**Registered number: 108687 Charity number: 222262** # **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 DECEMBER 2021** . 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 charity, its Trustees and advisers|1| |Trustees' report|2 - 9| |Independent auditor's report on the financial statements|10 - 13| |Statement of financial activities|14| |Balance sheet|15| |Notes to the financial statements|16 - 33| ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021** |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
Independent auditor
RPG Crouch Chapman LLP
Chartered Accountants and Registered Auditors
14-16 Dowgate Hill
London
EC4R 2SU
Bankers
National Westminster Bank PLC
180 Shoreditch High Street
London
E1 6HN|| 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 2021** The Trustees present their annual report together with the audited financial statements of the Annie Macpherson Home of Industry (Incorporated) Operating As Bethnal Green Mission Church for the year 1 January 2021 to 31 December 2021. 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 charity 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 2021** 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 The year began with the UK in its third lockdown of the COVID pandemic. This meant that BGMC’s work within our building was closed, including the Beehive Café, onsite youth work and associated church and community activities and events. BGMC church leaders and trustees also took the decision to postpone all in-person meetings and worship and resume these online via Zoom to protect the most vulnerable in our community. Like most churches and organisations, this transition back to online meetings, whilst not ideal, was easier and less complicated because of previous experience. Until June, BGMC conducted all its meetings online, both those on a Sunday and midweek. This was supplemented by in-person pastoral support and limited in person group gatherings where it was permitted and safe to do so. During this time, the BGMC community was able to adapt and respond to another challenging period. In the first few months of the year, BGMC continued to give pastoral support to several asylum seekers that were living locally and whose application for leave to remain was being processed. As Spring approached, it was confirmed that we would be able to fulfil our postponed booking for the church weekend away in June and this coincided with wider society opening up and the COVID guidelines being relaxed. 90% of BGMC attended the weekend and it was a time to reflect and reorientate ourselves both personally and corporately after the turmoil of the pandemic. Alongside this, we were also able to take 12 people on a residential trip to Yorkshire, which was a chance for those people to have a holiday after a particular challenging period of lockdown. In the Spring we appointed a new part-time Operations Manager whose role included building management, administration and overseeing BGMC community facing activities and events going forward into a post-pandemic era. It is a strategic role for developing our partnerships with the local community and for delivering relevant and supportive work. By the summer, when most COVID restrictions had been lifted, in-person church worship and meetings resumed and the building was opened up for use. During 2021, we have continued to take an active role in maintaining and developing Paradise Park, which has included weekly litter picking, weeding and planting by a team of church and local volunteers. This has provided an ideal and attractive space to host outdoor events and activities in partnership with staff and volunteers of the Beehive. 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 2021** Objectives and activities (continued) - c. Main activities undertaken to further the charity's purposes for the public benefit ## Growth Night Shelter During February and March of 2021, BGMC partnered with Growth Night Shelter to provide support and meals for 17 guests every Tuesday evening and overnight at a hotel in Victoria Docks. A team of 15 BGMC volunteers worked with Growth staff to enable this provision during this challenging lockdown period. COVID restrictions limited our interaction with clients but, like all other churches involved, it was an opportunity to support vulnerable people at an unprecedented period of history and when community-based shelters had been closed. Volunteers were responsible for providing dinner, breakfast bags, checking on guest welfare and being around to support them. ## The Beehive The Beehive Mission Statement: "We aim to impact the local community of Bethnal Green through excellence and hospitality. Our community hub will be a friendly, welcoming place to enjoy, belong and find opportunities for local engagement and personal growth.” We reopened on 1st May after our third lockdown, after a season of tending the Paradise Gardens and keeping in touch with customers through letter writing. It was a quiet reopening as business was negatively impacted by the East London Hotel, York Hall Swimming Pool and the Museum of Childhood being closed, but we attracted new regulars and gladly welcomed old customers back. In September the church began hosting a large Alcoholics Anonymous group gathering in the community hall each Saturday morning which led to increased trade – with approximately 70 members buying coffees each week. A small group of these same customers also come each Wednesday and Friday morning after their mid-week gatherings. We hosted 5 ‘Pay What You Can’ Supper Clubs in partnership with Zero Restaurants network in July, September, October and March. These events challenged the team to design a menu using surplus produce and provided special opportunities for friends to gather and share quality food at affordable prices. During