**Registered number: 108687 Charity number: 222262** # **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **UNAUDITED** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 DECEMBER 2020** . RPG Crouch Chapman LLP 14-16 Dowgate Hill London EC4R 2SU ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **CONTENTS** ||Page| |---|---| |Reference and administrative details of the Company, its Trustees and advisers|1| |Trustees' report|2 - 8| |Independent examiner's report|9 - 10| |Statement of financial activities|11| |Balance sheet|12 - 13| |Notes to the financial statements|14 - 30| ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020** |Trustees|Patricia Davis, Treasurer| |---|---| ||Phillip Harniess| ||Bernadette Cunningham| |Company registered
number
108687
Charity registered
number
222262
Registered office
305 Cambridge Heath Road
London
E2 9LH
Church Minister and
Charity Secretary
Michael Houston
Accountants
RPG Crouch Chapman LLP
Chartered Accountants
14-16 Dowgate Hill
London
EC4R 2SU
Bankers
National Westminster Bank PLC
180 Shoreditch High Street
London
E1 6HN
Independent Examiner
Jeremy Tyrrell FCA
RPG Crouch Chapman LLP
14-16 Dowgate Hill
London EC4R 2SU|| Page 1 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** The Trustees present their annual report together with the financial statements of the Company for the year 1 January 2020 to 31 December 2020. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted. ## Objectives and activities ## a. Policies and objectives Bethnal Green Mission Church (BGMC) is a Christian church and charitable company limited by guarantee and is governed by a Memorandum and Articles of Association and values of faith. BGMC’s founder, Annie Macpherson was a contemporary and friend of Dr. Thomas Barnardo, who came to East London in the early 1860s when bad housing, unemployment, poverty and disease were rife. A ‘home of industry’ was established to “educate religiously and promote the welfare of the poor and needy by all manner of means”. This work continued in various guises until a building was erected in 1952 to provide Bethnal Green with a medical practice under the newly formed National Health Service. During this period, a Christian bookshop was opened and, together with a thriving Sunday School, a church was established. In 2018, a five year redevelopment scheme was completed and a new church building and community space was opened. This award winning building has given BGMC a unique opportunity to provide the area with a welcoming space for worship, prayer and engagement with a diverse range of support, events and activities for decades to come. BGMC’s faith values are derived from a commitment to relationships and community seen in the Trinitarian and loving nature of God, fully revealed in Jesus Christ. We seek to express these values in our life and mission by being: a Jesus-centred community; an inclusive community; a missional community; a worshipping community; and a prophetic community. Our desire is to engage in long term, relational and innovative work which is relevant to the needs of our diverse community and which contributes to personal, social and spiritual transformation and wellbeing. We do this through empowering and equipping BGMC members, staff and volunteers in the borough and through partnerships with churches, schools, organisations and statutory agencies. The Beehive is a café, community hub and co-working space providing high quality food, coffee, tea and hospitality. It is a not-for-profit enterprise with a desire to use any money made to drive quality and to support and equip those from disadvantaged backgrounds through partnership and opportunity. Following in the footsteps of the Victorian legacy of BGMC’s founder, Annie Macpherson, the aim of The Beehive is to bring hope to those on the margins of our modern-day society. Annie Macpherson’s “Home of Industry” became a noted feature of the East End and was known locally as the ‘Beehive’. The Beehive’s desire is to recreate the welcoming and hospitable community founded all those years ago, and to become a “noted feature” of its own, both for its high standards of quality and for its socially transformative legacy. The café operates with 3 full time staff and a team of Page 2 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** Objectives and activities (continued) volunteers from BGMC, other local churches and the community. This collaborative work enables the café to be a genuine partnership between a diverse range of local people and organisations. The café is able to utilise the neighbouring green space of Paradise Gardens and a group of community gardeners now meets to support the rejuvenation and maintenance of this previously neglected space. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. ## b. Activities undertaken to achieve objectives For most people the world over, 2020 will be defined by the COVID-19 pandemic and the unprecedented challenges it presented. It was a year like no other in our 155-year history and has therefore shaped all aspects of our worship, work and mission. In March 2020, BGMC took steps in line with government advice to help contain the outbreak of COVID-19. This included the temporary suspension of all physical gatherings and an immediate review of how we were to operate during the time of National Lockdown. The church building was closed and with it the suspension of all activities, including worship services, midweek meetings, The Beehive café, Growth Night Shelter and youth work that were run from the building. Inevitably during the year, many events and activities that had been planned were cancelled, including the annual church weekend away, clothes swaps, hospitality events and other community groups using the building. From March 2020, BGMC used Zoom to meet virtually every Sunday in a live service of worship, teaching, activities and discussion. At the end of the first lockdown in July, BGMC met for several weeks outside in Paradise Gardens and resumed in-person services in September until the second lockdown in November when we reverted back to Zoom. Despite going back to holding in-person services at the start of December, the church leaders and Trustees took the decision before Christmas to once again suspend all physical gathering and resume Zoom meetings in the interest of community safety. During the pandemic it has been BGMC’s priority to adjust and adapt to circumstances on the basis of both government guidelines and the most vulnerable in our community. Despite it being permissible to hold services in December and beyond, BGMC decided that it would be both unsafe and unwise to do so. Like other organisations, BGMC took rigorous steps to make sure that any in-person gathering during the year was conducted safely with all the measures in place that have been specified by local and national government in order to minimise the risk of transmission of COVID-19. Members of BGMC have adapted well to these circumstances and the experience of running digital services has, despite its initial challenge, presented us with new opportunities and different ways of working that will impact our future approach. Like all churches, BGMC’s approach to pastoral care and support has been impacted by the lockdown but we have been able to be flexible to support and keep in touch with people that have not participated in Zoom services. At different times of the year, BGMC members and volunteers have engaged in a diverse range of support for their neighbourhoods and BGMC has been able to facilitate the practical and financial help for people in need. In the week before Christmas, BGMC worked with several local agencies to provide hot meals for 135 people and 36 hampers for local families in need. The food was cooked in the BGMC kitchen and the hampers assembled by BGMC volunteers which were then collected or delivered. Page 3 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** Objectives and activities (continued) A feature of our work during the 2020 lockdowns was giving BGMC volunteers, friends and neighbours the opportunity to meet safely outside to work in Paradise Gardens adjacent to our building, doing weeding, planting, leaf and litter picking. This community gardening project has become a significant part of our week and has provided many volunteers with a welcome safe space to meet outdoors which not only aids their mental well-being but also helps to make the park look so special and inviting. c. Main activities undertaken to further the Company's purposes for the public benefit ## Growth Night Shelter During February and March of 2020, BGMC hosted and led Growth Night Shelter every Tuesday in our premises. We provided a hot meal, breakfast and hospitality for 17 guests every Tuesday and Wednesday morning. 20 BGMC volunteers and many other local people were involved as team members until guests were relocated in hotels in London. BGMC volunteers continued to assist with the work when it moved to hotels with a number staying in the hotels to host night shelter guests. ## The Beehive The start of 2020 was a busy one for the Beehive with an increased number of customers and the continued development of contact with our local community. The Beehive had partnered with Spear for the café to become a training venue for young people who were being supported on their employment programme. A young person was being trained at the café when the lockdown happened in March. The subsequent months until December were challenging for all staff and volunteers as the café was closed from this time and only opened intermittently during the year as the guidelines changed. In January we appointed a new Operations Manager whose remit was to develop the use of the building for the local community and with the Church Minister and Beehive manager plan a strategy of events and activities that would benefit local people. These plans were curtailed when we entered lockdown and the café and church building were closed. ## E123 Welcomes Refugees At the start of the year E123 Welcomes Refugees had secured a house for the Sponsorship Scheme and were busy fundraising to reach the budget target. The closure of borders during the pandemic meant that