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2021-09-30-accounts

Charity Registration No. 1142737

Company Registration No. 07613549 (England and Wales)

UK MENNONITE MINISTRIES ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

UK MENNONITE MINISTRIES

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Kenneth Witmer
Paul Martin
James Kulp
James Byler
Dirk Eberly
John Fisher
Paul Miller
Secretary Kenneth Witmer
Charity number 1142737
Company number 07613549
Registered office 44 Shrewsbury Road
Craven Arms
Shropshire
UK
SY7 9PY
Independent examiner Nigel Hewson FCA DChA
Hewsons
Chartered Accountants
80 Woodhurst Avenue
Orpington
Kent
BR5 1AT
Bankers Barclays
Leicester
LE87 2BB

UK MENNONITE MINISTRIES

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 19

UK MENNONITE MINISTRIES

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2021

The trustees present their annual report and financial statements for the year ended 30 September 2021.

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

Objectives and activities

The charity's object is the advancement of the Christian Faith. UKMM began activities in February 2012. From the original three families that moved from America, the church the charity planted continues to grow. The pandemic of 2020 greatly hindered the hospitality elements of the work but they continue contact with various families and give teaching on Bible principles in various areas of home, vocation and church life. Their contacts come from the U.K. and as far afield as Germany, Netherlands, Sweden, France and Switzerland. They also work with immigrants from Eastern Europe.

The charity has their own meeting house at Gillawarra, Clun Road, Craven Arms, Shropshire, SY7 9AA. Regular meetings for worship, teaching and fellowship are held. Sunday School is also provided for the families who attend. The church property was purchased in April 2020. It was a residential property in Craven Arms for which planning permission was granted to convert to a church and an extension for a meeting room. Building works commenced in May 2020.

Extensive support has been provided for those involved in Home Schooling. The charity's subsidiary trading company has seen a steady demand for Rod & Staff school publications and other teaching materials. The 14th annual Bible Conference took place in December 2021, at the Cefn Lea Conference Centre in Wales. Due to Covid restrictions this was primarily attended by delegates from the UK, plus Ireland, the USA and Canada.

The Trustees have considered the Commission's guidance on public benefit, and in particular, the specific guidance on charities for the advancement of religion, and are committed to providing a place of worship, community and pastoral care and support for those who attend the church, as well as for those in the local community who are known to be in need. All of the Church's activities are focused around the worship of God, obedience to the Word of God and the expression of the love of Jesus to those affiliated to the local Mennonite church and to the surrounding communities.

In line with many other charities UK Mennonite Ministries is heavily reliant on the services of volunteers who assist in various ways to achieve the charities objectives and the trustees are grateful to those who give their services voluntarily.

Achievements and performance

The charity operates a church known as the Shropshire Hills Mennonite Church which has welcomed new members and now has a total of twenty-eight adults. Three ordained ministers share the duties of pastoring and teaching. All the sermons are recorded and made available for local and national distribution. These CDs have been widely distributed, together with publications such as ‘The Christian Contender’, ‘The Christian Example’, ‘The Christian School Builder’, ‘The Christian Pathway’ and ‘The Wee Lambs’.

UK MENNONITE MINISTRIES

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

The charity has been able to resume the activities of outreach through revival meetings, ‘Songs of Praise’, and singing and passing tracts on the streets.

The charity has a part time school to assist families in the church community to home educate their children and also help other families with education. The trustees have made small gifts to individuals to meet financial needs. The subsidiary company, Shepherd Hills Furniture Limited has continued to grow and its hand crafted, hardwood furniture has retail outlets in Shrewsbury and Craven Arms. The latter is also a Christian bookshop and tea room.

UKMM has a ministry where singles can be mentored by living within the church community. This mentoring includes spiritual teaching and learning the disciplines and practical life skills required to be an asset to the community and to society. More youth are welcomed to this ministry.

Shepherd Hills Bible Correspondence Courses has also been established and provides free Bible Study courses including exams and grading.

Financial review

During the year under review the charity had a surplus of income over expenditure of £92,147 ( ( 2020- £333,243). The trustees are grateful for the continued financial support of United Kingdom Mennonite Ministries which has made donations and loans to UK Mennonite Ministries and has confirmed that it will continue to support the UK charity financially in order to meet its charitable objectives.