the year we partnered with Daylight Music to provide food for their community concerts held various local venues. Our food menu remains a simple offering of breakfasts, toast and toasties with either homemade soup or salad specials, depending on the season. We hosted a paid training placement for a front of house trainee in partnership with Groundwork over the course of 6 months. We have also hosted 4 young volunteers who were on their Duke of Edinburgh placements. Other special events that we have hosted this year of particular note are: - Our first hen party in Paradise Gardens - Refreshments for a wake hosted in the Church - A wreath making workshop & Christmas ‘Crafternoon’ in the church - A celebration of a key volunteer with his family and support team ## E123 Welcomes Refugees In June 2021 we welcomed a refugee family into the borough in partnership with 3 other churches who were part of the Government’s Community Sponsorship Scheme. The family moved into a property that BGMC owns and this was redecorated and prepared for their arrival over the course of 2 months by a number of volunteers. Additionally, the kitchen was completely refurbished and a number of other alterations made. A team of volunteers has been supporting the family since their arrival to adjust to a new settled life here after being refugees for 29 years. The home they now live 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 2021** Objectives and activities (continued) has made a huge difference to their sense of safety and well-being after being so long without any form of settled home or existence. The family continues to thrive, each member developing their English and seeking to grow in their new life in the UK. We would like to replicate the success of this project with another family. ## Face to Face Mentoring At the beginning of 2021, BGMC was able to offer 2 members of staff to provide pastoral support to Mulberry Academy Shoreditch. The 2 Service Level Agreements provided therapeutic mentoring and coaching to a cohort of students in Years 12 and 13 and 8 places for mentoring with boys aged 1117. With the continuation of the Covid-19 pandemic, the school moved to online learning for the most part in the early Spring term, but was open to children of key workers and the most vulnerable students until after the February half term break when all students were invited to return. For the most part, we kept in contact with students by phone. In some cases we were able to arrange walks or socially distanced meetings with students where parents/carers agreed this and in compliance with Covid-19 regulations. The staff provided support around bereavement, emotional literacy, psychoeducation, faith development (when initiated by the students), peer and family relationships and healthy lifestyles. Both staff undertook training, one in professional counselling, the other in therapeutic mentoring and are parts of established professional networks and receive regular supervision. ## The Feast IBGMC has continued to be a significant supporter of The Feast Tower Hamlets work in providing office space, support of the new hub manager and volunteers and other in-kind support through the involvement of two of its church leaders. In 2021 we are able to report on the following staffing highlights subsequent to a significant 5-year grant from the Merchant Taylors Foundation: - The appointment of a full time Hub Manager for Tower Hamlets - The appointment of a part time youth worker in December to commence in Jan/February 2022 Other highlights comprised the following: - working with a total of 280 young people this year. Delivery work completed online and face to face - Ran 5 programmes across the year despite the implications of lockdown in early 2021 and ongoing Covid restrictions. They are as follows: - Contributed to the Archbishop of Canterbury’s Round table (Online and face to face) - Created a Wellness Programme (Online youth encounters) - Led a Developing Identity Programme (Schools work)-Summer Programme (Face to face) - Delivered a Gamechangers Programme (Schools work). - Diversified our local advisory group to reflect the demographics of the borough we work in. 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 2021** Objectives and activities (continued) - Created a volunteer database- we now have 10 volunteers and counting. Our volunteers range from young people to teaching assistants at schools. - Built new partnerships, including a new BGMC project, Oak London, working with young men at risk of offending and have strengthened existing partnerships and networking. - Brought in further funding and have some exciting ideas to strengthen the funding base. - Commenced planning for the implementation of a national strategy 2023-25 ## Oak London Oak London is a project that has been developing in the last couple of years and in 2021 we received grants and funds to run 3 pilot programmes. Oak London seeks to equip young men aged 18 and above at risk of offending with the means to change the direction of their lives through the provision of a residential course and mentoring programme. Launching in the aftermath of the coronavirus pandemic, a time when gang and crime involvement has increased due to lack of opportunity, and face to face intervention is needed more than ever. ## Finances BGMC benefitted from the Government’s furlough scheme between with six members of staff being furloughed until May. Despite the uncertainly of the pandemic, the financial impact on BGMC has thankfully been minimal. 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. ## 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 charity 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. 