## **CHARITY NUMBER: 1127327** # **THE METHODIST CHURCH, NEWCASTLE UPON TYNE DISTRICT THE NEWCASTLE UPON TYNE (WEST) CIRCUIT OF THE METHODIST CHURCH** **TRUSTEES’ REPORT AND AUDITED FINANCIAL STATEMENTS** **For the year ended 31[st] August 2020** ## **THE METHODIST CHURCH, NEWCASTLE DISTRICT THE NEWCASTLE (WEST) CIRCUIT OF THE METHODIST CHURCH** ## **The Circuit Stewards, who are the treasurers of the Circuit fund:** Mr M Brown Mrs A Boyson Mr N Bates ## **The Managing Trustees** Revd. J Sewell (Chair) Mr A Anderson Mrs C Armstrong Mr B Ashford Mr M Athey Mr P Ballard Revd. C Barrick Mr N Bates Mrs E Bell Mrs A Boyson Mr D Boyson Prof. P Braiden Revd P Brooks Revd R Brooks Mr M Brown Mrs B Carss Mrs G Clennell Mrs B Collard Mrs A Cooper Mr A Cowan Mr S Cowan Mrs C Davison Mr G Dent Mr J S Austen Dodds Miss V Edington Mrs C M Ford Mr D Forrester Mrs L Forrester Miss S Gimson Mr A Golphin Mrs R Gray Mrs P B Groves Mrs A Harbottle Mr A Harle 2 ## **THE METHODIST CHURCH, NEWCASTLE DISTRICT THE NEWCASTLE (WEST) CIRCUIT OF THE METHODIST CHURCH** ## **Managing Trustees continued…** Mr R Harle Mrs Y Hart Mrs B Lanyon Mrs L Lightfoot Mr D Linkleter Mrs E Linkleter Revd M Lloyd Revd D MacDonald Mr P Michell Mrs V Michell Mrs J Orton Mr A Pay Mrs G Pyle Miss S Renner Mrs L Richley Revd N Routledge Mr J Satterthwaite Mrs J Scott Prof. R Stephenson Mrs K Tapson Mrs M Tulip Mrs P Varley Mr R Varley Mrs R Vickers Mrs E E Warren Mr P Willey Mrs J Wilson Mr R Wilson Miss R Wood Revd T Woolley Revd J Wriglesworth Revd G Wynne 3 ## **THE METHODIST CHURCH, NEWCASTLE DISTRICT THE NEWCASTLE (WEST) CIRCUIT OF THE METHODIST CHURCH** ## **Principal Address** Ponteland Methodist Church Bell Villas Main Street Ponteland Newcastle upon Tyne NE20 9BE ## **Independent Examiner** Mr J Lyall c/o Willey & Co 379 Stamfordham Road Westerhope Newcastle upon Tyne NE5 2LH ## **Bankers** Lloyds TSB Bank plc 3 Wesley Court Blaydon Tyne & Wear NE21 5BY ## **Solicitors** Sintons LLP, Solicitors The Cube Barrack Road Newcastle upon Tyne NE4 6OB ## **Custodian Trustees** The Trustees for Methodist Church Purposes Central buildings Oldham Street Manchester M1 1JQ 4 ## **THE METHODIST CHURCH, NEWCASTLE UPON TYNE DISTRICT THE NEWCASTLE UPON TYNE (WEST) CIRCUIT OF THE METHODIST CHURCH** ## **Report of the Trustees for the year ended 31st August 2020** ## **Financial statements** The Trustees submit their annual report and the audited financial statements for the year ended 31st August 2020. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in 2005 in preparing the annual report and financial statements of the Charity. ## **Preamble** The Methodist Church is said to have been created after John Wesley’s conversion on 24th May 1738, it is a Free Church. The calling of The Methodist Church is; Worship, to increase awareness of God’s Presence and celebrate God’s love. Learning and caring, to help people to grow and learn as Christians. Service, to be a good neighbour to people in need and challenge injustice. Evangelism, to make more followers of Jesus Christ. ## **Structure, Governance and Management** The Charity’s treasurers of the Circuit Fund are the lay Circuit Stewards. Of the Managing Trustees listed above all are lay people excepting the four Ministerial staff all of whom are employed by The Methodist Church. Circuit Meetings are held three times per annum and include representatives of all the Societies in the Circuit. The Superintendent Minister (who supervises the work of the other Ministers in the Circuit) reports to this meeting as do the Circuit Stewards. The governing body of the Circuit is the annual conference of The Methodist Church. The Methodist Church Act 1976 gives the authority under which The Methodist Church acts. The constitution practice and discipline of The Methodist Church together with The Deed of Union (Act of 1929 adopted 1932) govern the activities of the Circuit. The Methodist Church was previously excepted from the need to register as a charity by the combined effects of Section 46(4) (A) of The Charities Act 1993 and Paragraph 4(2) (C) of the Charities (exception from registration) Regulations 1996 as