It is the policy of the charity that net current assets held in unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between one and three month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. Unrestricted net current liabilities at the end of the year were £112,121 which includes loans payable of £146,182. While these loans are repayable on demand, the lenders are fully aware of the charity’s financial affairs and have confirmed that they will continue to support the charity financially in order to meet its charitable objectives. Excluding these loans, unrestricted net current assets at the year end were £34,061 which is close to three month's unrestricted fund expenses amounting to £34,881. The trustees are working towards improving reserves but recognise that at present they are totally reliant on the continued financial support of United Kingdom Mennonite Ministries in the USA. The board of that organisation has confirmed it will support the UK charity to ensure its continued future operations.

Reference and administrative information is provided on the page following the cover sheet.

The trustees have 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.

Structure, governance and management

The charity is a company limited by guarantee.

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:

Kenneth Witmer

Paul Martin James Kulp James Byler Dirk Eberly John Fisher Paul Miller

UK MENNONITE MINISTRIES

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

The trustees of the charity are also members of the charity. Trustees must retire by rotation; one third every year. Trustees are appointed by existing trustees and new trustees are familiarised with their duties and responsibilities by existing trustees. During the year under review Kenneth Witmer, James Byler and John Fisher retired by rotation and all were re-appointed.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

The charity is associated with the North Central Mennonite Churches in the United States. The trustees of the charity are under the spiritual oversight of the bishop and counselling bishops in the US. The North Central Mennonite Churches have set up an organisation in the US called United Kingdom Mennonite Ministries which has raised money for the activities in the UK. However, the UK charity operates independently from the US charity and is financially and administratively self-governing. The US organisation, United Kingdom Mennonite Ministries, has total control of funds it raises and is at liberty to remit or restrict these funds for use in the UK. Spiritual oversight and direction in the UK is provided by two church leaders, one of whom works on a voluntary basis.

The charity has a wholly owned subsidiary, Shepherd Hills Furniture Limited, which manufactures and sells furniture and also retails books and bakery items to generate funds for UK Mennonite Ministries. The intention is that all the profits of Shepherd Hills Furniture Limited will be gifted to UK Mennonite Ministries once it has resources to do so.

The trustees' r eport was approved by the Board of Trustees.

Kenneth Witmer

Trustee

24 June 2022

UK MENNONITE MINISTRIES

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF UK MENNONITE MINISTRIES

I report to the trustees on my examination of the financial statements of UK Mennonite Ministries (the charity) for the year ended 30 September 2021.

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.

Nigel Hewson FCA DChA

Hewsons Chartered Accountants 80 Woodhurst Avenue Orpington Kent BR5 1AT

Dated: 27 June 2022

UK MENNONITE MINISTRIES

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
146,086
23,526
Incom e from charitable
activities
3
60,790
-
Investment s
4
14
-
Total income
206,890
23,526
Expenditure on:
Charitable activities
5
139,526
10,554
Net incoming resources
before transfers
67,364
12,972
Gross transfers
between funds
54,237
(54,237)
Net income/(expenditure)
for the year/
Net incoming/(outgoing)
resources
121,601
(41,265)
Other recognised gains and losses
Other gains or losses
10
11,811
-
Net movement in funds
133,412
(41,265)
Fund balances at 1 October
2020
309,955
41,265
Fund balances at 30
September 2021
443,367
-		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
169,612
173,428
304,948
60,790
8,044
-
14
2
-
230,416
181,474
304,948
150,080
168,882
8,748
80,336
12,592
296,200
-
270,587
(270,587)
80,336
283,179
25,613
11,811
24,451
-
92,147
307,630
25,613
351,220
2,325
15,652
443,367
309,955
41,265		 Total
2020
£
478,376
8,044
2
486,422
177,630
308,792
-
308,792
24,451
333,243
17,977
351,220

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.

