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2020-12-31-accounts

The Trustees’ Annual Report for the year ending 31st December 2020

The Trustees are pleased to present their Report and Accounts for the year ending 31st December 2020, which also comprises the Directors’ Report required by the Companies Act 2006.

Message from the CEO

In 2020 a year of change, uncertainty and challenge, it is our strong partnerships that have been key to ensuring that we have been able to meet the needs of those who are marginalised or facing disadvantage. I am encouraged and inspired by the way that so many in our communities have shown resilience and offered hope amidst the challenges that the Covid-19

pandemic has presented. We have worked with some amazing statutory and voluntary sector partners and seen people overcome the most difficult of situations.

As this report shows, the dedication and responsiveness of the team has enabled us to support more people than ever before, with over 250 volunteers joining us to deliver this vital support. As we move into 2021 our passion is to continue to empower and support those that struggle with their health or wellbeing. Ensuring they feel connected to their local community and that their voices are heard.

It is by working together that we see the biggest impact. Therefore, I would like to take this opportunity to thank everyone who joined with us to ensure our success during 2020, your contribution makes a difference and we value all of your support.

Katherine

2

Our Way of Working

The Mustard Tree partners with local communities, charities and statutory organisations to identify unmet needs among the most at risk and marginalised in our society. Working through these partnerships we innovate and develop projects that enable our teams and volunteers to walk alongside people when they need help, encouragement and a friend.

The Mustard Tree provides governance and management structures, as well as strategic start-up and development guidance for growing projects. We also offer a range of practical services in the areas of infrastructure, HR, finance and fundraising. This allows our programmes to focus on delivering high impact projects to some of society’s most underrepresented people.

As a charity with a Christian ethos the projects we generate are inspired by our faith. As a result, they are designed to serve all sections of our diverse community without discrimination.

What We Do:

Through our projects we work to do the following...

How We Do It:

We are person centred in our approach to supporting our service users. This means our staff and volunteers always seek to be...

Our Priorities for 2020:

Our projects serve a wide spectrum of the community, but they are linked by a shared set of priorities in 2020 these were:

3

Our Projects

In 2020, we ran four different projects in our local community.

Together these projects...

supported over 465 people, thanks to our 250 incredible volunteers

Contents

Engage Befriending 5 Starting Point 7 The Rahab Project 10 Reading Lifeline 12 Finances 13

Our Trustees

Our CEO

Michael Penson (Chair) Richard Wilson Dr John Hawkins OBE Patricia Stanley Kevin Potter Danielle Malone

Katherine Shepherd

4

Engage Reducing isolation and loneliness by developing positive relationships and networks in our communities

In 2020 Engage Befriending rose to meet the challenges posed by the global pandemic. This year, during two periods of national lockdown and ongoing Covid-19 restrictions, Engage Befriending joined with other local voluntary organisations to support Reading Borough Council's "One Reading Community Hub". As well as providing essential support the hub also coordinated a joined up crisis response to the Covid-19 pandemic.

By being responsive and flexible to shift from in-person to telephone befriending, and by expanding the age range of the service to encompass under 55's who were in isolation alone, Engage became a vital part of this response. Our volunteer Befrienders ensured that those worst affected by lockdown received support in the form of regular phone calls.

" We are so different, and you would think we wouldn't have anything in common but we get on so well"

A service user speaking about their relationship with their Befriender.

In response to the first national lockdown in March 2020. It immediately became clear that demand for the service would rise, as many normally active older people found themselves cut off and isolated from their usual support networks.

To meet this increased demand, Engage set about recruiting and training new volunteer befrienders, particularly those now on furlough from their jobs and those working from home. This strategy was very successful with more than 100 people enquiring about becoming new volunteers.

A few weeks into lockdown, the Engage team worked with Reading Borough Council to expand the service to offer befriending support to lonely and isolated individuals under the age of 55. The focus was single adult households, and individuals with preexisting poor mental health. Out of this request, a new Engage programme was born. Engage Wellbeing offered befriending support, via phone or internet, to those at risk of mild to moderate anxiety or depression because of social isolation.

