2021-03-31-accounts

Mustard Seed Christian Ministries Annual Report and Accounts For year ended 31[st] March 2021

Charity Number: 1048903

Contents

Contents	Page
Introduction	2
The Key Facts	3
Summary Legal and Administrative Details 4
Trustees' Report	5
Report of the Independent Examiner	11
Receipts and Payments Account	12
Statement of Assets and Liabilities	13
Notes and Accounting Policies	14

1

Introduction

For obvious reasons, 2020/21 has been a difficult and different year.

The impact of the coronavirus pandemic has been global and local, and, like other businesses and charities across the world and in East Devon, we have been significantly impacted by it. Long periods of lockdown, Trustees’ meetings on Zoom, getting to grips with changing legislation and resultant administrative demands, furloughing of staff with all its implications for the continuing management of the premises, concern for the vulnerable section of our clientele and how they are coping during these enforced periods of isolation and lack of support, and myriad other issues have stretched and challenged us.

And yet, the generous support of the Government through small business grants, relief from business rates and payments through the Job Retention Scheme has meant that we have been able not only to maintain a secure financial position but also to contemplate, and begin to prepare for, modest improvements to the outside of the building. Because of the pressure on tradesmen locally, we have struggled to obtain quotations and faced long delays before work can be done, but we have managed to get long overdue external decoration of the building completed, and are now looking forward to having our remaining single-glazed windows upgraded to double glazing, and to having our shop signage renewed.

And so, despite it all, we remain in a sound financial position and confident that we have a future, at least for the time being. We have managed and survived one of the most difficult years in the history of the charity, and remain in a position to serve our constituency into the future. We are grateful to God, and to all those who have, through practical action, generous financial support and committed praying, seen us through. I am particularly grateful to the Trustees and Staff, who have worked hard through the year to ensure that we remain focused on our responsibilities and committed to our vision. Long may it last.

God bless you in these testing times.

David Lewis Chair, The Mustard Seed Christian Ministries

December 2021

2

The Key Facts

Like thousands of other small businesses and charities, we have experienced the need to draw in our horns and suffered some loss of impetus.

Nevertheless…

• We’ve weathered a pandemic and discovered Zoom!

• We have managed to retain all our staff, furloughed as necessary.

• We have benefited greatly from significant Government support in the shape of the Job Retention Scheme, Small Business Grants and Business Rate Relief, for all of which we are very grateful..

• We have taken advantage of ‘lockdown time’ to plan for the future by reviewing our financial procedures, and seeking to recruit new volunteers and trustees.

• We have developed a Risk register.

• We have reviewed some of our policies and timetabled regular review of them all.

• We have amassed sufficient reserves for three months’ core costs (i.e. Operating Expenditure.)

• We have repaid all our outstanding loans since 31 March 2021.

• We have made some important decisions in relation to the ways we seek to serve our local community.

• We have begun the process of external re-decoration and signage improvement.

• We have developed and are now rolling out a marketing strategy.

• We have adjusted our hours as necessary.

• We have kept our customers safe.

• We have affiliated to Bookshop.org and are finding that supportive.

• None of the Trustees have had a heart attack - yet!

3

Summary Legal and Administrative Details

1 Status

The Trust was constituted by Trust Deed on 2 March 1995, and that Deed was subsequently amended by an Agreement dated 15[th] May 2014. The Trust is regarded as a charity and is registered with the Charity Commissioners under reference number 1048903.

2 Trustees

Members of the Board of Trustees during the year were as follows:

Mr M Brown Mrs R Ray Rev D Lewis Chair Mr K Sparks Treasurer Mrs J Davis Secretary

3 Registered Office

1 All Saints Road Sidmouth Devon EX10 8ER

4 Professional Advisors

Bankers: Independent Examiner: HSBC Robin Johnson FCCA Fore Street York Cottage Sidmouth 10 Sidlands Devon Sidmouth EX10 8AA EX10 8UE

5. Statement of Trustees' Responsibilities

Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity for that period. In preparing those financial statements, the Trustees are required to:

a) select suitable accounting policies and then apply them consistently; b) make judgements that are reasonable and prudent; c) state whether the policies adopted are in accordance with the appropriate Charity Commission guidelines for Receipts and Payments Accounts, subject to any material departures disclosed and explained in the financial statements; and d) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its operations.

