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2022-08-31-accounts

Trustees’ Annual Report and Financial Statements for the year ended 31 August 2022

Page 2 Annual Report and Statement of Accounts

The Methodist Church in Wales – Wales Synod

Contents Page

Trustees’ Annual Report ………………………….…………………………… 3 - 18
Statement of Financial Activities ……………………………………………… 19
Balance Sheet …………………………………………………………………... 20
Notes to the Accounts ………………………………………………………….. 21 - 35
Declarations and Scrutiny ……………………………………………………… 36 - 37

Glossary of terms

Note that the terms 'The Wales Synod', 'Synod' and 'District' are synonymous. The Wales Synod is a District of the Methodist Church, within the definition below.

CDiM: Continuing Development in Ministry

CFB: Central Finance Board of the Methodist Church which manages a Common Deposit Fund and a series of pooled investment funds for Methodist entities in Great Britain and provides investment advice to those entities.

Church: a group of members from fewer than 12 to more than 300.

Circuit: a group of Methodist Churches near each other, typically between 15 and 30

CMTF: Circuit Model Trust Fund

Connexion: The Methodist Church in Great Britain which includes the Head Office at Methodist Church House, all Methodist Districts, Circuits and Churches in Great Britain.

District: a group of contiguous Circuits, usually between 15 and 30

FRS: Financial Reporting Standard

HMRC: Her Majesty's Revenue and Customs

MCF: Methodist Church Fund

MMPS: Methodist Ministers' Pension Scheme

Momentwm: formerly Synod Youth Work Action Group

SAF: Synod Advance Fund

SOFA: Statement of Financial Activities

SORP: Statement of Recommended Practice

SPC: Synod Policy Committee

TMCP: Trustees for Methodist Church Purposes, the legal owner and custodian trustee of all Methodist Model Trust property, including legacies, endowments and accumulated funds.

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Trustees’ Annual Report

1. Wales Synod – Introduction to the Annual Report for 2021-22

I am pleased once again to introduce this Annual Report for the Wales Synod for the year 2021-22.

I am also conscious that this is the last time we report on the mission and witness of the Wales Synod in its present form, as on 1[st] September 2022 the Wales Synod and Synod Cymru came together as Wales Synod Cymru. This decision was celebrated at the inaugural meeting of the new Synod in Newtown, Powys on 10[th] September in the presence of the Secretary of Conference, Rev. Dr. Jonathan Hustler. This coming together represents many years of dialogue and discussion before the 2 Synods agreed on a scheme which was presented to Methodist Council and then approved at the Methodist Conference in June 2022. We hope and trust that the new Synod will not only encourage our traditional work in the Welsh-speaking Cymru circuit but also stimulate mission opportunities in what have been English-speaking circuits, and it was encouraging that at the first Synod meeting we were able to commission Deacon Lisa Rathbone to begin some innovative work with Welsh learners in what were hitherto 2 English-language circuits in NE Wales.

I would like to commend all my colleagues in both Synods for their hard work and perseverance in bringing this change about and to pay a particular tribute to the Chair of the former, Synod Cymru, Rev. Dr. Jennifer Hurd for her commitment and leadership throughout this process.

The coming together of the new Synod is a particular achievement in light of the background against which it has been achieved. Throughout this year, the work and witness of the Wales Synod, like so much of the church and wider society, has been continued to be profoundly affected by Coronavirus and its consequent restrictions. Even in this third year, it has continued to have a significant impact on the ability of local churches to meet for worship and fellowship and use their premises to serve the wider community. I remain heartened by the way that colleagues have worked so hard together to address these challenges: offering printed and ‘online’ services; making alternative arrangements for pastoral support; and undertaking risk assessments to ensure safe use of church premises, many of which have been closed for some significant periods of time. I also pay tribute to Synod colleagues and officers who have adjusted to new patterns of working and meeting remotely (not least through use of ‘Zoom’ technology) and finding ways to ensure that the business of the Synod can continue.

I recognise that these restrictions continue to affect the finances of local churches and circuits. It has taken longer than we first hoped for regular patterns of worship to resume and for community and other groups to return to our buildings and bring in letting income. While we note that this may be offset to some extent by reductions in cost of travel to meetings and running premises, we also recognise that this has continued to have a significant impact on the finances of local churches and circuits and indeed the Synod during this year 2021-22. Moreover, we now wait to see how the cost of living crisis and in particular the rise in energy costs will impact on our witness and worship, particularly over the forthcoming winter months. However, that will be a challenge to which the new Synod will need to respond, and we are pleased to note that it will do so on a firm financial footing with the substantial reserves set out in these and other accounts.

Despite all the challenges, the Synod has continued to develop its ministry and mission in line with the priorities of the Synod Development Plan in supporting the work and witness of circuits across Wales. This has been done firstly by means of grant support, and during this final year of the Wales Synod it has continued to respond to applications for support from the

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Synod Advance Fund with grants totalling £217,421. Once again the majority of this, some £194,811, went to Ministry schemes and a much smaller amount of £7,602 to Property schemes, reflecting the impact of coronavirus and other restrictions. The Synod also continued with its grant stream to support ‘on-line’ worship resources which made £15,008 available in grants and which we hope the new Synod will also follow.

Secondly, the Synod has sought to resource circuits by the provision of ordained ministry through the connexional Stationing process. In a very difficult year, we were able to fill 9 out of 11 appointments, including 6 superintendencies, through Stationing, and to welcome 2 candidates for ministry, one of whom went on to be accepted at Conference. However, the new Synod will know that we continue to face a significant Stationing challenge for 2023, and this reminds us of the ongoing importance of both encouraging offers for ministry in all its forms and seeking the most effective way to deploy our ministers and make use of their giftings.

Thirdly, the Synod has remained part of a Connexional church seeking to make its contribution to the wider Church. Accordingly, we were delighted at the start of the Connexional year to host a visit from the President (Rev. Sonia Hicks) and Vice-President (Mrs. Barbara Easton) of Conference to Cardiff in August, when they welcomed Daud Irfan, one of our own young people (and the son of the Synod Enabler, Rev. Irfan John) as the new Methodist Youth President for the year 2021-22. Daud has had an active and eventful year in office, travelling widely across the Connexion and abroad. His example has led many other young people across Wales to attend the 3Generate event in Birmingham, and it is good to be reminded that as well as addressing our particular context in Wales, members of Wales Synod have also made significant contributions to the life of the wider Connexion.

The continuing impact of the Coronavirus in its various forms and the rising cost of energy bills going into the winter remind us that there are still many challenges ahead for the new Synod. However, I hope there remain many other things in this report to encourage us, as across Wales we seek to live out ‘Our Calling’ as disciples of Jesus and respond to the ‘Priorities’ of the Methodist Church.

With all best wishes,

Chair of the Wales Synod,

Synod Office, Cyncoed Methodist Church, Westminster Crescent, Cardiff CF23 6SE

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Trustees’ Annual Report

1.1 Strategic objectives, aims and purposes of the Methodist Church in Great Britain

The activities covered in these reports and accounts fall within the work of the Methodist Church.

