**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: -
- Bringing a relevant message to this generation.
- Building and transforming communities that are lasting and real.
- Helping the poor and vulnerable and working with those who are broken, hurting, and
- oppressed.
- 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:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. 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
4. 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
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (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**
Page 16
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**
Page 17
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)|
Page 18
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
Page 20
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