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 2021** ## 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. ## d. Financial Results During the year charity had total income of £373,007, made up of restricted income of £40,113 and unrestricted income of £332,894 (2020: total income of £247,716 made up of restricted income of restricted income of £29,761 and unrestricted income of £217,955). Expenditure during the year amounted to £240,247, made up of restricted expenditure of £44,072 and unrestricted expenditure of £196,175 (2020: total expenditure of £269,796, made up of restricted expenditure of £51,215 and unrestricted expenditure of £218,581). This resulted in a net result of £132,760, represented by a deficity of £3,959 on restricted funds and a surplus of £136,719 on unrestricted funds (2020: total deficit of £22,082 made up of a deficit of £21,456 on restricted funds and a deficit of £626 on unrestricted funds). This is before taking into account total (equalling unrestricted) gains on investments of £101 (2020: £43) and funds transfers from unrestricted to restricted funds of £347 (220: £550), after which the net movement in funds is a deficit of £3,612 on restricted funds and a surplus of £136,473 on unrestricted funds, resulting in a total movement on funds of £132,861 (2020: net deficit of £20,906 on restricted funds and £1,133 on unrestricted funds, resulting in a total deficit of £22,039). This is represented by restricted funds of £670,063 (2020: £673,675) and unrestricted funds of £646,550 (2020: £510,077), resulting in total funds available at the year end of £1,316,613 (2020: £1,183,752). ## 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. 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 2021** Structure, governance and management (continued) ## b. Methods of appointment or election of Trustees The management of the charity 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. Small companies note In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. Page 8 ## **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 2021** Statement of Trustees' responsibilities The Trustees (who are also the directors of the charity 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 charity 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 charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## Disclosure of information to auditor Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that: - so far as that Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and - that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information. ## Auditor The auditor, RPG Crouch Chapman LLP, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees. Approved by order of the members of the board of Trustees and signed on their behalf by: ................................................ **P Harniess** Trustee/ Director Date: Page 9 **(A company limited by guarantee)** ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## Opinion We have audited the financial statements of Annie Macpherson Home of Industry (Incorporated) Operating As Bethnal Green Mission Church (the 'charity') for the year ended 31 December 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). ## In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## Conclusions relating to going concern In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. In our evaluation of the trustees’ conclusions, we considered the risks associated with the charity’s business model, including the effects arising from macroeconomic uncertainties such as COVID19 and analysed how those risks might affect the charity's financial resources or ability to continue operations over the period of twelve months from the date when the financial statements are authorised for issue. In accordance with the above, we have nothing to report in these respects. Page 10 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH (CONTINUED)** However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the charity will continue in operation. ## Other information The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## Capability of the audit to detect irregularities including fraud We gained an understanding of the legal and regulatory framework applicable to the charity and the industry in which it operates and considered the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, compliance with Companies Act 2006, the Charities Act 2011 and FRS102. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to: - agreement of the financial statement disclosures to underlying supporting documentation; - enquiries of management; - review of minutes of board meetings throughout the period; and - obtaining an understanding of the control environment in monitoring compliance with laws. There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Page 11 ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **(A company limited by guarantee)** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH (CONTINUED)** ## Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements. - the Trustees' Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report. ## Responsibilities of trustees As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Page 12 **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** **(A company limited by guarantee)** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH (CONTINUED)** Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report. Other matters The financial statements of the prior year were not audited. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. ## **Jeremy Tyrrell FCA (Senior statutory auditor)** for and on behalf of RPG Crouch Chapman LLP Chartered Accountants and Registered Auditors 14-16 Dowgate Hill London EC4R 2SU Date: Page 13 ## **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 2021** |Note
**Income from:**
Donations and legacies
4
Investments
5
**Total income**
**Expenditure on:**
Charitable activities
6