The strategic objectives of The Methodist Church in Great Britain (“The Methodist Church”) are directly linked to its aims. They are:

  1. Worship – to increase awareness of God’s presence and to celebrate God’s love;

  2. Learning and Caring – to help people to learn and grow as Christians, through mutual support and care;

  3. Service – supporting community development and action for justice, especially among the most deprived and poor - in Britain and worldwide; and

  4. Evangelism – developing confidence in evangelism and in the capacity to speak of God and faith in ways that make sense to all involved.

1.2 Public Benefit Requirement

The trustees of The Methodist Church had due regard to the public benefit guidance published by the Charity Commission in compliance with its duties under section 17 of the Charities Act 2011.

This guidance sets out two key principles:

  1. The organisation must have an identifiable benefit.

  2. The benefit must be to the public or a section of the public.

The Church exists, inter alia, to:

  1. increase awareness of God’s presence and to celebrate God’s love;

  2. help people to learn and grow as Christians, through mutual support and care; and

  3. be a good neighbour to people in need and challenge injustice.

The trustees of the Wales Synod of The Methodist Church consider that for these reasons the charity meets these public benefit requirements.

2.1 Plans for future years

During the year both the Wales Synod and Synod Cymru passed resolutions to form a new Wales Synod Cymru from 1 September 2022. Going forward the Synod will have two Chairs, one from each previous Synod.

A new Synod Co-Chair has been appointed to replace the current Wales Synod Chair from September 2023.

A successful application was made for the new Synod for the New Places for New People initiative which will begin in 2022/23.

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3 Financial review

During the year the Synod received total income of £432,936 (2020/21 £331,876) and disbursed £577,437 (2020/21 £405,457), which includes £110,000 (2020/21 £Nil) one off contributions to the pension reserve Fund. The excess of expenditure over income of £144,501 was increased by losses on investments of £51,310 to produce an overall deficit of £195,811 (2020/21 surplus of £45,045). Total funds carried forward are £2,276,371 (2020/21 £2,472,181).

The Trustees of the Synod have every reason to believe that the Synod is a going concern, principally because Circuits have the ability to continue to meet their assessments and the Synod has adequate reserves to cover any shortfall in anticipated income. There are no subsidiary undertakings. Covid-19 has had an effect generally on the financial position within the Synod but given the large reserves of Synod, the Trustees do not foresee any factors that will significantly affect the financial performance or position in the next year or two.

The Synod continues to hold two freehold properties being the Chair’s Manse in Cardiff and a second property also in Cardiff, held within Trust 14508, presently in the occupation of a Synod employee, the Synod Enabler (Culturally Diverse Congregations).

The Synod has the following principal sources of funds:

These sums are used to administer the Synod and to provide grants to Circuits, Churches and individuals in the District so that they may embark on or continue with projects that fulfil the mission of the Synod by bringing more people to Christ or by providing facilities that might enable this to happen.

3.1 Methodist Ministers’ Pension Fund

The Trustees are aware that the Methodist Ministers’ Pension Scheme is treated as a group defined benefit plan. The net defined benefit cost is recognised by the sponsoring entity, the Methodist Church in Great Britain, as there is no contractual agreement or stated policy for charging the net defined benefit cost to individual entities, such as the Wales Synod. The Synod recognises a cost equal to its contributions payable for the period. Further details in respect of these pension arrangements are disclosed in the accounts of The Methodist Church in Great Britain.

Following the recent pension fund valuation, Connexion sought voluntary contributions from all Districts, Circuits and Churches to build up the Pension reserve Fund. After due consideration the Trustees agreed to contribute £110,000 to the Connexional Pension Reserve Fund.

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3.2 Investment policy and performance

To comply with Methodist Standing Orders, monies for long term investment are lodged with the Trustees for Methodist Church Purposes (TMCP). TMCP acts as custodian trustee for all real estate held by Districts and for all large (individually over £20k) bequests and for the proceeds of sale of any property formerly owned by the District. These sums are invested in unitised investments or held on deposit. The capital returns are close to tracking the movements in the FTSE100 index. The income mirrors the deposit rates available elsewhere. Both the Central Finance Board (CFB) and TMCP take into consideration social, environmental and ethical considerations, both negatively and positively, in establishing investment policy.

Short term deposits are lodged directly with the CFB and attract good market rates of interest.

There are no bench marks for the expected returns or appreciation on investments at TMCP and CFB. It is the Synod's policy to manage the cash and investment resources of the Synod so that a rate of return on investment – both by way of dividend and capital appreciation – is obtained at least as good as market rate considering the Synod’s low appetite for risk.

3.3(a) Reserves level and policy

Note – there is a separate paragraph 3.3(b) below relating to Trust 14508

Introduction

This report sets out the position with regard to the Synod’s Reserves. It excludes the value of the Synod Manse. The Synod currently operates a number of unrestricted funds, designated (though not restricted) funds and restricted funds, the balances of which as at 31[st] August 2022 were: -

Unrestricted funds

General Fund £46,234

Designated Funds

Designated Funds
International Youth Exchange
 £7,657
Training Network £10,080
Continuing Development in Ministry £21,385
Synod Reserve £98,680
Manse Reserve Fund £61,650

Restricted Funds

Restricted Funds
Synod Advance Fund £687,836
Chair’s Discretionary Fund £4,469

Designated Reserves - background information

The total designated reserves at 31[st] August 2022 amount to £199,452

In considering the funds set out above, the following information is relevant, especially when looking at future options.

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International Youth Exchange

Monies were raised during 2016 and 2017 to fund a Youth exchange with young people in Jamaica and in 2017 and 2018 to help towards the cost of a group of young people who proposed to visit the Holy Land in 2018. The reserve for the Holy Land visit has now been fully used and the monies remaining relate to a future youth exchange. The exchange planned for 2020 was put on hold due to Covid-19.

Training Network

The balance here is a surplus from a fund which had originally been established when the former South Wales District had a joint arrangement with the United Reformed Church, to employ a Youth Training officer. This account was retained after the cessation of the arrangement.

Continuing Development in Ministry (CDiM)

The origins of the fund go back to the Cardiff Conference in 1990 when costs were met by a levy on South Wales Circuits, matched by a donation from the District Charitable Trust. The Conference Account achieved a surplus and the balance continued to grow. It was later designated for use in connection with CDiM. As from 2014/15, under changed arrangements, any Connexional contribution ceased. It is anticipated that in future this fund will be drawn down to the Synod General account as necessary in order to financially assist presbyters with their ongoing development.

Synod Reserve

This represents amounts set aside over the years from annual surpluses, and also from amounts arising during projects authorised by Synod.

Manse Reserve Fund

This fund was established to fund the possible future purchase of a manse in the north of the Synod. Originally, following amalgamation of the South and North Wales Districts, to form the Wales Synod, the model of two co-Chairs was in place. This fund was created to provide finance to purchase a manse in the north of the Synod for one of these Chairs, should it have been the decision of the Synod to place one of these Chairs in the north. Latterly Synod has operated on a revised model of one Chair (currently based in the south) and an optimum of three Assistant Chairs covering the east, southwest and north of the District. Synod is not required to provide a manse for these Assistant Chairs.

