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2023-08-31-accounts

Trustees’ Annual Report and Financial Statements

for the year ended 31 August 2023

Page 2 Annual Report and Statement of Accounts

The Methodist Church in Wales – Wales Synod Cymru

Contents Page

Trustees’ Annual Report ………………………….…………………………… 3 - 17
Statement of Financial Activities ……………………………………………… 18
Balance Sheet …………………………………………………………………... 19
Notes to the Accounts ………………………………………………………….. 20 - 35
Declarations and Scrutiny ……………………………………………………… 35 - 36

Glossary of terms

Note that the terms 'The Wales Synod Cymru', 'Synod' and 'District' are synonymous. The Wales Synod Cymru 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.

Page 3 Annual Report and Statement of Accounts

Trustees’ Annual Report

1. Wales Synod Cymru – Introduction to the Annual Report for 202223

I am pleased to introduce this Annual Report for the Wales Synod Cymru for the year 202223.

The year started with the merger of the Wales Synod and Synod Cymru on 1[st] September 2022 who came together to form 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. I would like to thank everyone who has worked towards making the transition go so smoothly.

The work and witness of the Wales Synod Cymru, like so much of the church and wider society, continued to evolve in the aftermath of the Coronavirus pandemic. The cost of living crisis and in particular the rise in energy costs impacted on our witness and worship, however many churches were able to support their communities in many ways during this time of need in caring ways including through the provision of food and necessities, support and warm hubs.

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. One way of doing this is through grant support, and during the year it has continued to respond to applications for support from the Synod Advance Fund with grants totalling £298,504. Once again the majority of this, some £204,981, went to Ministry schemes and a much smaller amount of £31,132 to Property schemes. The Synod also continued with its grant stream to support ‘on-line’ worship resources which made £2,391 available in grants. In addition a successful application was made for the Methodist Action on Poverty and Justice initiative which will begin in 2023/24.

The Synod has sought to resource circuits by the provision of ordained ministry through the connexional Stationing process. The Synod continues 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.

In these challenging times 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,

Rev Dr Jennie Hurd Rev Andrew Charlesworth Chair of the Wales Synod Cymru Chair of the Wales Synod Cymru

Page 4 Annual Report and Statement of Accounts

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.

  3. The Church exists, inter alia, to:

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

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

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

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

2.1 Plans for future years

A successful application was made for the new Synod for the Methodist Action for Poverty & Justice initiative which will begin in 2023/24.

Page 5 Annual Report and Statement of Accounts

Trustees’ Annual Report

3 Financial review

Following the merger of the two Synods on 1 September 2022, the 2021/22 comparatives have been re-stated to include both Synod’s financial results for 2021/22. Further analysis is provided at note 29.

During the year the Synod received total income of £513,711 (2021/22 (re-stated) £697,535) and disbursed £582,972 (2021/22 (re-stated) £985,287). The excess of expenditure over income of £69,261 was increased by losses on investments of £10,077 to produce an overall deficit of £79,338 (2021/22 (re-stated) deficit of £345,240). Total funds carried forward are £3,333,415 (2021/22 (re-stated) £3,412,753).

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.

The Synod continues to hold three freehold properties being the Chair’s Manses in Cardiff and Powys and an additional 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 Cymru. 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.

Page 6 Annual Report and Statement of Accounts

Trustees’ Annual Report

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 Manses. 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 2023 were: -

Unrestricted funds

Unrestricted funds
General Fund
 £82,066
Designated Funds
International Youth Exchange
 £5,790
Training Network £10,430
Continuing Development in Ministry £19,986
Synod Reserve £102,109
Manse Reserve Fund £49,878
Cymru Reserve
 £11,193
Talaith Cymru
 £11,295

Restricted Funds

Restricted Funds
Synod Advance Fund £1,373,819
Chair’s Discretionary Fund £4,092
District Account Funds £58,018
District Benevolent Funds £95,821

Page 7 Annual Report and Statement of Accounts

Designated Reserves - background information

The total designated reserves at 31[st] August 2023 amount to £210,681

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

Trustees’ Annual Report

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.

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. As there are sufficient manses in the Synod, this fund has since been used for manse refurbishment.

Cymru Reserve and Talaith Cymru

These funds, originally from Synod Cymru, have been used to support the activities of the Synod.