**Total expenditure**
**Net (expenditure)/income before net**
**gains on investments**
Net gains on investments
**Net (expenditure)/income**
Transfers between funds
16
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|Restricted
funds
2021
£
40,113
-
40,113
44,072
44,072
(3,959)
-
(3,959)
347
(3,612)
673,675
(3,612)
670,063|Unrestricted
funds
2021
£
224,421
108,473
332,894
196,175
196,175
136,719
101
136,820
(347)
136,473
510,077
136,473
646,550|Total
funds
2021
£
264,534
108,473
373,007
240,247
240,247
132,760
101
132,861
-
132,861
1,183,752
132,861
1,316,613|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| The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 16 to 33 form part of these financial statements. Page 14 ## **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 2021** |Note
**Fixed assets**
Tangible assets
10
Investments
11
**Current assets**
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after
more than one year
14
**Total net assets**
**Charity funds**
Restricted funds
16
Unrestricted funds
16
**Total funds**|945,499
104,531
1,050,030
(84,719)|2021
£
3,607,429
820
3,608,249
965,311
4,573,560
(3,256,947)
1,316,613
670,063
646,550
1,316,613|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| 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 and signed on their behalf by: ................................................ **Patricia Davis** Treasurer/ Director Date: ................................................ **Phillip Harniess** Trustee/ Director The notes on pages 16 to 33 form part of these financial statements. 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 2021** 1. General information Annie Macpherson Home of Industry (Incorporated) is a private 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 trustees explicitly and unreservedly confirm the charity's compliance with FRS102. 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 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 2021** 2. Accounting policies (continued) ## Income All income is recognised once the charity 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 charity 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 charity, 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 charity's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. ## Apportionment of costs between activities All costs are apportioned between activities based on actual costs incurred. 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 2021** 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 charity; 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 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 2021** 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 charity 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 charity 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 charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity 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 charity 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 charity 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 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 2021** 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 and under S. 139 of the Charities Act 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 charity 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. ## Recharge of costs to the subsidiary Costs are recharged based on a percentage which reflects the estimated use of the resources by the subsidiary. 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 2021** 4. Income from donations and legacies |Donations
Legacies
Grants
Government grants
Similar incoming resources|Restricted
funds
2021
£
19,613
-
-
20,500
-
40,113|Un-
restricted
funds
2021
£
132,200
48,000
37,921
-
6,300
224,421|Total
funds
2021
£
151,813
48,000
37,921
20,500
6,300| |---|---|---|---| ||||264,534| |Donations
Legacies
Grants
Government grants
Similar incoming resources|Restricted
funds
2020
£
6,450
-
500
22,809
-
29,759|Un-
restricted
funds
2020
£
76,793
17,443
30,741
-
5,200
130,177|Total
funds
2020
£
83,243
17,443
31,241
22,809
5,200| |---|---|---|---| ||||159,936| 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 2021** 5. Investment income |Rental income from church properties
Dividends and interest received
Rental income from church properties
Dividends and interest received|Un-
restricted
funds
2021
£
63,205
45,268
108,473
Un-
restricted
funds
2020
£
65,672
22,106
87,778|Total
funds
2021
£
63,205
45,268| |---|---|---| |||108,473| |||Total
funds
2020
£
65,672
22,106| |||87,778| 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 2021** 6. Analysis of expenditure on charitable activities ## Summary by fund type |Grants payable
Employment costs
Depreciation
Governance Costs
Other direct costs|Restricted
funds
2021
£
-
-
21,066
-
23,006
44,072|Un-
restricted
funds
2021
£
4,986
89,794
25,369
6,590
69,436
196,175|Total
funds
2021
£
4,986
89,794
46,435
6,590
92,442| |---|---|---|---| ||||240,247| |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| The grants payable comprise £3,386 to seven organisations (2020: £3,809 to six organisations) and £1,600 to two individuals and families (2020: £1,480 to three individuals and families). Other direct costs include a recharge of furlough monies of £20,500 (2020: £22,809) payable to the charity's subsidiary, BGMC Trading Ltd, which employs the furloughed employees. ## 7. Auditor's remuneration The auditor's remuneration amounts to an auditor fee of £5,000 _(_ 2020 _-_ £2,400 _)_ , and accountancy services of £2,500 (2020 - £2,430). 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 2021** 8. Staff costs |Wages and salaries|2021
£
89,794
89,794|2020
£
85,856| |---|---|---| |||| |||85,856| The average number of persons employed by the charity during the year was as follows: |Trustees
Church Running|2021
No.
