REGISTERED COMPANY NUMBER: 06887961 (England and Wales) REGISTERED CHARITY NUMBER: 1129865
Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 December 2020
for Mars Hill Church, Teignmouth (A Company Limited by Guarantee)
South Devon Accounting Ltd
6 Orchard Close
Ogwell Newton Abbot TQ12 6AL
Mars Hill Church, Teignmouth
Contents of the Financial Statements for the Year Ended 31 December 2020
| Page | |
|---|---|
| Report of the Trustees | 1 to 8 |
| Independent Examiner's Report | 9 |
| Statement of Financial Activities | 10 |
| Balance Sheet | 11 to 12 |
| Notes to the Financial Statements | 13 to 19 |
| Detailed Statement of Financial Activities | 20 to 21 |
Mars Hill Church, Teignmouth
Report of the Trustees
for the Year Ended 31 December 2020
The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of 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 2015).
OBJECTIVES AND ACTIVITIES Objectives and aims
The Charity's objectives are for the public benefit.
To advance the Christian Faith in accordance with the Statement of Beliefs in such ways and in such parts of Teignmouth, the United Kingdom or the World.
To relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind, including through the provision of counselling and support in such parts of Teignmouth, The United Kingdom or the World.
The Vision of Mars Hill Church is that we are Getting Connected - Loving Jesus and Living Out His Mission. The Mission of Mars Hill Church is to explore together what it means to follow Jesus Christ and to invite others to join us in the journey.
We do this by: -
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Bringing a relevant message to this generation.
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Building and transforming communities that are lasting and real.
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Helping the poor and vulnerable and working with those who are broken, hurting, and
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oppressed.
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Planting new churches to go on mission.
Mars Hill Church believes that we are to do this through life changing, Holy Spirit motivating, unstoppable, unchangeable, overwhelming, radical love as we experience God's love for us and in turn, we love Him back. This enables us to love each other and the world radically. Love drives people to the most extraordinary things and, when we love God and each other like this, nothing becomes impossible.
We believe that as 2020 has drawn to a close, we have continued to see the increase that God has been speaking to us about - not just in people joining the church, but in our love and desire for more of Jesus and the power and the presence of the Holy Spirit among us. We believe that this increase is going to continue and accelerate as we keep focused on Jesus and stay humble and dependant on our Heavenly Father. We believe that we will see breakthrough; in healing, in deliverance, in Salvation, that the supernatural will be the normal. To do this we believe God has called us to live in a way that we allow God to sharpen us through each other. This is not a call to judgmentalism, gossip or hard hearts, but a call to radical love, to prefer one another, to seek the best for each other, even at our own expense. We are to reflect Jesus to one another until Jesus can be seen in us and He sharpens us into His image.
So, we are continuing our focus of getting real, of being united together in Jesus, through his love, so that each one will reach one for the Glory of Jesus.
We believe in the gifts of the Holy Spirit and so encourage people to share, to wait on God and to pray for healing, so that the whole church can be built up together.
Page 1
Mars Hill Church, Teignmouth
Report of the Trustees
for the Year Ended 31 December 2020
OBJECTIVES AND ACTIVITIES
Significant activities
The Church normally gathers for worship and teaching at 11am every Sunday morning, serving drinks and cakes from 10.30am. Most weeks we also share Communion together. Our service integrates all ages and consists of two main elements: a life transforming message, which is relevant and real, and worship, which is consistent with today's culture.
The Kids' Church begins the service with the main Church but then breaks into various age groups with their own leaders for age-appropriate activities. The teaching from the service is recorded and is available to listen to via our church website. Our Pastor preaches most weeks although we do have some guest speakers, including our Elders, occasionally. During 2020, due to Covid-19 restrictions, it has not always been possible to meet in person, but we have used Zoom and Facebook Livestreaming to ensure that we can still worship God together. We have been joined also, on livestream, by many people who are not part of the church in normal circumstances.
We believe that God calls us to work out our faith together so during the week the church splits into smaller Connect groups, meeting at different places during the week to discuss the teaching from the Sunday service and to pray together. These Connect Groups form the basis of the Pastoral Support available to any who are in need. We have adult groups as well as Junior and Youth Connect groups. Again, during Covid-19 restrictions, these have been arranged via Zoom. There are also monthly Prayer meetings when we gather to pray for our church, our town, and individuals.