UK MENNONITE MINISTRIES

BALANCE SHEET

AS AT 30 SEPTEMBER 2021

2021 2020
Notes £ £ £ £
Fixed assets
Tangible assets 11 555,486 509,141
Investments 12 2 2
555,488 509,143
Current assets
Debtors 14 6,418 8,271
Cash at bank and in hand 41,834 75,713
48,252 83,984
Creditors: amounts falling due within
one year 16 (160,373) (241,907)
Net current liabilities (112,121) (157,923)
Total assets less current liabilities 443,367 351,220
Income funds
Restricted funds 17 - 41,265
Unrestricted funds 443,367 309,955
443,367 351,220

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 2021.

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 24 June 2022

Kenneth Witmer

Trustee

Company Registration No. 07613549

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

Charity information

UK Mennonite Ministries is a private company limited by guarantee incorporated in England and Wales. The registered office is 44 Shrewsbury Road, Craven Arms, Shropshire, SY7 9PY, UK.

1.1 Accounting convention

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

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

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

The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

The charity is supported by a charitable organisation in the United States of America which has indicated that it will continue to support the UK charity until it has sufficient other sources of income to be self supporting. The directors therefore have a reasonable expectation that the charity will have adequate resources to continue in operational existence for at least a further 12 months . Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

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 accounts.

1.4 Incoming resources

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 is recognised at the time of the donation.

In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised in these accounts. More information about the contribution of volunteers is provided in the trustees' report.

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

(Continued)

1.5 Resources expended

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 once there is a legal and constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Grants and donations payable are taken into account at the earlier of when they are paid or become legally enforceable.

Other than normal commitments under contracts of employment there are no contractual or constructive obligations to future expenditure at the balance sheet date. Where the trustees have authorised expenditure which is not yet legally enforceable or has become a constructive obligation, amounts are set aside into funds designated for the purpose.

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. Assets costing £250 or less are not capitalised but written off as an expense in the year in which the expenditure is incurred.

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:

Buildings 50 years - land is not depreciated Fixtures, fittings & equipment 25% straight line

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 .

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date unless fair value cannot be measured reliably in which case it is measured at cost less impairment . Changes in fair value are recognised in net income/ (expenditure) for the year . Transaction costs are expensed as incurred.

1.8 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 ) .

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

(Continued)

1.9 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.

1.10 Financial instruments

The charity has only financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value or fair value.

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 denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Net exchange differences are included in the statement of financial activities; gains in other incoming resources and losses in support costs.

1.13 Amounts owing to or from group companies

Amounts owing to or from group companies are stated in the balance sheet at the amount of capital outstanding plus interest accrued and unpaid at the balance sheet date.

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.

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

3 Incom e from charitable activities

Income from charitable activities
Charitable rental income
Other income		 2021
£
2,003
7,569
51,218
60,790		 2020
£
954
7,000
90
8,044

The above income from charitable activities includes an amount recharged to the charity's subsidiary of £nil ( 2020- £122) for wages of staff who undertake work for both the charity and its subsidiary.

Other income includes £51,136 received from United Kingdom Mennonite Ministries in the US by way of loan waiver.

4 Investment s

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 14 2

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

5 Charitable activities

Staff costs
Depreciation and impairment
Bible conference
Rent of ministerial accommodation
Mentor homes running costs
Church supplies
Church hall costs
Schoolroom running costs
Hospitality
Literature and CDs
Miscellaneous staff costs
Grant funding of activities (see note 6)
Share of support costs (see note 7)
Share of governance costs (see note 7)
Analysis by fund
Unrestricted funds
Restricted funds
Grants payable
Grants to institutions:
Grants of £1000 or less
Grants to individuals		 2021
£
91,409
8,919
-
8,400
6,870
1,295
6,088
9,025
-
1,083
-
133,089
6,489
4,398
6,104
150,080
139,526
10,554
150,080
2021
£
2,614
3,875
6,489		 2020
£
105,203
5,514
16,242
8,400
15,430
-
2,541
10,627
1,237
2,528
190
167,912
3,648
1,302
4,768
177,630
2020
£
996
2,652
3,648

6 Grants payable

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

7
Support costs
Support
costs
Governance
costs
£
£
Administrative costs
3,428
-
Insurance
970
-
Accountancy
-
5,341
Legal and professional
-
763
4,398
6,104
Analysed between
Charitable activities
4,398
6,104		 2021
Support
costs
Governance
costs
£
£
£
3,428
572
-
970
730
-
5,341
-
4,768
763
-
-
10,502
1,302
4,768
10,502
1,302
4,768		 2020
£
572
730
4,768
-
6,070
6,070

Governance costs includes amounts payable to the independent examiner of £3,800 ( 2020- £2,622) for preparation and independent examination of the statutory accounts and £1,541 ( 2020- £2,146) for other work. This includes an under provision of £700 for earlier years ( 2020- under provision for the previous year of £222).

