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2024-03-31-accounts

Mustard Seed Christian Ministries Annual Report and Accounts for year ended 31[st] March 2024

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Contents Page
Introduction 2
The Key Facts 3
Summary Legal and Administrative Details 4
Trustees' Report 5
Report of the Independent Examiner 13
Receipts and Payments Account 14
Statement of Assets and Liabilities 15
Notes and Accounting Policies 16

1

Introduction

Commencing the year 2023/24, the Charity faced some significant challenges. Firstly, our previous long-standing shop manager had retired at the end of December 2022, with no obvious replacement found. Secondly, our Chair of Trustees, David Lewis, stepped down from the board, having generously given five years to the role. Added to this, the retirement of another trustee the previous year and personal challenges faced by another trustee meant the board of trustees was looking thin.

To combat some of our operational management challenges from the end of 2022/23, an additional staff member was taken on in a management capacity for a temporary contract of a few months, which ended up being extended several more months while our shop manager position remained unfilled. While this helped solve many of the operational issues, it did contribute to an unsustainably high staff budget. Additionally, high inflation on food and energy, the need for a replacement oven and repainting works to the exterior of the building, meant our finances were under pressure.

Thankfully, over the year we have managed to overcome a number of challenges, although the financial benefits are only just being felt. Three new trustees joined the board, while I took on the Chair role on an interim basis. The recruitment of a dedicated bookshop manager, working on a partvoluntary basis, has secured the survival of our bookshop. Our bookshop manager’s work to promote the bookshop and our general offering through social media and the local churches, as well as building up our stock of second-hand books has helped to maximise footfall to the shop while minimise our costs. His appointment meant that we were able to release our temporary manager, although of course, it was a sadness to say goodbye to a valued member of the team. Thankfully he was still around to campaign for and see us win the Sidmouth Herald’s ‘Café of the Year’!

Having faced various challenges with our café staffing mix, we are now grateful to have a team that works well together, with our long-standing assistant manager given the position of Café Manager from December 2023. In line with inflation, our menu prices were increased for a second time during the year to maintain a gross profit that makes us commercially viable. We continue to ensure that we to pay all our staff the real Living Wage rather than the statutory minimum. On the back of external refurbishment works, we were able to complete the internal refurbishment of the shop during Christmas week while we were already closed for trading. This revived the look of the café and provides greater separation between the café and our offering of cards and gifts. A new separate bookshop area better displays our stock and means customers are more able to access it.

Significant challenges still persist and the long-term future of the charity remains under review. While we are much better placed to avoid making a loss in 2024/25, careful management of all aspects of the Trust is still necessary to ensure this is achieved. With our trading activities more selfsupporting, our hope is that our charitable donations can be used to expand our charitable activities further. Our board of trustees needs increasing to better share the load, particularly given the impending retirement of at least two more of our long-standing trustees. That said, we are thankful to God for the continued existence of the Mustard Seed, along with our dedicated staff, volunteers, trustees and supporters in helping us to serve our community with love.

Ruth Ray Chair, Mustard Seed Christian Ministries

April 2024

2

The Key Facts

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. Mustard Seed Christian Ministries operates from its premises under the name of ‘The Mustard Seed Café and Christian Bookshop’.

2 Trustees

Members of the Board of Trustees serving during the year were as follows: Mrs Ruth Ray Chair Mr Kieth Sparks Treasurer Mrs Joanna Davis Secretary Mr Gareth Stephens Mrs Jayne Norton Mrs Hannah Boyd

A note of appointments and resignations can be found on page 10.

3 Registered Office

1 All Saints Road Sidmouth Devon EX10 8ER

4 Professional Advisors

Bankers: Independent Examiner: Solicitors acting for CIO: HSBC Stephen Maycock BA FCA Anthony Collins LLP 250-251 High St 16 Windsor Mead 134 Edmund St Exeter Sidford Birmingham Devon Sidmouth B3 2ES EX4 3PZ EX10 9SJ

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:

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 2023 to 31[st] March 2024 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 community 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, schools and other
organisations.
Our café aims to provide locals and visitors alike with a hospitable welcome, a
listening ear and relevant support and signposting as desired as an outworking
of our Christian ethos and values.
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

5

Gateway volunteers and clients was previously paid for by a designated fund held by Mustard Seed Christian Ministries but since forming and registering their own charity, this fund has been run down with refreshment now paid for directly by Gateway. Gateway’s use of the Mustard Seed is not dependent upon a minimum spend, with both charities operating symbiotically to support one another in our collective aim to support those in need.