We produce a weekly Newsletter to ensure that anybody who is interested can receive notification of our events, requests for prayer, access to the recording of our Sunday teaching, information about the special events of any other local churches and on occasion, information about any household items or services that people would like to pass on. Often people who visit on holiday ask to go on our mailing list to receive our Newsletter. We are fully GDPR compatible.
Other activities include Church Social activities, Men's and Ladies' Connections, Youth and Kids' events and Church Weekends Away. We are passionate about both discovering what it means to follow Jesus and sharing the love and truth of Jesus Christ with everyone. This is not just in the things we say but also in what we do. Due to Covid-19 restrictions these activities have been affected but we have kept in touch through Livestream and Zoom.
We aim to show by our words, but more importantly through our actions, that we are Christians. We aspire to share our faith with others in many ways: in individual interactions with people, and through our Food Bank, The Beacon, to help those in need.
The church also supports people from the church and those from outside when needed with financial support, goods, food or a top up on their electricity or gas keys, or, if they are in need of counselling, we facilitate this for them through a Christian counsellor.
Public benefit
The Church acknowledges its requirement to demonstrate clearly that it must have charitable purposes that are for the public benefit, as required by the Charity Commission's statutory guidance on the matter.
The main activities in support of our charitable objectives are described in this report.
Page 2
Mars Hill Church, Teignmouth
Report of the Trustees
for the Year Ended 31 December 2020
OBJECTIVES AND ACTIVITIES Social investments
The Pow Wow Café Shop on Kingsway is normally open from Monday to Friday, selling hot and cold meals, coffees, and a range of household essentials. However, during both lockdowns during the year, it has been functioning as a takeaway facility only. It is run by two paid supervisors from Mars Hill Church, together with volunteers both from the church and, increasingly, from the local community. There is also a children's soft play area at Pow Wow and space for parents to sit and have a coffee while their younger children play. Pow Wow also has the only Paypoint facility in this part of town. We have managed to keep this functioning throughout both lockdowns to support the local community who rely heavily on this facility to maintain their gas and electricity and to pay their bills.
We normally run local groups at Pow Wow, such as Crochet, Knitting and Art, to encourage the local people to take part and enable us to get to know them better. Our Ladies' Group meets at Pow Wow every two months on a Sunday evening for a 'Just Be' event. This is open not only to Mars Hill Ladies but also to any local ladies who live in Teignmouth - and this is represented in those who attend. Each evening is a laid-back time to 'just be' and incorporates a testimony of God's provision or power. Again, there has been little activity with this during the lockdowns.
To further our objectives, we support those in debt or those who have addictions through our CAP (Christians Against Poverty) Centre. We also support CAP National financially.
The Tea Rooms have been open 6 days a week, mainly as a takeaway, or through our delivery service, due to Covid-19 restrictions, serving hot meals, soup and bread, open sandwiches, scones, cream teas, and cakes with coffee, tea or soft drinks. There are two paid supervisors, one of whom is full-time and the other part-time, and a team of volunteers from within the church. The plan was always to build on the increasing success of the Tea Rooms so that it can cover its own utility bills and rent, which, despite Covid-19, became a reality during the year. Eventually, any profit made will be put back into the reserves to support the development of facilities to benefit the community of Teignmouth.
The church also supports two children in India through Compassion. The money given by our Children's and Youth Groups ensures that these children can go to school and hopefully on to further education. This in turn also supports the families and the wider community in their villages. We also support financially a couple who work with people who are victims of trafficking in Greece, enabling them to continue their valuable work.
Further financial support is given to both CAP (Christians Against Poverty) and to South West Youth Ministries to support the work they do with the local community.
OBJECTIVES AND ACTIVITIES
Volunteers
We have 5 paid employees: The Pastor, the two part-time supervisors from Pow Wow Café Shop and the two staff of the Tea Rooms. All others who work with Mars Hill are volunteering their time.
All those in leadership positions, and all those working in any capacity with children or vulnerable adults, at Mars Hill Church have a current DBS certificate and are aware of the Safeguarding policy and procedures. The Charity also follows its Safer Recruitment Policy when employing staff or volunteers. All volunteers sign a Volunteer Agreement in line with the relevant policy.
Page 3
Mars Hill Church, Teignmouth
Report of the Trustees
for the Year Ended 31 December 2020
ACHIEVEMENT AND PERFORMANCE Charitable activities
Following our Vision for 2017, Authentic Love, when we explored how we could show God's crazy, outrageous love to each other and to the community around us in an authentic, real, genuine way, we moved into 2018 with a Vision of being United - Together on A Mission. In 2019 and 2020 our Vision became ‘SHARPER STILL’, showing how we can encourage shared Christian living.