8 Trustees

Dirk Eberly was paid £nil ( 2020- £15,600) remuneration and £nil ( 2020- £344) pension contributions by the charity of which £nil ( 2020- £122) was recharged at cost to its wholly owned subsidiary Shepherd Hills Furniture Limited for work carried out for Shepherd Hills Furniture Limited. Dirk Eberly is not paid for his position as a trustee and was an existing employee working for the subsidiary company when appointed. He transitioned to a new role within the holding charity until his resignation from employment in May 2020. He was not permitted to influence the decision about any pay increases since his appointment.

Arland Eberly, father of Dirk Eberly was employed by UKMM as a minister. His employment pre dates the appointment of Dirk Eberly as trustee and Dirk is not permitted to vote on matters relating to his father's remuneration. Arland Eberly received a salary of £32,400 ( 2020- £32,250) and pension contributions of £785 ( 2020- £782) for his services as a minister. Kenneth Witmer's daughter Jennifer Hershberger is employed as a teaching assistant and received salary of £8,400 ( 2020- £8,400). Jennifer Hershberger is financially independent of Kenneth Witmer. Kenneth Witmer's daughter, Charlotte Witmer received salary of £7,200 ( 2020- £4,400) for work as a teaching assistant.

One other child of Kenneth Witmer's was employed by Shepherd Hills Furniture Limited. Linford Witmer received salary of £23,817 ( 2020- £22,596) and pension contributions of £475 ( 2020- £58). He was employed as a joiner and specific permission to employ him was granted by the Charity Commission. A further son of Kenneth Witmer, Randall Witmer, was paid £2,033 during the year for building services ( 2020- £8,245) .

None of the other trustees (or any persons connected with them) received any remuneration or expenses during the year.

No annual conference happened this year, Six trustees and their families attended the annual conference without charge at a cost of £1,449 in 2020 . However, no charge was made to anyone attending the conference so the trustees attended on the same basis as all other participants. A free-will offering was taken at the conference towards costs.

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

9 Employees

Number of employees

The average monthly number of employees during the year was:

Ministerial/pastoral
School room
Community hosts
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
2
2
2
6
2021
£
85,320
4,811
1,278
91,409		 2020
Number
2
3
2
7
2020
£
97,529
6,127
1,547
105,203

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

10 Other gains or losses

Other gains or losses
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Foreign exchange gains (11,811)
(24,451)

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

11
Tangible fixed assets
Cost
At 1 October 2020
Additions
At 30 September 2021
Depreciation and impairment
At 1 October 2020
Depreciation charged in the year
At 30 September 2021
Carrying amount
At 30 September 2021
At 30 September 2020		 Buildings
Fixtures,
fittings &
equipment
£
£
504,168
13,042
55,264
-
559,432
13,042
5,083
2,986
6,189
2,730
11,272
5,716
548,160
7,326
499,085
10,056		 Total
£
517,210
55,264
572,474
8,069
8,919
16,988
555,486
509,141

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

12 Fixed asset investments

Unlisted
investments
£
Cost or valuation
At 1 October 2020 & 30 September 2021 2
Carrying amount
At 30 September 2021 2
At 30 September 2020 2

The above investment represents the cost of shares at par in a wholly owned subsidiary, Shepherd Hills Furniture Limited. The market value of the shares is considered by the directors to be broadly equivalent to net assets being £133,431 at 30 September 2021.

13 Financial instruments

The ch arity has no financial instruments measured at amortised cost other than the fixed asset investment in the charity's subsidiary which is included at estimated market value . All other financial instruments are included in current assets or liabilities and are measured at the cash or other consideration e xpected to be paid or received and have not been discounted.