In the summer of 2020, as Covid-19 restrictions were eased, some befrienders resumed face-to-face visits using appropriate safety and social distancing measures. Others continued to offer support via the telephone. As the tier system took effect in the autumn, once again, Engage was quickly able to pivot back to offering support remotely. In the run up to Christmas the Engage team were able to deliver care packages to their service users.

In 2021 we are looking forward to resuming face-to-face befriending visits, supporting people to reconnect with their local community, restarting and expanding our network of partners and seeing the further growth and development of the Engage Wellbeing programme. 6

Starting Point Providing mentoring and creating opportunities for young people who face disadvantage.

Starting Point has continued to enable transformation in the lives of young people who face disadvantage. 2020 was a challenging year, but a year that has provided the opportunity to enhance the quality of our mentoring.

----- Start of picture text -----
110
In 2020
----- End of picture text -----

Covid-19 - Impact and Response

Isabelle

I didn’t want to go to lessons but after talking to you I changed my mind.

Muhammed , Advance.

~~OUR PROGRAMMES~~

Aspire:

Mentoring young people aged 15 to 25 into education, employment, and training. Last year we renamed our established ‘Traffic Light Mentoring’ programme. However, we will still follow the ‘Traffic Light journey’ which is designed to support young people to not only attain, but sustain and thrive within education, employment, and training.

Aspire Outcomes:

In 2020 the total number of young people mentored through Aspire Mentoring is 89. Of those:

Overview of the young people we mentor through Aspire:

31% are from the BAME community. 33% are on benefits.

8% have a criminal record.

36% have learning difficulties/disabilities.

44% have mental health struggles. 49% have low/no qualifications. 22% have ASD.

Advance:

Mentoring young people aged 11–19 who are at risk of exclusion from school and/or becoming NEET (Not in Education, Employment or Training) upon leaving education.

We have built on our successful pilot, ‘Transition Mentoring’, which partnered with four schools and colleges and following feedback from young people and schools, we launched Advance Mentoring to extend this support to a younger age group. In 2020 we have engaged with an additional two schools and are receiving numerous referrals from children’s social services.

Advance Outcomes:

Since launching this programme in June 2020, we have mentored 29 young people, in partnership with four local schools as well as referrals from children’s social services. Of those:

Overview of the Young People we mentor through Advance:

55% are at risk of becoming NEET. 31% are at risk of exclusion. 31% are not attending school. 17% are not engaging in school.

~~OUR MENTORS~~

In 2020 we have:

79 new mentors currently mentoring or ready to be matched across all our programmes. We had 101 mentors in total.

~~Looking Ahead~~

Action Media:

A young person led production company providing meaningful work placements in a creative industry. We were commissioned to deliver meaningful work experience to those who are NEET or are at risk of becoming NEET. This is done in partnership with a local participatory video organisation – Real Time. The purpose of this programme is to grow and develop work ready skills, build confidence and teamwork, develop communication, and combat social isolation. This involves activities such as video production, logo design and branding, creative writing, art, social media, graphic design, and website building.

Although activity has been restricted due to national and local restrictions, 20 young people aged 15–25 have attended this year. Of those:

Reading:

Aspire will be launching a new initiative titled ‘An insight into…’ allowing young people the opportunity to experience variety of skills and industries through different workshops. We already have local artists, photographers, IT specialists and museums signed up to take part. We also expect to see another surge in referrals with current climate of loss of jobs.

Advance will continue mentoring within schools, as well as within the wider community. We are also entering a contract with children’s social services to provide mentoring for 30 young people (11-18) at a time.

Action Media is looking to be established as a regular programme continuing to offer a unique and valuable opportunity for young people who face disadvantage. Action Media will run different media projects that focus on giving a voice to the unheard, providing a chance for YP to tell their story.

Aware is a new programme we seek to launch this year, mentoring young people at risk or/involved in ASB, crime and violence. This mentoring will be more activity based and include placing volunteers in A&E to engage young people who are involved in violence and/or risk-taking behaviour.

Replication:

Over the past two years we have carried out extensive research in surrounding towns and cities to identify areas of need. We have started to build partnerships in those local areas to see where there is an appetite for 1-2-1 mentoring. As a result, we are setting up Starting Point Swindon and Starting Point Milton Keynes with an aim to launch at the end of January.