amended by Statutory Instrument 2005 No2655. However changes to this exemption mean that on 30th December 2008 the charity registered at the Charity Commission with the reference number 1127327. The Trustees who have served during the year and since the year-end are set out on pages 1 and 2. The treasurers (Circuit Stewards) are appointed annually by the Circuit Meeting and the Managing Trustees are appointed either by (a) the Societies of which they are members (b) the Preachers’ Meeting (c) by being ex-officio (Ministers in good standing or holding a District Office). In practice, up to four Circuit Stewards are appointed who serve for a minimum of 3 years and a maximum of 6. The principal address of the Circuit’s advisors are given on page 4. The Trustees are responsible for the detailed examination of the Financial Statements and for recommending their adoption by the Circuit Meeting. The Circuit is one of 12 of the Newcastle District and has 9 Churches, of which 1 is an LEP within shared building. They are contactable via the principal address of the Circuit. Funds are transferred to the Circuit on a quarterly basis to meet the commitments to the District and the upkeep of the Circuit. 5 ## **THE METHODIST CHURCH, NEWCASTLE UPON TYNE DISTRICT THE NEWCASTLE UPON TYNE (WEST) CIRCUIT OF THE METHODIST CHURCH** ## **Report of the Trustees for the year ended 31st August 2020 (continued)** ## **Statement of Trustees’ responsibilities** Charity Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of its’ financial activities for that period together with its assets and liabilities at the end of the period, and adequately distinguish any material special trust or other restricted fund of the Charity. In preparing those financial statements the Trustees are required to: - Select suitable accounting policies and then apply them consistently; - Make judgments and estimates that are reasonable and prudent; - State whether the policies adopted are in accordance with the appropriate SORP on Accounting and Reporting by Charities and the Accounting Regulations and with applicable Accounting Standards, subject to any material departures disclosed and explained in the financial statements; and - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. ## **Manses** In accordance with the recommendations made under Charities SORP 2015 (FRS102) the value of the Circuit manses have been shown at their original purchase cost of £394,255. These properties are currently insured for £1,127,682. ## **Bond Church Hall and Manse** The cost of these properties amounted to £726. They are insured for £1,436,491. These properties are regarded as income generators for the Circuit to help with the operation and aims of the charity. ## **Objectives and activities** The Circuit is constituted to advance the effective deployment of the resources of ministry, which include people, property and finance, as they relate to the Methodist churches in the Circuit, the District and Connexion, to Churches of other denominations and to participation in the communities served by the Circuit and in ecumenical work in the area. The Constitution and Enumeration of Circuits is set out year by year in the Stations appointed by the Conference. ## **Activities during the year and achievements** The Circuit has continued to fulfil its basic role of providing ministers for the Societies (Local Churches) which make up the Circuit and to support the churches in various ways including providing financial help for their work. We provide ministers with manses and see that, through The Methodist Church of Great Britain, they are paid their stipends and allowances. There were three Circuit Meetings held, the Circuit Mission Statement is at the centre of the Circuit’s mission ## **‘OUR CIRCUIT SEEKS TO PROMOTE THE AWARENESS OF GOD’S LOVE FOR ALL PEOPLE, TO FOSTER AND SUSTAIN THE REALISATION OF THE GOSPEL MESSAGE AND ENCOURAGE ECUMENICAL COMMUNITY LINKS’.