**REGISTERED CHARITY NUMBER: 1129523** 

## **REPORT OF THE TRUSTEES AND** 

# **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** 

# **FOR** 





**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

**CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** 

||**Page**|
|---|---|
|**Report of the Trustees**|1 to  9|
|**Report of the Independent Auditors**|10 to  11|
|**Statement of Financial Activities**|12 to  13|
|**Balance Sheet**|14 to  15|
|**Cash Flow Statement**|16|
|**Notes to the Financial Statements**|17 to  26|
|**Detailed Statement of Financial Activities**|27 to  28|





**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

The trustees present their report with the financial statements of the charity for the year ended 31 August 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). 

## **OBJECTIVES AND ACTIVITIES** 

## **Objectives and aims** 

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

The Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church Any charitable purpose for the time being of any Connexional, District, Circuit, local or other organisation of the Methodist Church 

Any charitable purpose for the time being of any society or institution or subsidiary or ancillary to the Methodist Church; Any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church. 

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 benefit guidance on advancing our objectives as set out above. 

The calling of the Methodist Church is to respond to the Gospel of God's love in Christ and to live out its discipleship in worship and mission. We will use the Circuit's resources to: 

Increase awareness of God's presence and celebrate God's love; Help people to grow and learn as Christians through mutual support and care; 

Be a good neighbour to people in need and challenge injustice; Make more followers of Christ. 

In all of the above we will seek to work ecumenically wherever possible. 

We will follow the Holy Spirit who is calling us to: LOVE God with all our heart, soul, mind, and strength; LOVE one another, as Jesus loved his followers,; 

LOVE all others, even enemies, as God does and; 

be DISCIPLES OF JESUS, becoming like Christ, behaving like Christ, bringing others to meet and follow Christ working for GOD'S KINGDOM that God's will be done in the Church, and on earth for all, as it is in heaven. 

We seek to put our Mission Statement into action in the following ways: 

Resourcing worship in each church, as required, week by week and also by worshipping together as a whole Circuit to celebrate particular special occasions within the Circuit; 

Exercising ministry ecumenically with a number of ministerial colleagues from other denominations with whom we are in partnership to varying degrees; 

Involving Supernumerary (retired) ministers in leading worship and other aspects of Circuit life as far as they wish and as their circumstances permit; 

Continuing partnerships with Methodist charities and other agencies and charities; Supporting chaplaincy within the MHA Care Homes within the Circuit; Providing regular communication of useful information and links on relevant issues: 

Providing practical and prayer support to churches to enable them to resource their local mission. 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Circuit strategic plan** 

The achievement of the implementation of the circuit strategy to reduce to 5 ministers has been in place from 2021.  To that end, Rev Andrew Hollins moved away from the circuit summer 2022, Rev Michael Giles took on the responsibility of Superintendent, Rev Silas Wood became deputy superintendent and Rev Leslie Noon joined the team from September 2022.  Together with colleagues Rev Lorna Valentine and Rev Chris Sandy, this achieved the 5 ministers that the strategy required.  Additional circuit support was deemed necessary with the reduced ministerial staffing and Stephanie Field has taken on additional responsibilities to become the Circuit Manager. 

The strategy group continue to meet to look at stationing and staffing over the next 3 to 5 years which were deemed to be critical in the life of the circuit.  The group looked at budgets and plans for either 4 or 5 ministers from 2024 when Rev Lorna Valentine leaves, but felt that at the present time, 5 was the most workable option. 

Page 1 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Circuit strategic plan (continued)** 

Suggestions for areas of pastoral charge were shared with the Circuit meeting of February 2023 and feedback and consultation is ongoing.  A finalised strategic plan and profile for stationing will need to be agreed by the June 2023 Circuit Meeting. 

## **Staffing matters** 

Review of lay appointments.  Stephanie Field is now the Circuit Manager which encompasses her Safeguarding Role Appointment of assistant superintendent 

Leslie Noon accepted an appointment for stationing from 1 September 2022 to Priory, Howard Memorial Church Cardington and TSB comprising of Trinity, Sandy and, Beeston. 

Rev Silas Wood invitation was extended by 3 years to August 2026 

## **Property matters** 

The Circuit bought a manse in Biggleswade at a total cost of £525,442. This was to replace an existing manse which was sold for proceeds of £581,631. 

The Putnoe manse has been reclassified as an investment property and was let during the year. 

The Coles Close manse in Bedford, having been deemed to not meet CPD requirements was reclassified as an investment property in August once it was vacated by the superintendent minister once he left the Circuit. It has now been let 

The Oakley manse was sold for proceeds of £517,137. 

Following the energy efficiency review of the Wootton manse the solar panels were fitted to its roof. 

