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2023-09-30-accounts

Charity Registration No. 1129396

Company Registration No. 06875037 (England and Wales)

MUSTARD SEED RELIEF MISSION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

MUSTARD SEED RELIEF MISSION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees L Smart
S McWall
C Walker
Secretary L Smart
Charity number 1129396
Company number 06875037
Registered office 213 Kings Drive
Eastbourne
East Sussex
BN21 2UJ
Independent examiner Price & Company
30-32 Gildredge Road
Eastbourne
East Sussex
BN21 4SH
Solicitors Lawson Lewis Blakers
11 Hyde Gardens
Eastbourne
East Sussex
BN21 4PP

MUSTARD SEED RELIEF MISSION

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 14

MUSTARD SEED RELIEF MISSION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2023

The trustees present their annual report and financial statements for the year ended 30 September 2023.

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

Mustard Seed Relief Mission is an international, non-governmental and non-political Charity.

The objects clause defines the charity's objects' as being:

a) to relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind in such parts of the World as the Trustees from time to time may think fit;

b) to advance the Christian faith in accordance with the Statement of Beliefs appearing in the schedule hereto in such parts of the world as the trustees of the Charity may from time to time think fit and to fulfil such other purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the Charity.

Public benefit

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

Achievements and performance

We are proud to report that the ever so popular Love in a Box project is continuing to bring such joy to everyone who is involved. This project is a great way to end our busy year. To see the warehouse filled to the brim with Christmas gifts is a wonderful sight. I know that the children who receive these boxes get very excited from about October thinking about what they will get for Christmas. I also know how much they all appreciate the efforts of everyone who works so hard to keep the magic alive.

Preparations are already in full flow to ensure we continue to send as much love to the children at Christmas as possible.

Financial review

There was a deficit on the general fund activities of £7,650 for the year, compared to a deficit of £12,762 in the previous year.

Reserve policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a suitable level to maintain operations in the event of a significant fall in funding. A level of three months operating expenditure has been set as a target.

Risk policy

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

MUSTARD SEED RELIEF MISSION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

Structure, governance and management

The charity is a company limited by guarantee and established on 9 April 2009. The assets of the unincorporated trust Mustard Seed Relief Mission were transferred across on 1 October 2009.

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:

L Smart

S McWall

C Walker

Trustees are appointed by a majority vote of the existing trustees. Suitable training is provided.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The charity is principally UK based with its headquarters in Eastbourne.

The charity is managed on a day to day basis by its trustees and support staff, most of which are voluntary.

The trustees' report was approved by the Board of Trustees.

L Smart

Trustee Dated: 14 June 2024

MUSTARD SEED RELIEF MISSION

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MUSTARD SEED RELIEF MISSION

I report to the trustees on my examination of the financial statements of Mustard Seed Relief Mission (the charity) for the year ended 30 September 2023.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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 financial statements to be reached.

Nathan Coker FCCA 30-32 Gildredge Road Eastbourne East Sussex BN21 4SH

Dated: 14 June 2024

MUSTARD SEED RELIEF MISSION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2023

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2023 2022
Notes £ £
Income from:
Donations and legacies 3 31,085 43,731
Investments 4 22 9
Total income 31,107 43,740
Expenditure on:
Charitable activities 5 38,757 56,502
Net expenditure for the year/
Net movement in funds (7,650) (12,762)
Fund balances at 1 October 2022 11,257 24,019
Fund balances at 30 September 2023 3,607 11,257

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.

MUSTARD SEED RELIEF MISSION

BALANCE SHEET AS AT 30 SEPTEMBER 2023

Notes
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2023
£
852
6,405
7,257
(3,800)		 £
150
3,457
3,607
3,607
3,607		 2022
£
227
14,732
14,959
(4,001)		 £
299
10,958
11,257
11,257
11,257

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 14 June 2024

L Smart

Trustee

Company Registration No. 06875037

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

MUSTARD SEED RELIEF MISSION

1 Accounting policies

Charity information

Mustard Seed Relief Mission is a private company limited by guarantee incorporated in England and Wales. The registered office is 213 Kings Drive, Eastbourne, East Sussex, BN21 2UJ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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 unless the funds have been designated for other purposes.