We learned to understand that Discipleship is not a theory but a practice: Christianity is not a concept but a lifestyle. We learned from the example of Jesus with His followers. 2018 was a year when we aimed to become intensely real and practical and to know that all we needed was a moment of insane courage, of outrageous bravery, to impact someone's life. Our target in all this was: Each One to Reach One. Our aim was to pursue Jesus and His mission, striving for a lifestyle of Christianity that is united in purpose to enable us to see a town reached for Jesus, and this, not only in words, but mainly in living out our Christianity to help others in many ways.
Our target for 2019 was to burn with a greater passion for Jesus until everyone we meet is infected by His supernatural love and power, and daily we begin to see people being saved. In 2020, with Sharper Still, we learned how to build each other up, sharpening each other in our mission. We began to develop accountability within that.
Due to Covid-19, many plans for the building and its use have had to be put on hold. We have been able to develop The Beacon, our Food Bank, helping several families with food parcels and hampers during this time. Pow Wow Café has had the time to rethink and reorganise the Soft Play area ready for when it is able to reopen in 2021.
The work with Life Plus also had to be put on hold for most of the year, but this gave time to prepare plans for 2021 and an increased activity programme for young people from the local area.
Fundraising activities
No specific fundraising events were undertaken in 2020 due to the restrictions in place.
General donations are received by way of collections at services and events, and an increasing number of donors who have set up monthly/recurring standing orders to donate Mars Hill as their tithe and offering to the church.
Page 4
Mars Hill Church, Teignmouth
Report of the Trustees
for the Year Ended 31 December 2020
FINANCIAL REVIEW
Financial position
Donations including Gift Aid decreased from £101,707 in 2019 to £72,606 in 2020. This was expected as the Church was unable to run many of its events due to Covid restrictions. The 2019 figures also included £15,683 of donations from a specific fundraising drive to contribute towards the rent of the building.
Covid related grant income of £17,672 was also received during the period, which assisted in covering any shortfall in income as a result of the impact of the pandemic and the various lockdowns.
The Pow Wow cafe is operated from a separate site and income and expenditures are closely monitored. Staff costs are included in the Church’s overall salary expenses. The Board are extremely pleased that the church is able to offer this valuable service to the community. Grant income for that site during the year meant that Pow Wow generated a surplus for the period of £14,769.
Increased success with the Tea Rooms, which generated net income of £44,846, despite taking on more of its related costs including utilities, contributed to an overall surplus for the year of £5,748, compared to a £2,612 deficit for 2019. Due to its success in 2020, when its takings of £107,647 (2019: £56,654) exceeded the VAT threshold, a separate company has been set up from 1 January 2021.
The accounts show total funds at the end of 2020 of £21,836. On 31[st] December 2019, the charity had total funds of £16,088. The Board is pleased that funds have increased despite the continuing premises refurbishment, and that the Church, Tea Rooms and Pow Wow have also faced a challenging year with the impact of the Covid-19 pandemic.
The charity continues to receive donation income with a few donors making regular monthly donations to help support the charity as it develops. It is the charities long term goal not to rely on this income and reserves to cover the ongoing costs of the site etc. It is hoped that over the coming years, income from the Tea Rooms and auditorium hire will increase and be sufficient to cover all general costs associated with the running and upkeep of the building. At that point donation income will purely be to allow the charity to increase its surplus, providing security and the opportunity to generate funding reserves.
Principal funding sources
The principle funding source of the charity is the income generated by offerings and tithes given by attendees at Sunday morning services along with one-off and regular donations to the general fund. The charity claims Gift Aid on all eligible offerings.
In addition, the church is now starting to generate income from the Tea Rooms and auditorium hire. It is hoped that in time, the income for these activities will cover the general expenditure of the building, freeing up income from donations to be spent on further projects and services for the community.
Reserves policy
The Trust tries to hold cash reserves equivalent to three months outgoings to enable the charity to continue in the event of a major drop in income resulting from unforeseen circumstances or emergencies.
