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2022-09-30-accounts

Charity registration number 1142737

Company registration number 07613549 (England and Wales)

UK MENNONITE MINISTRIES

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

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 - 17

UK MENNONITE MINISTRIES

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2022

The trustees present their annual report and financial statements for the year ended 30 September 2022.

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 youth sing and pass out tracts on the streets several times a month in Shropshire and several times a year travel further out to other cities. We communicate with contacts from the U.K. and as far afield as Denmark, Germany, Netherlands, Sweden, France and Switzerland.

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. They also made a considerable effort to start a Sunday School for the local community in the summer of 2022 and consider further how to develop it.

Extensive support is 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 15th annual Bible Conference took place in December 2022, at the Cefn Lea Conference Centre in Wales. The conference was well supported by delegates from the UK, America and other European countries.

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’.

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.

UK MENNONITE MINISTRIES

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

Financial review

During the year under review the charity had a surplus of income over expenditure of £191,184 (2021- £225,576). 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 assets at the end of the year were £56,267 which exceed three month's unrestricted fund expenses amounting to £28,402. The charity continue to be reliant on the continued financial support of United Kingdom Mennonite Ministries in the USA and are pleased that the higher reserves bring greater resilience. The board of that organisation has confirmed it will support the UK charity to ensure its continued future operations. The trustees are working towards improving self reliance.

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

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.

UK MENNONITE MINISTRIES

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

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

Kenneth Witmer

Trustee

1 June 2023

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 2022.

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

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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: 9 June 2023

UK MENNONITE MINISTRIES

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and legacies
125,605
21,261
Income from charitable
activities
3
148,701
-
Investments
4
-
-
Total income
274,306
21,261
Expenditure on:
Charitable activities
5
113,607
10,098
Net gains/(losses) on
investments
10
30,013
-
Net incoming resources
before transfers
190,712
11,163
Gross transfers between
funds
11,163
(11,163)
Net incoming resources
201,875
-
Other recognised gains and losses
Other gains or losses
11
(10,691)
-
Net movement in funds
191,184
-
Fund balances at 1 October
2021
576,796
-
Fund balances at 30
September 2022
767,980
-		 Total Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
146,866
146,086
23,526
148,701
60,790
-
-
14
-
295,567
206,890
23,526
123,705
139,526
10,554
30,013
133,429
-
201,875
200,793
12,972
-
54,237
(54,237)
201,875
255,030
(41,265)
(10,691)
11,811
-
191,184
266,841
(41,265)
576,796
309,955
41,265
767,980
576,796
-		 Total
2021
£
169,612
60,790
14
230,416
150,080
133,429
213,765
-
213,765
11,811
225,576
351,220
576,796

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 2022

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets/(liabilities)
Total assets less current liabilities
Income funds
Unrestricted funds		 2022
£
10,311
56,699
67,010
(10,743)		 2021
£
£
£
548,269
555,486
163,444
133,431
711,713
688,917
6,418
41,834
48,252
(160,373)
56,267
(112,121)
767,980
576,796
767,980
576,796
767,980
576,796

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 2022.

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 1 June 2023

Kenneth Witmer

Trustee

Company registration number 07613549

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

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 amounts 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 2022

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 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).

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.

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

1 Accounting policies

(Continued)

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.

3 Income from charitable activities

Income from charitable activities
Charitable rental income
Other income		 2022
£
895
4,642
143,164
148,701		 2021
£
2,003
7,569
51,218
60,790

Other income includes £143,100 (2021- £51,136) received from United Kingdom Mennonite Ministries in the US by way of loan waiver.

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

4 Investments

Interest receivable
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
Evangelism and outreach
Hospitality
Literature and CDs
Other miscellaneous 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		 Total
Unrestricted
funds
2022
2021
£
£
-
14
2022
2021
£
£
52,606
91,409
9,486
8,919
10,089
-
15,665
8,400
-
6,870
195
1,295
3,319
6,088
10,037
9,025
1,229
-
849
-
1,244
1,083
254
-
104,973
133,089
10,566
6,489
2,502
4,398
5,664
6,104
123,705
150,080
113,607
10,098
123,705		 Total
Unrestricted
funds
2022
2021
£
£
-
14
2022
2021
£
£
52,606
91,409
9,486
8,919
10,089
-
15,665
8,400
-
6,870
195
1,295
3,319
6,088
10,037
9,025
1,229
-
849
-
1,244
1,083
254
-
104,973
133,089
10,566
6,489
2,502
4,398
5,664
6,104
123,705
150,080
113,607
10,098
123,705
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

5 Charitable activities

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

6 Grants payable

Grants to institutions:
Grace Press
Suceava Church
Lakeside Mennonite Church
Grants of £1000 or less
Grants to individuals		 2022
£
1,241
1,770
1,915
1,510
6,436
4,130
10,566		 2021
£
-
-
-
2,614
2,614
3,875
6,489
7
Support costs
Support
costs
Governance
costs
£
£
Administrative costs
2,082
-
Insurance
420
-
Accountancy
-
4,800
Legal and professional
-
864
2,502
5,664
Analysed between
Charitable activities
2,502
5,664		 2022Support costs Governance
costs
£
£
£
2,082
3,428
-
420
970
-
4,800
-
5,341
864
-
763
8,166
4,398
6,104
8,166
4,398
6,104		 2021
£
3,428
970
5,341
763
10,502
10,502

Governance costs includes amounts payable to the independent examiner of £3,100 (2021- £3,800) for preparation and independent examination of the statutory accounts and £1,700 (2021- £1,541) for other work. This includes an under provision of £nil for earlier years (2021- under provision for the previous year of £700).