The charity operates one general fund that can be used in accordance with the charitable objects at the discretion of the trustees.

Distribution of Love in a Box has always been recognised as a major work of the charity and is thus part of the general fund.

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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

MUSTARD SEED RELIEF MISSION

1 Accounting policies (Continued)

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

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.

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.

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Expenditure is recognised in the period in which it is incurred and allocated to the particular cost centre to which it relates.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers 3 years on a straight line basis Motor vehicles 5 years on a straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

MUSTARD SEED RELIEF MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

1 Accounting policies (Continued)

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 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.

1.9 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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

MUSTARD SEED RELIEF MISSION

1 Accounting policies (Continued)

Derecognition of financial liabilities

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

1.10 Taxation

In the opinion of the trustees, the income of the charity is not subject to Income or Corporation Tax.

1.11 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.

1.12 Foreign exchange

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities are denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in the net outgoing resources.

1.13 Gifts in kind

Blankets, clothing and other gifts received and given to overseas projects are not included in the financial statements. The trustees consider that it would be both impossible and impractical to measure the fair value of the many gifts that are donated to the charity throughout the year.

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.

MUSTARD SEED RELIEF MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

3 Donations and legacies

Unrestricted Total
funds
2023 2022
£ £
Donations and gifts 11,085 37,833
Legacies receivable 20,000 -
Grants - 5,898
31,085 43,731
4 Investments
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 22 9

MUSTARD SEED RELIEF MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

5 Charitable activities

Rent of storage space
Love in a box costs
Transport, travel and overseas support
Share of support costs (see note 6)
Share of governance costs (see note 6)
Analysis by fund
Unrestricted funds		 2023
£
-
2,885
9,977
12,862
24,845
1,050
38,757
38,757		 2022
£
2,102
8,277
18,759
29,138
25,764
1,600
56,502
56,502

MUSTARD SEED RELIEF MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

6 Support costs

Support
costs
Governance
costs
£
£
Staff costs
17,300
-
Depreciation
373
-
Printing, stationery and
promotion
6,600
-
Computer expenses
197
-
Telephone
348
-
Rent
-
-
Refreshment and
volunteer costs
-
-
Bank charges
27
-
Accountancy
-
1,050
24,845
1,050
Analysed between
Charitable activities
24,845
1,050		 2023
Support
costs
Governance
costs
£
£
£
17,300
16,050
-
373
563
-
6,600
6,161
-
197
272
-
348
555
-
-
1,600
-
-
543
-
27
20
-
1,050
-
1,600
25,895
25,764
1,600
25,895
25,764
1,600		 2022
£
16,050
563
6,161
272
555
1,600
543
20
1,600
27,364
27,364

Governance costs includes payments to the independent examiners of £750 (2022- £750) for independent exam fees.

7 Trustees

Lisa Smart, Trustee was paid £0 (2022: £1,600) for use of home and premises as office/storage during the year.

8 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
1 1

MUSTARD SEED RELIEF MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

8 Employees (Continued)

Employment costs 2023 2022
£ £
Wages and salaries 17,300 16,050

There were no employees whose annual remuneration was more than £60,000.

9 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

10 Tangible fixed assets

Computers Motor
£
Cost
At 1 October 2022
2,229
Additions
224
At 30 September 2023
2,453
Depreciation and impairment
At 1 October 2022
1,930
Depreciation charged in the year
373
At 30 September 2023
2,303
Carrying amount
At 30 September 2023
150
At 30 September 2022
299		 vehicles
£
4,500
-
4,500
4,500
-
4,500
-
-		 Total
£
6,729
224
6,953
6,430
373
6,803
150
299

MUSTARD SEED RELIEF MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

11
Debtors
Amounts falling due within one year:
Other debtors
12
Creditors: amounts falling due within one year
Accruals and deferred income		 2023
£
852
2023
£
3,800		 2022
£
227
2022
£
4,001