Identifying, supporting and empowering anyone affected by sexual exploitation

2020 brought many positive encouragements as well as some significant challenges. Both the women we support and the project were particularly impacted by Covid-19.

In the first lockdown after an initial period of working to ensure that clients were all provided with suitable accommodation, Rahab had to pause its services. At this stage it was simply not possible to offer either the evening outreaches, or the daytime support and so the Rahab Project Manager had to be furloughed.

As lockdown restrictions eased, the evening chaplaincy outreach service was able to restart and continued during the second half of 2020 with new safety and social distancing measures in place. Our volunteer team has grown, enabling us to go out three times a week. We were also able to offer sexual exploitation awareness training.

----- Start of picture text -----
Rahab supported 39 people
through its 48 evening
chaplaincy outreaches in 2020.
We had over 170 different
contacts with women while out
on the streets in West Reading.
----- End of picture text -----

Looking ahead to 2021, we continue to hope to relaunch our daytime support services for women who want to engage with the more structured and specialist services on offer in Reading.

In December, thanks to support from Lifespring Church and CIRDIC (Churches in Reading Drop-in Centre), our volunteers were able to deliver Christmas gifts to the woman engaging with our outreach.

One of our team said…

“This week I put a referral through for a woman and her partner. They were evicted suddenly from their home and lost most of their belongings. We were able to get them clothing, shoes, and a warm coat. The couple are being supported to be rehoused and the woman said. ‘I really appreciate the help, and I’m so happy that there is someone out there who I can talk to about my upside-down life.’” 11

Reading Lifeline

Counselling and support for people affected by infertility or baby loss during pregnancy, or soon after birth

----- Start of picture text -----
In November 2019, after an extensive review
process, the decision was made to close the
Lifeline project. At that time, we ceased to
take new referrals, but made a commitment to
continuing a full course of counselling with
those couples and individuals already
engaged with the service.
During January and February of 2020 Lifeline
supported 12 people to successfully complete
their counselling sessions. The service closed
at the end of February.
It has been a privilege to provide a safe space
for anyone experiencing infertility or baby
loss to talk and be listened to. We have been
encouraged by the many stories over the
years of the positive impact that Lifeline has
had for individuals, couples and families at a
very difficult time.
----- End of picture text -----

12

Our Finances

In 2020 we had a total income of £341,130 and a total expenditure of £331,616. The charts below provide a breakdown of this by project.

In 2020 our income exceeded our expenditure by a small margin which is designated within the projects for service provision in 2021. Unrestricted income received to core has been used across the charity to invest in providing support where it is most needed. The trustees continue to review the sources of income for each project to ensure their long-term sustainability.

We would like to thank the churches, individuals and organisations who have supported our work over the last 12 months. Without your partnership and generosity we would not be able to provide the support we offer to marginalised or overlooked communities and individuals across Reading and the surrounding area.

In 2020, we received grants and donations from a number of organisations, including:

Longleigh Foundation National Grid National Lottery Reading Borough Council Reading Family Church Reading St Laurence Church Charities The Church Welfare Association The FSP Foundation (Field Seymour Parkes) The Sobell Foundation Transform Reading (was RCN)

All Churches Trust Ltd Berkshire Community Foundation Bishop Radford Trust Brighter Futures for Children CAF Bank

Candlefish Co-op Greyfriars Church Joseph Rank Trust Kiriath Trust LifeSpring Church

13

THE MUSTARD TREE FOUNDATION (READING)

CONTENTS

Page
Trustees' report 15 - 17
Independent examiner's report 18
Statement of financial activities 19
Statement of financial position 20
Notes to the financial statements 21 - 31

THE MUSTARD TREE FOUNDATION (READING)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr M Penson (Chair) Mr J Hawkins OBE Mr R Wilson Mr K Potter Ms D Malone CEO Ms Katherine Shepherd Charity number 1104631 Company number 04986086 Principal address 90 London Street Reading Berkshire RG1 4SJ Registered office 90 London Street Reading Berkshire RG1 4SJ Independent examiner Colin Dadswell FCA ACCA DChA Caladine Limited Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF Bankers HSBC Bank PLC 26 Broad Street Reading RG1 2BU CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