the Home Office stopped receiving applications for the scheme. Sadly, during this time, the house that had been found had to be used for other purposes and so by the Summer when lockdown eased, we had to re-start our search for a house in the borough for the refugee family. BGMC church leaders and trustees took the decision in September to offer our Bow property for the purposes of the scheme which triggered a new phase of work and relaunched the application process to the Home Office. During the autumn a significant amount of work was done on the house as we also sought approval from Tower Hamlets Council. By the end of 2020 our application was ready for submission to the Home Office, funds had been raised, the support team has been trained as we waited for borders of the UK to be opened again. Post year end, we are delighted to confirm the family has moved in! Page 4 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## Objectives and activities (continued) ## Youth & Children’s Work Despite the curtailment of activities running from the church building, BGMC has continued to offer a variety of support for young people. The BGMC youth & children’s team commenced the year supporting young people and children through a regular programme of activities on Sundays and midweek and for the planned BGMC Weekend Away in June. A weekly lunch time club was taking place in Morpeth School for vulnerable students. Mentoring training continued in January and February for a small cohort of the congregation to prepare to work with individual young people connected to the church community. All face-to-face work came to a halt during the pandemic and Zoom meetings and phone calls became the alternative means of communication. In February 2020 a group of young adults with learning disabilities showcased and launched their art project in the Beehive One Wall Gallery. They held a food and drink reception and held a party for guests and parents/carers. ## Face to Face Mentoring BGMC continued its Service Level Agreement with Mulberry Academy Shoreditch to provide Wellbeing Mentoring Support to teenage boys at the school with 8 places being offered through this agreement. However, the work took a different shape following the first lockdown, which significantly reduced the number of mentoring sessions. In total 135 individual contacts were made with 20 students. This took the shape of phone calls, texts and 1-1 meetings, once the National Youth Agency Guidelines allowed key workers to work in this manner. The wellbeing mentor provided support around bereavement, emotional literacy, faith development (when initiated by the students), peer and family relationships, healthy lifestyles. This was of particular significance given an increase in social isolation from peers and physical confinement in the young peoples’ houses/flats. The work also included attending some professionals’ meetings on Zoom and liaising with parents/carers. During the year (in November) two young people, who receive mentoring at Mulberry Academy Shoreditch, were given Jack Petchey Achievement Awards. They elected to spend the award money on a microscope and a trip to a theme park once the park reopens. At the end of the year plans were formulated to develop a second service level agreement with the school to provide pastoral and wellbeing support for girls in the 6th Form by placing a BGMC youth worker and therapist in training in this role. ## The Feast In 2020, The Feast’s local activities were severely disrupted by the pandemic. However, in February a number of young people from Mulberry Academy showcased an innovative shop display on the theme of peace at Create Space, a community project based in Bethnal Green, at the end of the Gamechangers programme. In July, a Feast Zoom youth encounter took place with young people from BGMC and a peacebuilding project in Chicago, USA. Further, BGMC’s youth minister continued in his role as a member of the Feast Senior Leadership Team and Chair of the Feast Local Advisory Group to develop the project in the local area. In September 2020, one of the youth workers stepped down from his role to do ministry training with the Church of England. In November, The Feast was awarded a 5-year grant by the Merchant Taylors Foundation to employ 1 full time Youth Work Hub Coordinator and part time youth worker. Page 5 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## Achievements and performance ## a. Fundraising Policy We do not employ a professional fundraiser and all fundraising is done through normal activities of staff and volunteers. Fundraising is predominantly from member giving, and this is monitored regularly. No complaints were received about the church's fundraising activities. We have fully complied with GDPR regulations. This will prevent unreasonable intrusion on a person's privacy. ## b. Investment policy Subject to the overriding provisions of the Trustees' Acts, the charity has the power to make any investments which the Trustees see fit. ## Financial review ## a. Going concern After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies. ## b. Reserves