Summary and Use of Designated Reserves

International Youth Exchange

The balance remaining of £5,790 will be used to part fund future youth activities, which may include a future youth exchange.

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.

Page 8 Annual Report and Statement of Accounts

Trustees’ Annual Report

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 £9,250 which means the fund could potentially exhaust well inside three years. The direct amount spent however in 2022/23 was £2,210. 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. 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 £30,000 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 £47,250.

The budget for 2023/24 shows a total expenditure of £344,524. Therefore, the proposal to hold the reserve of £102,109 plus general funds on current account of £82,066 and after allowing for earmarked reserves of £47,250 as above, means that the balance remaining of £136,925 represents just 40% of annual expenditure.

Manse Reserve Fund

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

Cymru Reserve and Talaith Cymru

These funds are to support the activities of the Synod.

Restricted Reserve

Synod Advance Fund (SAF)

As noted above the balance at 31[st] August 2023 was £1,373,819.

Grants paid to ministry projects during 2022/23 amounted to £264,981, online worship and mission to £2,391 and building projects to £31,132 a total of £298,504. Future commitments already agreed are

2023/24 £136,652 2024/25 £108,223 2025/26 £31,083 £275,958

Page 9 Annual Report and Statement of Accounts

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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. 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 2023 £537,828

(excludes the value of the property in 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 £59,770 (2021-22: £73,158).

Page 10 Annual Report and Statement of Accounts

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Previously the Synod was allocated a sum by the Connexion to meet the cost of a second Chair’s appointment which was used by the Synod in the main to fund the cost of the Assistant Chairs of the Synod. Following the Synod merger September 2022, the cost of both chairs was borne by Connexion and so grant ceased. The amount of the grant in 2022-23 amounted to £Nil (2021-22: £31,926).

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 2022-23 this sum was £210,682 (2021/22 £124,154) and was credited to the Synod Advance Fund together with a distribution from the Connexional Advance and Property Fund of £33,063 (2021/22 £143,341).

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.

Page 12 Annual Report and Statement of Accounts

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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 Cymru

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 Chairs (Chair of the District)

Rev Dr Stephen Wigley (resigned 31 August 2023)

Rev Dr Jennie Hurd

Rev Andrew Charlesworth (appointed 1 September 2023)

Assistant Chairs:

Rev Cathy Gale

Rev Christopher Gray

6.5 Secretary of the Synod

Rev Janet Park

6.6 Assistant Secretary of the Synod

Mr Graham Illingworth (resigned 31 August 2023)

Mrs Ffion Rowlinson (appointed 1 September 2023)

Page 14 Annual Report and Statement of Accounts

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6.7 Synod Treasurer

Mr Chris Randall

6.8 Synod Schemes and Grants Secretary

Ms Gill Peace

6.9 Synod Property Officer

Mr Martin Lougher

6.10 Names of trustees

The following served as trustees throughout 2022-23 or were Trustees at the time of this report being approved:

Rev Dr Stephen Wigley (Synod Chair) appointed 1st September 2007, resigned 31st August 2023

Rev Dr Jennie Hurd (Synod Chair) appointed 1[st] September 2022

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

Mr Graham Illingworth (Assistant Synod Secretary) appointed 1[st] September 2007, resigned 31st August 2023

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

Miss Linda Davies appointed 1[st] September 2018

Rev Dr Kofi Amissah appointed 1[st] September 2020, resigned 31st August 2023

Mrs Janet Rees appointed 14t March 2020

Mr Roger Smith appointed 1[st] September 2021, resigned 31st August 2023

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, resigned 31st August 2023

Mrs Margaret Birch appointed 1[st] September 2021

Rev Jacquie Evans appointed 1[st] September 2020, resigned 31st August 2023

Mr Barry Hawkins appointed 1[st] September 2021

Mr Martin Lougher appointed 1st September 2007

Rev Dr Ian Morris appointed 1[st] September 2022 Mr Alun Jones appointed 1[st] September 2022

Page 15 Annual Report and Statement of Accounts

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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

Appointed subsequent to 31[st] August 2023:

Rev Andrew Charlesworth (Synod Chair) appointed 1[st] September 2023

Ffion Rowlinson (Assistant Synod Secretary) appointed 1[st] September 2023

Rev Judith Holliman appointed 1[st] September 2023

Dionne Sherwood appointed 1[st] September 2023

Rev Gareth Edwards appointed 1[st] September 2023

Rev Keith Edwards appointed 1[st] September 2023

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

Page 16 Annual Report and Statement of Accounts

Trustees’ Annual Report

6.14 Independent Examiner

Mrs Heather Cox appointed 9[th] February 2019

Approvals

The Trustees’ Report and the Financial Statements were approved by the Synod Policy Committee on 22[nd] June 2024

Signed on behalf of the Synod Policy Committee, as authorised

Rev Dr Jennie Hurd Synod Chair

Rev Andrew Charlesworth Synod Chair

22[nd] June 2024

Chris Randall Synod Treasurer

22[nd] June 2024

Page 17 Annual Report and Statement of Accounts

Trustees’ Annual Report

7. Financial Statements

The Financial Statements comprise:

Page 18 Annual Report and Statement of Accounts

District No

2

THE METHODIST CHURCH - WALES SYNOD CYMRU

Statement of Financial Activities (SOFA) for the year ended 31 August 2023

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)
Other Funds
(Restricted)
Total
2022-23
Total
2021-22
£
£
£
£
£
£
£
17,629
0
7,500
25,129
277,231
1,206
33,063
34,269
144,707
6,777
47,171
16,009
4,866
74,823
26,846

59,770
59,770
73,158
210,682
210,682
124,154

88,724
88,724
42,568
20,314
20,314
8,871
187,643
6,777
290,916
23,509
4,866
513,711
697,535

66,770
134,234
500
201,504
569,446

168,012
168,012
246,748

88,724
88,724
42,568

30,422
14,473
44,895
52,209

8,589
8,589
7,444

17,744
17,744
6,435
840
840
2,447

46,310
286
3,950
1,662
456
52,664
57,990
427,411
286
138,184
16,135
956
582,972
985,287
-239,768
6,491
152,732
7,374
3,910
-69,261
-287,752

237,233
-14,517
-164,270
-55,400
-3,046
0
0

-572
-6,436
-3,069
-10,077
-57,488
-2,535
-8,026
-12,110
-54,462
-2,205
-79,338
-345,240
705,691
218,707 1,385,929
942,290
160,136 3,412,753 3,757,993
703,156
210,681 1,373,819
887,828
157,931 3,333,415 3,412,753

Chris Randall Synod Treasurer

Page 19 Annual Report and Statement of Accounts

Balance Sheet as at 31 August 2023

Balance Sheet as at 31 Augus t 2023
Other Synod
Notes to General Advance
the General Fund Funds Fund Trust 14508 Other Funds Total Total
accounts (Unrestricted) (Unrestricted) **(Restricted) ** (Unrestricted) (Restricted) 2022-23 2021-22
£ £ £ £ £ £ £
Fixed Assets
Tangible Fixed Assets 621,090 350,000 971,090 971,090
Total fixed assets 621,090 350,000 971,090 971,090
Current Assets
Debtors 13,851 4,465 18,316 14,592
Investments with TMCP 46,459 1,374,659 531,646 157,931 2,110,695 2,195,851
Central Finance Board Deposits 136,707 136,707 132,116
Cash at Bank and in hand 82,153 27,231 6,182 115,566 116,366
Total current assets 96,004 **214,862 ** 1,374,659 537,828 **157,931 ** **2,381,284 ** 2,458,925
Current Liabilities
Creditors (due in under 1 year) 13,938 4,181 840 18,959 17,262
Total current liabilities 13,938 4,181 840 0 0 18,959 17,262
Total assets less current liabilities 703,156 **210,681 ** 1,373,819 887,828 **157,931 ** **3,333,415 ** 3,412,753
Net assets 703,156 **210,681 ** 1,373,819 887,828 **157,931 ** **3,333,415 ** 3,412,753
Funds of the District
General Fund (Unrestricted) 703,156 703,156 705,691
Other General Funds 210,681 210,681 218,707
Trust 14508 887,828 887,828 942,290
Total unrestricted funds 703,156 210,681 0 887,828 **0 ** **1,801,665 ** 1,866,688
Other Funds (Restricted) 157,931 157,931 160,136
Synod Advance Fund 1,373,819 1,373,819 1,385,929
Total Funds 703,156 **210,681 ** 1,373,819 887,828 **157,931 ** **3,333,415 ** 3,412,753