** Since March 2020 the activities have been severely restricted due to COVID 19 and church services and meetings have largely been held online. The Circuit Stewards are the Lay Leaders of the Circuit, they are Managing Trustees as are all members of the Circuit Meeting and as stewards they are responsible for managing the day to day operation; of all Circuit affairs in consultation with the Superintendent Minister. The Circuit continues to be blessed with the continuing ministry of our Supernumeraries. 6 ## **THE METHODIST CHURCH, NEWCASTLE UPON TYNE DISTRICT THE NEWCASTLE UPON TYNE (WEST) CIRCUIT OF THE METHODIST CHURCH** ## **Report of the Trustees for the year ended 31st August 2020 (continued)** ## **To support Our Mission Statement we:** - a) Organised acts of worship in each of the Circuit Churches Sunday by Sunday up to the beginning of March 2020 and then via YouTube - c) Arranged two Circuit Meetings for the members of the Circuit to meet together to reflect on business relating to the Circuit and to formulate plans for the future via Zoom - d) Arranged nine meetings of the Circuit Leadership Team to discuss the life of the Circuit - e) Arranged eleven meetings of the Circuit Ministerial staff - f) Arranged four meetings of the Circuit Local Preachers for prayer and business - h) Arranged the annual meeting of local church treasurers to examine the Circuit Accounts - i) Conducted Messy church at Westerhope, Denton Burn, Lemington and Heddon Churches - k) Held breakfast meetings with guest speakers at Heddon via Zoom 7 ## **THE METHODIST CHURCH, NEWCASTLE UPON TYNE DISTRICT THE NEWCASTLE UPON TYNE (WEST) CIRCUIT OF THE METHODIST CHURCH** ## **Report of the Trustees for the year ended 31st August 2020 (continued)** ## **Internal financial controls** The Trustees have overall responsibility for ensuring that there is in place an appropriate system of controls, financial and otherwise, to provide reasonable confidence and assurance that: - the Circuit’s administration is operating effectively and efficiently - the assets of the Circuit are properly safeguarded against unauthorised loss or damages - proper records are maintained, and information produced for management control, fiscal and statutory reasons - the Circuit complies with the relevant laws and guidelines. ## **Investment policy** Surplus funds of the circuit are held in a Central Finance Board of the Methodist Church (CFB) deposit account. The Model Trust (previously the ‘Circuit Advance Fund’) is administered by the Trustees for Methodist Church purposes. The policies and procedures adapted by the CFB and TMCP are agreed by Conference. ## **Reserves policy** The definition of “Reserves” is: “Income which becomes available to the Charity and is to be expended at the Trustees’ discretion in furtherance of the Charity’s objects, but which is not yet spent, committed or designated.” This definition therefore excludes restricted funds, designated funds, and funds already invested in fixed assets. The reserves policy of the Circuit agreed by the Trustees is to hold the equivalent of the relevant annual expenditure, plus an estimate of any known fluctuations. These reserves are held in the Central Finance Board deposit account. The unrestricted funds are currently above this limit. ## **Policy on the Induction and Training of Trustees** There are no specific policies in place for training trustees, although all are nominated by their own churches and have considerable practical experience of church activities. 8 ## **THE METHODIST CHURCH, NEWCASTLE UPON TYNE DISTRICT THE NEWCASTLE UPON TYNE (WEST) CIRCUIT OF THE METHODIST CHURCH** ## **Report of the Trustees for the year ended 31st August 2020 (continued)** ## **Safeguarding, working with vulnerable people** **Children** : the Circuit has a full policy on work with children and young people, in accordance with the policies of the Methodist church which requires that DAB checks be made on those people who work with children. These checks have been made. **Vulnerable people** : the Circuit has reviewed the policy and subsequent to the year under report in these accounts adopted a policy, as approved by the Methodist Connexional body, on the 16th February, 2012. In the policy the Revd. J Sewell was appointed as Complaints Officer and Safeguarding Officer. The DAB checks are held in a locked