policy It is the policy to maintain unrestricted funds, which are the free reserves of the charity, at a level that takes into consideration our recent possession of a new building and the running costs that are evolving as a result of the pandemic. It also takes into account the future expenditure that will be needed as BGMC oversees the running of the Beehive Cafe, creates new projects and for the possibility of the church purchasing a local residential property for the purposes of our charitable and missional purposes. The Trustees consider that the current level of reserves is in accordance with their aspirations and the level required in future yearswill be assessed as new projects are introduced in response to local need. ## c. Risk Management The Trustees have examined the major strategic, business and operational risks which the church faces and confirm that systems have been established to monitor those risks so that the necessary steps can be taken to lessen them. Page 6 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## d. Financial Results During the year we continued our application for a mortgage to gain a 55% ownership of a house which had been previously used by the E123 Mission House project. It is intended that we will use this house to further our charitable purposes and our work in the community. BGMC benefitted from the Government’s furlough scheme during 2020 with six members of staff being furloughed for the majority of the year. Despite the uncertainly of the pandemic, the financial impact on BGMC has thankfully been minimal and this means that the same level of staffing and work can be resumed once lockdown eases and our building reopens. Through the generosity of its members and a diverse range of income, BGMC has been able to sustain its level of financial giving to other causes, local and international. This financial resilience is particularly reassuring as wider society emerges from lockdown and as we seek to serve the needs of the local community facing the changes and challenges of the pandemic. ## Structure, governance and management ## a. Constitution Annie Macpherson Home of Industry (Incorporated) Operating As Bethnal Green Mission Church is registered as a charitable company limited by guarantee and was set up by a Memorandum and Articles of Association. ## b. Methods of appointment or election of Trustees The management of the Company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed. ## c. Organisational structure and decision-making policies The decisions relating to the charitable company are made by the Directors, who are also the Trustees of the charity, who together form a church leadership team which includes the Church Minister and Youth Worker. The Directors are elected in the Annual General Meeting of which not less than ten days clear notice has been given. The leadership team meet at least quarterly to receive reports from staff, volunteers and other workers and to review activities, operating policies and financial progress. ## d. Pay policy for key management personnel The salaries of senior management are reviewed annually. Salary levels are benchmarked using comparatives for similar organisations. Page 7 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** Statement of Trustees' responsibilities The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles of the Charities SORP (FRS 102); - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the members of the board of Trustees on _________________________________________________ and signed on their behalf by: **P Harniess** Trustee/ Director Page 8 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** Independent Examiner's Report to the Trustees of Annie Macpherson Home of Industry (Incorporated) Operating As Bethnal Green Mission Church ('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 Trustees of the Company (and 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 the Company's accounts 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. Page 9 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report. Signed: Dated: Jeremy Tyrrell FCA RPG Crouch Chapman LLP Chartered Accountants 14-16 Dowgate Hill London EC4R 2SU Page 10 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020** |Note
**Income from:**
Donations and legacies
4
Investments
5
**Total income**
**Expenditure on:**
Charitable activities
6
**Total expenditure**
**Net expenditure before net gains on**
**investments**
Net gains on investments
**Net expenditure**
Transfers between funds
15
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|Restricted
funds
2020
£
29,759
-
29,759
51,215
51,215
(21,456)
-
(21,456)
550
(20,906)
694,581
(20,906)
673,675|Unrestricted
funds
2020
£
130,177
87,778
217,955
218,581
218,581
(626)
43
(583)
(550)
(1,133)
511,210
(1,133)
510,077|Total
funds
2020
£
159,936
87,778
247,714
269,796
269,796
(22,082)
43
(22,039)
-
(22,039)
1,205,791
(22,039)
1,183,752|Total
funds
2019
£
141,964
77,784| |---|---|---|---|---| |||||219,748
230,620| |||||230,620
(10,872)
102| |||||(10,770)
-| |||||(10,770)
1,216,561