Page 5
Mars Hill Church, Teignmouth
Report of the Trustees
for the Year Ended 31 December 2020
FUTURE PLANS
In the future we are looking to develop the work of the charity in all its aims and objectives, including broadening the use of Pow Wow for charitable aims and continuing to develop the Riviera Tea Rooms. From early July 2021, we aim to split the church into small home churches that meet more regularly, help and support people in their local communities, and encourage closer discipleship. The whole church will become Simply Church, coming together regularly to celebrate all that Jesus is doing amongst us.
We are also looking to develop Pow Wow, the Tea Rooms and The Beacon and to develop other projects as we are able to move out of lockdown and be released from Covid-19 restrictions.
In the Tea Rooms, there is an intention to hold a monthly afternoon question time about life and faith. In Pow Wow Café, the intention is to develop the back room to be more of a Family Room, with people available to signpost or help with any family issues.
The charity also plans to continue the renovation of the cinema building, to re-install the lift into the lift shaft to make the whole building accessible to all as soon as funds become available.
There are also plans to further develop the work with the young people in the town to help give them a purpose and a safe place to visit.
Once the renovation of the cinema is complete, it is aimed to provide more appropriate shows, concerts and even films in the auditorium.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The charity is controlled by its governing documents, its Articles and Memorandum of Association dated 27/04/2009 and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Charity constitution
The Constitution sets out the purpose/charitable objects of Mars Hill Church and governs the appointment of Trustees as well as the proceedings of their meetings.
Recruitment and appointment of new trustees
Trustees give their time voluntarily and receive no benefits from the charity. The Pastor, who is also a Trustee, is paid by the charity as the founder and leader of the church. The Pastor also claims limited expenses, in order to carry out his pastoral role. These are noted in the accounts.
The Trust seeks to build and maintain a breadth of skills and professional experiences amongst its members. New trustees are recruited mainly by personal approaches after agreement with the full board. It is important for trustees to have an understanding of the spiritual work of the charity, so it is normally necessary for potential trustees to have been involved in some way with the charity before they can be seriously considered as a trustee. It is essential that any new Trustee is able to agree with the Statement of Faith and the Objects of the Charity.
Page 6
Mars Hill Church, Teignmouth
Report of the Trustees
for the Year Ended 31 December 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure
In 2020 there were 4 Trustees, including the Pastor, who met regularly to discuss financial matters and to ensure the charity was complying with all legal requirements. They were joined at these meetings by the 2 Elders whose work in leadership overlaps in many areas with that of the Trustees. During those meetings it was unanimously agreed that Elders should be invited to become Trustees also. Many of the meetings were held by Zoom due to Covid-19 restrictions.
The Pastor is one of the five paid staff. He is paid as the Pastor and not as a Trustee.
The other paid staff in 2020 were the two part-time supervisors at the Pow Wow Café Shop which is part of Mars Hill Church and therefore of the charity and the two supervisors of the Tea Rooms. During the various lockdowns, due to Covid-19, we have placed the Pow Wow staff on furlough, claiming 80% of their salary from HMRC but actually paying them full pay, the other 20% coming from charity funds.
Day to day responsibility for operations is delegated to the administrator and her staff, all of whom are volunteers, under the guidance of the Pastor.
There is no formal membership of the charity: numbers attending the church vary but approximately 60 people attend Sunday services regularly.
Decision making
The Board, consisting of four trustees, normally meets bi-monthly to develop the strategic direction and policies for the charity. The Elders join the Trustees at these meetings. The Board makes decisions based on prayerful consideration and consensus, allowing individual views and concerns to be addressed as thoroughly as possible. The Elders make any decisions on spiritual matters. They are also supported by a team of Leaders who meet bi-monthly with the Elders to organise church events and prayerfully consider the practical aspects of strategic planning.
Induction and training of new trustees
New Trustees are provided with the Memorandum and Articles of Government as well as any charity policies.
Wider network
The Charity is an independent body of Christians who having no affiliation to any denomination. The Charity is associated with the Evangelical Alliance (EA).