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 five excellent staff are ably supported by a team of volunteers who 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 one of her able assistants. 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.

Achievements and Performance

Main Achievements In 2023/24 we sold £18,004 (2022/23 £20,009) worth of Christian books, cards
and gifts to residents, churches, other organisations and visitors to the town.
The development of our second-hand book offering has enabled us to
distribute more Christian literature at a lower price to our customers as well
as provide a valuable home for many used Christian books that may otherwise
be disposed of. Although our financial turnover of books has decreased our
profit margin on book sales has improved and with a pivot towards fewer new
book sales and more second hand, we anticipate that this will secure the
financial future of the bookshop. Although the cost of sales for books
increased in 2023/2024 (£11,847 versus £10035) this was largely due to a
conservative write-down of stock value of our new books, many of which are
now several years old.

6

We are still developing our role as a community café, supporting our volunteers as well as homeless and vulnerable people within the community. We continue to work with other local organisations serving the same constituency. The value of this work is recognised by other organisations within the town and elsewhere which provide us with financial support, as well as by the community itself when the Mustard Seed was named as the local newspaper’s ‘Café of the Year’ as voted for by customers.

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. A focus on pricing and customer experience in the café have helped to increase our café sales by £7,723 (£59,126 in 2023/204 versus £51,403 in 2022/2023) with minimal increase in the cost of sales (£16,129 in 2023/2024 versus £15720 in 2022/2023).

We are pleased to have moved significantly towards a more sustainable financial situation, with early indicators showing that we should be achieving or much closer to break-even for 2024/25

Additional information

Additional information
Achievements against objectives While the tide of losses was eventually stemmed during 2023/24 our cash
set balances have reduced by £9,093 (£58,079 in 2023/24 versus £67,172 in
2022/23). This is not expected to reduce further due to action taken during
the year and despite the drop, during 2023/24 we were still able to maintain
robust cash balances. We have been able to redecorate the exterior, purchase
a replacement oven and refurbish the interior which have helped to
contribute to our rising café sales income.
Fundraising During 2023/24 our ‘One In A Thousand’ Appeal for regular donations raised
£4,205 (2022/23 £5,459) and we are working to maintain and build this figure,
under the new banner of ‘Friends of the Mustard Seed’. We are also
researching grant funding that may be available to support some of the
community building and vulnerable volunteer training we are doing.

7

Financial Review

Receipts and Payments The Trust operates on a Receipts and Payments basis but accounts with a full
Accounting balance sheet covering stocks, debtors and creditors along with fixed assets at
valuation, but without accruals and prepayments and the application of
depreciation. It does so on a consistent basis with recent years.
Assets are renewed and replaced, when needed, in order to support the
operation of the Cafe and Bookshop. These payments are shown on page 14 in
General Expenses-renewals and maintenance.
Closing Financial Position In the year ended 31 March 2024 we had net outgoing resources of (10,065
compared with outgoing resources of £12,167 for 2022/23. Cash balances
were £58,079 (£67,172 in 2022/3).
Fixed Asset Values The property is valued at £187,500 as per professional valuation carried out
March 2022. Other assets are renewed and replaced and the Trustees review
their value annually. It is considered that their value is fair given their
continued use, renewal and replacement..
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 Included in our cash and bank balances are £25,000 cash reserves (2022/23:
£30,000) approximating to three months operating expenditure. Reserve
levels are reviewed by the Trustees regularly as and when a change in
circumstances dictates.
Reasons for holding zero reserves Reserves are held and monitored as noted.
Details of fund materially in There are no funds in deficit.
deficit
Uncertainties Going Forward Uncertainty remains on a general level around the continued Cost of Living
and the current rate of inflation, as well as how Business Rates will be charged
each year. Combined with the proposed increase at the end of 2023/24 by
almost 10% of our staff hourly wage, our finances will remain under pressure.
We anticipate a legal bill of up to £4,000 this financial year towards the cost of
transitioning our charitable structure towards that of a CIO, which we hope to
cover through charitable donations. This should then help us to recruit the
number of trustees that we need as this remains an ongoing challenge.
Our staff team are now well-placed to deliver our services, demand for which
is anticipated to increase if not remain the same. That said, as a small
organisation, we are still vulnerable to the same sort of unforeseen shocks of
any similar operation such as staffing issues, another pandemic, maintaining
adequate numbers of volunteers and trustees, etc.