3
4
7|2020
No.
3
4| |---|---|---| |||| |||7| No employee received remuneration amounting to more than £60,000 in either year. Included within the costs were pension contributions of £12,901 (2020: £10,312). Key management comprises the Church Minister. Total key management remuneration for the year amounted to £30,000 (2020: £30,000). In addition to wages and salaries as disclosed above, the church incurred and recharged costs of £80,380 (2020: £88,945) for 6 (2020: 6) staff members working at the Beehive, the charity's subisdiary, as disclosed in note 18. 9. Trustees' remuneration and expenses During the year, no Trustees received any remuneration or other benefits (2020 - £NIL). During the year ended 31 December 2021, no Trustee expenses have been incurred (2020 - £ NIL). Page 24 **(A company limited by guarantee)** ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 10. Tangible fixed assets |Cost or valuation
At 1 January 2021
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020|Freehold
property
£
1,053,310
1,053,310
63,198
21,066
84,264
969,046
990,112|Long-term
leasehold
property
£
2,713,455
2,713,455
58,814
21,726
80,540
2,632,915
2,654,641|Fixtures and
fittings
£
49,083
49,083
39,972
3,643
43,615
5,468
9,111|Total
£
3,815,848
3,815,848
161,984
46,435
208,419
3,607,429
3,653,864| |---|---|---|---|---| 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 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 2021** 11. Fixed asset investments |12.|Cost or valuation
At 1 January 2021
Revaluations
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
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
£
718
101
819
819
718
2021
£
26,000
26,000
429,886
489,033
580
945,499|Total
£
719
101
820
820
719
2020
£
10,000
10,000
435,906
491,601
-
937,507| |---|---|---|---|---| Other debtors due after more than one year include a loan of £10,000 (2020: £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 £468,233 (2020: £491,601) 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 group undertakings are interest free and repayable on demand. Page 26 **(A company limited by guarantee)** ## **ANNIE MACPHERSON HOME OF INDUSTRY (INCORPORATED) OPERATING AS BETHNAL GREEN MISSION CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 13. Creditors: Amounts falling due within one year |Mortgage
Other loans
Other creditors
Accruals and deferred income|2021
£
8,508
24,270
43,533
8,408
84,719|2020
£
13,604
24,270
119,246
7,722| |---|---|---| |||| |||164,842| 14. Creditors: Amounts falling due after more than one year |Mortgage
Other creditors|2021
£
344,533
2,912,414
3,256,947|2020
£
347,943
2,936,694| |---|---|---| |||| |||3,284,637| 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|2021
£
310,508
2,791,064
3,101,572|2020
£
293,525
2,815,334| |---|---|---| |||| |||3,108,859| The mortgage is repayable within 30 years commencing on 1 December 2016 years and is secured against the freehold property. The interest rate on the mortgage was 3.75% in the year to 31 December 2021. 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 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 2021** 15. Financial instruments ||2021|2020| |---|---|---| ||£|£| |Financial assets||| |Financial assets measured at fair value through income and||| |expenditure|819|718| Financial assets measured at amortised cost represent the charity's fixed asset investment. 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 2021** 16. Statement of funds Statement of funds - current year |Unrestricted
Designated
Building