Related parties
The Pastor, Mr David Longman, is also a serving Trustee of the charity and receives an annual salary of £30,000 for his position as Pastor. He receives no remuneration for his position as a Trustee. He does receive reimbursement for any necessary travel arrangements to enable his pastoral work. These are noted within the accounts.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
06887961 (England and Wales)
Registered Charity number
1129865
Page 7
Mars Hill Church, Teignmouth
Report of the Trustees
for the Year Ended 31 December 2020
REFERENCE AND ADMINISTRATIVE DETAILS Registered office
The Riviera Cinema Den Crescent Teignmouth Devon TQ14 8BQ
Trustees
Mr S R Bones Mr C J Higham Elder Resigned on 18[th] January 2021 Mr D J Longman Church Leader/Pastor Dr O Aworinde Elder Appointed on 18[th] January 2021 Mrs C E Morris Administrator
Bankers
Barclays Bank Plc 23 Wellington Street Teignmouth Devon TQ14 8HP
Independent examiner South Devon Accounting Ltd 6 Orchard Close Ogwell Newton Abbot TQ12 6AL
Approved by order of the board of trustees on ....11[th] June 2021…. and signed on its behalf by:
.............................................. Mrs C E Morris - Trustee
Page 8
Independent Examiner's Report to the Trustees of Mars Hill Church, Teignmouth
Independent examiner's report to the trustees of Mars Hill Church, Teignmouth ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the 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:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
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
Catherine Flannery, FMAAT, FCCA South Devon Accounting Ltd 6 Orchard Close Ogwell Newton Abbot TQ12 6AL
Date: 29[th] April 2021
Page 9
Mars Hill Church, Teignmouth
Statement of Financial Activities
for the Year Ended 31 December 2020
| Unrestricted fund Restricted fund Notes £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 90,278 - Trading activities 3 142,538 - Investment income 4 3 - Total 232,819 - EXPENDITURE ON Charitable Activities 5 227,071 - Governance costs - - Total 227,071 - NET INCOME/(EXPENDITURE) 5,748 - RECONCILIATION OF FUNDS Total funds brought forward 16,088 - TOTAL FUNDS CARRIED FORWARD 21,836 - |
31.12.20 Total funds £ 90,278 142,538 3 232,819 227,071 - 227,071 5,748 16,088 21,836 |
31.12.19 Total funds £ 101,707 111,258 13 212,978 199,820 - 199,820 (2,612) 18,700 16,088 |
|---|---|---|
CONTINUING OPERATIONS
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
Page 10
Mars Hill Church, Teignmouth
Balance Sheet
At 31 December 2020
| 31.12.20 | 31.12.19 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| fund | fund | funds | funds | ||
| Notes | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Tangible assets | 10 | 6,911 | - | 6,911 | 9,216 |
| CURRENT ASSETS | |||||
| Cash in hand | 15,251 | - | 15,251 | 8,890 | |
| CREDITORS | |||||
| Amounts falling due within one year | 11 | (326) | - | (326) | (2,018) |
| NET CURRENT ASSETS | 21,836 | - | 16,088 | ||
| TOTAL ASSETS LESS CURRENT | |||||
| LIABILITIES | 21,836 | - | 21,836 | 16,088 | |
| NET ASSETS | 21,836 | - | 21,836 | 16,088 | |
| FUNDS | 12 | ||||
| Unrestricted funds | 21,836 | 16,088 | |||
| Restricted funds | - | - | |||
| TOTAL FUNDS | 21,836 | 16,088 |
The notes form part of these financial statements
Page 11
continued...
Mars Hill Church, Teignmouth
Balance Sheet - continued At 31 December 2020
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to charitable small companies.
The financial statements were approved by the Board of Trustees on ….11[th] June 2021.... and were signed on its behalf by:
.............................................
Mrs C E Morris -Trustee
The notes form part of these financial statements
Page 12
Mars Hill Church, Teignmouth
Notes to the Financial Statements for the Year Ended 31 December 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the economic life of that asset as follows: -
Equipment - 25% Reducing Balance Basis
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
Page 13
Mars Hill Church, Teignmouth
Notes to the Financial Statements - continued
for the Year Ended 31 December 2020
1. ACCOUNTING POLICIES - continued
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
2. DONATIONS AND LEGACIES
| Tithes and Offerings Other Income Gift Aid Grant Income 3. TRADING ACTIVITIES Pow Wow Income Tea Room Income Riviera Auditorium Income 4. INVESTMENT INCOME Interest receivable - trading |
31.12.20 £ 59,874 990 11,742 17,672 90,278 31.12.20 £ 34,231 107,647 660 142,538 31.12.20 £ 3 |
31.12.19 £ 85,465 1,250 14,992 - |
|---|---|---|
| 101,707 | ||
| 31.12.19 £ 42,548 56,654 12,056 111,258 31.12.19 £ 13 |
Page 14
Mars Hill Church, Teignmouth
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
5. CHARITABLE ACTIVITIES
6.
