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2020-08-31-accounts

Croydon Methodist Circuit

(Charity Registration No. 1129515)

Trustees Annual Report & Financial Statements for the year ended 31 August 2020

Contents

Page
Information 2
Trustees Annual Report including
Reserves Policy 3 – 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 12 – 21
Independent Examiner’s report 22

1

Croydon Methodist Circuit

(Charity Registration No. 1129515)

Trustees Annual Report & Financial Statements for the year ended 31 August 2020

Information

Superintendent Minister Principal Address

Bankers

Rev. Dr. Stephen Day

Circuit Office West Croydon Methodist Church 93 London Road Croydon CR0 2RF Barclays Bank plc

Independent Examiner

Paul Newton, JCS Accountants

Trustees (Year ended 31 August 2020) (* denotes resigned after 31 August 2020)

Revd Nigel Cowgill Revd Dr Stephen Day (Appointed 1 September 2019) Revd Soon Cheol Choi Revd Nadine Wilkinson Mr Bennie Harms Mrs Lindsey Macfarlane* Mrs Juliet Smith Revd Pamela Clews (Appointed 9 September 2019) Mr Robin Haslam Ms Dorothea Macauley Lady Margaret Griffiths Mr Robert Nisbeth Mrs Doreen Ridden Mrs Pauline Little Miss Jennie Hall Miss Fran Byard Mr Alan Mills Mr William Smart Mrs Linda White

Mrs Margaret Widberg Mr David Fanshawe Mr Adrian Pickett Ms Constantia Pennie Mrs Denise Watson Mrs Collis Peart Mrs Rosemary Jones Mrs Comfort Croffie Miss Rose Cummings Mr Adrian Howe Mr Kofi Asamoah-Twum Mr Hope Chitauro Miss Sukhvinder Kalsi Mr Lawrie Bannister Mr Tolulowaleyi Laval Mrs Caryl Rapps Mrs Susan Astington Mrs Daphne Jones* Mr Paul Parkinson Mrs Gillian Haslam (Appointed 18 November 2019)

Miss Siân Williams Mr Paul Taylor Mr John Anstey Mr Hugh Roberts Mrs Linnett Desporte Mrs Gertrude Nartey Mrs Rohini Herat Mrs Ruth Tayler Mr David Tayler (Appointed 8 October 2019) Mrs Elizabeth Smart (Appointed 8 October 2019) Mrs Mary Bannister Mr Edward Handley Mr Mike McCallum* Mrs Alyson Stonehouse Mr Josef Hopeson-Sowah Mr Nicholas Kusah Mrs Ann Atkins

The following Trustees were appointed after 1 September 2020:

Mrs Toyin Ogunyemi (Appointed 24 September 2020) Revd Dr Leslie Griffiths (Appointed 1 October 2020) Revd Jennifer Potter (Appointed 5 October 2020) Mr Andrew Thynne (Appointed 30 September 2020)

Ms Philana Davies (Appointed 6 October 2020) Mrs Dunstana Davies (Appointed 6 October 2020 Mr Byron Asbruce (Appointed 10 October 2020) Mrs Adebukola Lawal (Appointed 10 October 2020)

Mr Ola Ogunyemi (Appointed 10 October 2020) Mrs Sonia Smith (Appointed 20 October 2020) Miss Becky Chipere (Appointed 5 November 2020)

2

Croydon Methodist Circuit

Trustees Annual Report for the year ended 31 August 2020

Governing documents and objective

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

In setting our objectives and planning our activities the Circuit has given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public interest guidance on advancing our objectives as set out above.

Mission Statement

Croydon Methodist Circuit draws on the Methodist Church in Britain’s vision as a “discipleship movement equipped for Mission” and works to priorities taken from “Our Calling” within our local context;

The Circuit encourages members individually and each of the churches collectively to engage in local community activities, social outreach, ecumenical work and inter-faith contact and co-operation;

We encourage the development of richly diverse and inclusive communities of faith which allows the exploration of discipleship by all people – regardless of background and without discrimination;

We seek to provide to our communities an example of God-filled lives and to enable the people of our churches to respond to the generosity of God’s grace through worship and Christian service;

We seek to link together the people of our Circuit churches so that they can be mutually supportive and encouraging, sharing in and learning from each other’s experience of Christian living.