14 Debtors

Amounts falling due within one year:
Other debtors
15
Loans and overdrafts
Other loans
Payable within one year		 2021
£
6,418
2021
£
146,182
146,182		 2020
£
8,271
2020
£
209,129
209,129

The terms of the loans are set out in the note on related party transactions.

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

16
Creditors: amounts falling due within one year
Borrowings
Other taxation and social security
Amounts owed to subsidiary undertakings
Other creditors
Accruals and deferred income		 2021
£
146,182
2,399
1,345
7,016
3,431
160,373		 2020
£
209,129
-
10,560
19,375
2,843
241,907

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 October 2019

£
Building fund
15,652
School fund
-
Mission fund
-
15,652		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
1 October 2020

£
£
£
£
296,200
-
(270,587)
41,265
8,748
(8,748)
-
-
-
-
-
-
304,948
(8,748)
(270,587)
41,265		 Movement in funds
Incoming
resources
Resources
expended
£
£
19,161
(6,189)
2,285
(2,285)
2,080
(2,080)
23,526
(10,554)		 Transfers
Balance at
30 September
2021
£
£
(54,237)
-
-
-
-
-
(54,237)
-

The Building fund holds monies given for the purpose of acquiring a property for use by the church. The transfer to unrestricted funds arose as the funds were expended for the purpose given.

The School fund receives gifts towards the cost of running the school.

The Mission fund receives monies to support the work of other Christian workers and organisations.

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

18 Analysis of net assets between funds
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Fund balances at 30
September 2021 are
represented by:
Tangible assets 555,486 - 555,486 509,141 - 509,141
Investments 2 - 2 2 - 2
Current assets/
(liabilities) (112,121) - (112,121)
(199,188)		 41,265 (157,923)
443,367 - 443,367 309,955 41,265 351,220

19 Operating lease commitments

The charity rents a number of properties. One property is leased for 3 years from 1 October 2020. The other properties are generally held on short term tenancies with 1 or 2 month notice periods. At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2021
£
7,895
5,900
13,795		 2020
£
7,825
11,800
19,625

20 Related party transactions

Remuneration of key management personnel

The key management are the trustees. One of the trustees was remunerated as explained in the trustees note. The remuneration was not for his managerial services.

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

20 Related party transactions

(Continued)

Transactions with other related parties

The charity has a wholly owned subsidiary, Shepherd Hills Furniture Limited. The subsidiary's results are not consolidated in these accounts which are for the holding company as a separate entity. The charity has invested £2 by way of share capital in the subsidiary company.

The subsidiary company's principal activity is the construction and sale of handmade furniture, although it also sells Christian literature and homemade bakery products. All the profits of the subsidiary are to be gifted to UK Mennonite Ministries for application on carrying on its charitable purposes. The accounts of the subsidiary for the year to 30 September 2021 show net assets of £133,431 ( 2020- net liabilities of £52,131). For the year to 30 September 2021 the subsidiary's accounts show a profit before tax of £187,598 ( 2020- loss £8,844).

The registered office of Shepherd Hills Furniture Limited is 44 Shrewsbury Road, Craven Arms, Shropshire SY7 9PY.

United Kingdom Mennonite Ministries in the US and UK Mennonite Ministries were controlled by a majority of common trustees during the year under review. United Kingdom Mennonite Ministries in the US made grants of £237,209 ( 2020- £427,823) to UK Mennonite Ministries during the year under review. An unsecured loan by United Kingdom Mennonite Ministries in the US of £189,091 remained outstanding at 30 September 2021 ( 2020- £201,129) . No interest is chargeable and no agreement on when the amount is to be repaid.

An unsecured loan advance by Charlotte Witmer, Kenneth Witmer's daughter, of £8,000 remained outstanding at 30 September 2021 ( 2020- £8,000) . No interest is chargeable and no agreement on when the amount is to be repaid.

Many donations, other than from United Kingdom Mennonite Ministries USA, are received anonymously and it is not possible to identify donations from trustees. However, d uring the year identifiable donations of £ 11,180 (2020- £ 4,390 ) were received from trustees and related parties