The Trustees are responsible for keeping proper accounting records which 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. 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.

4

Trustees’ Annual Report

Period: 1st April 2020 to 31[st] March 2021 Charity name: Mustard Seed Christian Ministries Charity registration number: 1048903

Objectives and Activities:

Objectives and Activities:
The Purposes of the Charity	To advance the Christian religion by
	• Selling Christian books and gifts
	• Supporting other organisations doing the same
	• Running a Social Enterprise cafe
Our Main Activities	We run a Christian bookshop serving the residents of East Devon and visitors
	to it, selling books, cards and gifts
	We provide Christian books to churches and other organisations
	We continue to develop a Social Enterprise Café/Community Hub
Public Benefit	We have consulted the Commission’s guidance on public benefit and believe
	that we satisfy it by virtue of the fact that our bookshop and café are open
	to the public and that we market our services across East Devon. We seek to
	be inclusive of all regardless of ethnicity, age, gender, faith, sexual
	orientation, social background or situation, or ability, both in relation to our
	recruitment of staff and volunteers and in relation to our clientele.

Additional information

Additional information
Social Investment	We run a café which increasingly fits the description of a Social Enterprise,
	and as such represents an investment in the local community as a whole and
	in specific sectors within it.
	We support several volunteers with additional needs.
	We work with other local organisations in supporting homeless and
	vulnerable people in the Sid Valley and beyond.
	We offer a safe and secure place of rest and affordable refreshment for
	those who need it. We have regular customers who live alone and who
	come for company and informal help with problems. We try to have
	experienced listeners available.
	We provide cooked meals and hot drinks to homeless people and others
	coping with poverty through our Street Scene fund.
	We see all the above as appropriate to our primary purpose of advancing the
	Christian religion, by living out our faith in the way we run the charity as well
	as by promoting the message through the bookshop.
Volunteers	Our three excellent staff are ably supported by a complement of volunteers,
	many of whom are extremely capable and serve the ethos of the bookshop
	and café very well. Some as noted above have a range of additional needs
	and are cared for and developed both by staff and other volunteers, as well
	as by a loyal customer base which increasingly recognises the value of what
	we are doing.

5

	We offer a work placement each year to a hard-to-place student from the
	local secondary school, both for a full week and at other times when
	requested.
	We have a staff handbook which contains a full complement of policies
	relating to their work. New volunteers are inducted by the Manager or
	Assistant Manager.
Other	Locals and visitors, of whom there are many because of our town’s
	reputation as a holiday destination, often comment on the ‘lovely
	atmosphere’ of the shop and, in the case of the visitors, express regret at the
	loss of similar provision in their own areas. We record these comments for
	evidential purposes.

Achievements and Performance

Main Achievements	In 2020/21 we sold £9,374 worth of Christian books, cards and gifts to
	residents, churches, other organisations and visitors to the town. We
	continued to serve the Sidmouth community and beyond amid tight financial
	constraints.
	We are developing our role as a Social Enterprise café, supporting those
	volunteers and developing our support for homeless and vulnerable people
	within the community. In that connection we have developed our links with
	other organisations in the community serving the same constituency.
	As noted above, the number of comments from visitors appreciating what
	we offer and the way we offer it continues to grow.
	The Staff Team continue to grow in effectiveness and in their ability to
	support the strong team of volunteers, some of whom have additional
	needs. The latter grow in confidence and skills, some progressing from
	kitchen work to contact with customers.
	Our Manager and another staff member were unable to attend the Christian
	Resources Together Conference this year, for the obvious reason that it was
	cancelled! They continue to keep themselves updated on Health and Safety
	and Food Preparation issues

Additional information

Achievements against objectives	During 2020/21 we were successful in sustaining and even building robust
set	cash balances. Post balance sheet, we have repaid the outstanding loan of
	£11,400 in full. We have also been able to designate £15,000 for planned
	renovations.
Fundraising	During 2020/21 our ‘One In A Thousand’ Appeal raised £5,776. We hope
	that this figure will continue to grow, to help, alongside other things,
	towards long-term sustainability.