8

Additional information

Principal sources of funds Our major source of income is our café. Most of our additional income is from
the sale of books and gifts and donations. We run an Appeal (‘One In A
Thousand’, now ‘Friends of the Mustard Seed’) for people to partner with us
by regular donation of small sums of money.
Investment policy and objectives Surplus funds are held on bank deposit in order to be readily available when
needed.
Principal Risks facing the charity We are working hard to minimise costs and maximise income, major elements
of which have been monitored and addressed this financial year with focus
placed in those areas where we can be more competitive.
We recognise that the charitable donations we receive can help us broaden
our charitable reach and therefore the risks facing us in this would be a
reduction in donations.

9

Structure, Governance and Management

Description of charity’s trusts The Trust was constituted as an Unincorporated Association by Trust Deed on
2ndMarch 1995 and is regarded as a Charity. The Deed was amended by an
Agreement dated 15thMay 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 five paid Staff. All five 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 as well as Oasis café which addresses the same.
Other www.mustard-seed.org.uk
‘The Mustard Seed Sidmouth’ on facebook
Email: mustard.seed@hotmail.co.uk

Reference and Administrative details

Charity name Mustard Seed Christian Ministries
Other name the charity uses The Mustard Seed Café and Christian Bookshop
Registered charity number 1048903
Charity’s principal address 1 All Saints Road
Sidmouth
Devon
EX10 8ER

10

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)
Mrs Hannah Boyd
Appointed 11 July 2023
Mrs Joanna Davis
Secretary
Mrs Ruth Ray
Chair (incoming)
Mrs Jayne Norton
Appointed 5 September 2023
Mr Kieth Sparks
Treasurer
Mr Gareth Stephens
Appointed 11 July 2023
Rev David Lewis
Chair (outgoing)
Resigned a7 July 2023

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

Name Dates acted if not for whole year
Joanna Davis
Ruth Ray
Kieth Sparks

Funds held as custodian trustees on behalf of others There are no funds.

Additional information

Names and addresses of advisers

Type of Name Address
adviser
Bank HSBC 251-251 High Street, EXETER Devon EX4 3PZ
Independent Stephen Maycock 16 Windsor Mead, Sidford, Sidmouth, EX109SJ
Examiner

Name of senior staff member

Name of senior staff member
Name Dates acted if not for whole year
Nick Townsend Until 17thOctober 2023
Michelle Bree 1stDecember 2023 and ongoing
Chris Halls 28thSeptember 2023 and ongoing

Exemptions from disclosure

Reason for non-disclosure of key personnel details

Intra-staff confidentiality

11

Declarations

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

Signed on behalf of the charity’s trustees

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||| |---|---| |Signature(s)| |Full name(s)|Ruth Ray| |Position|Chairperson| |Date|12/11/2024|

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Kieth Sparks Treasurer 12/11/2024

12

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 2024, which are set out on pages 14 to 17.

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: 11[th] November 2024

Name: Stephen Maycock BA FCA Address: 16 Windsor Mead, Sidford, Sidmouth, EX109SJ

13

Receipts & Payments Account

Year ended 31 March 2024
Notes
Incoming Resources
Donations
Gift Aid repayments
4
Legacies
Book shop sales & Commission
Sales of cards and gifts
Sales of refreshments
Interest received
2024 2024 2024 2023
Unrestricted
funds
Restricted
funds
Total
funds
Total
funds
£
9,629
-
9,070
10,939
51,403
287
Total Incoming Resources
Direct Charitable Expenditure
Cost of sales
5
Expenses
6
92,540
92,540
28,658
28,658
73,947
73,947
81,041
26,439
67,056
Total Resources Expended
Net (Outgoing) /Incoming resources
Adjust for non-cash movements:
Reduction/(increase) in stock value
Reduction/(increase) in debtors
(Reduction)/increase in creditors
Cash transfers between funds
1
102,605
102,605
(10,065)
-
(10,065)
4,638
4,638
427
427
(4,093)
(4,093)
1,887
(1,887)
-
93,208
(12,167)
(819)
(427)
3,596
-
Openingcash resources at 1 April 65,285
1,887
67,172
73,127
Closingcash resources at 31 March
3
58,079
-
58,079
65,285
Notes
Reconciliation of Funds
Opening Funds at 1 April
Net outgoing resources
Transfers between funds
2024
Unrestricted
funds
Restricted
funds
Total
funds
267,218
1,887
269,105
(10,065)
(10,065)
1,887
(1,887)
-
2023
Total
funds
281,272
(12,167)
Closingfunds at 31 March 259,040
-
259,040
269,105