(10,770)| |||||1,205,791| The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 14 to 30 form part of these financial statements. Page 11 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee) REGISTERED NUMBER: 108687** ## **BALANCE SHEET AS AT 31 DECEMBER 2020** |Note
**Fixed assets**
Tangible assets
9
Investments
10
**Current assets**
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after
more than one year
13
**Total net assets**
**Charity funds**
Restricted funds
15
Unrestricted funds
15
**Total funds**|937,507
41,141
978,648
(164,842)|2020
£
3,653,864
719
3,654,583
813,806
4,468,389
(3,284,637)
1,183,752
673,675
510,077
1,183,752|927,460
40,283
967,743
(148,421)|2019
£
3,702,728
676| |---|---|---|---|---| |||||3,703,404
819,322| |||||4,522,726
(3,316,935)| |||||1,205,791
694,581
511,210| |||||1,205,791| Page 12 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2020** The Company was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees on _________________________________________________ and signed on their behalf by: ................................................ **Patricia Davis** Treasurer/ Director ................................................ **Phillip Harniess** Trustee/ Director The notes on pages 14 to 30 form part of these financial statements. Page 13 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 1. General information Annie Macpherson Home of Industry (Incorporated) is a company limited by guarantee incorporated and registered in England and Wales, company number 00108687. Its registered office address is 305 Cambridge Heath Road, London E3 9LH. The principal activity of the company continued to be that of promoting welfare and education in a religious context. ## 2. Accounting policies ## Basis of preparation of financial statements The financial statements 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Annie Macpherson Home of Industry (Incorporated) Operating As Bethnal Green Mission Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. ## Company status The company is a charity and is limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability of members is limited to £1. These financial statements have been prepared in GBP and all amounts are rounded to the nearest £. ## Going concern The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern for the foreseeable future, this being at least 12 months from the date on which the balance sheet was signed. Page 14 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 2. Accounting policies (continued) ## Income All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Company, can be reliably measured. Rental income is accounted for in the period in which it falls due. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. ## Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. Page 15 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 2. Accounting policies (continued) ## Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. ## Tangible fixed assets and depreciation Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, . Depreciation is provided on the following bases: |Freehold property|- 2% straight line method| |---|---| |Long-term leasehold|- 125 years| |property|| |Fixtures and fittings|- 40% reducing balance method| |Investments|| Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities. Investments in subsidiaries are valued at cost less provision for impairment. ## Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Page 16 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 2. Accounting policies (continued) ## Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. ## Financial instruments The Company only has 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## Headleases The grant of the headlease is credited to the SOFA over the period of the headlease. ## Pensions The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year. ## Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Page 17 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 2. Accounting policies (continued) ## Cash Flow Statement The financial statements do not include a cash flow statement because the charity, as a small reporting entity, is exempt from the requirement to prepare such a statement under the Charities SOR (FRS 102). ## Consolidation The company is exempt under S. 398 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary form a small group. The accounts therefore present information about the company as an individual undertaking and not about its group. ## 3. Critical accounting estimates and areas of judgment Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions: The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Critical areas of judgment: ## Depreciation Depreciation is based on the estimated useful life of the assets being depreciated, and, in the case of the leasehold property, the length of the lease. The useful lives of the assets are based on experience and industry-specific benchmarks. ## Accruals Accruals are estimates based on experience or invoices received after the year end. Page 18 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 4. Income from donations and legacies |Donations