3

Croydon Methodist Circuit

Trustees Annual Report for the year ended 31 August 2020

Review of progress and achievements

The Croydon Methodist Circuit has four ministerial staff: three presbyters (Revd Dr Stephen Day, Revd Soon Cheol Choi and Rev. Nadine Wilkinson), together with three lay staff: Bennie Harms (Lay Pastor), Lindsey Macfarlane (Youth Development Officer) and Juliet Smith (Circuit Administrator).

All of our churches are involved in community outreach activities, such as:

Our churches run activities for children and young people, including Messy Church, café worship, youth clubs. Churches host and engage with uniformed organisations such as Boys’ Brigade, Girls’ Brigade, Brownies, Guides, Rangers, Beavers, Cub Scouts and Scouts.

The Circuit provides ministers and preachers to lead a weekly Sunday afternoon worship service at Hall Grange, a residential care home run by MHA. Several church members do voluntary work at Hall Grange. Churches support local older people through engagement with local residential care homes, such as Acacia Care Centre in South Norwood, Freeman Court and Norbury Hall in Norbury, and the British Home in Streatham.

4

Croydon Methodist Circuit

Trustees Annual Report for the year ended 31 August 2020

The Circuit equips lay volunteers by providing training and development opportunities to empower them to identify and use their gifts and skills to the glory of God. In this work we are guided by the Methodist Church in Britain’s statement “Our Calling”:

The Circuit provides initial training for Local Preachers and Worship Leaders as well as ongoing peer support for those accredited. Creating Safer Space safeguarding training is offered annually to those needing initial or refresher training.

The Circuit staff continue to work in partnership with local and national voluntary and statutory bodies. They engage ecumenically with Croydon Churches Forum as well as other local groups.

Plans for the future

Plans for a circuit review weren’t realised due to the Covid-19 coronavirus pandemic's onset in early 2020. Closure of churches during the lockdown in March-July 2020 deprived them of rental income and generally led to a reduction in freewill giving by members, especially among those unable or unwilling to give electronically. The impact of Covid-19 led to some churches being unable to meet their full assessment payments. The Circuit Meeting in July 2020 responded to this situation by instituting a review of the Circuit’s lay employees by an independent HR consultancy firm. The report was presented to the Circuit Meeting in September 2020 to guide decision-making which implemented the report’s recommendations.

Risk Assessment

The Circuit Leadership Team (CLT) continues to review the regulatory framework in which the Circuit operates and where the CLT finds areas of risk to the Circuit, appropriate action is taken to minimise the risk.

5

Croydon Methodist Circuit

Trustees Annual Report for the year ended 31 August 2020

Safeguarding

Every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. Christians see this potential as fulfilled by God’s re-creation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protect them from harm.

Methodist Connexional practice outlines commitment to the following principles:

The Croydon Methodist Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the circuit and in the churches.

6

Croydon Methodist Circuit

Trustees Annual Report for the year ended 31 August 2020

The Croydon Methodist Circuit commits itself to the provision of support, advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable.

Financial Review

The Financial Statements have been prepared in accordance with the Charities Statement of Recommended Practice.

Although the impact of the CoVid 19 pandemic impacted church incomes such that some churches were unable to meet assessment payments in full during the year, the shortfall was offset by cost savings in general expenses and from an unfilled but budgeted half time ministerial post and overall there was a small net increase in resources of £3,686 in the year (2019: reduction of £34,101). As a result the Circuit’s net current assets increased slightly from £240,500 at the beginning of the year to £ 244,186 at year end, of which £104,135 (2019: £83,980) represents general reserves.