## **Closure of churches** 

A decision has been taken to cease worship at Wilstead Methodist Church was accepted by the circuit at the September 21 circuit meeting. The Circuit took on the responsibility of the building and it order to minimize costs let a charity use the facilities at no cost to them. 

The church building is now in the process of being sold having had an offer accepted after the year end of £407,110. 

Cranfield Methodist Church ceased to Worship on 28[th] August 2022 and is under offer. 

## **Ecumenical Matters** 

It has continued to explore local ecumenical partnerships at Cardington, Stewartby and Lidlington Andrew Hollins, The Superintendent Minister served as the Methodist District ecumenical officer for Bedfordshire and chairs churches together in Bedfordshire up to August 2022. 

## **Worship** 

The Circuit continued to encourage churches in the diversity of their worship and helped to resource this through the preaching plan. 

The Local Preachers and Worship Leaders Meeting continued to meet regularly, exercising oversight over accredited and trainee Local Preachers, plus commissioned and trainee Worship Leaders. 

## **Safeguarding** 

The Circuit continued the monitoring of DBS requirements (including renewals) and the delivery of Creating Safer Space training for all appropriate people working with children and vulnerable adults. The District introduced on line training during the year. 

## **Other Circuit matters** 

The Circuit magazine continued to be published quarterly alongside the quarterly Preaching Plan. Meetings of Church property stewards and treasurers were held to ensure all churches were supported and informed about their current obligations and responsibilities.  Eco Church support meetings were held and we became the 2[nd] Circuit in the Country to achieve a A Rocha Eco Church Bronze Award 

## **FINANCIAL REVIEW** 

## **Financial position** 

The Mission Resources Mission Stream (MRMS) continued to meet throughout to consider the resourcing issues of matters such as property, finance and human resources including requests from churches and make recommendations to the Circuit meeting where applicable. 

Page 2 



**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **FINANCIAL REVIEW** 

## **Financial position** 

The Circuit Meeting was presented with 3 draft Budgets for 2022/26 showing figures for 2022/23 to 2025/26; maintaining 5 Presbyters - deficit £211,677, 2023/26 - 5 Presbyters dropping to 4 in final year, deficit £163,279 and 2023-/6 5 Presbyters dropping to 4, deficit £118,280. The strategic group noted the effects on budget of the number of ministers with 5 being unsustainable into the future with current resources.  Churches have been asked to look at ways in which they can work in partnership or sharing into the future to release the current burdens on resources.  In addition, a review of the circuit share system has been deemed necessary and so it is unlikely that churches will continue to set their own share offer into the future.  This remains a work in progress. 

## **Principal funding sources General Fund** 

The principal source of income for the Circuit is the share offers paid by the Churches. The Circuit continues to have a policy of asking each Church to decide how much they can afford to pay given their own funds and together with the Circuit's financial requirements.  Church treasurers meet on at least an annual basis to discuss the issues before making recommendation to their individual church councils. Each church council is asked to agree an amount which is then included in the following year's Circuit budget which is approved by the Circuit meeting. Circuit share offers are due quarterly in advance. Total share offers amounted to £345,465  which is a significant reduction over pre Covid years. This reflects the current state of finances in individual churches which have been, in most cases, negatively impacted by the restrictions imposed by Covid. This financial situation is unlikely to be reversed in the the foreseeable future. 

The principal revenue expenditure of the Circuit is the payment of Circuit staff which amounted to £216,499 Whilst Ministers are appointed by the Connexion they are paid for by the Circuit according to rates agreed by Methodist Conference. 

## **Circuit Model Trust Fund (CMTF)** 

The principal source of income for the Circuit Model Trust Fund is the sale of properties and associated investment income of those resulting funds. Two manses were sold during the year which amounted to net proceeds of £1,078,771. 

Total District Levy was £1,002 which will be used to further mission work within the Connexion. This continues to reduce year on year as funds held dwindles. 

## **Reserves policy** 

The Circuit Model Trust Fund (CMTF) has arisen as result of the sale of manses and church buildings no longer required within the Circuit. The use of these funds is determined by CPD and are therefore recognised as being designated funds. 

The general reserves policy is to maintain adequate funds to meet the day to day expenditure of the Circuit. This was reviewed during the year and set at a level of six months of general expenditure. 

The General Fund as at 31 August 22 amounted to £3,698,614 of which £3,615,346 can only be realised on the sale of fixed assets comprising predominantly of five manses and three  investment properties meaning there was £83,268 of funds available to meet the day to day financial requirements of the Circuit. This is equivalent to approximately just less than three months of normal expenditure. 

Unrestricted funds also includes £22,838 designated for the manse repair costs where these are over and above expected annual costs. The reduction during the year relates to the installation of solar panels. 