| 31.12.20 | 31.12.19 | |
|---|---|---|
| £ | £ | |
| Staff costs | 49,154 | 49,536 |
| Trustees' expenses | 1,251 | 1,379 |
| Repairs and maintenance | 393 | 1,267 |
| Gift and support | 3,678 | 4,568 |
| Rent & Rates | 63,377 | 26,143 |
| Food | 2,898 | 2,072 |
| Supplies for Auditorium Hire | - | 2,958 |
| Insurance | 2,596 | 4,096 |
| Utilities & Waste Removal | 10,031 | 16,927 |
| Resources | 948 | 395 |
| Advertising and printing | 2,236 | 1,427 |
| Sundries | 270 | 270 |
| Life Plus Expenses | 120 | 3,439 |
| Training and away days | 107 | 4,120 |
| Pow Wow Expenditure | 19,462 | 28,708 |
| Pensions | 1,245 | 1,068 |
| Stationery and office costs | 972 | 702 |
| Telephone | 468 | 487 |
| Tearoom expenditure | 62,801 | 44,487 |
| Remuneration for Independent Examination work | 780 | 720 |
| Legal and professional fees | 1,668 | 1,589 |
| Bank Charges | 312 | 390 |
| Depreciation | 2,304 | 3,072 |
| 227,071 | 199,820 | |
| The above charitable costs can be summarised as follows: | ||
| £ | £ | |
| Trading activity costs | 101,417 | 92,731 |
| Other costs | 125,654 | 107,089 |
| 227,071 | 199,820 | |
| NET INCOME/(EXPENDITURE) | ||
| Net income/(expenditure) is stated after charging/(crediting): | 31.12.20 | 31.12.19 |
| £ | £ | |
| Depreciation - owned assets | 2,304 | 3,072 |
| Independent examination remuneration | 780 | 720 |
7. TRUSTEES' REMUNERATION AND BENEFITS
Mr David Longman is a serving trustee of the charity and receives an annual salary of £30,000 (2019: £30,000) for his position as Pastor. He receives no remuneration for his position as a trustee. He does receive reimbursement for any necessary travel expenses.
Trustees' expenses
| 31.12.20 | 31.12.19 | |||
|---|---|---|---|---|
| £ | £ | |||
| Trustees' expenses |
Page | 15 | 1,251 | 1,379 |
Mars Hill Church, Teignmouth
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
8. STAFF COSTS
| 31.12.20 £ Wages and salaries 49,154 Other pension costs 1,245 50,399 The average monthly number of employees during the year was as follows: 31.12.20 5 No employees received emoluments in excess of £60,000. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fund Restricted fund £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 86,024 15,683 Other trading activities 111,258 - Investment income 13 - Total 197,295 15,683 EXPENDITURE ON Raising funds 199,820 15,770 Other - - Total 199,820 15,770 NET INCOME/(EXPENDITURE) (2,525) (87) RECONCILIATION OF FUNDS Total funds brought forward 18,613 87 TOTAL FUNDS CARRIED FORWARD 16,088 - |
31.12.19 £ 49,536 1,068 50,604 31.12.19 5 Total funds £ 101,707 111,258 13 212,978 215,590 - 215,590 (2,612) 18,700 16,088 |
|---|---|
9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
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Mars Hill Church, Teignmouth
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
10. TANGIBLE FIXED ASSETS
| TANGIBLE FIXED ASSETS | ||||
|---|---|---|---|---|
| Plant and | ||||
| machinery | ||||
| £ | ||||
| COST | ||||
| At 1 January 2020 and 31 December 2020 | 44,508 | |||
| DEPRECIATION | ||||
| At 1 January 2020 | 35,293 | |||
| Charge for year | 2,304 | |||
| At 31 December 2020 | 37,597 | |||
| NET BOOK VALUE | ||||
| At 31 December 2019 | 6,911 | |||
| At 31 December 2019 | 9,215 | |||
| CREDITORS: AMOUNTS FALLING DUE WITHIN | ONE YEAR | |||
| 31.12.20 | 31.12.19 | |||
| £ | £ | |||
| Social security and other taxes | (454) | 1,298 | ||
| Accrued expenses | 780 | 720 | ||
| 326 | 2,018 | |||
| MOVEMENT IN FUNDS | ||||
| Net | ||||
| movement | ||||
| At 1.1.20 | in funds | At 31.12.20 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 16,088 | 5748 | 21,836 | |
| Restricted funds | ||||
| Restricted funds | - | - | - | |
| TOTAL FUNDS | 16,088 | 5,748 | 21,836 |
11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
12. MOVEMENT IN FUNDS
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Mars Hill Church, Teignmouth