The CoVid 19 pandemic and resulting restrictions have continued to impact the circuit’s income in the new financial year which began on 1[st] September 2020 with significant reductions seen in churches’ letting income such that some have been unable to meet assessment payments in full. The circuit has therefore taken steps to reduce its fixed expenditure enabling future church assessment levels to be set which better match churches’ ability to pay. Taking into account the positive impact of these actions on the circuit’s expected expenditure and therefore assessment levels in the financial year following the date of approval of the financial statements, the Trustees have every reason to believe that the Circuit is a going concern.

Reserves Policy

The reserves of the Circuit are dependent on the extent that its ongoing costs can be funded from the assessment levied on the individual churches. The Circuit seeks to operate its financial affairs each year on an ongoing basis. At the year end, the actual readily available general reserves represented 3.3 months (2019: 2.2) expenditure, slightly above the stated policy of general reserves of at least three months expenditure although the trustees expect this ratio to fall below the policy level in the current year because of impact of the pandemic on churches’ ability to meet assessment payments. Although the continuing pandemic makes confidence in the circuit’s future income streams uncertain, the circuit’s resources include a balance of £140,051 on the Model Trust Fund which can be drawn upon to meet repair and maintenance of circuit property and so reduce reliance on the charity’s general funds in stressed circumstances so that the circuit’s total reserves are expected to exceed the stated policy for the foreseeable future.

7

Croydon Methodist Circuit

Trustees Annual Report for the year ended 31 August 2020

Structure, governance and management

The governing document for the Circuit is the Deed of Union (1932) and the Methodist Church Act (1976).

Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD).

The Connexional Office implements decisions made by Conference and is also responsible for the stationing of Presbyters in individual Circuits.

Connexional decisions are passed to the Chair of the District and appropriate Officers of the District for regional implementation.

The District passes control down to Circuit level for local implementation by the Superintendent Minister, ministerial staff and Circuit Stewards via the medium of the Circuit Meeting.

The membership of the Circuit Meeting is laid down in the Constitutional Practice and Discipline of the Methodist Church. Together the members of the Circuit Meeting are the Managing Trustees of the Circuit.

Trustees

Owing to the number of individual churches in the Circuit and the fact that the majority of the Circuit Meeting members are those elected by individual churches, it is clear that the make-up of the meeting is subject to frequent change. There were 56 trustees as at 30 June 2020 (2019: 58). A list of trustees is provided on page 2.

Related Parties

The Circuit is part of the London District and is also accountable to the Methodist Conference. The following Methodist Churches are linked to the Circuit:-

Addington Methodist Church Christ Church Methodist, Addiscombe Downsview Methodist Church Norbury Methodist Church Parchmore Methodist Church Shirley Methodist Church, Croydon South Norwood Methodist Church West Croydon Methodist Church

8

Croydon Methodist Circuit

Trustees Annual Report For the year ended 31 August 2020

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and the accounts in accordance with applicable law and United Kingdom Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year.

In preparing these accounts, the Trustees are required to:

Select suitable accounting policies and then apply these consistently;

Observe the methods and principles in the Charities SORP;

Make judgements and estimates that are reasonable and prudent;

State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts;

Prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Croydon Methodist Circuit and enable them to ensure that the financial statements comply with the law. They are also responsible for safeguarding the assets of the Circuit and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each of the trustees is aware, there is no relevant information that has not been disclosed to the independent examiner and each of the trustees believes that all steps have been taken that ought to have been taken to make him aware of any relevant information.