Summary and Use of Designated Reserves

International Youth Exchange

The balance remaining of £7,657 will be used to part fund a future youth exchange currently under discussion.

Training Network

It is suggested that this fund be held for future Training within the Synod. The Synod Policy Committee has agreed to help in the funding of degree courses by presbyters and this fund could be and has been used for that purpose.

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CDiM

The cost of CDiM is now wholly funded by Districts/Synod. The future total annual cost of this provision is potentially £250 per presbyter. All presbyters are encouraged to take advantage of the CDiM scheme to support their ministerial development. Under changed arrangements effective from 2014/15, the cost to the Synod will be £250 per presbyter on take up and the annual cost at maximum could be £10,750 which means the fund could potentially exhaust well inside three years. The direct amount spent however in 2021/22 was £1,971. The total amount spent was met from the Synod General Fund. Usually, a transfer from the CDiM Reserve to the General Fund is needed to meet this cost and in 2021/22 an amount of £1,971 was so transferred. It is suggested that the balance remaining in this fund be used for the future funding of CDiM.

Synod Reserve

Within the balance of this fund is an amount of £2,000 held for manse refurbishment and repairs, £3,000 for Youth Work and £11,000 towards the future funding of the Higher Education Chaplaincy at Cardiff. A further £1,250 is held towards the funding of special Circuit Youth initiatives. It is proposed that a further £45,000 be held in reserve for the future funding of the Synod Enabler (Culturally Diverse Congregations) appointment, where the proposed Connexional and SAF grants are at a fixed sum over the period of the appointment. These reserves then amount to £62,250.

The budget for 2022/23 shows a total expenditure of £297,843. Therefore, the proposal to hold the reserve of £98,680 plus general funds on current account of £46,234 and after allowing for earmarked reserves of £62,250 as above, means that the balance remaining of £90,679 represents just 30% of annual expenditure.

Manse Reserve Fund

This fund is maintained to help pay for instances of substantial remedial and improvement work.

Restricted Reserve

Synod Advance Fund (SAF)

As noted above the balance at 31[st] August 2022 was £687,836.

Grants paid to ministry projects during 2021/22 amounted to £194,811, online worship and mission to £15,008 and building projects to £7,602 a total of £217,421. Future commitments already agreed are

2022/23 £208,440 2023/24 £97,549 2024/25 £81,312 £387,301

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The level of reserves currently being held remains high and we will be looking to see whether we are able to further increase the amount and level of the grants we are able to make going forward.

As in previous years, Synod, through its Schemes and Grants Committee, continues to need to retain sufficient monies to fund any exciting and innovative project which, over 5 years, might require a significant grant contribution from the SAF, of possibly £80 - £100K. Additionally, we are committed to supporting a number of Circuit appointments some of which might previously have received some Connexional support. Further Synod support is envisaged if key appointments are to be maintained in the future.

3.3(b) Reserves level and policy relating to Trust 14508

Balances as at 31[st] August 2022 £592,290

(excludes the value of the property in Caewal Road, Cardiff)

It was agreed by the Synod Policy Committee in February 2012 acting as Trustees that the funds available to Trust 14508 would be used primarily for supporting the two Synod appointments, namely the HE Chaplain at Cardiff and the Synod Enabler (Culturally Diverse Congregations); also that for the meantime Trust 14508 would continue to be responsible for the property costs of manses at Caewal Rd and a further property then owned, namely Ty Newydd, for as long as these were needed.

Subsequently, the manse at Ty Newydd was sold in January 2015. The proceeds of sale were received into Trust 14508 and invested in the Managed Mixed Fund on the recommendation of Trustees for Methodist Church Purposes.

Both Synod appointments were successful in receiving Connexional grant support, but this was on a reduced level and time limited. Indeed, as from 1[st] September 2020 the Connexional support to these appointments has ceased completely. This means that there will still be a significant draw down on the balance held in Trust 14508 over the next few years and no guarantee of future continued Connexional grant funding should the Synod wish to continue with the appointments.

Accordingly, SPC as Trustees of this fund agree that the current balances in Trust 14508 be held as a reserve to enable the Synod to continue the funding of these posts in light of the extensions agreed.

3.4 Collaborative arrangements with connected charities

One of the Synod’s main sources of funding was the assessments obtained from each Circuit within the Synod based on the staffing levels of each Circuit and this was used to defray most of the cost of administering the Synod with the exception of the two Synod appointments referred to above (where the funding of those posts is explained). This sum amounted to £58,500 (2020-21: £32,352). During 2021/22 contributions from circuits fell as a direct result to the pandemic.

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Furthermore, each year the Synod is allocated a sum by the Connexion to meet the cost of a second Chair’s appointment which is used by the Synod in the main to fund the cost of the Assistant Chairs of the Synod. In 2021-22 this amounted to £31,926 (2020-21: £34,400).

The Synod also obtained from each Circuit with a reserve, known as a Circuit Model Trust Fund (CMTF), a levy based on the size of the Circuits’ CMTFs at the start of the Connexional year (1[st] September). In 2021-22 this sum was £87,678 (2020/21 £69,818) and was credited to the Synod Advance Fund together with a distribution from the Connexional Advance and Property Fund of £143,341 (2020/21 £134,670).

The District holds no funds as custodian trustee .

4. Trustees’ responsibilities

For each financial year ending on 31 August the Trustees are required to prepare financial statements that give a true and fair view of the Synod’s financial activities during the year, of its financial position at the end of the year and an annual report for that year. In preparing these financial statements, the Trustees have:

  1. selected suitable accounting policies and applied them consistently using the accruals method

  2. made judgements and estimates that are reasonable and prudent

  3. followed the applicable SORP and accounting standard, SORP(FRS102) as updated, including FRS102

  4. adopted the going concern basis

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Synod and enables them to ensure that the financial statements comply with the law. They are also responsible for safeguarding the assets of the Synod and ensuring their proper application under charity law, and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Synod’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and trustees’ reports may differ from legislation in other jurisdictions.

In addition to the above, the Trustees are responsible for the Health & Safety.

4.1 Risk

The District is largely risk averse, but especially in making grants to entities embarking on new and imaginative initiatives, the District is prepared to underwrite considered risks.

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5. Structure, governance and management

The Synod is an unincorporated association and is governed by the Methodist Church Act 1976, the Deed of Union and the Model Trust Deeds of the Methodist Church and was registered with the Charity Commissioners on 23[rd] February 2009.

5.1 Structure

Circuits are groups of Churches; Circuits pay the stipends of most ministers and may employ lay (unordained) staff to serve the Churches in the Circuit. Most decisions are made at or ratified by the half yearly or quarterly Circuit Meetings. A District/The Synod is a group of contiguous Circuits and makes its decisions at the annual or half yearly synods. The Methodist Conference meets once each year and is the supreme governing body for all Methodist Churches.

  1. Overall control rests with the Methodist Conference.

  2. The Connexional Office implements decisions made by Conference and is also responsible for the stationing of presbyters and deacons (collectively known as ministers) in individual Circuits within each District.

  3. Connexional decisions are passed to the Chair of the District/Synod and the appropriate officers of the District/Synod for implementation.