Repairs
Charitable
Purposes
Continuation
General
General Funds
Total Un-
restricted
Restricted
Redevelop-
ment Fund
67 Ellesmere
Road
Oak London
Jack Patchey
Foundation
Furlough Grant
Special
Offerings
Total|Balance at 1
January
2021
£
127,240
145,000
272,240
237,837
510,077
58,403
615,112
-
160
-
-
673,675
1,183,752|Income
£
-
-
-
332,894
332,894
-
-
17,013
-
20,500
2,600
40,113
373,007|Expenditure
£
-
-
-
(196,175)
(196,175)
-
(21,066)
(199)
(507)
(20,500)
(1,800)
(44,072)
(240,247)|Transfers
in/out
£
-
-
-
(347)
(347)
-
-
-
347
-
-
347
-|Gains/
(Losses)
£
-
-
-
101
101
-
-
-
-
-
-
-
101|Balance at
31
December
2021
£
127,240
145,000
272,240
374,310
646,550
58,403
594,046
16,814
-
-
800
670,063
1,316,613| |---|---|---|---|---|---|---| 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 2021** 16. Statement of funds (continued) The Redevelopment Fund represents restricted funds for the redevelopment of the church building. 67 Ellesmere represents the restricted element of the freehold land and buildings of a property at 67 Ellesmere Road, London. Oak London represents a project which seeks to equip young men aged 18 and above at risk of offending with the means to change direction of their lives through the provision of a residential course and mentoring programme. The Jack Patchey Foundation is a project to provide opportunities to young people across London. The Furlough Grant represents the governments Coronavirus Job Retention Scheme. The special offerings fund represents collecitons made for individual, usually small, purposes. Page 30 ## **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 2021** 16. Statement of funds (continued) Statement of funds - prior year |Unrestricted
Designated
Building
Repairs
Charitable
Purposes
Continuation
General
General Funds
Total
Unrestricted
Restricted
Redevelop-
ment Fund
67 Ellesmere
Road
Oak London
Jack Patchey
Foundation
Furlough Grant
Total|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 31 **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 2021** 17. Analysis of net assets between funds Analysis of net assets between funds - current year |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 year
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
2021
£
969,045
-
-
54,059
(8,506)
(344,535)
670,063
Restricted
funds
2020
£
990,112
-
-
45,110
(13,604)
(347,943)
673,675|Un-
restricted
funds
2021
£
2,638,384
820
26,000
969,971
(76,213)
(2,912,412)
646,550
Un-
restricted
funds
2020
£
2,663,752
719
10,000
923,538
(151,238)
(2,936,694)
510,077|Total
funds
2021
£
3,607,429
820
26,000
1,024,030
(84,719)
(3,256,947)| |---|---|---|---| ||||1,316,613
Total
funds
2020
£
3,653,864
719
10,000
968,648
(164,842)
(3,284,637)| ||||1,183,752| Page 32 **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 2021** ## 18. Related party transactions At the year end, the church was owed £429,886 (2020: £435,906) by its subsidiary, BGMC Trading Ltd. In addition to the recharge of furlough recharge disclosed in note 6, expenditure of £4,098 (2020: £8,533) were recharged to BGMC Trading Ltd for the common use of resources. Salary costs of £80,380 (2020: £88,945) were incurred by the church and passed on to the subsidiary via its intercompany loan. Total donations made by trustees amounted to £24,300 during the year. ## 19. Principal subsidiaries The following was a subsidiary undertaking of the charity: |**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|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|145,361|(126,559)|18,802|(58,385)| Page 33