Legacies
Grants
Government grants|Restricted
funds
2020
£
6,450
-
500
22,809
29,759|Un-
restricted
funds
2020
£
76,793
17,443
35,941
-
130,177|Total
funds
2020
£
83,243
17,443
36,441
22,809| |---|---|---|---| ||||159,936| |Donations
Legacies
Grants|Un-
restricted
funds
2019
£
93,129
15,485
33,350
141,964|Total
funds
2019
£
93,129
15,485
33,350| |---|---|---| |||141,964| Page 19 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 5. Investment income |Rental income from church properties
Dividends and interest received
Rental income from church properties
Dividends and interest received|Un-
restricted
funds
2020
£
65,672
22,106
87,778
Un-
restricted
funds
2019
£
64,819
12,965
77,784|Total
funds
2020
£
65,672
22,106| |---|---|---| |||87,778| |||Total
funds
2019
£
64,819
12,965| |||77,784| Page 20 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 6. Analysis of expenditure on charitable activities ## Summary by fund type |Grants payable
Employment costs
Depreciation
Governance Costs
Other direct costs|Restricted
funds
2020
£
-
-
21,066
-
30,149
51,215|Un-
restricted
funds
2020
£
5,289
85,856
27,798
8,552
91,086
218,581|Total
funds
2020
£
5,289
85,856
48,864
8,552
121,235| |---|---|---|---| ||||269,796| |Grants payable
Employment costs
Depreciation
Governance costs
Other direct costs|Restricted
funds
2019
£
-
-
21,066
-
-
21,066|Un-
restricted
funds
2019
£
6,265
83,101
31,171
3,600
85,417
209,554|Total
funds
2019
£
6,265
83,101
52,237
3,600
85,417| |---|---|---|---| ||||230,620| The grants payable comprise £3,809 to six organisations (2019: £4,020 to nine organisations) and £1,480 to three individuals and families (2019: £2,245 to four individuals and families). Fees payable to the Independent Examiner for the examination amounted to £2,400 (2019: £2,400), and for accountancy services £2,430 (2019: £1,600). They are included in governance costs. Other direct costs include a management charge of £22,809 (2019: Nil) payable to the charity's subsidiary, BGMC Trading Ltd. Page 21 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 7. Staff costs |Wages and salaries|2020
£
85,856
85,856|2019
£
83,101| |---|---|---| |||| |||83,101| The average number of persons employed by the Company during the year was as follows: ||2020|2019| |---|---|---| ||No.|No.| |Trustees|4|4| No employee received remuneration amounting to more than £60,000 in either year. Included within the costs were pension contributions of £10,312 (2019: £9,240). Key management comprises the Trustees and the Church Minister. Total key management remuneration for the year amounted to £30,000 (2019: £30,000) 8. Trustees' remuneration and expenses During the year, no Trustees received any remuneration or other benefits (2019 - £NIL). During the year ended 31 December 2020, no Trustee expenses have been incurred (2019 - £ NIL). Page 22 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 9. Tangible fixed assets |Cost or valuation
At 1 January 2020
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019|Freehold
property
£
1,053,310
1,053,310
42,132
21,066
63,198
990,112
1,011,178|Long-term
leasehold
property
£
2,713,455
2,713,455
37,088
21,726
58,814
2,654,641
2,676,367|Fixtures and
fittings
£
49,083
49,083
33,900
6,072
39,972
9,111
15,183|Total
£
3,815,848
3,815,848
113,120
48,864
161,984
3,653,864
3,702,728| |---|---|---|---|---| The freehold land and buildings brought forward consisted of a property at 67 Ellesmere Road. The leasehold land and buildings brought forward comprise a flat at 10 Mulberry House in Bethnal Green, which was bequeathed to the charity on 1 January 1988 with 120 years of its lease remaining. In 1991, the property was revalued and a provision of £35,000 was made against the original gifted value of £80,000. A cost figure of £45,000 is shown as the cost value applicable. The property has not been subject to any further revaluations since it is the long term intention of the Trustees to use the leasehold property for charitable purposes. In 2018 the lease was extended at a cost of £9,383 and is disclosed under leasehold additions. Leasehold land and buildings also include the church building at 305 Cambridge Heath Road at an original cost of 2,659,072 in 2018. The property is depreciated over the life of the lease, which is 125 years commencing in 2018. Page 23 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 10. Fixed asset investments |11.|Cost or valuation
At 1 January 2020
Revaluations
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
Debtors
Due after more than one year
Other debtors
Due within one year
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income|Investments
in subsidiary
companies
£
1
-
1
1
1|Unlisted
investments
£
675
43
718
718
675
2020
£
10,000
10,000
435,906
491,601
-
937,507|Total
£
676
43
719
719
676
2019
£
10,000
10,000
423,237
490,897
3,326