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

8 Trustees

Arland Eberly, father of Dirk Eberly was employed by UKMM as a minister until 30 November 2021. 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 £5,400 (2021- £32,400) and pension contributions of £131 (2021- £785) for his services as a minister. Kenneth Witmer's daughter Jennifer Hershberger is employed as a teaching assistant and received salary of £8,400 (2021- £8,400). Jennifer Hershberger is financially independent of Kenneth Witmer. Kenneth Witmer's daughter, Charlotte Witmer received salary of £6,800 (2021- £7,200) for work as a teaching assistant until 31 May 2022.

One other child of Kenneth Witmer's is employed by Shepherd Hills Furniture Limited. Linford Witmer received salary of £26,446 (2021- £23,817) and pension contributions of £nil (2021- £475). He is 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 £nil during the year for building services (2021- £2,033) .

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

Six trustees and their families attended the annual conference without charge at a cost of £1,120 in 2022. No annual conference happened in 2021, 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.

9 Employees

Number of employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Ministerial/pastoral - 2
School room 2 2
Community hosts 3 2
5 6
Employment costs 2022 2021
£ £
Wages and salaries 49,358 85,320
Social security costs 2,628 4,811
Other pension costs 620 1,278
52,606 91,409

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

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

10 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Revaluation of investments 30,013 133,429

The revaluation for 2021 has been restated to be included in the statement of financial affairs.

11 Other gains or losses

Foreign exchange losses/(gains)
12
Tangible fixed assets
Cost
At 1 October 2021
Additions
At 30 September 2022
Depreciation and impairment
At 1 October 2021
Depreciation charged in the year
At 30 September 2022
Carrying amount
At 30 September 2022
At 30 September 2021		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
10,691
(11,811)
Buildings
Fixtures,
fittings &
equipment
Total
£
£
£
559,432
13,042
572,474
-
2,269
2,269
559,432
15,311
574,743
11,272
5,716
16,988
6,189
3,297
9,486
17,461
9,013
26,474
541,971
6,298
548,269
548,160
7,326
555,486		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
10,691
(11,811)
Buildings
Fixtures,
fittings &
equipment
Total
£
£
£
559,432
13,042
572,474
-
2,269
2,269
559,432
15,311
574,743
11,272
5,716
16,988
6,189
3,297
9,486
17,461
9,013
26,474
541,971
6,298
548,269
548,160
7,326
555,486
Total
£
572,474
2,269
574,743
16,988
9,486
26,474
548,269
555,486

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

13 Fixed asset investments

Unlisted
investments
£
Cost or valuation
At 1 October 2021 133,431
Valuation changes 30,013
At 30 September 2022 163,444
Carrying amount
At 30 September 2022 163,444
At 30 September 2021 133,431

The above investment represents the fair value of shares 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 £163,444 at 30 September 2022.

14 Financial instruments

The charity 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 expected to be paid or received and have not been discounted.

15 Debtors

15
Debtors
Amounts falling due within one year:
Other debtors
16
Loans and overdrafts
Other loans
Payable within one year		 2022
£
10,311
2022
£
-
-		 2021
£
6,418
2021
£
146,182
146,182

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 2022

17 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Borrowings
Other taxation and social security
Amounts owed to subsidiary undertakings
Other creditors
Accruals and deferred income		 2022
£
-
833
2,816
3,663
3,431
10,743		 2021
£
146,182
2,399
1,345
7,016
3,431
160,373

UK MENNONITE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

18 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:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Transfers Balance at
1 October resources expended 1 October resources expended 30
2020 2021 September
£ £ £ £ £ £ £ £ 2022
£
Building fund 41,265 19,161 (6,189) (54,237) - 11,897 (720) (11,177) -
School fund - 2,285 (2,285) - - 6,053 (6,053) - -
Mission fund - 2,080 (2,080) - - 3,311 (3,325) 14 -
41,265 23,526 (10,554) (54,237) - 21,261 (10,098) (11,163) -

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 and to repay loans.

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 2022

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		 2022
£
8,525
-
8,525		 2021
£
7,895
5,900
13,795

20 Related party transactions

Remuneration of key management personnel

The key management are the trustees and none of them received any remuneration in the year.

Transactions with related parties

During the year the charity a gift of £1,350 was given to Arland Eberly, father of trustee Dirk Eberly.

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 2022 show net assets of £163,444 (2021- net assets of £133,431). For the year to 30 September 2022 the subsidiary's accounts show a profit before tax of £28,177 (2021- profit £187,398).

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 £158,720 (2021- £201,537) to UK Mennonite Ministries during the year under review. An unsecured loan by United Kingdom Mennonite Ministries in the US was repaid in full during the year principally by way of waiver (2021- £138,182 remained outstanding) . 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 was repaid in full during the year (2021- £8,000 remained outstanding) . 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, during the year identifiable donations of £12,615 (2021- £11,180) were received from trustees and related parties