THE MUSTARD TREE FOUNDATION (READING)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and articles of association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The objects for which the Charity is established are:

We continue to work strategically to identify social needs that are not being met by existing provision, and under-represented beneficiaries who face barriers to support. We work with local communities and partner with other charities and organisations to develop effective solutions, creating and supporting projects which address unmet needs. In addition to maintaining our strategic presence on various boards to effect positive change for overlooked communities or individuals. By doing so we seek to:

During 2020, the charity operated 3 projects:

We monitor and regularly evaluate performance, including seeking feedback from our beneficiaries. By reviewing our activities we can ensure that we are best placed to meet the needs of our service users and to grow in our effectiveness in reaching local communities.

Over 2020 our operations have grown in size and scope. We have supported more people and developed additional programmes through our Starting Point and Engage projects to meet identified needs. There have been other changes too, as at the beginning of the year we closed our Lifeline service. We also adapted our service delivery during lockdown providing support over the phone and online.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

THE MUSTARD TREE FOUNDATION (READING)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Fundraising activities during the year

We are very grateful for the donations from our financial supporters. Our services are funded by grants from statutory bodies and charitable trusts, fundraising events and donations from organisations, churches and individuals. The charity does not work with any commercial partners for fundraising.

Volunteers

We have seen a significant growth in the number of volunteers who are giving their time and skills to meet the needs of the marginalised and overlooked in our communities. Many of our services are provided by dedicated volunteer mentors, counsellors, befrienders and outreach workers. We would like to take this opportunity to offer our thanks to this fantastic team who are making a huge impact.

Financial review

The Trustees have considered the level of reserves (that is those funds that are freely available) that the charity ought to have. Reserves are needed to bridge the funding gaps between spending on administrative and operational activities and receiving resources through donations, grants and services that provide income.

The Trustees have created a finance committee which the trustees have asked to determine the level of the reserves appropriate for the needs of the charity. They have set a reserves policy of 3 months of budgeted expenditure across designated and un-restricted funds. At the end of 2019 this amount was approximately £133k, which compared to current reserves held across designated and unrestricted funds of £98k. This is a shortfall of £35k, which has arisen due to the growth in activity in the 2021 budget. The trustees are looking to increase the level of reserves held through fundraising and allocation of surpluses to support the growth in the charity's activities and have seen growth in our reserves since the year end.

Structure, governance and management

The charity is constituted as a company limited by guarantee, registered under the Companies Acts, and its governing document is a Memorandum and Articles of Association under company legislation, dated 5 December 2003.

By operation of law all Trustees are Directors under the Companies Act 2006 and all Directors are Trustees under Charities legislation and have responsibilities, as such, under both company and Charity legislation. The Trustees are all individuals.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr M Penson (Chair) Mr J Hawkins OBE Ms P Stanley (Resigned 16 September 2020) Mr R Wilson Mr K Potter Ms D Malone

The Mustard Tree Foundation seeks to attract new trustees with relevant skills and experience to ensure a balanced and effective trustee board. We have recruitment and induction procedures in place so that each trustee is clear of the work of the charity, and the expectation of a trustee so that we are well governed and operating with best practise. Trustees are encouraged to attend appropriate external training events that facilitate the undertaking of their role. They are also able to request training through the Chair, and arrangements will be made where appropriate and cost effective for the needs of the charity.