Approvals

The Trustees’ Annual Report was approved by the Trustees on 10 March 2021 and signed on their behalf by:

Rev Dr. Stephen Day Superintendent Minister and Chair of Trustees

Robin Haslam Trustee

9

Circuit No: 35/41

Croydon Methodist Circuit

Statement of Financial Activities (SOFA) for the year ended 31 August 2020

Income
Donations
Charitable activities
Assessments on churches
Grants receivable
Letting income
Total from charitable
activities
Other
Income from Monetary
Investments
Total income
Expenditure
Expenditure on activities
Grants and donations payable
Salaries and associated costs
Property
District Assessment & Levy
Other outgoings
Total charitable expenditure
Net (expenditure)/income
before investment gains/
losses
Gains or Losses on property
revaluations		 Notes to
the
accounts
3
5
6
4
7
8
9
10
11		 General Fund
(Unrestricted)
£
0
301,020
0
26,400		 Circuit Model
Trust
(Unrestricted)
£		 Restricted
Funds
£		 Total
2019- 20
£
0
301,020
0
26,400		 Unrestricted
Total
2018 -19
£
5,500
289,677
16,000
26,400
327,420 327,420 332,077
421 1,284 1,705 1,867
327,841 1,284 0 329,125 339,444
9,410
181,709
53,706
65,484
9,491		 5,639 9,410
181,709
53,706
71,123
9,491		 9,410
215,792
72,439
63,079
12,825
319,800 5,639 0 325,439 373,545
8,041 (4,355) 3,686
0		 (34,101)
0
Net income/(expenditure)
before transfers		 8,041 (4,355) 0 3,686 (34,101)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 21 12,114 (12,114) 0 0
20,155 (16,469) 0 3,686 (34,101)
2,246,828 156,520 2,403,348 2,437,449
2,266,983 140,051 0 2,407,034 2,403,348

The Statement of Financial Activities includes all gains and losses recognised in the year.

All activities relate to continuing operations.

10

Circuit No: 35/41

Croydon Methodist Circuit

Balance Sheet as at 31 August 2020 Balance Sheet as at 31 August 2020
Note General Circuit Model Restricted Totals Totals
Fund: Trust: Funds 2020 2019
Unrestricted Unrestricted
£ £ £ £ £
Fixed Assets
Tangible fixed assets 14 2,162,848 2,162,848 2,162,848
Total fixed assets 2,162,848 2,162,848 2,162,848
Current Assets
Debtors (including £7,000 15 22,917 22,917 30,263
(2019:£13,000) due in more
than one year)
Investments with TMCP 16 140,051 140,051 156,520
Central Finance Board 17 105,789 105,789 81,457
Deposits
Cash at Bank and in hand 17 34,928 34,928 38,265
Total current assets 163,634 140,051 303,685 306,505
Current Liabilities
Creditors (due in under 1 18 59,499 59,499 66,005
year)
Total current liabilities 59,499 59,499 66,005
Net current assets 104,135 140,051 244,186 240,500
Total assets less current
liabilities 2,266,983 140,051 2,407,034 2,403,348
Long Term Liabilities (due
after more than one year) 19 0 0
Net assets 2,266,983 140,051 0 2,407,034 2,403,348
Funds of the Circuit
General Fund (Unrestricted) 20.1 2,266,983 2,266,983 2,246,828
Circuit Model Trust Fund 20.2 140,051 140,051 156,520
(Unrestricted)
Total Unrestricted Funds 2,266,983 140,051 2,407,034 2,403,848
Restricted Funds 0 0 0
Total Funds 2,266,983 140,051 0 2,407,034 2,403,348

The financial statements were approved by the Trustees on 10 March 2021 and were signed on their behalf by:

Rev Dr. Stephen Day Superintendent Minister and Chair of Trustees

Robin Haslam Trustee

11

Croydon Methodist Circuit

Notes to the financial statements

for the year ended 31 August 2020

1. Basis of accounting and accounting policies

ii Public benefit entity

iii Basis

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) below.

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.

v

Going concern

vi. Funds

General unrestricted funds represent funds which are expendable at the discretion of the Circuit in the furtherance of the objects of the charity and which have not been designated for other purposes. Such funds may be held to finance both working and capital investment.

vii

Consolidation

The Circuit oversees the work of ministers and lay workers in Churches within the Circuit but does not have control over those Churches, ministers or lay workers except in extreme circumstances, none of which were applicable. For this reason, the financial statements of the Churches within the Circuit are not consolidated into these financial statements.

viii Income recognition

Income is recognised in the Statement of Financial Activities when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that income will be received and the amount can be measured reliably.