## **FUTURE PLANS** 

The Strategic Working Group (SWG) continues to meet to consider the Strategic Plan and offer advice to the Circuit Leadership Team (CLT), who report to the Circuit Meeting. 

A decision has been made regarding Cranfield Methodist Church ceased to worship on 28[th] August 2022.  The building is currently up for sale. 

Following extensive consultation and increased working together, at the Spring Church Councils, Ampthill, Flitwick and Clophill Methodist Church decided to become 1 church across 3 sites.  The model of working will be carefully considered and explored with a view to others in the circuit learning from the experience and making decisions about changed ways of working and sharing into the future as appropriate for the local church context. 

The Putnoe, Coles Close and Kempston Manses are being let. The manse in Biggleswade is now completed and occupied. 

Page 3 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document** 

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. 

The North Bedfordshire Methodist Circuit was formed on 1 September 2011 from the merger of the previous Bedford South and Ampthill Circuit, the Biggleswade Circuit and the Bedford North Methodist Circuit. The charity number was carried forward from the old Bedford North Circuit. It is part of the Bedfordshire, Essex and Hertfordshire District which in turn is part of the Methodist Connexion in Great Britain whose constitution is governed by an Act of Parliament. 

The Circuit is governed by the Deed of Union (1932) and the Methodist Church Act 1976 as amended March 2011. Overall control of the Circuit rests with the Methodist Conference. The Connexional Office implements decisions made by Conference and is also responsible for the stationing of ministers in individual Circuits. Connexional decisions are passed to the Chair of the District and the appropriate Officers of the District for regional implementation. The District passes the control down to Circuit level for local implementation by the Superintendent Ministers, ministerial staff and Circuit Stewards via the medium of the Circuit Meeting. 

The membership of the Circuit Meeting is laid down in the Constitutional Practices and Discipline of the Methodist Church. 

## **Charity constitution** 

In simple terms the Circuit Meeting is made up of: Circuit Ministers; Circuit Stewards and other office holders undertaking Circuit roles; Circuit lay workers; representatives from the churches within the Circuit (being the church Treasurer, church steward plus one other elected member per 100 members of the church); other Methodist Ministers (including Supernumeraries) residing within the Circuit wishing to take up appointment and Authorised Ministers working with Methodist churches within the Circuit who wish to take up appointment. The voting members of the Circuit meeting are the Managing Trustees of the Circuit. 

Certain matters, principally those relating to property issues, must be referred to the District and the Connexional office - through the Trustees for Methodist Church Purposes (TMCP), acting as Custodian Trustees, but most matters are determined by the Circuit meeting itself. 

## **Recruitment and appointment of new trustees** 

Whilst the appointment of the managing trustees is determined in accordance with the Standing Orders of the Methodist Church we aim to ensure members of the Circuit Leadership Mission Stream and the Circuit Stewards include a broad range of experience and expertise including pastoral, financial and property matters. 

Funds are allocated within the Circuit and also accessed via the District to provide training for ordained and lay members of staff. The District offers training for all new Circuit Stewards. 

All members of the Circuit meeting are encouraged to read the leaflet " The Role of a Trustee in the Methodist Church". 

## **Organisational structure** 

The Circuit Stewards together with the Superintendent Minister, other Ministers and Probationers are responsible for ensuring the decisions of the Circuit meetings are upheld and acted upon. 

Both the Circuit Stewards and the Circuit Leadership Team  meet on a regular basis to review the work within and/or policies of the Circuit and to make recommendations to the Circuit Meeting. They also have an overview of the Circuit Mission Streams who coordinate the varied aspects of the Circuit's work and are as follows: 

The Strategic Working Group meets as directed by the leadership team to review the strategic plan and make recommendations on how to implement it. It is made up on minister and steward representations. 

The manse committee meets twice a year. This meeting is responsible for implementing the agreed maintenance programme for the manses and consists of the circuit property and finance stewards and manse stewards and secretaries. 

Mission resources mission stream - responsible for the overview and management of all resources including property and finance 

Social Action mission stream 

The management of the Circuit is supported by paid, part time lay workers who are the Circuit Manager and Finance Officer. 

Page 4 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management** 

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. 

In accordance with the Charities (Accounts and Reports) Regulations 2008, the Circuit, through the Circuit Leadership Team (CLT), has carried out a review of our policies. The Circuit has: 

- Identified the need to produce a written Health & Safety Policy 

- Reviewed its insurance cover and sums insured to ensure they are appropriate for the current environment 

- Reviewed and updated (where necessary) the Circuit Safeguarding policy 

## **The Trustees for Methodist Purposes (TMCP)** 

The Trustees for Methodist Church Purposes hold the Circuit's Model Trust Funds. From these funds they deduct a levy, proportional to the funds held, which goes towards the running of the Methodist Church nationally. They act as Custodian Trustees holding the title to the eight properties (Manses) in which the Ministers live. The Circuit, acting as Managing Trustee, is responsible for the day to day management of the properties and has the right and obligations of exercising power or discretion over them. 