14

Statement of Assets and Liabilities

Year ended 31 March 2024
~~0 ~~
Notes
Notes
2024
2023
Unrestricted
funds
Restricted
funds
Total
funds
Total funds
£
£
£
£
~~ES~~
~~EE~~
Notes
2024
2023
Unrestricted
funds
Restricted
funds
Total
funds
Total funds
£
£
£
£
~~ES~~
~~EE~~
Notes
2024
2023
Unrestricted
funds
Restricted
funds
Total
funds
Total funds
£
£
£
£
~~ES~~
~~EE~~
Notes
2024
2023
Unrestricted
funds
Restricted
funds
Total
funds
Total funds
£
£
£
£
~~ES~~
~~EE~~
Fixed assets
Freehold property (at valuation 2022) 187,500 187,500 187,500
Fixtures and fittings (WDV) 9,133 9,133 9,133
Computer equipment (WDV) 145 145 145
196,778 196,778 196,778
Current assets
Stocks 6,827 6,827 11,465
Debtors - - 427
Bank and cash balances 3 58,079 58,079 67,172
64,906 64,906 79,064
Less: Current liabilities
Creditors 2,644 2,644 6,737
Net current assets 62,262 62,262 72,327
Net assets 259,040 259,040 269,105
Restricted Fund (Street Scene) - - 1,887
Designated Funds:
- Renovations & Equipment 2,921 2,921 3,164
- Three months’ Operating
Expenditure 25,000 25,000 30,000
General Purposes Fund 231,119 231,119 234,054
Total Funds 259,040 259,040 269,105

Signed on behalf of the Trustees:

Chairperson Treasurer ~~FR OD~~ Speck Date: 13/11/2024

15

Notes and Accounting Policies

Year ended 31 March 2024

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 Funds consists of funds which the Charity may use for its charitable purposes. Designated Funds have been created for management purposes. These are unrestricted.

Our Street Scene arrangement finished during the year. The balance of the restricted fund was released to our General Purpose Fund to further our work in support of homeless clients.

c) Expenditure

All expenses are accounted for on a receipts and payments basis with the exception of staff costs and VAT payable which are recorded as incurred.

2. Trustees' remuneration and expenses

No remuneration or expenses were 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
2024
£
2023
£
1,569
866
5,311
2,759
47,678
58,338
2,921
2,822
-
1,887
600
500
58,079
67,172

4. Gift Aid

Gift Aid is claimed on gifts in accordance with HMRC guidance.

16

Notes and Accounting Policies (continued)

Year ended 31 March 2024

Year ended 31 March 2024
2024 2023
Unrestricted Restricted Total Total
funds funds funds funds
£ £ £ £
5. Cost of Sales
Book shop purchases 11,847 11,847 10,035
Postage on sales orders 64 64 120
Catering purchases 16,129 16,129 15,720
Credit/Debit card charges 617 617 564
28,658 28,658 26,439
6. General expenses
Staff Costs 48,114 48,114 45,053
Rates 1,998 1,998 3,805
Utilities 6,204 6,204 4,133
Premises - renewals & maintenance 9,611 9,611 7,712
Equipment - renewals & maintenance 217 217 703
Cleaning & hygiene costs 995 995 1,077
Disposal of waste 1,116 1,116 908
Telephone & internet charges 603 603 487
IT & Till Costs 812 812 761
Advertising 21 21 -
Stationery 181 181 305
General insurances 1,223 1,223 1,613
Legal & Professional Fees 300 300 -
Bank charges 238 238 238
Sundry 324 324 261
71,957 71,957 67,056
Purchase of new cooker 1,990 1,990
73,947 73,947 67,056

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