6

Financial Review

Closing Financial Position	In the year ended 31 March 2021 we had net incoming resources of £51,335,
	a 597% increase on 2019/20 (surplus £7,365, principally explained by the
	generous Government support amounting to £41k for the extensive periods
	during which we had to remain closed, and the periods during which we
	were having to operate under COVID-19 restrictions.)
Reserves Policy	The charity has a policy of reserving three months’ Operating Expenditure in
	order to offset potential financial challenges arising. This has meant that so
	far we have been able to weather these uncertain times with some
	confidence surrounding our future. We remain committed to sustaining a
	reserves account as a matter of priority.
Amount of Reserves held	We carry £30,000 of cash Reserves designated for our Operating
	Expenditure, and another £15,000 for Renovations.
Reasons for holding zero reserves	N/A
Details of fund materially in	N/A
deficit
Uncertainties Going Forward	The impact of the COVID 19 pandemic has challenged our future viability like
	that of many other businesses. As a result of our experience during the past
	twelve months, we remain confident that we will be able to continue trading
	with the support of our loyal supporters and customers, recognising that it
	will nonetheless pose significant challenges. We continuously review
	options in order to safeguard our future.

Additional information

Principal sources of funds	We have generated most of our income from donations in this particular
	year. We run an Appeal for people to partner with us by regular donation of
	small sums of money.
Investment policy and objectives	N/A
Principal Risks facing the charity	Like all small Charities we face the challenges of rising costs, VAT liability,
	Business Rates and internet shopping. We are working hard to minimise
	costs and maximise income. The major risks facing us are a reduction in
	large donations and the financial consequences of the COVID 19 crisis.

7

Structure, Governance and Management

Description of charity’s trusts The Trust was constituted as an Unincorporated Association by Trust Deed on 2[nd] March 1995 and is regarded as a Charity. The Deed was amended by an Agreement dated 15[th] May 2014. Trustee Selection New Trustees are appointed by invitation of the existing Trustees. Officers are elected by the Trustees. The Trustees are all volunteers and do not receive any remuneration or benefits.

Additional information

Additional information
Induction and Training of Trustees	We refer new Trustees to the Charity Commission documentation for new
	Trustees, and discuss with them the issues arising from these. We try where
	possible to incorporate reviews of topics covered by the documentation in
	Trustees’ meetings.
Organisational structure	The Charity is overseen by a small group of Trustees from local churches, and
	managed by three paid Staff, a manager, an assistant manager and a baker.
	All three are part-time.
Related Parties	We have informal links with the churches of the Sid Valley, and work closely
	with Gateway, the local organisation supporting the homeless, with the Sid
	Valley Food Bank and with Sid Valley HELP, a local networking organisation
	working particularly to support the lonely and isolated.
Other	During 2020/21 all of our Trustees Meetings were conducted on Zoom.

Reference and Administrative details

Charity name	Mustard Seed Christian Ministries
Other name the charity uses	N/A
Registered charity number	1048903
Charity’s principal address	1 All Saints Road
	Sidmouth
	Devon
	EX10 8ER

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Names of the Trustees who manage the Charity

Trustee name Office (if any) Dates acted if not for whole year Name of person (or body) entitled to appoint trustee (if any)	Trustee name Office (if any) Dates acted if not for whole year Name of person (or body) entitled to appoint trustee (if any)
	Mr Michael Brown
Mrs Jo Davis Secretary
	Mrs Ruth Ray
Revd David Lewis Chair
	Mr K Sparks Treasurer

Names of trustees for the time being holding title to property belonging to the charity

Name	Dates acted if not for whole year
Michael Brown
Jo Davis
David Lewis
Ruth Ray
Kieth Sparks

Funds held as custodian trustees on behalf of others N/A

Additional information

Names and addresses of advisers

Type of	Name	Address
adviser
Bank	HSBC	Fore Street, Sidmouth, Devon EX10 8AA
Independent	Robin Johnson	10 Sidlands, Sidmouth, Devon EX10 8UE
Examiner

Name of senior staff member

Sally Wilshaw (Manager)

Exemptions from disclosure

Reason for non-disclosure of key personnel details Intra-staff confidentiality

9

Declarations

The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity’s trustees

Signature(s) Full name(s) Position Date
	David Antony Lewis	Kieth Sparks
	Chairperson	Treasurer
	14th December 2021

10

Report of the Independent Examiner

I report to the Trustees on my examination of the accounts of the Mustard Seed Christian Ministries Trust for the year ended 31 March 2021, which are set out on pages 12 to 15.