Chris Randall Synod Treasurer

Page 20 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 Cymru 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 21 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 Cymru 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 22 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 Cardiff 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 three 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 Cymru 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 Cymru 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 Cymru is required to provide accommodation for the Synod Chairs and their 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 Cymru 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 23 Annual Report and Statement of Accounts

Notes to the Accounts

2 Assessments on Circuits

The District is made up of the following Circuits:

Circuit No Circuit Name
2/01 Cymru Circuit
2/03 Bangor & Holyhead
2/06 Bridgend
2/07 Buckley & Deeside
2/09 Cardiff
2/10 Ceredigion
2/12 Conwy & Prestatyn
2/13 Gwent Hills & Vales
2/16 Mid Glamorgan Mission
2/18 Neath Port Talbot
2/19 Newport & Lower Wye
2/20 South West Wales
2/24 Swansea & Gower
2/25 Welshpool & Bro Hafren
2/26 Wrexham
2/27 Vale of Glamorgan

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 24 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.

et mostly by the Synod.
2022-23
 2021-22
£ £
Stipend of Chairs of District 68,200 32,280
Employer's National Insurance contributions and 5,942 3,341
Employer's pension contributions 14,582 6,947
Cash cost paid by the Connexion (see SOFA, line 6) 88,724 42,568
Chair's expenses 5,640 1,910
Total cost 94,364 44,478

Since the stipend-related costs above ( i.e. £88,724; 2021-22 £42,568) 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 £25,422 (see Note 9) making the total cost of their emoluments £114,146. The emoluments of each chair were £65,650 and £48,496 respectively. The Chairs of Synod are the only paid key management people and are 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 25 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 two (2021-22: five) 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 £353.33 (2021-22 £1,526.68).

6 Other income

The District does not undertake fundraising for general purposes.

7 Grants and donations and related support costs

Grants and donations totalling £201,504 were made during the year (2021-22: £569,446).

2022-23 2021-22
£ £
From General Fund 66,770 108,664
From SAF (see Note 20) 134,234 460,782
From Other Funds (Restricted) 500 0
Total 201,504 569,446

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:

To £ For £
Churches 49,162 Property 31,132
Circuits 85,072 Ministry 264,981
Otherprojects - Online worship& mission 2,391
Wales Synod Cymru 164,270
Grand Total 298,504 Grand Total 298,504

The income of the fund was £286,966 (net of costs) during the year, meaning some £11,538 more than total income was paid out in grants in the year.

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

Page 26 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 three full time (2021-22: two) and two part time (2021-22: two) employees were as follows:

ere as follows:
2022-23
 2021-22
£ £
Gross pay 132,718 104,108
Employer's National Insurance
contributions 12,267 9,734
Employer's pension contributions to defined
contribution schemes 21,882 17,014
Apprenticeship levy, computers in ministry
allowance and payroll administration 1,145 1,007
Total costs of staff 168,012 131,863
Cost of Chairs (see Note 5) 88,724 42,568
Total staff costs 256,736 174,431
Total weekly contractual hours of two
(2021-22 two) non-ministerial staff 57.5 50

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 members was a Deacon and one employee provided secretarial assistance at the Synod office. Two of the three full time staff members are presbyters, and the other employee was engaged exclusively in safeguarding matters.

Page 27 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 Cymru, 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 was in deficit but a plan for removal of the deficit has been 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 Cymru and no attempt has been made to calculate this valuation.

9 Property costs

perty costs
2022-23
£		 2021-22
£
Synod office and services 5,000 3,500
Manse Cardiff (General Fund) 21,276 23,303
Manse Powys (General Fund) 4,146 3,680
Manse Cardiff (Trust 14508) 14,473 21,726
Total 44,895 52,209

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

Page 28 Annual Report and Statement of Accounts

Notes to the Accounts

10 Office expenses (General fund)

ce expenses (General fund)
2022-23 2021-22
£ £
Printing, photocopying, postage,
telephones		 6,597 6,921
Stationery 731 391
Other office costs 1,261 132
Total 8,589 7,444