THE MUSTARD TREE FOUNDATION (READING) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Statgment of trustees. respon$ibllltles The truste8s. who are also Ihe directors of The Mustard Tree Foundation (Reading) for the purpose of company law. are reswnsible for preparing th8 Trustees. Report and the finanual statements In acrtsrdanee th applicable law and United lQ"ngdom Accounting Standards (United Kingdom Generally Accepted Accounling Practice). Company Law requires Ihe trustees to prepare financial statements for each financial year which give a truè and fair view of the state of affairs of the charity and of the incoming resources and 8pplicalion of resources, includiThJ the income and expenditure. of the charitable company for that year. In preparfng these financial slalements. the tnjstees ara r8quired to: - Seled suitable accounting policles and theft apply them consistently- - Observe the methods arKI princ4ples in the Charrties SORP., - Make ludgemenls and estimates that are reasonable and prudgnl., State wh8ther applicable UK Accounting Standards have been followed. subjed to any material departures disclosed and explained in the financial statements.. and Prepare the financial ststements on the going c￿cern basis unless R Is inapPr￿nate to presume that the tharty will continue In operation. The trustees are resp)nsible for keeping adequate aC￿UntIng re￿rdS that disdose with reasonable accuracy at any lime the financial position of the charity and enable them to ensurt that the financial statements comply with the Companies Act 20{￿. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps f¢y the prevention and detectlon of fraud and other Irregularities. Thg trustees, report was approved by the Board ofTru8tees. Mr M Penson (Chalr) Trustee Dated.. 17-

THE MUSTARD TREE FOUNDATION (READING) INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE MUSTARD TREE FOUNDATION (READING) I report to the tnjstees on my examinatson of the financial stat•m8nts of The MuBtard Tree Foundation (Readingl (the charltyl for the year ended 31 Oecember 2020. Re#pon•ibiliti8• and b•¥i• of Yoport As the tru5t805 of the charity land a150 11$ directors for the Pu￿08e$ of company lawl you are responsible for the preparation of the tinancial statements in accordancL with the r8quiremenl$ ol th¢ Cory3nis)$ Act 2006 (the 2006 Acti. Having satl8fied myself that the fin•ndo1 $talemenl$ of the ch81Ity ¥r? not r•quired lo be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect ol my eKamination ol the charity's financial gtatements carried out under $ecb'on 145 01 the charl￿eS Act 2011 Ilhe 2011 Act}. In corrying out my examination I have followed all the applicable Directions given by the Charity Commission under Section 14515llbl of the 2011 Act. Independent •xaminorf• slatgm•nt Since the d)arity'6 gross income exceeded £250.000 your examiner must be a member of a body listed in ¥ection 145 of the 2011 Act, I confirm that l am qualified to undertake the examination becau6e l am member of The Association of Chartèred Certifiod AcLountgnts, whlch18 one of th• li8l•d bodi•g. I have completed my examination. I confimi that no matters have come to my att?nlion in Conn￿bOn wth the examination giving me ¢aus8 to b•llav8 that in any mal•rial r•8VCt'. ac¢ounling records were not kept in respect of the charity a8 required by s¢ckn'on 386 of the 2006 AeA,' or the financial 5tat8m8nts do not 8c¢ord wlh those records.. or rhe financial 8latemenl$ do not comply with the 8ccountlng requirements ol $edi¢m 396 of the 2006 Acl other than any requirement that the aceounls give ¥ true and fair view which is not a matter considered 8$ Part of an independent examinats'on., or the financial $lalemenlg have not been prepared in accordance with the methods and principles of th& Statement ol Recomm8nd•d Pr8cti(x for accounting and reporting by charities applicable lo charities preparing thèir accounts In accordance with the Financ4al Reporting Standard applicabl• In th• UK and Republic of Ireland IFRS 1021. I have no concerns and have come 8¢ro$$ no other mallers In connection wlth the examination lo Vffi￿h attttnlion $hould be drawn in this report In order lo enable a proper understanding of the finanaal slalem8nts lo be reached. Colin Dadswell FCAACCA DChA Caladine Limited Chantry House 22 Upperton Road Eastbourne East Sussex 8N21 18F Oated. .Q.!CJ1.1.ICSZ 18-

THE MUSTARD TREE FOUNDATION (READING)

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
3
152,341
183,618
Charitable activities
4
5,052
-
Investments
5
119
-
Total income
157,512
183,618
Expenditure on:
Raising funds
7
3,331
-
Charitable activities
6
141,022
187,263
Total resources
expended
144,353
187,263
Net incoming/
(outgoing) resources
before transfers
13,159
(3,645)
Gross transfers
between funds
17
(7,466)
7,466
Net income for the year/
Net movement in funds
5,693
3,821
Fund balances at 1
January 2020
91,916
(3,821)
Fund balances at 31
December 2020
97,609
-		 Total Unrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
335,959
246,736
37,614
5,052
10,736
-
119
212
-
341,130
257,684
37,614
3,331
1,232
-
328,285
244,289
44,105
331,616
245,521
44,105
9,514
12,163
(6,491)
-
-
-
9,514
12,163
(6,491)
88,095
79,753
2,670
97,609
91,916
(3,821)		 Total
2019
£
284,350
10,736
212
295,298
1,232
288,394
289,626
5,672
-
5,672
82,423
88,095