Responsibilities as Trustees of the Charity and Basis of Report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

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) 0f 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 giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records.

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.

Signed:

Date:

Name: Robin Johnson

FCCA Address: 10 Sidlands Sidmouth Devon EX10 8UE

11

Receipts & Payments Account

Year ended 31 March 2021 Notes Incoming Resources Donations Legacies Book shop sales & Commission Sales of cards and gifts Sales of refreshments Government Grants	2021	2021	2021	2020
	Unrestricted funds	Restricted funds	Total funds	Total funds
				£ 1,817 - 3,306 2,303 11,394 -
Total Incoming Resources Direct Charitable Expenditure Cost of sales 4 Expenses 5 Interest received	82,214 1,830 84,044 8,411 31 8,442 23,786 478 24,264 (14) - (14)			18,820 12,124 13,077 (8)
Total resources expended Net incoming resources Transfers between funds	32,183 509 32,692 50,031 1,321 51,352 - - -			25,193 (6,373) -
Total funds at 31 March 2020	284,959 2,223 287,182			293,555
Total funds at 31 March 2021	334,990 3,544 338,534			287,182

12

Statement of Assets and Liabilities

Year ended 31 March 2021 Notes Fixed assets Freehold property (at cost) Property extension (at cost) Fixtures and fittings (WDV) Computer equipment (WDV) Current assets Stocks VAT Bank and cash balances 3 Less: Current liabilities Creditors Interest free loans Net current assets Net assets Restricted Fund (Street Scene) Designated Funds (Renovations) (3 month’s Operating Expenditure) General Purposes Fund Total Funds Signed on behalf of the Trustees:	2021 Unrestricted funds Restricted funds Total funds £ £ £ 161,887 - 161,887 92,829 - 92,829 9,133 - 9133 145 - 145 263,994 - 263,994 16,155 - 16,155 1,202 - 1,202 65,477 3,544 69,021 82,834 3,544 86,378 438 - 438 11,400 - 11,400 11,838 - 11,838 70,996 3,544 74,540 334,990 3,544 338,534 - 3,544 3,544 15,000 - 15,000 30,000 - 30,000 289,990 - 289,990 334,990 3,544 338,534	2020 Total funds
		£ 161,887 92,829 9,133 145
		263,994
		16,578 - 25,050
		41,628 5,840 12,600
		18,440 23,188
		287,182
		2,223 8,709 - 276,250
		287,182

Chairperson Treasurer

Date: 14[th] December 2021

13

Notes and Accounting Policies

Year ended 31 March 2021

1. Accounting policies

The financial statements have been prepared in accordance with the Charity Commission guidance for Receipts and Payments Accounts.

a) Income

All income is recognised on a received basis.

b) Fund accounting The Charity's Unrestricted Fund consists of funds which the Charity may use for its charitable purposes.

A Designated Fund has been created relating to Renovations.

c)

Expenditure

All expenses are accounted for on a receipts and payments basis.

2. Trustees' remuneration and expenses

No remuneration or expenses was paid by the Charity to any of the Trustees for their services during the year.

3. Bank and cash balances

Current account Deposit account Building account Street Scene Account (Restricted) Petty cash account	2021 2020 £ 10,746 6,396 47,438 9,594 7,172 6,637 3,544 2,223 121 200
	69,021 25,050

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Notes and Accounting Policies (continued)

Year ended 31 March 2021

4. Cost of Sales Book shop purchases Postage on sales orders Catering purchases Credit/Debit card charges 5. General expenses Staff Costs Rates Utilities Premises - renewals & maintenance Equipment - renewals & maintenance Cleaning & hygiene costs Disposal of waste Telephone & internet charges IT & Till Costs Advertising Stationery General insurances Legal & Professional Fees Bank charges Sundry	2021 Unrestricted funds Restricted funds Total funds	2021 Unrestricted funds Restricted funds Total funds	2021 Unrestricted funds Restricted funds Total funds
		Restricted funds	Total funds

15