Donations are accounted for gross when received.

Rental income is accounted for on an accruals basis.

In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised. Further information on this matter is provided in the Trustees’ Annual Report.

ix Expenditure

Expenditure is recognised in the Statement of Financial Activities once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

12

Croydon Methodist Circuit

Notes to the financial statements for the year ended 31 August 2020

x Grants

Grants made by the Circuit from its own funds are recognised in full at the time of the agreement or when the Circuit accepts that there is a legal or operational obligation to make the payment. When the grant is recurrent over more than one year the balance payable in future years is treated as a provision being released for future commitments in the Balance Sheet against the appropriate fund, the provision being released in future years as instalments are paid in accordance with the originally agreed terms.

xi VAT

Irrecoverable input VAT is charged as a cost against the activity for which the expense was incurred.

xii Tangible fixed assets

These are capitalised if they can be used for more than one year, and individually cost at least £1,500. The freehold property is shown in the accounts at deemed historical cost representing each property’s gross carrying value at 1 September 2015, being that property’s insurance reinstatement value, as notified by Methodist Insurance plc at the previous renewal date. The value of the land element of the property is deemed to be one third of the total carrying value, based on research undertaken by Savills.co.uk. Further information can be found on their website. If acquired after that date and/or where freehold property has subsequently been extended, the cost of acquisition and/or extension is taken. No depreciation is provided because the trustees consider the current residual fair value of the properties in their present condition is not less than its historical cost, and, in the absence of any evidence of impairment, any depreciation provision for the buildings component of the properties would be immaterial.

xiii Receivables and Payables; Bank and Cash

Debtors are stated at the amounts owed to the Circuit or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or amount advanced to the Circuit. 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 their realisable values.

xiv Methodist Connexional Funds

The Methodist Church Connexion raises assessments against Circuits and these are paid quarterly to their Districts. The Circuits raise assessments against Churches in the Circuit. The District remits to The Methodist Church Fund quarterly most of the sums received from Circuits. A small sum is retained by the District to meet its own costs.

xv Ministers’ manse costs

The Circuit is required to provide accommodation for each minister in the Circuit and their families and this is seen as a benefit to the Circuit. Ministers are expected to occupy the manse provided for them. The Circuit bears the cost of repairs, maintenance, buildings insurance, Council Tax and water charges. These figures are not separately disclosed as benefits in kind for ministers as HMRC does not seek to tax these receipts in the hands of ministers.

xvi Investment properties

No property is currently deemed to not be held for the long term purposes of the charity.

xvii Financial instruments

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

13

Croydon Methodist Circuit

Notes to the financial statements

for the year ended 31 August 2020

2. Glossary of terms

CFB: Central Finance Board of the Methodist Church 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 10 to more than 300

Circuit: a group of Methodist Churches near each other, typically between 10 and 30

Circuit Meeting: The Trustees of the Circuit, most of whom are appointed by their local Churches and others by virtue of a role they undertake for the Circuit and/or their local Churches.

CMTF: Circuit Model Trust Fund

Connexion: The Methodist Church in GB 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

SOFA: Statement of Financial Activities

SORP: Statement of Recommended Practice

TMCP: Trustees for Methodist Church Purposes, the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds

3. Income from donations

Donations General
CMTF
Restricted
Total
2019
0
0
5,500

4. Income from other trading activities

Letting income has been received in respect of the following properties:-

12, Pollards Hill East
Total		 General
CMTF
Restricted
Total
2019
26,400
26,400
26,400
26,400
26,400
26,400

14

Croydon Methodist Circuit

Notes to the financial statements

for the year ended 31 August 2020

5. Assessments on Churches

The Circuit comprises 8 churches and each is assessed for a contribution to meet the overall net costs of the Circuit. An Assessment on Churches is determined annually by the Circuit using a formulaic method which takes into account the relative number of members in each church and its relative income.

