Mustard Seed Christian Ministries Annual Report and Accounts For year ended 31[st] March 2023
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**
We were expecting 2022/3, the year after lockdown ended, to be quite difficult. It was in some ways, although not always in the ways nor to the extent we expected!
Financially we did reasonably well, although still ending up with a net loss of £12,167 after allowing for some extraordinary expenditure on the building of £6,740. While not disastrous, we obviously could not sustain that level of loss for a sustained period, so are beginning to explore ways of addressing the situation. During the year a root and branch review of the Charity and its operations was carried out, which furnished us with a range of ideas about how to improve our performance financially and in other ways, and we are working on the gradual implementation of those over time.
One of the issues which has been difficult throughout lockdown and beyond has been that of making progress with desirable improvements in the fabric and appearance of the building. We finally managed to have new double glazing installed at the beginning of the year, after a long wait, and then there was a lengthy delay before a carpenter could undertake the next stage of the improvements. The works were finalised in the first quarter of 2023-24. It seems we were not alone in having difficulties getting work done.
However, by far the biggest issue during 2022 was the impending retirement and replacement of our splendid Manager of eight years’ standing, Sally Wilshaw. Only since her departure have we really appreciated how much the job had grown with her and her with the job. Her ability to carry out so many tasks has been highlighted by the difficulty we’ve had since her departure in keeping on top of everything. Our current staff team are doing all they can, but we continue to discover areas Sally had quietly covered which need attention. There remain challenges to matching the skills of the current team to the required tasks, which are being addressed..
As always, we are grateful for your continuing prayers and support, and as ever to God, our faithful customers and visitors, and to all the Trustees, Staff and Volunteers, who remain our greatest asset.
God bless you,
_Ruth Ray Chair, Mustard Seed Christian Ministries_
_November 2023_
2
## **The Key Facts**
It’s been another challenging year!
- Our Manager retired after eight years of devoted service. We are working hard to replace her, and finding it challenging to do so.
- We have almost completed our current range of improvements to the fabric and appearance of the building.
- We have continued to work hard to market our Charity effectively, working hard at building connections with local churches and making better use of local and digital means of communication.
- We continue to maintain sufficient reserves for three months’ core costs (i.e. Operating Expenditure.)
- We have continued to find the management of the bookshop challenging in the face of aggressive competition from internet-based competitors, but know that we are more fortunate than many others who have been unable to continue trading.
- Our Staff and Volunteers have remained positive, cheerful and welcoming despite all the challenges.
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 2022 to 31[st] March 2023 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 promote and sell 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 three local residents with part-time employment.**|
||**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 have an ongoing**|
||**informal partnership with one local charity, Gateway and we are looking to**|
||**develop this association in 2023-24.**|
||**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, (via Gateway) from**|
||**which, in 22/23 we provided cooked meals and hot drinks to the value of**|
||**£3,664.**|
||**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.**|
5
|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.**|
||**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 2022/23 we sold £20,009 (2021/22 £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 2022/23 we were successful in maintaining robust cash balances. We**|
|---|---|
|set|**have been able to replace the windows and are about to re-decorate the**|
||**exterior and install new signage.**|
|Fundraising|**During 2022/23 our ‘One In A Thousand’ Appeal raised £5,459 (2021/22**|
||**£5,713) but we are working to grow this figure in the near term, to help,**|
||**alongside other things, towards long-term sustainability.**|
6
## **Financial Review**
|Closing Financial Position|**In the year ended 31 March 2023 we had net incoming resources of £12,167**|
|---|---|
||**compared with £9,954 for 2021/22. It should be noted however that in**|
||**2021/22 Government Grants totalling £16,077 were received.**|
|Property Valuation|**£187,500 as per professional valuation carried out March 2022**|
|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.**|
|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, exacerbated by the more recent cost**|
||**of living crisis owing to increasing costs and inflation, continues to give us**|
||**significant challenges, like 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. We continuously review options in order to**|
||**safeguard our future.**|
## **Additional information**
|Principal sources of funds|**Our major source of income is our café. Most of our additional income is**|
|---|---|
||**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 and cost of**|
||**living crises.**|
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**
|**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. 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. We also**|
||**have links 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 2022/23 we have been able to resume face-to-face Trustees’**|
||**Meetings.**|
## **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**
**April to November 2022**|
|**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**|**April to November 2022**|
|**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**|**251-251 High Street, EXETER Devon EX4 3PZ**|
|**Independent**|
**Robin Johnson**|**10 Sidlands, Sidmouth, Devon EX10 8UE**|
|**Examiner**|||
## **Name of senior staff member**
**Sally Wilshaw (Manager) April to December 2022.**
## **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**|||
|---|---|---|
||**Ruth Ray**|**Kieth Sparks**|
||**Chairperson**|**Treasurer**|
||||
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 2023, 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 2023**
**Notes**
**Incoming Resources**
Donations
Legacies
Book shop sales & Commission
Sales of cards and gifts
Sales of refreshments
Government Grants|**2023**|**2023**|**2023**|**2022**|
|---|---|---|---|---|
||**Unrestricted**
**funds**|**Restricted**
**funds**|**Total**
**funds**|**Total**
**funds**|
|||||£
9,994
105
8,908
8,731
32,922
16,077|
|Total Incoming Resources
**Direct Charitable Expenditure**
Cost of sales
**4**
Expenses
**5**
Interest received|76,027
5,014
81,041
25,319
1,120
26,439
61,187
5,869
67,056
(287)
-
(287)|||76,737
21,267
45,581
(65)|
|Total resources expended
Net (outgoing) /incoming resources
Transfers between funds|86,219
6,989
93,208
(10,192)
(1,975)
(12,167)
-
-
-|||66,783
9,954
-|
|Total funds at 31 March 2022|277,410
3,862
281,272|||338,534|
|Total funds at 31 March 2023|267,218
1,887
269,105|||348,488|
12
## **Statement of Assets and Liabilities**
## **Year ended 31 March 2023**
|**Notes**
**Fixed assets**
Freehold property (at valuation 2022)
Fixtures and fittings (WDV)
Computer equipment (WDV)
**Current assets**
Stocks
Debtors
Bank and cash balances
3
**Less: Current liabilities**
Creditors
**Net current assets**
**Net assets**
Restricted Fund (Street Scene)
Designated Funds
(Renovations & Equipment)
(3 months’ Operating Expenditure)
General Purposes Fund
**Total Funds**|**2023**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**|**2023**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**|**2023**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**|
|---|---|---|---|
|||**Restricted**
**funds**|**Total**
**funds**|
Signed on behalf of the Trustees:
Chairperson Treasurer
Date:
13
## **Notes and Accounting Policies**
## **Year ended 31 March 2023**
## **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**
|EPOS Till Account
Current account
Deposit account
Building account
Street Scene Account (Restricted)
Petty cash account|**2023**
**£**
**2022**
**£**
866
1,079
2,759
5,680
58,338
57,857
2,822
8,511
1,887
3,862
500
-|
|---|---|
||**67,172**
**76,989**|
14
## **Notes and Accounting Policies (continued)**
## **Year ended 31 March 2023**
|**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|**2023**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**|**2023**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**|**2023**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**|
|---|---|---|---|
|||**Restricted**
**funds**|**Total**
**funds**|
15