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
12. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | Movement |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund 232,819 |
(227,071) | 5,748 | |
| Restricted funds | |||
| Restricted funds - |
- | - | |
| TOTAL FUNDS 232,819 |
(227,071) | 5,748 | |
| Comparatives for movement in funds | |||
| Net | |||
| movement | |||
| At 1.1.19 | in funds | At 31.12.19 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund 18,613 |
(2,525) | 16,088 | |
| Restricted funds | |||
| Restricted funds 87 |
(87) | - | |
| TOTAL FUNDS 18,700 |
(2,612) | 16,088 | |
| Comparative net movement in funds, included in the above are as | follows: | ||
| Incoming | Resources | Movement | |
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund 197,295 |
(199,820) | (2,525) | |
| Restricted fund 15,683 |
(15,770) | (87) | |
| TOTAL FUNDS 212,978 |
(215,590) | (2,612) |
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Mars Hill Church, Teignmouth
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
12. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined position is as follows:
| Net | |||
|---|---|---|---|
| movement | |||
| At 1.1.19 | in funds | At 31.12.20 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 18,613 | 3,223 | 21,836 |
| Restricted funds | |||
| Restricted funds | 87 | (87) | - |
| TOTAL FUNDS | 18,700 | 3,136 | 21,836 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 430,114 | (411,121) | 18,993 |
| Restricted fund | |||
| Restricted fund | 15,683 | (15,770) | (87) |
| TOTAL FUNDS | 445,797 | (426,891) | 18,906 |
13. PENSION COMMITMENTS
The amount recognised as an expense in relation to defined contribution plans was £1,245 (2019: £1,068).
14. RELATED PARTY DISCLOSURES
Mr David Longman is a serving trustee of the charity and receives an annual salary of £30,000 for his position as Pastor. He also receives reimbursement for any necessary travel expenses. These are noted within the accounts.
In addition, the Pastor’s wife, Lucy Longman, was appointed in March 2018 as joint supervisor of Pow Wow Café Shop. In 2020 her salary was £9,282 (£9,146 in 2019).
Page 19
Mars Hill Church, Teignmouth
Detailed Statement of Financial Activities for the Year Ended 31 December 2020
| INCOME AND ENDOWMENTS Donations and legacies Tithes and Offerings Other Income Gift aid Grant Income Other trading activities Pow Wow Income Tea Room Income Riviera Auditorium Income Investment income Interest receivable - trading Total incoming resources EXPENDITURE Raising donations and legacies Trustees' expenses Wages Food Repairs and maintenance Gift and support Rent & Rates Insurance Utilities & Waste Removal Resources Advertising and printing Supplies for Auditorium hire Pow Wow Expenditure Pensions Stationery and office costs Telephone Tea room expenditure Sundries Life Plus Expenses Training and away days Depreciation of tangible fixed assets |
31.12.20 £ 59,874 990 11,742 17,672 90,278 34,231 107,647 660 142,538 3 232,819 1,251 49,154 2,898 393 3,678 63,377 2,596 10,031 948 2,236 - 19,462 1,245 972 468 62,801 270 120 107 2,304 224,311 |
31.12.19 £ 85,465 1,250 14,992 - |
|---|---|---|
| 101,707 42,548 56,654 12,056 |
||
| 111,258 13 |
||
| 212,978 1,379 49,536 2,072 1,267 4,568 26,143 4096 16,927 395 1,427 2,958 28,708 1,068 702 487 44,487 270 3,439 4,120 3,072 |
||
| 197,121 |
This page does not form part of the statutory financial statements
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Mars Hill Church, Teignmouth
Detailed Statement of Financial Activities for the Year Ended 31 December 2020
| Other costs Auditors' remuneration for non-audit work Bank charges Professional and legal fees Exceptional items Total resources expended Net expenditure |
31.12.20 £ 780 312 1,668 - 2,760 227,071 5,748 |
31.12.19 £ 720 390 1,589 - |
|---|---|---|
| 2,699 | ||
| 199,820 | ||
| 13,158 |
This page does not form part of the statutory financial statements
Page 21