful
lives at the following rates:
Fixtures & fittings20% straight line
Computer equipment20% straight line
Items costing less than £100 are expensed in the year of acquisition.

Stocks

Stocksarevaluedatthelowerofcostandnetrealisablevalue,aftermakingdueallowance for
obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestrictedfundscanbe usedin accordancewiththecharitableobjectivesat thediscretionof the
trustees.
Restrictedfunds can only be used for particularrestrictedpurposeswithin the objectsof the  charity.
Restrictionsarisewhenspecifiedbythedonororwhenfundsareraisedforparticular restricted
purposes.
continued...
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MUSTARD SEED TRUST (MARLBOROUGH)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES - continued

Fund accounting

Furtherexplanationofthenatureandpurposeofeachfundis includedin thenotestothe financial
statements.

2. DONATIONS AND LEGACIES

Donations
Donation from connected Coffeeshop
3.
INVESTMENT INCOME
Interest income
4.
OTHER INCOME
Government Grants re Covid19
5.
CHARITABLE ACTIVITIES COSTS
Cost bookshop sales items sold
Bookshop operating expenses
31.3.21
31.3.20
£
£
177
232
1,189
-
1,366
232
31.3.21
31.3.20
£
£
16
81
31.3.21
31.3.20
£
£
19,431
-
Direct
Costs (see
note 6)
£
8,385
6,784
15,169
continued...
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MUSTARD SEED TRUST (MARLBOROUGH)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2021

6. DIRECT COSTS OF CHARITABLE ACTIVITIES

Staff costs
Cost of items sold
Rent
Light, heat, water, waste
Telephone
Stationery, postage, printing
Advertising & publicity
Council business rates
Insurance, licences, book assn
HMRC Job Retention Scheme
Equipment rental
Outreach costs
Repairs & maintenance
Capital expenditure < £100
Bank & credit card charges
Staff training & welfare
Sundry renewals, consumables
Depreciation
31.3.21
£
3,309
8,385
500
1,497
753
49
30
25
529
(1,914)
656
-
154
75
160
70
-
891
15,169
31.3.20
£
6,091
17,271
1,000
2,662
661
182
117
745
538
(109)
638
224
275
-
222
647
127
1,135
32,426

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):
31.3.21 31.3.20
£ £
Depreciation - owned assets 891 1,135

8. TRUSTEES' REMUNERATION AND BENEFITS

Therewerenotrustees'remunerationorotherbenefitsfortheyearended31March2021nor for
the year ended 31 March 2020.

Trustees' expenses

Therewerenotrustees'expensespaidfortheyearended31March2021norfortheyear ended
31 March 2020.
continued...
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MUSTARD SEED TRUST (MARLBOROUGH)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2021

9. TANGIBLE FIXED ASSETS

COST
At 1 April 2020
Additions
Disposals
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
Eliminated on disposal
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020
10.
STOCKS
Finished goods
11.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Amounts owed by participating interests
Other debtors
VAT
Fixtures,
fittings,
equipment
£
25,253
380
(1,069)
24,564
22,006
891
(1,069)
21,828
2,736
3,247
31.3.21
31.3.20
£
£
10,002
9,058
31.3.21
31.3.20
£
£
284
853
7,255
4,729
434
-
193
343
8,166
5,925
TheparticipatinginterestsistheconnectedtradingcompanyMustardSeedMarlboroughLtd, also
known as the Coffee Shop.
continued...
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MUSTARD SEED TRUST (MARLBOROUGH)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2021

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
13.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS
31.3.21
31.3.20
£
£
2,988
562
Net
movement
At
At 1.4.20
in funds
31.3.21
£
£
£
43,389
18,673
62,062
43,389
18,673
62,062
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
33,842
(15,169)
18,673
33,842
(15,169)
18,673
Net
movement
At
At 1.4.19
in funds
31.3.20
£
£
£
46,697
(3,308)
43,389
46,697
(3,308)
43,389
continued...
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MUSTARD SEED TRUST (MARLBOROUGH)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

13. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
29,118
(32,426)
(3,308)
29,118
(32,426)
(3,308)
A current year 12 months and prior year 12 months combined position is as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Net
movement
At 1.4.19
in funds
£
£
46,697
15,365
46,697
15,365
At
31.3.21
£
62,062
62,062
Acurrentyear12monthsandprioryear12monthscombinednetmovementinfunds,included in
the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
62,960
(47,595)
15,365
62,960
(47,595)
15,365
continued...
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MUSTARD SEED TRUST (MARLBOROUGH)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2021

14. OTHER FINANCIAL COMMITMENTS

At31March2021theCharity(togetherwithitsconnectedtradingcompany)hadasix month
commitment under a non-cancellable operating lease as follows:
commitment under a non-cancellable operating lease as follows:
2021 2020
Land & Land &
buildings buildings
£ £
Expiry date:
Within one year 4,500 6,000

15. RELATED PARTY DISCLOSURES

ThepremisesinwhichMustardSeedoperatesareownedbyMrsRMaurice,thelandlord.Mrs R
MauricewasoneofthefoundersoftheCharityandcontinuestobeakeyvolunteerintherole of
the Managerof the Charity.The landlordhas reducedthe financialand propertyrisk on the Charity
by enablingtheCharitytorentpremisesnearMarlboroughHighStreetwithouttheCharity needing
tobuyitsownpropertyorenterintoaleasewitha3or5yearfinancialcommitmentwitha third
partylandlord.A third partyleasewouldhave the financialrisk of high rent increases,as well as  the
operationalrisk that at the end of the term the landlordcould ask the Charityto leavethe premises,
whichwouldbeverydisruptivetotheaimsoftheCharityandcouldeventhreatenitslong term
viability.ThelandlordhasconfirmedthatthereisnointentiontoasktheCharitytoleave the
premisesand thattheyare contentto rent the premisesto the Charityon a yearby yearbasis, with
six monthnoticeof terminationon eitherside.The landlordhas committedto providethe premises
totheTrustona stablebasisat a levelofrentthatis belowthemarketrate.Thereis a rent review
every 3 years which is undertaken to ensure that the rent charged is below market value.
In responsetotheCovidpandemic,duringtheyearended31March2021,thelandlordgranteda 6
monthrent free periodfollowedby 6 monthsat half rent,paymentof whichcouldbe deferred. For
the yearending31 March2022the landlordhas reducedthe contractualrentby 25%forthe whole
year.  This will be reviewed at the end of the year.
DuringtheyeartheCharity,togetherwithitsconnectedtradingcompanytheCoffeeShop,paid a
combinedrenttotheLandlordsof£3,000(2020:£11,000).Therewasanoutstandingbalances at
the end of the year of £2,500  (2020: £Nil).
continued...
-17-

MUSTARD SEED TRUST (MARLBOROUGH)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2021

16. ULTIMATE CONTROLLING PARTY

MustardSeedTrust(Marlborough)isconnectedtoMustardSeed(Marlborough)Ltd,the Coffee
Shop,a tradingcompany.Bothcompaniesareunderthe commoncontrolof the Trusteesshown in
the Report of the Trustees.
-18-