Addington
Christ Church
Downsview
Norbury
Parchmore
Shirley
South Norwood
West Croydon
Total		 General
CMTF
Restricted
Total
2019
28,648
28,648
25,037
41,268
41,268
38,461
44,736
44,736
40,876
18,652
18,652
16,810
32,610
32,610
28,751
65,796
65,796
63,448
31,708
31,708
29,763
37,602
37,602
46,531
301,020
301,020
289,677

The churches are considered to be related parties of the circuit.

6. Grants receivable

No grants were received in 2020. In 2019 grants of £16,000 were received into the General Fund during the year from the London district for the community focussed work of the Deacon.

7. Grants and donations payable

Total grants of £9,410 (2019: £9,410) were made from the General Fund to Parchmore Methodist Church (a related party of the circuit) towards community work..

8. Salaries and associated costs

Stipends were paid to 3 presbyters in the year (2019: 3 presbyters and 1 deacon), and salaries paid to 3 lay workers (2019: 3 lay workers). The salaries are paid by the Connexion but funded by the Circuit.

15

Croydon Methodist Circuit

Notes to the financial statements

for the year ended 31 August 2020

The costs were as follows:

Gross stipends and salaries
Employer's National Insurance contributions
Employer's pension contributions to defined
benefit and contribution schemes
Fees paid to supernumerary ministers
Travel expenses
Telephone and other expenses
Computers for Ministry
Ministers training
Removal expenses
Total staff costs		 2019 – 20
2018 – 19
£
£
136,247
158,813
12,119
14,949
23,421
29,583
755
1,262
2,767
6,207
3,227
3,755
495
450
495
773
2,183
-
181,709
215,792

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.

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 employees and have the option of joining a scheme which the Circuit has arranged with The Pensions Trust. This is a defined contribution scheme and the Circuit contributes as employer to this scheme.

The Connexion accounts for the MMPS 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 deficit on this scheme can be found in the Annual Report and Accounts of The Methodist Church at www.methodist.org.uk

9. Property costs

The circuit is Managing Trustee for 7 manses, 6 of which are occupied by presbyters or lay staff serving in the Circuit. One manse, Pollards Hill East, is let on an Assured Shorthold Tenancy. With the exception of the let manse, the Circuit is responsible for the payment of Council Tax, Utilities, Water Charges, Insurance and maintenance. In addition the Circuit pays a contribution towards the operational costs of the Circuit Office and periodic professional survey fees for the manses and churches in the Circuit. All costs are paid from the General Fund.

16

Croydon Methodist Circuit

Notes to the financial statements for the year ended 31 August 2020

Maintenance -
Barnfield Avenue
Norbury Avenue
The Manse, Huntingfield
Pollards Hill East
Sefton Road
Southern Avenue
Letting agents’ fees
Council Tax
Electricity and water charges
Insurance
Survey fees
Total		 2019 – 20
2018 – 19
£
£
981
7,031
13,757
403
972
3,533
174
6,708
3,058
21,398
10,564
7,881
3,960
3,960
12,249
11,691
1,686
1,691
5,525
5,383
780
2,760
53,706
72,439

10. District Assessment & Levy

The District Assessment is calculated relative to the proportion of church members and staffing (presbyters and mission staff only) of all Circuits in the London District. 25% of the overall cost is calculated using relative staffing proportions and 75% is calculated using relative membership proportions.

The Levy is calculated on a sliding scale percentage of the Circuit’s CMTF account balance as at 31 August of the accounting year.