11 Synods, Committees, Conference

ods, Committees, Conference
2022-23 2021-22
£ £
Synods 2,177 2,061
Committees 0 0
Chair’s travel 8,160 2,593
Other 7,407 1,781
Total 17,744 6,435

12 Other outgoings

er outgoings
2022-23 2021-22
£ £
Chaplaincy expenses 771 4,553
Synod Enabler Ethnic Minorities expenses 9,462 6,493
Safeguarding (excluding salaries) 2,128 1,284
Assistant Chairs 22,235 17,617
Other expenses 11,714 20,371
Total 46,310 50,318

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

Page 29 Annual Report and Statement of Accounts

Notes to the Accounts

13 Investment management

During the year the Synod paid £7,535 to TMCP, the custodians of the Synod’s investments (Synod Advance Fund, Manse Reserve Fund, Chair's Discretionary Fund and Trust 14508 (2021-22: £7,535).

The sum of £10,077 represents a net loss (£3 realised gain and £10,080 unrealised loss) on the invested funds.

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.

£2,210 from CDiM reserve to General Funds to cover CDiM payments made to presbyters.

£74,138 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.

£840 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

£21,500 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.

£1,772 from the Momentwm Youth Exchange Account towards the costs of 3Generate youth activities.

£13,581 from the Manse Reserve Fund to General Funds towards the cost of manse repairs.

£1,000 from the Synod Advance Fund to General Funds for the Synod representative meeting.

£23,292 from the Synod Advance Fund to General Funds for Deaconal Appointments.

£32,000 from the Synod Advance Fund to General Funds for Assistant Chairs.

£3,046 from the District Account and District Benevolent Funds to the Cymru Reserve and Talaith Cymru accounts to support the activities of the Synod.

Page 30 Annual Report and Statement of Accounts

Notes to the Accounts

15 Manse and other property

The value of the three manses as at 31[st] August 2023 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.

16 Debtors and prepayments

Shown in advance and due on 1[st] September 2023 is the payment of one month’s stipends for the three Synod presbyteral appointments totalling £8,199 (1[st] September 2022 three presbyteral appointments £7,621).

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, in some funds, including Trust 14508, the Synod holds units in the Managed Equity Fund, Managed Fixed Interest Fund or 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 Cymru, 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 2023 (2022)

Fund Units £
Managed Equity Fund 8,169 (9,082) 228,740 (248,829)
Managed
Fixed
Interest Fund		 3,949 (3,949) 6,584 (7,097)
Managed Mixed Fund 65,406 (71,146) 328,861 (373,588)
Total 564,185 (629,514)

Page 31 Annual Report and Statement of Accounts

Notes to the Accounts

18 Central Finance Board (CFB) and Cash at Bank

The Synod has three current accounts at Barclays plc, and three at HSBC. The sums held on those accounts are immediately available. In addition, the Synod has three deposit accounts at CFB. 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.

19 Creditors and accrued expenses

Creditors at 31 August 2023 were £18,959 (2021/22 £17,262). Included in this are contributions of £3,419 from the Manse Reserve fund, £4,181 CDiM, and £9,016 received in advance from Connexion for the Methodist Action on Poverty and Justice initiative which will begin in 2023/24.

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: -

2023-24
2024-25
2025-26
 £136,652
£108,223
£31,083
£275,958

After recognising the liabilities for future grants payable through the SAF, there is still a sum of £1,097,861 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.

Page 32 Annual Report and Statement of Accounts

Notes to the Accounts

21 Unrestricted Funds

21.1 General Fund – balance £703,156 as at 31 August 2023 (2022: £705,691)

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 manses for the Chairs of District. During the year £66,770 was paid out as grants and donations from the General Fund.

21.2 Other Designated Funds – balance £1,098,509 as at 31 August 2023 (2022: £1,160,997)

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 £1,531,750 as at 31 August 2023 (2022:

£1,546,065)

The Synod Advance Fund, Chair’s Discretionary Fund, District Account Funds and District Benevolent Funds 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.