  4. The District/Synod passes control down to Circuit level for local implementation by the Superintendent Minister, ministerial staff and Circuit Stewards, and authority is delegated to the Circuit Meeting for certain matters.

  5. The Circuit Meeting passes regulatory control down to Church Councils for local implementation by the presbyter, the Church Stewards, and other officers, and authority is delegated to Church Councils as Managing Trustees.

5.2 Purpose of the Synod (District)

The Synod (or District) is an expression, over a wider geographical area than any Circuit, of the Connexional character of the Church.

The purposes of the Methodist Church are and shall be deemed to have been since the date of the union, the advancement of:

a. the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church, and

b. any charitable purposes for the time being of any Connexional, District, Circuit, local or other organisation of the Methodist Church, and

c. any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church, and

d. any purpose for the time being of any charity being a charity subsidiary or ancillary of the Methodist Church.

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The primary purpose of this Synod is to advance the mission of the Church in Wales by

  1. by providing opportunities for Circuits to work together and support each other

  2. by offering to Circuits resources of finance, personnel and expertise.

The Synod serves the Local Churches and Circuits and the Conference in the support, deployment and oversight of the various ministries of the Church, and in programmes of training.

5.3 Governance

The Synod operates within a statutory framework of regulation and seeks to ensure that it follows Methodist Standing Orders. It relies on the Connexional Office at 25 Marylebone Road, London NW1 5JR to provide guidance on changes that could affect the Synod.

The members of the Synod Policy Committee (SPC) are annually appointed by a vote of the Synod for a continuous term not normally exceeding six years. The Chair of District is ex officio chair of the SPC. When a position becomes vacant on the Synod Policy Committee, nominations are invited from ministers and lay members of Circuits within the Synod. The Chair of the District then shares with nominees what the roles involve. If they wish to be considered for a role, their names are taken to the District Synod for appointment. Members may be either ministers or lay people attending Churches in the area covered by the Synod.

The Synod Policy Committee normally meets three times per year and deals with routine and exceptional matters. It oversees the work of the Schemes and Grants Committee, finance, property, the Synod Office, the Synod Manse, stationing of ministers, safeguarding, the work of the Methodist Church Learning Network Cymru Wales, the work of Momentwm (formerly known as the Synod Youth Work Action Group), the management of Trust 14508, Ecumenical matters, authorisations to preside at communion and extensions to local preacher training.

5.4 Responsibilities of the Synod Policy Committee

i to formulate and promote policies which will advance the mission of the Church in the Circuits and Local Churches and, in particular, to supervise the use of resources of personnel, property and finance and to assist Local Churches and Circuits having exceptional problems

ii to encourage inter-Circuit and ecumenical co-operation

iii to act in an executive capacity in matters remitted to the Committee by the Synod

iv to keep within its purview all Synod concerns not dealt with elsewhere

v to contribute and respond, as the case may be, to the development of Connexional policies as reflected in the work of the Conference and the Methodist Council, and to carry out its other responsibilities with any such development in mind

vi to be aware that the stipend of the Chair of the District is set – currently by reference to average wages and the change over a year in the Consumer Price Index – by the Methodist Conference as for all ministers within the Connexion

vii constantly to be aware of the public benefit guidance issued by the Charity Commission

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6. Reference and Administrative Details

6.1 Name of the Charity

The Methodist Church in Wales – Wales Synod

6.2 Charity registration number

1128205, registered in England and Wales

6.3 Principal Office

Cyncoed Methodist Church

Westminster Crescent

Cardiff CF23 6SE

02920 761515

office@methodistwales.org.uk www.methodistwales.org.uk

6.4 Synod Chair (Chair of the District)

Rev Dr Stephen D Wigley

Assistant Chairs:

Rev Cathy Gale

Rev Christopher Gray

6.5 Secretary of the Synod

Rev Rosemarie E G Clarke (resigned 31 August 2022) Rev Janet Park (appointed 1 September 2022)

6.6 Assistant Secretary of the Synod

Mr Graham Illingworth

6.7 Synod Treasurer

Mr Chris Randall

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6.8 Synod Schemes and Grants Secretary

Ms Gill Peace

6.9 Synod Property Officer

Mr Bob Gilston (resigned 31 August 2021)

Mr Martin Lougher (appointed 1 September 2021)

6.10 Names of trustees

The following served as trustees throughout 2021-22 or were Trustees at the time of this report being approved:

Rev Dr Stephen Wigley (Synod Chair ex officio) appointed 1st September 2007

Rev Rosemarie Clarke (Synod Secretary) appointed 1[st] September 2012, resigned 31 August 2022

Mr Graham Illingworth (Assistant Synod Secretary) appointed 1[st] September 2007

Mr Chris Randall (Synod Treasurer) appointed 1st September 2021

Mr Martyn Boyce appointed 1st September 2012, resigned 31 August 2022

Miss Linda Davies appointed 1[st] September 2018

Rev Dr Kofi Amissah appointed 1[st] September 2020

Mrs Janet Rees appointed 14t March 2020

Mr Roger Smith appointed 1[st] September 2021

Mrs Pat Preston appointed 1st September 2017

Rev Stephen Boxall appointed 1[st] September 2020

Miss Margaret Webber appointed 1[st] September 2018

Rev Rosemary Davies appointed 1[st] September 2018

Rev Gordon Gresswell appointed 1[st] September 2018, resigned 31[st] August 2021

Mrs Margaret Birch appointed 1[st] September 2021

Rev Leslie Noon appointed 1st September 2014, resigned 31[st] August 2022 Rev Phillip Poole appointed 1st September 2017, resigned 31[st] August 2022 Rev Jacquie Evans appointed 1[st] September 2020 Mr Barry Hawkins appointed 1[st] September 2021 Mr Martin Lougher appointed 1st September 2007 Rev Teddy Kalongo appointed 1[st] September 2021, resigned 31[st] August 2022 Rev Alf Williams appointed 1[st] September 2021, resigned 31[st] August 2022

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Appointed subsequent to 31[st] August 2022:

Rev Janet Park (Synod Secretary) appointed 1[st] September 2022

Rev Dr Ian Morris appointed 1[st] September 2022

Mr Alun Jones appointed 1[st] September 2022

Rev Nick Sissons appointed 1[st] September 2022

Rev Richard Gillion appointed 1[st] September 2022

Rev Malcolm Peacock appointed 1[st] September 2022

Rev Sue Keegan von Allmen appointed 1[st] September 2022

Rev Howard Long appointed 1[st] September 2022

The Managing Trustees for the Synod are the members of the Synod Policy Committee. No Trustee claims exemption from disclosure of his or her name here.

