## **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 2021** ## **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 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 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 2021** ## **Financial statements** The Trustees submit their annual report and the audited financial statements for the year ended 31st August 2021. 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 exofficio (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 2021 (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’.** For most of the year under review 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. ## **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 2021 (continued)** ## **To support Our Mission Statement we:** Organised online services on YouTube for the whole of the Circuit on Sundays. Circuit Meetings, CLT Meetings and Local Preachers Meetings were held as appropriate during the year via Zoom. Thereby, meeting government regulations for isolation during the Pandemic. 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 2021 (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 2021 (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 10th March 2022 Revd J Sewell Mrs H L Sargeant J Sewell H Sargeant 9 c￿￿rr RECEIPTS AM) PAYIIEKrs Accoumrs THE METHODIST CHURCH STANDARD FORM OF ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 IVEW LrtfL£ v/od fz•JÈ Circuil 02 1117327 K£v J. s"Ew£LL v f. UOOLLEY Lev J WL1&￿(￿)0￿￿ LS ft. 6oYsonJ ML I.J. SECTION A oo3i>o 2oo3£0 *?b If2 5aoo J-loo 20746LÈ lJ-29 2obol b1 PAYIIEKTS ICI li ¥311 Ifi4J9 1763. 4Lib S134 bro I f3 1+99 1914&J- bs 3K*f 47693 b7 lrwk) 2191& L+ 13+619 3b6g 229nO (u?4sJ (3916) 27F3 I If5f&7 43+K$4 (rA8} 4o?4Zo 3(7t7 161141 (¢8) 43+f% (¢e d1 STiL TO BE (d1 + d2-dJ) 2rf T•L io 2o7qb¢* IL6è 43 3*1*5 (q20& IC17t3 r+313 3949*1 . No..?.¢Jz Declarations and Scrutiny Date... I S/.9. Jai .. Post Codo.N£ 2d.fj.8 Independent EXamin￿S Report to the Trust•8s of tho . Clrcult Ch•rfty Nwnb•r 111732 ? th8 yw ended 31 2021 set on pw .1 trj 3. As the Ciroifs tru￿, you We resp(Ytsible Commission urn*r 145(5Xb) rftr* A( 2Q21 Rmtp* NEWCASTLE WEST CIRCL'.IT Sheet 1 Receipts and Paymenls Acccunl for the year ended 31 August 1021 Notes 2020-21 2019-20 GENERAL FUNDS RECEIPTS Assessments Property Lèttings Interest Circuit ServiceslDonations Transfer from Circuit Advanced Fup,d Cowgate Church 199500.00 11240.00 2236 26 100.00 40000.00 9260.61 4900 00 8-: ?.5-: 300.00 000 0.00 Total received 2vii4ob.O i 262336.87 PAYMENTS Ministerial & Staff Costs Manse Expenses District Assessmeni Admin Expenses Quinquennial Inspections Bond Cnurch In.surance Bond Church Hall Donations 1-08.J-: O 148199 11 19464.42 45432.00 10583 99 420.00 1773.86 1474.20 0.00 227,347.68 4ytsik..OQ 59S8 69 1773.8S Total paid 22a Nel Receipts -2£. 1 41 j.12 34.989 19 General Fund ai start ol the year Ministers fund iransfer 2818U,.). I i 233811 58 13000.00 General Funas In nand on 31 August 2a'3,052.65 281.800.77 NEWCASTLE WCST CIR-LIIT Receipts and Payments Account for the year Èr.ded 31 August 2021 202ry_?1 2019-20 Sheet 2 RESTRICTED FUNDS Circuit Advance Fund Receipts- Interest Cowgate Churcn 1 b2844 1.860.64 144.711.60 1,528.44 146.572.24 Payments Cowgale Reiurnable Grants District Levy Administration Fee General Fund CPF Levy Total 000 5.139. 4,468.00 2,260.58 180.85 40,000.00 36,097.44 83,006.87 ,).00 5,444.73 Net Payments -3.91ti £9 63.565.37 Balance at start of the year Net Paymeglslreceipts Sub Total GainslLosses on Investments Balance at end of year 152 iaJ.19 90,423.38 63,i65.37 153,988.15 -1.20) >6 152,783.19 148.8oc So 161,191.93 RECEIPTS General Fund Reslricled Fund Totsl Receipts 200 4ib.01 262,336.87 146.572.24 408.909.11 PAYMENTS General Fund Restricted Fun Total Payments 22g. 184.13 227.347.68 83,006 87 310.354.55 234,628.86 Net PaymentslReceipts -2J,bD4A 98.554.56 Statement of Assets and Liabilities oft 31 August Gener21 Fund Circuit Aclvance Fund Total 259.u51.6i 281.800.77 152,783.19 434,?83.96 421i,£44.b8 Summary of how the Funds are k,eld Current Accoupl CFB Deposit Account Circuit Advance Fund Total 59,206.59 199.8L.pi.06 34.987.S4 246.812.83 152,183 19 434,583.96 Endowment Funds Balance al statt Oi -fear 4Q 479.00 50,811 20 LosslProfit on invstmenls Balance at end ofthe year -2.332.20 48.479.00 5.'.,3'1ts. 14 Bbx*er Denton Bum Heddon Lerriryttyi Mlbtyjrne Ponleland 11544.IXI 13210.IX) 11420.I¥J 4370.￿) 68862.9) 12445.trfj 5625.IXI 2476.yj amfordham 19•￿.00 &Jnd HaH 71(M).(Ki 140.C