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**|
8
## **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**|
14
## **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