safe under the personal control of the Superintendent Minister. ## **Risk Management** The Circuit‘s risk management policy is designed to identify and analyse operational and other risk and ensure that it is controlled, monitored and steps taken to mitigate the risks. The Trustees have examined the main risks and are satisfied that proper controls are in place for monitoring and mitigating these risks. The main risks the Circuit faces can be categorised as follows 1. Strategic and Repetitious Risks 2. Financial Risks 3. Compliance Risks 4. Operational Risks. The Trustees will monitor these risks and report regularly to the co-ordinating group. The Circuit Stewards regularly review the insurances held to ensure that adequate cover is in place. ## **Managing Trustees** The Managing Trustees who have served during the year were as set out on pages two and three of this report. The Officers, (Circuit Stewards), being the Treasurers of the funds who served during the year were as follows: Mr N Bates Mr M Brown Mrs A Boyson ## **Independent Examiner** A resolution to appoint Mr J Lyall of Willey & Co as Independent Examiner for the ensuing year will be proposed at the Annual General Meeting. The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the Independent Examiner is unaware. Each of the Trustees have confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the Independent Examiner. This report was approved by the Trustees on 8th March 2021 Revd J Sewell Mrs H L Sargeant J Sewell H Sargeant 9 THE MEfHODIST CHURCH STANDARD FORM OF ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020 veoJ T/fv/ IIL7327 Aév. J. S'£WE LL REV. < bJuoLke LS •*. 6oy&o L h3. 6 +r£s ML L.J Trna6wer. C*a* R•xl PJ•J 1rf5 OWI U36 Ifb b<• 2U33 loLol 31831+ a7 1076bl b1 If34 1 *&70 Iq Iq¥b r¥& 769 1*4 Ilbi 37 L+f43 b7 3b* Il7 14L+L ¢1 1 •3SI { IF34 33713￿ 24+1 Soo ig Jf7P7 IZO 33b347 d1 790 337231È 116fr1 qo¥ 3171 43 li-(1 43 484? 3q¥qtl 201￿20 201&2019 1995CKI.(XI 11240.(XI 223828 1Q).(Xl 188155.ljo 1S)20.Cfl 2274.45 o. 92&J.61 PAYWEPWJ 148199.11 19464.52 1374W22 19770.20 43241.(M) 14404. 1035.CK) 1740.34 10583.99 420. 1773.86 147420 QUI￿u￿￿181 Ins*• Bond Church Insur¥¥ Total pthl 223AK71 34.989.19 -18.11526 233811.58 131XKI.rJ) 196928.84 2MJOO.77 NEWCAS￿ WEST CIRCUIT 201￿20 2018-19 Receipts. Intw*t Cwats Church 1.860.64 144.711.60 1212.02 I21102 Distst Le¥y 4.468. 1260.58 180.85 40.CKX). 36.097.44 2244.98 179. General FuTrJ CPF Levy 63.$65.37 Q12.56 .423.38 63.565.37 153.988.75 -1,205.56 151n3.19 89,799.14 -21156 89.￿.58 Sub T(* 2Q3X87 146.5rL24 205.449.45 1212.Ir2 207A61A7 PAYMEPITS 227.347.68 83.￿.87 310A54AS 223.564.71 2,424.58 Minsters Fw 13.IXKI.00 281.8(WJ.77 151783.19 233.811.58 .423.38 34.987.94 246.81283 152.783.19 29.￿.(r￿ 216.815.56 .423.38 .81120 51.184.35 -3n.15 NENCASTLE WEST CIRcurr 201￿20 201&19 9442.50 0.0) 11420.IXJ 4370.rxj 10875.00 Miltthrrva 86857.50 1750.00 12445. 52792.50 51260.00 188155JO 711X).IXI 111110JIO ISQO 139449.34 1325.lJ) 127141.01 3075.IJ) )224 671.57 I37m￿? ula l)ri4• 420.53 -14(K).17 2015.55 586.10 1.60 1￿.17 765528 1￿4.96 1714.40 7787.35 2151.84 C(￿r￿• Tax 19AeU2 19.77020 107.46 Admintstralion 641.50 1312.75 2303.41 Traln 750.(KI 8213.45 &WKI.41 0.￿) 0.ffj 1x1.48 wEfr Declarations and Scrutiny Signatwe ￿the Char (rfth8 IIMtiYJ ..... Clrcult 1111327 the year end8d 31 2020 set out on pw ... CmiissK)n urxlw seL*#)n 145(5)(b) rfthe Ar 4rf5 Nameof Cirojit.................... wEfr Ind•pnd•nt Examln•¢s Slat￿￿ connection wilh the examination (other than that disd￿ t￿) ￿iCti give me cause to beliebe that in, any respocl. attertion should be dra•m in this repcxt in order to enable a woper wthrstarKknJ of the accourts to be Church Pwposos or held in oltrth Inists. balances and furth at the Central Finance Board of the Methodist Church which ar• l￿1¥KIUal1Y n excess of £10.CUI (ten thousarMI P￿JThts) at the balarK8 sheet Signature of indewthnt examiner ......... . . . . Name of indeperKknt examiner .... CCA Relevant woknional qualificati￿ of eXarnr￿ ............. .. Name of firm (*there apwoprial8) .. . Post Cod8 . Aes Lwl. ' delete ￿ circle as apwopnate September 2020 20 Clrvjlt PA 5rf5