Methodist Church Fund
(MCF)
District Expenses
Levy on CMTF funds
Total		 General
CMTF
Restricted
Total
2019
53,854
53,854
46,729
11,630
11,630
9,278
5,639
5,639
7,072
65,484
5,639
71,123
63,079

11. Other outgoings

Preaching and Worship:
Circuit plan and directory
Other costs:
Circuit office
Resources
Payroll admin cost
Subscriptions
Miscellaneous
Total		 General
CMTF
Restricted
Total
2019
375
375
815
1,636
1,636
1,567
2,228
2,228
3,211
480
480
480
356
356
456
4,416
4,416
6,296
9,491
9,491
12,825

17

Croydon Methodist Circuit

Notes to the financial statements for the year ended 31 August 2020

12. Payments to trustees

The Circuit does not make payments to trustees other than to reimburse expenditure properly incurred in the charitable activities of the Circuit.

13. Fee to Independent Examiner

A fee of £1,140 was charged by the Independent Examiner for the examination of the Circuit’s accounts and accounting records.

14. Circuit manses and equipment

The Circuit Manses are all freehold properties and their value is shown as the deemed historical cost representing each property’s carrying value at 1 September 2015 or acquisition value if purchased after that date (see Note 1 (xii). The cost of extensions to freehold properties since 1 September 2015, or acquisition date if later, are capitalised.

Office equipment consists of one computer in the Circuit Office

14.1 Cost or valuation

Cost or valuation
Balance brought forward at
1 September, at cost
Additions in the year
Revaluations in the year
_Less:_Disposals in the year
Gain on sale
Balance carried forward		 Office
Land
Buildings
Equipment
Total
£
£
£
£
704,100
1,458,748
1,336
2,164,184
704,100
1,458,748
1,336
2,164,184

14.2 Accumulated depreciation

Accumulated depreciation
Balance brought forward at
1 September
Depreciation charge for the year
Balance carried forward		 Office
Land
Buildings
Equipment
Total
£
£
£
£
1,336
1,336
0
0
1,336
1,336

14.3 Net book value

Brought forward
Balance carried forward		 Office
Land
Buildings
Equipment
Total
£
£
£
£
704,100
1,458,748
0
2,162,848
704,100
1,458,748
0
2,162,848

18

Croydon Methodist Circuit

Notes to the financial statements for the year ended 31 August 2020

15. Debtors and prepayments

All trade debtors shown at the relevant year end were received in the following year. Debtors refer to the General Fund.

Trade debtors
Circuit assessments (net of provisions)
Loan to Parchmore Methodist Church (a related party)
Prepayments and accrued income
Total (net)		 2019 – 20
2018 – 19
£
£
0
0
13,000
19,000
9,917
11,263
22,917
30,263

16. Trustees for Methodist Church Purposes

The funds that support the Circuit Model Trust Fund are held by TMCP in Trustees Interest Funds on which interest is credited to the accounts each month. These are regarded as medium and 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 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.

17. Central Finance Board (CFB) and Cash at Bank

The Circuit has a current accounts at Barclays Bank plc, an authorised institution. The sums held on those accounts are immediately available. In addition the Circuit has a 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. These sums are viewed as being liquid.

18. Creditors and accrued expenses

Creditors and accrued expenses refer to the General Fund

Creditors and accruals
Trade Creditors
Accruals and deferred income
Total
Maturity analysis of basic financial
instruments
Trade creditors
Trade Creditors
Accruals
Total		 2020
2019
£
£
0
0
59,499
66,005
59,499
66,005
Accrued at
Accrual made
Accrued at
01-Sep-19
Paid in year
in year
31-Aug-20
0
0
0
0
66,005
(66,005)
59,499
59,499
66,005
(66,005)
59,499
59,499

It is expected that all sums accrued at 31 August 2020 will be paid during the year to 31 August 2021.

19

Croydon Methodist Circuit

Notes to the financial statements

for the year ended 31 August 2020

19. Long Term Liabilities

The Circuit has no long term liabilities as at 31 August 2020 (2019: £Nil)

20. Unrestricted Funds

20.1 General Fund – balance £2,266,983 at 31 August 2020 (2019: £2,246,848)

The purpose of the fund is for use at the discretion of the trustees in the furtherance of the general objectives of the Circuit and which have not been designated for other purposes. About 97% of this fund is held as freehold properties. During the year £9,410 was paid out as grants and donations from the General Fund.