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE MUSTARD TREE FOUNDATION (READING) STATEMENT OF FINANCIAL POSITION ASAf31 DECEMBER 2020 2020 2019 Nots• Curr•nt Trade and other receivab￿5 Cash at bank aThJ In hand 11 13,777 134.611 19,630 141.763 148,388 150,7791 161.393 {73,2981 Current Il•bllltl•8 12 N•1 cuttont a85011 97.609 88,095 In¢om• fund• Restrica•d nroslricted fvnd Oesignat8d fund8'. startlng Poinl R8adlrwJ R8hab Prolgct Eryage 8efdendlng 17 13,821) 1.024 3.717 8.540 10,963 16,9701 3.800 18 13,281 84.328 5,793 86.123 General unr68thciod fvr•J8 97,609 91,916 97,609 88.095 The coTryany18 onllued lo Ihe exompllon from Ihg 8udlt roqulremnt contalned in 8eclkM 477 of lh• Compan188 Acl 2006. for the year ended 31 December 2020. Thg dlr8ctots acknovAedge their ro8wn8lblli11•8 for •rffjurfrKa Ihal the chortty koop5 aCC￿nI1￿ rocord8 whk ¢omply wilh $8ctjon 386 of Ihe Act and for preparlng flnancial 51alemenl8 which glvo a true ond fglr ￿&W ol Ihg slate ol 8ffoirs ol th8 company 88 Bt th8 ond of th• financi81 year and of Its incoming resource8 8nd applcatknn of r•80urces. induding 119 Income and 6xpendOtwe. lor the finano81 year in a¢¢ordanco with Ihg requlremenls ¢f $￿tiOnS 394 and 395 gnd oth0n￿s9 C￿lY with thg roqulremont8 of the Comp¥ni¥$ Act 2006 rgloling lo financial statements, 50 lar as atf*licable lo tha company. Tha Membe￿ h8ve not r8qulr8d lh8 company to obtsln an Audrt of Its finandal stalemonts for tho year qUQ51ion In accordance wlth $ection 476. These flnanclal statements have been prepared In a￿OrdanC& wlh Ihe provisions ap￿1¢￿10 lo companies subject to lh& sm811 ￿0panIa8 ragim8. The financial slalemBnts V￿re approved by IhB Tw81ee8 on.i.L+l,11.2,I.,.... M Penson (Chair) Trust•• Company R•g16tr•tlon No, IJ4986086 20-

THE MUSTARD TREE FOUNDATION (READING)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Company information

The Mustard Tree Foundation (Reading) is a private company limited by guarantee incorporated in England and Wales. The registered office is 90 London Street, Reading, Berkshire, RG1 4SJ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. This includes amounts disclosed as 'designated funds' representing monies allocated to projects run by the charity. These projects are partly funded by specified donations and partly by monies set aside out of unrestricted funds by the trustees for those projects.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income, whether from exchange or non-exchange transactions, is recognised in the statement of financial activities (SOFA) on a receivable basis, when a transaction or other event results in an increase in the charity's assets or a reduction in its liabilities and only when the charity has legal entitlement, the income is probable and can be measured reliably.

Income subject to terms and conditions which must be met before the charity is entitled to the resources is not recognised until the conditions have been met.

All income is accounted for gross, before deducting any related fees or costs.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

THE MUSTARD TREE FOUNDATION (READING)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies (Continued)

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated.

Liabilities arising from future funding commitments and constructive obligations, including performance related grants, where the timing or the amount of the future expenditure required to settle the obligation are uncertain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increased to reflect any increase in liabilities and is decreased by the utilisation of any provision within the period and reversed if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Financial assets classified as other financial assets are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.