927,460| |---|---|---|---|---| Other debtors due after more than one year include a loan of £10,000 (2019: £10,000) made to E123 Housing Mission. The loan is equity based bearing no interest. Included in other debtors within one year is a loan of £491,601 (2019: £490,597) made in connection with the redevelopment. The loan carries interest at 5% per annum repayable on the date of the final loan repayment. Amounts owed by subsidiary undertakings are interest free and repayable on demand. Page 24 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 12. Creditors: Amounts falling due within one year |Bank loans
Other loans
Other creditors
Accruals and deferred income|2020
£
13,604
24,270
119,246
7,722
164,842|2019
£
13,604
24,270
105,897
4,650| |---|---|---| |||| |||148,421| 13. Creditors: Amounts falling due after more than one year |Other loans
Other creditors|2020
£
347,943
2,936,694
3,284,637|2019
£
355,981
2,960,954| |---|---|---| |||| |||3,316,935| The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is: |Payable or repayable by instalments
Payable or repayable other than by instalments|2020
£
293,525
2,839,604
3,133,129|2019
£
301,563
2,863,874| |---|---|---| |||| |||3,165,437| The mortgage is repayable within 30 commencing on 1 December 2016 years and is secured against the freehold property. Other creditors represent the grant of the headlease for the property at 305 Cambridge Heath Road to the Thornsett Estates over the period of 125 years. Page 25 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 14. Financial instruments ||2020|2019| |---|---|---| ||£|£| |Financial assets||| |Financial assets measured at fair value through income and||| |expenditure|718|675| Financial assets measured at amortised cost represent the charity's fixed asset investment. Page 26 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 15. Statement of funds Statement of funds - current year |Unrestricted
funds
Designated
funds
Building
Repairs Fund
Charitable
Purposes
Continuation
Fund
General funds
General Funds
Total Un-
restricted
funds
Restricted
funds
Redevelop-
ment Fund
67 Ellesmere
Road
Beirut
Jack Patchey
Foundation
Furlough Grant
Total of funds|Balance at 1
January
2020
£
127,240
145,000
272,240
238,970
511,210
58,403
636,178
-
-
-
694,581
1,205,791|Income
£
-
-
-
217,955
217,955
-
-
6,450
500
22,809
29,759
247,714|Expenditure
£
-
-
-
(218,581)
(218,581)
-
(21,066)
(7,000)
(340)
(22,809)
(51,215)
(269,796)|Transfers
in/out
£
-
-
-
(550)
(550)
-
-
550
-
-
550
-|Gains/
(Losses)
£
-
-
-
43
43
-
-
-
-
-
-
43|Balance at
31
December
2020
£
127,240
145,000
272,240
237,837
510,077
58,403
615,112
-
160
-
673,675
1,183,752| |---|---|---|---|---|---|---| Page 27 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 15. Statement of funds (continued) Statement of funds - prior year |Unrestricted funds
Designated funds
Building Repairs Fund
Charitable Purposes
Continuation Fund
General funds
Central Fund
Total Unrestricted funds
Restricted funds
Redevelopment Fund
67 Ellesmere Road
Total of funds|Balance at
1 January
2019
£
127,240
145,000
272,240
228,675
500,915
58,403
657,244
715,647
1,216,562|Income
£

-
-
-
219,748
219,748
-
-
-
219,748|Expenditure
£
-
-
-
(209,555)
(209,555)
-
(21,066)
(21,066)
(230,621)|Gains/
(Losses)
£
-
-
-
102
102
-
-
-
102|Balance at
31
December
2019
£
127,240
145,000| |---|---|---|---|---|---| ||||||272,240| ||||||238,970| ||||||511,210| ||||||58,403
636,178| ||||||694,581| ||||||1,205,791| Page 28 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** |16.|Analysis of net assets between funds
Analysis of net assets between funds - current period
Tangible fixed assets
Fixed asset investments
Debtors due after more than one year
Current assets
Creditors due within one year
Creditors due in more than one year
Total
Analysis of net assets between funds - prior period
Tangible fixed assets
Fixed asset investments
Debtors due after more than one year
Current assets
Creditors due within one year
Creditors due in more than one year
Total|Restricted
funds
2020
£
990,112
-
-
45,110
(13,604)
(347,943)
673,675
Restricted
funds
2019
£
1,011,178
-
-
52,988
(13,604)
(355,981)
694,581|Un-
restricted
funds
2020
£
2,663,752
719
10,000
923,538
(151,238)
(2,936,694)
510,077
Un-
restricted
funds
2019
£
2,691,550
676
10,000
904,755
(134,817)
(2,960,954)
511,210|Total
funds
2020
£
3,653,864
719
10,000
968,648
(164,842)
(3,284,637)| |---|---|---|---|---| |||||1,183,752
Total
funds
2019
£
3,702,728
676
10,000
957,743
(148,421)
(3,316,935)| |||||1,205,791| Page 29 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 17. Related party transactions During the year there were no related party transactions other than those disclosed in Note 10 to the accounts (2019: none). ## 18. Principal subsidiaries The following was a subsidiary undertaking of the Company: |**Name**||**Company**|**Registered office or principal**|**Principal activity**| |---|---|---|---|---| |||**number**|**place of business**|| |BGMC Trading Limited||10441684|305 Cambridge Heath Road,|Operation of a cafe| ||||London, E2 9LH|| |**Class of**|**Holding**|||| |**shares**||||| |Ordinary A|100%|||| |Shares||||| The financial results of the subsidiary for the year were: |**Name**|||Profit/(Loss)|| |---|---|---|---|---| ||Income|Expenses|for the year|Net assets| ||£|£|£|£| |BGMC Trading Limited|115,516|(134,351)|(18,835)|(77,187)| Page 30