20.2 Circuit Model Trust Fund – balance £140,051 at 31 August 2020 (2019: £156,520)

The purpose of the fund is for use at the discretion of the trustees in the furtherance of the general objectives of the Circuit. Its main source of income is the contributions from the sale of manses in the Circuit.

Although this is technically an Unrestricted Fund under the control of the Circuit Meeting, prior approval is still required from the District to utilise these funds. Methodist Standing Orders 930, 913 and 917(2) are applicable.

21. Summary of movements on significant individual funds

Fund
General Fund
Circuit Model Trust
Fund
Total Funds
Fund
General Fund
Circuit Model Trust
Fund
Total Funds		 Balance at
Balance at
01-Sep-19
Income
Expenditure
Transfers
31-Aug-20
£
£
£
£
£
2,246,828
327,841
(319,800)
12,114
2,266,983
156,520
1,284
(5,639)
(12,114)
140,051
2,403,348
329,125
(325,439)
0
2,407,034
Balance at
Balance at
01-Sep-18
Income
Expenditure
Transfers
31-Aug-19
£
£
£
£
£
2,253,369
337,932
(366,473)
22,000
2,246,828
184,080
1,512
(7,072)
(22,000)
156,520
2,437,449
339,444
(373,545)
0
2,403,348

Transfers from the Circuit Model Trust Fund were to facilitate major repairs to circuit manses.

22. 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. Principally this contribution is by serving on committees of the Circuit that deal with mission, manses, finance, policy, grants, training, development. We are grateful to all of them for their help and commitment.

20

Croydon Methodist Circuit

Notes to the financial statements

for the year ended 31 August 2020

23. Capital commitments and contingent liabilities

There were no capital commitments at the year end (2019: £nil). The circuit had contingent liabilities of £7,000 at the year end (2019: £7,000) representing grants awarded subject to conditions which had not yet been met at that date.

24. Lease Commitments

The Circuit has contracts or obligations for the following:-

There are short term obligations for telephones and ancillary equipment at the Circuit Office. The total annual cost in not considered material.

21

Independent Examiner's Report to the Trustees of the Croydon Methodist Circuit I report lo the charity Iruslees on my examination of the accounts of Croydon Methodist Circuit (the charilyl foi the year ended 31 August 2020 set out on pages 10 10 21. Responsibilities and basis of report As the charity's Iruslees you are responsible for the preparation of the accounts in accordan¢e with the reqLJirements of the Charities Act 20111'lhe Acl'l. I report in respect of my examination of the Church's accounts as 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 14515llbl of the Act. Independent examinerfs statement Since the charity's gross income exceeded £250.000 your examiner musl be a member of a body listed in seelion 145 01 the 2011 Act. I confirm that l am qualified to undertake the examination because l am a member of the Institute of Chartered Accounlanls in England and Wales. which is one of the li51ed bodies. I have completed my examination. I confirm that no matters have come to my attention in conne¢lion with the examination giving me cause lo believe that in any material respect.. accounting records were not kept in respect of the charity as required by section 130 01 the Act., or 2. the accounts do nol accord with those records,. or 3. the accounts do not Comply with the applicable requirements concerning the form and content of accounts sel out in the Charities {Account5 and Report) Regulations 2008 other than any requirement that the ac¢ounls give a 'liue and fair view. which 15 not a matter considered as part of an independent examination,, or 4. the accounts have not been prepared in accordance with the methods ancl principles of Accounting and Reporting by Charities. Statement of Recommended Practice applicable lo ¢harities preparing their accounts in accordance with the Financial Reporb'ng Stsndard applicable in the UK and the Republic of Ireland IFRS 1021. I have no concerns and have come across no other matters in connection with the examination lo which attention should be drawn in this report in order lo enable a proper understanding of the accounts to be reac ed. Paul Newton FCA Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton sUr￿Y SM12SW 081e'. 22