6.11 Chair’s Secretary

Mrs Wendy Barwise

6.12 Bankers

Barclays Bank plc

1 Churchill Place London E14 5HP

Central Finance Board of the Methodist Church

9 Bonhill Street, London EC2A 4PE

6.13 Investment managers and custodian trustees

Trustees for Methodist Church Purposes

Central Buildings, Oldham Street

Manchester M1 1JQ

6.14 Independent Examiner

Mrs Heather Cox appointed 9[th] February 2019

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Approvals

The Trustees’ Report and the Financial Statements were approved by the Synod Policy Committee on 11[th] February 2022

Signed on behalf of the Synod Policy Committee, as authorised

Rev Dr Stephen Wigley Synod Chair

11[th] February 2022

Chris Randall

Synod Treasurer

11[th] February 2022

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7. Financial Statements

The Financial Statements comprise:

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District No

2

THE METHODIST CHURCH - WALES SYNOD

Statement of Financial Activities (SOFA) for the year ended 31 August 2022

Notes to
the
accounts
Income from
1 Donations and grants
2 Connexional Advance & Property Fund
3 Income from investments
Income from charitable activities
4 Assessments on circuits
3
5 From Circuit Model Trust Funds
6 Contribution to the cost of the Chair
5
7 Other
8Total income
Expenditure
Expenditure on activities
9 Grants and donations
7
10 Salaries and associated costs
8
11 Cost of the Chair
5
12 Property Maintenance
9
13 Office expenses
10
14 Synods, committees, Conference
11
15 Training
16 Other outgoings
12
17Total expenditure
18Net income before investment
19 Transfers between funds
14
20 Gains on revaluation of fixed assets
21Realised and unrealised gains / losses on
investments
13
22 Net movement in funds
Reconciliation of funds:-
23 Total funds brought forward
24Total funds carried forward

General Fund
(Unrestricted)
Other
General
Funds
(Unrestricted)
Synod
Advance
Fund
(Restricted)
Trust 14508
(Unrestricted)
Chair's
Discretionary
Fund
(Restricted)
Total
2021-22
Total
2020-21
£
£
£
£
£
£
£
38,426
10,305
48,731
35,804
1,366
143,341
144,707
135,534
862
3,607
16,750
21
21,240
16,154

58,500
58,500
32,352
87,678
87,678
69,818

42,568
42,568
42,214
29,511
1
29,512
0
170,371
862
244,931
16,751
21
432,936
331,876

29,114
160,782
189,896
200,108

141,863
50,000
50,000
241,863
108,234

42,568
42,568
42,214

26,803
21,726
48,529
15,031

6,593
6,593
4,552

5,809
5,809
4,005
2,447
2,447
102

35,212
283
2,030
2,195
12
39,732
31,211
290,409
283
212,812
73,921
12
577,437
405,457
-120,038
579
32,119
-57,170
9
-144,501
-73,581

120,510
-8,771
-56,639
-55,100
0
0
0

-51,310
-51,310
118,626
472
-8,192
-24,520
-163,580
9
-195,811
45,045
441,852
207,644
712,356
1,105,870
4,460 2,472,182 2,427,136
442,324
199,452
687,836
942,290
4,469 2,276,371 2,472,181

Page 20 Annual Report and Statement of Accounts

Balance Sheet as at 31 August 2022

Balance Sheet as at 31 Augus t 2022
Other Synod Chair's
Notes to General Advance Discretionary
the General Fund Funds Fund Trust 14508 Fund Total Total
accounts (Unrestricted) (Unrestricted) **(Restricted) ** (Unrestricted) (Restricted) 2021-22 2020-21
£ £ £ £ £ £ £
Fixed Assets
Tangible Fixed Assets 396,090 350,000 746,090 746,090
Total fixed assets 396,090 350,000 746,090 746,090
Current Assets
Debtors 14,592 14,592 5,852
Investments with TMCP 66,650 687,836 583,136 4,469 1,342,091 1,537,355
Central Finance Board Deposits 132,116 132,116 131,566
Cash at Bank and in hand 41,933 7,657 9,154 58,744 51,319
Total current assets 56,525 206,423 687,836 592,290 **4,469 ** **1,547,543 ** 1,726,092
Current Liabilities
Creditors (due in under 1 year) 10,291 6,971 17,262 0
Total current liabilities 10,291 6,971 0 0 0 17,262 0
Total assets less current liabilities 442,324 199,452 687,836 942,290 **4,469 ** **2,276,371 ** 2,472,182
Net assets 442,324 199,452 687,836 942,290 **4,469 ** **2,276,371 ** 2,472,182
Funds of the District
General Fund (Unrestricted) 442,324 442,324 441,852
Other General Funds 199,452 199,452 207,644
Trust 14508 942,290 942,290 1,105,870
Total unrestricted funds 442,324 199,452 0 942,290 **0 ** **1,584,066 ** 1,755,366
Chair's Discretionary Fund 4,469 4,469 4,460
Synod Advance Fund 687,836 687,836 712,356
Total Funds 442,324 199,452 687,836 942,290 **4,469 ** **2,276,371 ** 2,472,182

Chris Randall Synod Treasurer

Page 21 Annual Report and Statement of Accounts

Notes to the Accounts

1 Accounting framework and accounting policies

i Accounting framework

The financial statements have been prepared in accordance with SORP(FRS102) as updated, being the current version of Accounting and Reporting by Charities: Statement of Recommended Practice . See also v Accounting framework, below.

ii Public benefit entity

The Wales Synod meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) below.

iii Basis

These accounts have been prepared on the basis of historical cost except that investments are shown at their market value at the end of the year. The accruals basis has been used and the Trustees present accounts that show a true and fair view of the Synod’s financial position and activities.

iv Content

The financial information presented is relevant, reliable, comparable and complete. Where estimates are used these are based on experience, research and judgement. The accounts are expressed in £Sterling, rounded to the nearest pound. Rounding differences should be ignored.

v Accounting framework

The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice [SORP(FRS102)] as amended, with the adoption of Section 1A of Financial Reporting Standard 102, in replacement for the SORP’s 2005 version specified in its related 2008 Regulations and in accordance with the ‘true and fair override’ provision contained therein.

vi Going concern

To the best of their knowledge and belief, the Trustees confirm that there are no material uncertainties that would call into question the Synod’s financial viability for at least 12 months from the date of approval of these accounts.

vii Consolidation

The Synod oversees the work of ministers (presbyters and deacons) and lay workers in Churches and Circuits within the Synod but has no power to control Circuits or Churches, ministers or lay workers except in extreme circumstances, none of which applied in the year. For this reason, the financial statements of the Churches and Circuits within the Synod are not consolidated into these financial statements.

Page 22 Annual Report and Statement of Accounts

Notes to the Accounts

viii Income recognition

Income is brought into account when it is more likely than not that the economic benefit of the income will be forthcoming. No attempt is made to measure the value of services donated by volunteers. Details of how the contribution to the cost of the District Chair has been determined appears in Note 5. A similar figure appears in the Expenditure at Note 8.

Individual amounts categorised as Other income in the SOFA will be shown separately if they are considered material.

The Synod acts as agent in the following matters:

Note that the Wales Synod does not act as Agent in the collection of quarterly assessments from Circuits except in very rare occasions where a problem may have occurred. The Circuits all pay their Assessments direct to the Methodist Church Fund.

In the first two of these matters the transactions are not reflected in the SOFA because there is no obligation on the Synod to make up any shortfall. Any sums received as Circuit assessments cannot be recognised as income in the Synod as they are the income of the Methodist Church Fund, not the Synod.

