Mustard Seed Christian Ministries Annual Report and Accounts For year ended 31[st] March 2022
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**
It’s clear that, for obvious reasons, 2021/22 has had its challenges, and, as I begin to draft this report, it seems that 22/23 will be no easier, and perhaps quite a lot worse.
There was a great deal of talk during last year about the possibility that, for small businesses, the most difficult time would be after lockdown finished, Government Grants finished, Business rates were reinstated and energy and other utility and supply costs began to rise. That has indeed proved to be the case. In the period since lockdown ended, an analysis of till reports indicates that footfall has been down, average transaction spend has fallen, and energy and supply costs are rising, with the consequence that we are having to look, reluctantly, at increasing our prices, whilst continuing to keep a tight hold on our costs. The only consolation is that all the local hospitality businesses are faced with the same issues, and needing to respond in similar ways. The national and indeed international picture echoes our local experience.
In the midst of that, we are keeping our heads above water, because of the reasonably healthy state of our reserves. But we are not consistently achieving our daily target, and, while we do have good reserves, we cannot sustain continuing losses indefinitely. So, we are looking carefully at areas where we might increase footfall, cut costs and maintain customer spend.
We value your continuing prayers and support. We remain committed to serving our community for as long as we can, and hope that the national and international factors which are beyond our control will begin to turn around. In the meantime, we remain grateful to God, to all our faithful customers and visitors upon whom we depend for their faithful support, and to all the Trustees, Staff and Volunteers, who have once again worked hard through the year to serve the Charity to the best of their ability.
God bless you in these continuing testing times.
David Lewis Chair, Mustard Seed Christian Ministries
9[th] December 2022
2
## **The Key Facts**
## It’s been a challenging year!
- We re-opened post pandemic on Monday 17[th] May, meaning that for the first month and a half we had remained in lockdown mode.
- We managed to retain all our staff through the lockdown period, thanks to the Job Retention Scheme, for which we are grateful.
- We continue to maintain sufficient reserves for three months’ core costs (i.e. Operating Expenditure.)
- We have repaid the last of our outstanding loans.
- We have replaced all the remaining single-glazed windows with double glazing. The signboards and new signage are still outstanding, much to our frustration.
- We have worked hard to market our Charity effectively, developing contacts with local churches and making better use of local and internet means of communication.
- During the year it became clear that, in line with national trends, footfall was down by around 10%, and spend per capita was also down. We have lost some regular customers, and others have been slow to return.
- For part of the year we made the decision to reduce opening hours to protect staff.
- Some volunteers have made the decision not to return, which has presented some challenges in staffing the shop adequately.
- In many ways, this year has been about assessing the impact of the Coronavirus pandemic, and determining the appropriate response. That will no doubt continue into 2022/3.
- So far, we have survived!
3
## **Summary Legal and Administrative Details**
## **1 Status**
Mustard Seed Christian Ministries was constituted by Trust Deed on 2 March 1995, and that Deed was subsequently amended by an Agreement dated 15[th] May 2014. Mustard Seed Christian Ministries 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 2021 to 31[st] March 2022 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**|
||•
**Running a Social Enterprise café**|
|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**
|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, from which, in 21/22 we**|
||**provided cooked meals and hot drinks to the value of £1,771.**|
||**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 cafe 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**|
5
**as by a loyal customer base which increasingly recognises the value of what we are doing. 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 2021/22 we sold £17, 639 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 continuing to develop our role as a Social Enterprise café, supporting our volunteers and developing our support for homeless and vulnerable people within the community. We continue to work with other organisations in the community serving the same constituency. 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.**
## **Additional information**
|Achievements against objectives|**During 2021/22 we were successful in maintaining robust cash balances.**|
|---|---|
|set|**During the year, we have succeeded in repaying the outstanding loan of**|
||**£11,400 in full. We continue to designate £15,000 for planned renovations,**|
||**from which we will be paying for new windows in 2022/23.**|
|Fundraising|**During 2021/22 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 2022 we had net incoming resources of £9,954,**|
|---|---|
||**an 81% decrease on 2020/21 (surplus £51,352, principally explained by the**|
||**end of 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.)**|
|Property Valuation|**Following advice from our Independent Examiner, we had the property**|
||**professionally valued during 2021/22, in the sum of £187,500 (book value**|
||**was £254,716).**|
|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 continues to challenge our future**|
||**viability, like that of many other small 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**
|**Additional information**||
|---|---|
|Principal sources of funds|**Our major source of income is our café. Most of our additional income has**|
||**from donations. We run an Appeal (‘One In A Thousand’) 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, payments or benefits.**
## **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 2021/22 the early 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**|
||**17th December 2022**||
10
## **Report of the Independent Examiner**
I report to the Trustees on my examination of the accounts of Mustard Seed Christian Ministries for the year ended 31 March 2022, 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: **York Cottage 10 Sidlands Sidmouth Devon EX10 8UE**
11
## **Receipts & Payments Account**
|**Year ended 31 March 2022**
**Notes**
**Incoming Resources**
Donations
Legacies
Book shop sales & Commission
Sales of cards and gifts
Sales of refreshments
Government Grants|**2022**|**2022**|**2022**|**2021**|
|---|---|---|---|---|
||**Unrestricted**
**funds**|**Restricted**
**funds**|**Total**
**funds**|**Total funds**|
|||||£
18,454
5,000
4,835
4,539
10,265
40,951|
|Total Incoming Resources
**Direct Charitable Expenditure**
Cost of sales
**4**
Expenses
**5**
Interest received|73,257
3,480
76,737
20,261
1,006
21,267
43,425
2,156
45,581
(65)
-
(65)|||84,044
8,442
24,264
(14)|
|Total resources expended
Net incoming resources
Transfers between funds|63,621
3,162
66,783
9,636
318
9,954
-
-
-|||32,692
51,352
-|
|Total funds at 31 March 2021|334,990
3,544
338,534|||287,182|
|Total funds at 31 March 2021|344,626
3,862
348,488|||338,534|
12
## **Statement of Assets and Liabilities**
|**Year ended 31 March 2021**
**Notes**
**Fixed assets**
Freehold property (at valuation)
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:|**2022**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**
**£**
**£**
**£**
187,500
-
187,500
-
-
-
9,133
-
9,133
145
-
145
196,778
-
196,778
10,646
-
10,646
-
-
-
73,127
3,862
76,989
83,773
3,862
87,635
3,141
-
3,141
-
-
-
3,141
-
3,141
80,632
3,862
84,494
**277,410**
**3,862**
**281,272**
-
3,862
3,862
15,000
-
15,000
30,000
-
30,000
232,410
-
232,410
**277,410**
**3,862**
**281,272**||
|---|---|---|
|||**2021**|
|||**Total funds**|
|||**£**
161,887
92,829
9133
145|
|||263,994|
|||16,155
1,202
69,021|
|||86,378
438
11,400|
|||11,838
74,540|
|||**338,534**|
|||3,544
15,000
30,000
289,990|
|||**338,534**|
||||
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**
|**. Bank and cash balances**|||
|---|---|---|
||**2022**|**2021**|
||**£**|**£**|
|Epos Till Account|1,079|-|
|Current account|5,680|10,746|
|Deposit account|57,857|47,438|
|Building account|8,511|7,172|
|Street Scene Account (Restricted)|3,862|3,544|
|Petty cash account|-|121|
||**76,989**|**69,021**|
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|**2022**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**|**2022**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**|**2022**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**|
|---|---|---|---|
|||**Restricted**
**funds**|**Total**
**funds**|
15