Other financial assets

Financial assets with fixed or determinable payments and fixed maturity dates that the charity has the positive intent and ability to hold to maturity are classified as held to maturity investments.

Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

THE MUSTARD TREE FOUNDATION (READING)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies (Continued)

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in or in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

THE MUSTARD TREE FOUNDATION (READING)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies (Continued)

1.9 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure for the period.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
117,237
1,978
Grants - Statutory &
Trusts
35,104
181,640
152,341
183,618
Donations and gifts
Donations Individuals
36,378
835
Donations Churches
26,848
750
Donations Trusts
51,331
-
Gift aid recovered
2,680
393
117,237
1,978		 Total Unrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
119,215
68,185
-
216,744
178,551
37,614
335,959
246,736
37,614
37,213
28,519
-
27,598
22,980
-
51,331
12,026
-
3,073
4,660
-
119,215
68,185
-		 Total
2019
£
68,185
216,165
284,350
28,519
22,980
12,026
4,660
68,185

THE MUSTARD TREE FOUNDATION (READING)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 Charitable activities

Sales within charitable activities
Salary reimbursement
Charitable rental income
Other income		 2020
£
862
4,190
-
-
5,052		 2019
£
176
8,591
435
1,534
10,736

5 Investments

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Interest receivable 119 212

THE MUSTARD TREE FOUNDATION (READING)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6 Charitable activities

Staff costs
Other Staff related costs (incl. travel/subsistence/voluntary & training)
Rent and rates
Office refurbishment
Office equipment
Professional fees including accountancy and IT support
Other
Postage and stationery
Telecommunications
Insurance
Subscriptions
Cleaning
Service charges and management fees
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds		 2020
£
246,741
4,869
25,144
240
5,353
21,563
4,392
995
2,227
4,821
1,392
3,958
3,022
324,717
3,568
328,285
141,022
187,263
328,285		 2019
£
223,331
5,737
7,303
14,377
8,819
7,553
11,240
917
2,055
3,479
-
1,355
-
286,166
2,228
288,394
244,289
44,105
288,394

7 Raising funds

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Fundraising and publicity
Fundraising and PR expenses 3,331 1,232

THE MUSTARD TREE FOUNDATION (READING)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

8 Support costs

Accountancy and
independent
examination
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
-
3,568
-
3,568
-
3,568		 Total
2020
£
3,568
3,568
3,568		 Support
costs
Governance
costs
£
£
-
2,228
-
2,228
-
2,228		 Total
2019
£
2,228
2,228
2,228

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
17
£
230,692
12,116
3,933
246,741		 2019
Number
18
£
208,861
11,212
3,258
223,331

The majority of staff were part time. The average full-time equivalent was 8.7 (2019: 8).

THE MUSTARD TREE FOUNDATION (READING)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

11 Trade and other receivables

Amounts falling due within one year:
Trade receivables
Other receivables
Prepayments and accrued income
Current liabilities
Notes
Other taxation and social security
Deferred income
13
Trade payables
Accruals and deferred income
Deferred income
Other deferred income		 2020
£
293
1,984
11,500
13,777
2020
£
4,238
43,125
1,256
2,160
50,779
2020
£
43,125		 2019
£
4,300
3,830
11,500
19,630
2019
£
3,891
60,275
8,882
250
73,298
2019
£
60,275

12 Current liabilities

13 Deferred income

The deferrals included in creditors relate to funding specified by the funders as relating to specific periods and represent those parts of unrestricted funds which relate to periods subsequent to the accounting year end and are treated as grants in advance, or, alternatively, where there are conditions which must be fulfilled prior to entitlement or use of the unrestricted funds by the Charity.

Deferred income analysed by project is as follows:

Engage befriending £27,025
Starting point £ 8,600
Core activities £ 7,500

14 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £3,933 (2019 - £3,258).

THE MUSTARD TREE FOUNDATION (READING)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

15 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2020
2020
£
£
Fund balances are represented by:
Current assets/
(liabilities)
97,609
-
97,609
-		 Total Unrestricted
funds
Restricted
funds
2020
2019
2019
£
£
£
97,609
91,916
(3,821)
97,609
91,916
(3,821)		 Total
2019
£
88,095
88,095

16 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).

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