The value of time donated by volunteers is not recognised. Further information on this matter is provided in the Trustees’ Annual Report.

ix Expenditure

This is recognised when a liability is incurred, regardless of the date of payment. Liabilities are recognised as soon as there is a legal or constructive obligation committing the Synod to pay out resources and that payment becomes probable. Until then any material contingent liabilities are noted.

x Grants

Grants are made annually even when an application is for a recurrent grant over more than one year. A satisfactory report of substance from the individual or grantee body on the previous year’s activities and outcomes is critically reviewed by the Synod Schemes and Grants Committee and is necessary to trigger payment of any further instalment.

xi VAT

Since the Synod is not VAT registered, expenditure is inclusive of VAT where charged by the supplier.

Page 23 Annual Report and Statement of Accounts

Notes to the Accounts

xii Tangible fixed assets

These are capitalised if they can be used for more than one year, and individually cost at least £1,000. The freehold properties are shown in the accounts at 2015 deemed values, of which the land component is deemed to be £152,218. No depreciation is provided on the buildings because the trustees consider the residual fair value of the manse buildings is not less than the cost and the depreciation would be immaterial. The properties have been reviewed for impairment and none is provided.

xiii Investments

The investments of The Wales Synod are held by the Trustees for Methodist Church Purposes (TMCP) as custodian trustees. The valuations, at market value, are those provided by TMCP. The unrealised losses arising on investments at the end of the year are shown in the SOFA and in Note 23 below.

xiv Debtors and Creditors; Bank and Cash

Debtors are stated at the amounts owed to the Synod or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or amount advanced to the Synod. Subsequently creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit account balances are shown at the realisable values.

xv Loans

The Synod has not made any loans.

xvi Methodist Church Fund

The Wales Synod does not generally act as agent for the Methodist Church Fund (MCF) by collecting its assessments on Circuits except in extreme circumstances and does not, therefore, include the assessments in the SOFA.

xvii Funds

The trustees have adopted a policy for all unrestricted reserves which is that, over the medium term, there should be a gradual diminution in the balance in each fund. This includes all unrestricted reserves (the General Fund and the Synod Advance Fund) but not the restricted funds.

xviii Ministers’ manse costs

The Wales Synod is required to provide accommodation for the Synod Chair and his family and also for the minister holding the post of Synod Enabler (Culturally Diverse Congregations). The Synod bears the cost of repairs, maintenance and building insurance and also Council Tax and Water Rates on these properties. The Wales Synod also pays the Council Tax and Water Rates on behalf of the Ministerial Chaplaincy employee who resides in a property rent free owned by the Cardiff Methodist Circuit.

Page 24 Annual Report and Statement of Accounts

Notes to the Accounts

2 Assessments on Circuits

The District is made up of the following Circuits:

All Circuits paid their assessments as requested to the Synod and to the MCF during the year. An assessment on Circuits is determined annually by the Synod Policy Committee by reference to the number of staff in the Circuits but may also take into account a Circuit’s ability to pay.

4 Contributions to the Methodist Church Fund (MCF)

In addition to the assessments on Circuits (as above) to help defray the costs of running the Synod, Circuits are also assessed towards the costs of running of The Methodist Church in Great Britain which they must pay direct to MCF. These amounts do not pass through the accounts of the Synod and are therefore not included in these financial Statements.

Page 25 Annual Report and Statement of Accounts

Notes to the Accounts

5 Cost of Chair and trustees

The Chair of Synod chairs meetings of the Synod Policy Committee (SPC). The members of the SPC are the trustees of the Synod. The stipend, employer’s NIC and employer’s pension contributions of the Chair of Synod are paid by the Methodist Connexion. The Chair’s other costs are met mostly by the Synod.

t mostly by the Synod.
2019-20
 2020-21
£ £
Stipend of Chair of District, Rev Dr Stephen Wigley 32,280 31,905
Employer's National Insurance contributions and 3,341 3,443
Employer's pension contributions 6,947 6,866
Cash cost paid by the Connexion (see SOFA, line 6) 42,568 42,214
Chair's expenses 1,910 1,900
Total cost 44,478 44,114

Since the stipend-related costs above ( i.e. £42,568; 2020-21 £42,214) are borne by the Connexion, they appear both in the Income of the Synod and the Expenditure of the Synod (See Note 8). The aggregate expenses of the Chair’s accommodation were £23,303 (see Note 9) making the total cost of his emoluments £65,871. The Chair of Synod is the sole paid key management person and is supported by members of the SPC.

No accrual is made for the Chair’s entitlement to a sabbatical as he would continue to be paid during his sabbatical and there would be little additional cost incurred by those taking on the Chair’s responsibilities in the short term.

5.1 Payments to trustees

It is Synod policy to offer to reimburse members of the Synod Policy Committee and others involved in the administration of Synod affairs for expenditure properly incurred in carrying out their duties. The Chair of the Synod undertakes the primary executive role within the Synod. Apart from the Chair of Synod and the Synod Secretary (who receives an honorarium) no member of the Synod Policy Committee was in receipt of any payment for work undertaken on behalf of the Synod, although certain travelling and administration costs were reimbursed whenever this was requested.

Page 26 Annual Report and Statement of Accounts

Notes to the Accounts

None of the trustees is an employee of the Synod. Apart from the Chair of the Synod travel and other necessary expenses have been reimbursed to five (2020-21: none) of the trustees (members of the Synod Policy Committee (SPC)) who, in aggregate, have received the cost of travel incurred in attending meetings and other necessary expenses amounting to £1,526.68 (2020-21 £Nil).

6 Other income

The District does not undertake fundraising for general purposes.

7 Grants and donations and related support costs

Grants and donations totalling £189,896 were made during the year (2020-21: £200,108).

2021-22 2020-21
£ £
From General Fund 29,114 28,328
From SAF (see Note 20) 160,782 171,779
From Chair’s Discretionary Fund 0 0
Total 189,896 200,108

Expenditure on charitable activities through the Synod Advance Fund

This fund receives formulaically determined contributions from the Circuit Model Trust Funds held by Circuits within the Synod and redistributes the monies to grantees in the Synod through relevant grants as assessed by the Synod Grants Committee. During the year the following grants were made:

----- Start of picture text -----
To £ For £
Churches 67,810 Property 7,602
Circuits 88,472 Ministry 194,811
Other projects 4,500 Online worship & mission 15,008
Sub total 160,782
Wales Synod 56,639
Total 217,421 217,421
----- End of picture text -----

The income of the fund was £242,901 (net of costs) during the year, meaning some £25,480 less than total income was paid out in grants in the year.

The Grants Committee is aware that grant applications must demonstrate public benefit.

Page 27 Annual Report and Statement of Accounts

Notes to the Accounts

The support costs for grant-funding to third parties are insignificant (principally because the secretary of the Grants Committee is a volunteer and undertakes the vast majority of this work) and are not separately disclosed.