Page 33 Annual Report and Statement of Accounts

Notes to the Accounts

23 Summary of movements on significant individual funds

----- Start of picture text -----
Balance at Balance at
Fund 01-Sep-22 Income Expenditure Transfers Gains/ Losses 31-Aug-23
£ £ £ £ £ £
General Fund 705,691 187,643 427,411 237,233 703,156
International Exchange 7,657 - 96 - 1,772 5,789
Training 10,080 350 - - 10,430
CDiM 21,385 812 - - 2,210 19,986
Synod Reserve 98,680 3,429 - - 102,109
Manse Reserve 61,650 1,999 190 - 13,581 49,878
Cymru Reserve 9,666 116 - 1,411 11,193
Talaith Cymru Funds 9,589 71 - 1,635 11,295
Trust 14508 942,290 23,509 16,135 - 55,400 - 6,436 887,828
Total other designated 1,160,997 30,286 16,421 - 69,917 - 6,436 1,098,509
Total unrestricted funds 1,866,688 217,929 443,832 167,316 - 6,436 1,801,665
Synod Advance Fund 1,385,929 290,916 138,184 - 164,270 - 572 1,373,819
Chair’s Discretionary Fund 4,469 136 513 4,092
District Account Funds 60,090 1,793 171 - 1,635 - 2,059 58,018
District Benevolent Funds 95,577 2,937 272 - 1,411 - 1,009 95,821
Total restricted 1,546,065 295,782 139,140 - 167,316 - 3,641 1,531,750
Total Funds 3,412,753 513,711 582,972 - 0 - 10,077 3,333,415
----- End of picture text -----

24 Related Parties

No Synod Trustees made any donations in the current year, in the preceding year Chris Randall made £1 donation direct to the Synod during the 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 2022/23.

Names of Connected Organisations Receipts Payments Adjustments
£ £ £
Donor/Donee: Circuits within the Wales Synod (assessments
on Circuits/grants and support)		 77,799 110,912
Donor/Donee: Methodist Church Fund 252,761 44,825
Donee: Churches within the Wales Synod(grants) - 56,162

Information about payments to Trustees appears in Note 5.1

Page 34 Annual Report and Statement of Accounts

Notes to the Accounts

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 Cymru 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 (2021-22: £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 £5,000 (2021-22 £3,500).

29 Merger information

On 1[st] September 2022 Wales Synod and Synod Cymru came together as Wales Synod Cymru. Wales Synod was the English Methodist District in Wales, and Synod Cymru was the Welsh Methodist District in Wales.

The merger took place on the first day of the accounting period, so all of the transactions for year ending 31 August 2023 were in the new combined Wales Synod Cymru.

The tables below set out the principal financial components of the merger.

----- Start of picture text -----
Analysis of principal SoFA components for the previous reporting period
Synod Cymru Wales Synod Combined
(pre-merger) (pre-merger) total
£ £ £
Total income 432,936 264,599 697,535
Total expenditure 577,437 407,850 985,287
Net income / (expenditure) - 144,501 - 143,251 - 287,752
Other gains / (losses) - 51,310 - 6,178 - 57,488
Net movement in funds - 195,811 - 149,429 - 345,240
Total funds brought forward 2,472,182 1,285,811 3,757,993
Total funds carried forward 2,276,371 1,136,382 3,412,753
----- End of picture text -----

Page 35 Annual Report and Statement of Accounts

Notes to the Accounts

Analysis of net assets at the date of merger

----- Start of picture text -----
Combined
Wales Synod Synod Cymru total
£ £ £
Net assets 2,276,371 1,136,382 3,412,753
Represented by:
Unrestricted funds 1,584,066 282,622 1,866,688
Restricted income funds 692,305 853,760 1,546,065
Total funds 2,276,371 1,136,382 3,412,753
----- End of picture text -----

Declarations and Scrutiny

I confirm that these accruals based accounts for the year ended 31 August 2023 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 22 June 2024

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 2023 were presented to the Synod Policy Committee held on 22[nd] June 2024

Signature of the Chair of the meeting ……………..

Name of the Chair of the meeting: Rev Dr Jennie Hurd

Date: 22[nd] June 2024

Signature of the Chair of the meeting ……………..

Date: 22[nd] June 2024

Name of the Chair of the meeting: Rev Andrew Charlesworth

Page 36 Annual Report and Statement of Accounts

Declarations and Scrutiny

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

Charity Number 1128205

Responsibilities and basis of report

I report to the trustees on my examination of the accounts of the Wales Synod Cymru for the year ended 31 August 2023 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