8.1 Salaries and associated costs

Gross salaries paid to two full time (2020-21: two) and two part time (2020-21: three) employees were as follows:

ere as follows:
2021-22
 2020-21
£ £
Gross pay 104,108 84,316
Employer's National Insurance
contributions 9,734 6,799
Employer's pension contributions to defined
contribution schemes 17,014 16,329
Apprenticeship levy, computers in ministry
allowance and payroll administration 1,007 790
Total costs of 4 staff 131,863 108,234
Cost of Chair (see Note 5) 42,568 42,214
Total staff costs 174,431 150,448
Total weekly contractual hours of two
(2020-21 two) non-ministerial staff 50 40

No employees received employee benefits that totalled more than £60,000. There is no accrual for holiday pay as it is immaterial; the holiday year ends on 31 August. All staff are paid at or above the living wage.

One of the part time employees was engaged exclusively in safeguarding matters and one provided secretarial assistance at the Synod office. The two other staff members are full time presbyters.

Pension scheme contributions exclude £110,000 voluntary contributions to the Connexional Pension Reserve Fund.

Page 28 Annual Report and Statement of Accounts

Notes to the Accounts

8.2 Pensions

Most ordained presbyters and deacons are members of the Methodist Ministers’ Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers (which term includes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National Insurance Contributions and pension contributions, the terms ‘employer’ and ‘employee’ are used as they would be in an employing body.

On the other hand, lay employees are contractually employed and have the option of joining the Pension and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC), The Pensions Trust or some other arrangement. In the case of The Wales Synod, the Pensions Trust, which is a defined benefit scheme, is that to which Lay Employees are enrolled as members.

The Connexion accounts for both the MMPS and PASLEMC pension schemes and shows the figures in the annual Methodist Church in Great Britain accounts. The MMPS is in deficit but a plan for removal of the deficit has been proposed and is being implemented. Details of the deficits on these schemes can be found in the Annual Report and Accounts of The Methodist Church at www.methodist.org.uk . It would be difficult to determine the liability that could fall on the Wales Synod and no attempt has been made to calculate this valuation.

Following the recent pension fund valuation, Connexion sought voluntary contributions from all Districts, Circuits and Churches to build up the Pension reserve Fund. After due consideration the Trustees agreed to contribute £110,000 to the Connexional Pension Reserve Fund.

9 Property costs

perty costs
2020-21
£		 2019-20
£
Synod office and services 3,500 2,000
Manse Llwyn y Grant Road 23,303 7,968
Manse Caewal Road (Trust 14508) 21,726 5,063
Total 48,529 15,063

The recent rise in utility costs has led to the increase in Synod office and services. Refurbishment works took place in both Manses during the year.

Page 29 Annual Report and Statement of Accounts

Notes to the Accounts

10 Office expenses (General fund)

ce expenses (General fund)
2021-22 2020-21
£ £
Printing, photocopying, postage,
telephones		 6,070 4,350
Stationery 391 592
Other office costs 132 -390
Total 6,593 4,552

11 Synods, Committees, Conference

ods, Committees, Conference
2021-22 2020-21
£ £
Synods 1,435 0
Committees 0 145
Chair’s travel 2,593 1,544
Other 1,781 2,316
Total 5,809 4,005

12 Other outgoings

er outgoings
2021-22 2020-21
£ £
Chaplaincy expenses 4,553 5,171
Synod Enabler Ethnic Minorities expenses 6,493 2,739
Safeguarding (excluding salaries) 1,284 347
Assistant Chairs 17,617 15,697
Other expenses 5,265 4,455
Total 35,212 28,409

None of the remaining individual amounts – aggregated as ‘Other’ above - is considered material and none is listed separately.

Page 30 Annual Report and Statement of Accounts

Notes to the Accounts

13 Investment management

During the year the Synod paid £4,379 to TMCP, the custodians of the Synod’s investments (Synod Advance Fund, Manse Reserve Fund, Chair's Discretionary Fund and Trust 14508 (2020-21: £2,730). Included in this is the sum of £3,075 which was levied at 0.2% on the value of the funds at the end of the previous year.

The sum of £51,310 represents a net loss (£1,095 realised gain and £52,405 unrealised loss) on the invested funds of Trust 14508.

14 Transfers between funds

The transfers between funds shown on the SOFA represent sums that were transferred from one fund to another under the direction of the Trustees.

£1,971 from CDiM reserve to General Funds to cover CDiM payments made to presbyters.

£21,639 from the Synod Advance Fund to General Funds towards the cost of the District Assessment, as a way of reducing the commitment from Circuits

£15,000 from the Synod Advance Fund to General Funds in support of the Synod Enabler (Culturally Diverse Congregations) post.

£4,000 from the Synod Advance Fund to General Funds in support of the Higher Education Chaplaincy (Cardiff) appointment.

£2,000 from the Synod Advance Fund to General Funds as agreed support for Training.

£1,500 from the Synod Advance Fund to General Funds for Youth work.

£33,900 (net) from Trust 14508 to General Funds in support of the Synod Enabler (Culturally Diverse Congregations) post

£21,200 from Trust 14508 to General Funds to support the Higher Education Chaplaincy (Cardiff) appointment

£12,500 from the Synod Advance Fund to General Funds towards the cost of Safeguarding.

£1,800 from the Momentwm Youth Exchange Account towards the costs of 3Generate youth activities.

£5,000 from the Manse Reserve Fund to General Funds towards the cost of manse repairs.

15 Manse and other property

The value of the two manses as at 31[st] August 2022 is believed to be greater than their deemed cost as shown in the accounts. There is no depreciation provision on the manse buildings as it is judged that this would be immaterial.

Page 31 Annual Report and Statement of Accounts

Notes to the Accounts

16 Debtors and prepayments

Shown in advance and due on 1[st] September 2022 is the payment of one month’s stipends for the three Synod presbyteral appointments totalling £7,621 (1[st] September 2021 two presbyteral appointments £5,852).

Debtors and prepayments also includes £5,000 from the Manse Reserve fund and £1,971 CDiM contributions received after the year end.

17 Investments with Trustees for Methodist Church Purposes

The funds that support the Synod Advance Fund, The Chair’s Discretionary Fund, the Manse Reserve Fund and Trust 14508 are held by TMCP in Trustees’ Interest Funds on which interest is credited to the accounts each month. In addition, within Trust 14508 The Synod holds units in the Managed Equity Fund and the Managed Mixed Fund which are regarded as medium to long-term investments.

TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds. Trust property is held for and on behalf of local Managing Trustees (in the Wales Synod, the Synod Policy Committee) who are responsible for the day to day management of trust property. TMCP ensure that, through providing guidance and acting under their direction, the Managing Trustees comply with charity law and Methodist law and policy as determined by the Methodist Conference.

Holdings of units as at 31[st] August 2022 (2021)

Fund Units £
Managed Equity Fund 9,082 (10,739) 248,829 (329,558)
Managed Mixed Fund 57,124 (66,772) 299,958 (374,124)
Total 548,787 (703,682)

18 Central Finance Board (CFB) and Cash at Bank

The Synod has three current accounts at Barclays plc, an authorised institution. The sums held on those accounts are immediately available. In addition, the Synod has three deposit accounts at CFB, a common deposit fund. Interest is earned on these accounts and credited monthly; the sums deposited can be withdrawn without notice and without loss of interest. The Synod has no other financial instruments. These sums are viewed as being liquid and are shown as current assets on the Balance Sheet.

Page 32 Annual Report and Statement of Accounts

Notes to the Accounts

19 Creditors and accrued expenses

Creditors at 31 August 2022 were £17,262 (2020/21 £Nil). Included in this are contributions of £5,000 from the Manse Reserve fund and £1,971 CDiM which were paid after the year end. Also £10,291 was received in advance from Connexion for the New Places for New People initiative which will begin in 2022/23.

20 Grant Commitments and the Synod Advance Fund

Expenditure on charitable activities: Synod Advance Fund:

Some grants are payable in annual instalments. The Synod expects to receive a report of the outcomes of the first (and subsequent) year’s activities funded by these grants. Future commitments already agreed, but subject to satisfactory reporting, are: -

2022-23
2023-24
2024-25		 £208,440
£97,549
£81,312

£387,301

After recognising the liabilities for future grants payable through the SAF, there is still a sum of £300,535 available for future grants. In the following year and subsequent years, further sums are expected to be credited to the SAF from the CMTF levies of those years.

The award of a grant by the Synod does not create a contractual relationship.

No individual or institution received grants of such magnitude that they should be separately reported.

21 Unrestricted Funds

21.1 General Fund – balance £442,324 as at 31 August 2022 (2021: £441,852)

The purpose of the fund is for use at the discretion of the trustees in the furtherance of the general objectives of the Synod and which have not been designated for other purposes. About 90% of this fund is held as a freehold property, the Synod manse for the Chair of District. During the year £28,133 was paid out as grants and donations from the General Fund.

Page 33 Annual Report and Statement of Accounts

Notes to the Accounts

21.2 Other Designated Funds – balance £1,141,742 as at 31 August 2022 (2021: £1,313,514)

These funds are to serve specific purposes but are not restricted by any document or deed to that purpose alone. Full details, breakdown of balances and the purpose behind each Designated Fund will be found in depth as part of the Trustees’ Annual Report earlier in this document.

22 Restricted Funds - balance £692,305 as at 31 August 2022 (2021: £716,816)

The Synod Advance Fund and the Chair’s Discretionary Fund are restricted funds. Full details, breakdown of the balances and the purpose behind each fund will be found in depth as part of the Trustees’ Annual Report earlier in this document. The assets of both these funds are managed by TMCP. Grants are awarded out of the SAF by the Synod Schemes and Grants Committee on the authority of the SPC who are the Trustees of the Synod.

23 Summary of movements on significant individual funds

----- Start of picture text -----
Balance at Balance at
Fund 01-Sep-21 Income Expenditure Transfers Gains/ Losses 31-Aug-22
£ £ £ £ £ £
General Fund 441,852 170,371 290,409 120,510 442,324
International Exchange 9,550 - 93 - 1,800 7,657
Training 10,038 42 - - 10,080
CDiM 23,259 97 - - 1,971 21,385
Synod Reserve 98,269 411 - - 98,680
Manse Reserve 66,528 312 190 - 5,000 61,650
Trust 14508 1,105,870 16,751 73,921 - 55,100 - 51,310 942,290
Total other designated 1,313,514 17,613 74,204 - 63,871 - 51,310 1,141,742
Total unrestricted funds 1,755,366 187,984 364,613 56,639 - 51,310 1,584,066
Synod Advance Fund 712,356 244,931 212,812 - 56,639 687,836
Chair’s Discretionary Fund 4,460 21 12 4,469
Total restricted 716,816 244,952 212,824 - 56,639 - 692,305
Total Funds 2,472,182 432,936 577,437 - - 51,310 2,276,371
----- End of picture text -----

Page 34 Annual Report and Statement of Accounts

Notes to the Accounts

24 Related Parties

Chris Randall made £1 donation direct to the Synod during the year. No other Synod Trustees made any donations in the current year or the preceding year. All of the Synod trustees are members of one or another Church and Circuit within the Synod and may be trustees in their Churches and/or Circuits.

Related parties include the Methodist Connexion, Circuits and Churches within the Synod, other Methodist Districts in Great Britain, Synod Charitable Trust, CFB and TMCP, except as reported in Note 5. All of these entities have their own trustees or directors. The following table shows the receipts from and payments to related parties during 2021/22.

----- Start of picture text -----
Receipts Payments Adjustments
Names of Connected Organisations
£ £ £
Donor/Donee: Circuits within the Wales Synod (assessments
61,371 95,948
on Circuits/grants and support)
Donor/Donee: Methodist Church Fund 270,311 21,036
Donee: Churches within the Wales Synod (grants) - 67,810
Donor: Synod Cymru 20,641 -
----- End of picture text -----

Information about payments to Trustees appears in Note 5.1

26 Volunteer contributions

Every entity (Connexion, District, Circuit, Church) within the Methodist Church in GB is heavily reliant on volunteers who contribute their skills, time and money in the furtherance of the work of the Church. In the Wales Synod the principal contribution is by serving on committees of the Synod that deal with mission, manses, finance, policy, grants, training, development, safeguarding etc. We are grateful to all of them for their help and commitment. No attempt has been made by this District to value the non-monetary contributions to the Synod in monetary terms.

27 Capital commitments and contingent liabilities

There were no capital commitments or contingent liabilities at the year-end (2020-21: £Nil).

28 Lease commitments

The Synod had no legal commitments under the terms of any lease but makes a voluntary contribution to Cyncoed Methodist Church towards the upkeep generally of the buildings as this is where the Synod offices are located, to include heating, light and cleaning. This amounted to £3,500 (2020-21 £2,000).

Page 35 Annual Report and Statement of Accounts

Declarations and Scrutiny

I confirm that these accruals based accounts for the year ended 31 August 2022 have been prepared from the records of the District and that they include all funds under the control of the District policy Committee.

Signature of Treasurer ………… …………………………………………… Date 23 October 2022

Name and address of Treasurer: Chris Randall, Synod Office, Cyncoed Methodist Church, Westminster Crescent, Cardiff CF23 6SE

Presentation to the District Policy Committee

I confirm that the annual report and accounts for the year ended 31 August 2022 were presented to the Synod Policy Committee held on 11[th] February 2022

Signature of the Chair of the meeting …

…………..

Date: 11[th] February 2022

Name of the Chair of the meeting: Rev Dr Stephen Wigley

Page 36 Annual Report and Statement of Accounts

Declarations and Scrutiny

Independent Examiner’s Report to the Trustees of the Wales Synod

Charity Number 1128205

Responsibilities and basis of report

I report to the trustees on my examination of the accounts of the Wales Synod for the year ended 31 August 2022 set on pages 1 to 35. As the Synod’s trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the District’s accounts carried out under section 145 of the Act and, in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent Examiner’s Statement

The Synod’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination (other than that disclosed below*) which give me cause to believe that, in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

I have not* obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10,000 (ten thousand pounds) at the balance sheet date.

Signature of independent examiner

Name of independent examiner: Heather Cox

Relevant professional qualification of independent examiner: ACA

Date