The individual church buildings are the responsibility of their Church Councils. 

## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 1129523 

## **Principal address** 

c/o Willington Methodist Church Station Road Willington MK44 3QH 

## **Auditors** 

HW East Midlands Audit LLP Woburn Court, 2 Railton Road Woburn Road Ind Est Kempston Bedford MK42 7PN 

## **Surveyors** 

Cube Building Consultancy Franklin House 2 Steppingley Road Flitwick Bedford MK45 1AJ 

## **Bankers** 

National Westminster Bank Plc 81 High Street Bedford 

Central Finance Board 9 Bonhill Street London EC2A 4PE 

Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ 

Page 5 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES** 

**FOR THE YEAR ENDED 31 AUGUST 2022** 

## **Trustees** 

The Circuit Meeting comprises the following trustees and non-voting members. 

## **Circuit Ministers** 

Rev Andrew Hollins   - Superintendent Minister and chair of Circuit meetings (to 31 August 22) Rev Michael Giles - Superintendent Minister and chair of Circuit meetings from 1 September 22) Rev Lorna Valentine Rev Silas Wood (Deputy Superintendent (from 01/09/2023) Rev Chris Sandy (from 01/09/2021) Rev Leslie Noon (from 01/09/2022) 

## **Circuit Stewards** 

Michael Carr Anne Foley (to 23/12/2021) Nicholas Guy Jane McVey Alan Davis Philip Timms (from 01/09/2022) Christina Costin Webb (from 23[rd] February 2023) 

## **Circuit Finance Steward** 

Suzanne Goodson (to 31/08/2022) 

## **Circuit Property Steward** 

Richard Ward (non voting member) 

## **Circuit Safeguarding Officer** 

Stephanie Field (Voting from 23/12/2021) 

## **Circuit Meeting Secretary** 

Mary Millar 

## **Local Preacher Meeting Secretary** 

Janet Watts 

## **Supernumerary Ministers** 

Jeremy Arthern (to 31/05/2022) Rev  Cass Howes (From 01/09/2022) Rev Julie Bradshaw (From 01/09/2021) 

## **Methodist Ministers resident in Circuit** 

**District Synod Representatives (DSR)** Margaret Olney (to 29/02/2023) Maryan Pateman Alison Baalham (to 07/07/2022) Jenny Snelson Roz Addington 

## **Church Representatives:** 

## **Ampthill** 

Brian Kerr (to 14/03/2022) Patsy Aston Ann Jones (from 14/03/2022) Debbie Bushman (from 08/03/2021) 

**Beeston** 

Sonia Butler Jennifer Sutcliffe Cynthia Dent **Clapham** Rosemary Isaacs Helen Gadsden Carolyn Maynard 

Page 5 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

**REPORT OF THE TRUSTEES** 

**FOR THE YEAR ENDED 31 AUGUST 2022** 

**Clophill** Anne Cooper John Errick Fraser Wood **Cranfield** Paul Lowe (to 28/08/2022) Stephen Hobbs (to 28/08/2022) Pat Davies (to 28/08/2022) **Flitwick** Angela Brydon Margaret Olney (from 01/11/2022) Anne Foley (from 15/02/2023) 

**Haynes** Mervyn Barden Glennis Barden Margaret Braybrook **Henlow** Susan Watson Brenda Ballantine Pat Larman (to 09/03/2023) **Howard Memorial Church (Cardington)** Ruth Caves Ken Oliver **Kempston East** Roger Skipper Rosemary Simms Barbara Tipping Julie Constant **Kempston West** Peter Smith Lynda Smith Jean Prettyman **Langford** Jenny Broadbridge Gwen Arnott Stephanie Barker **Lidlington LEP** Tim Mason Joseph Peall Jeff Bulled – Non Voting Member **London Road** Andrew Constant John Caves (DSR) Courtney Aims (from 22/08/2021) **Oakley** Jeanette Letch Graham Follett Noel Evans (to 01/04/2023) **Park Road** Clive Kirkman Ruth Johnson (to 31/05/2022) Paul Lowe Janice Skerman (from 25/10/2022) **Priory** Tony Johnson (to 31/05/2021) Carmen Rowe Keith Gaunt Liz Little (to 21/02/2023) Lynne Gound **Putnoe Heights** Jenny Snelson Sue Allen Andrew Dennison 

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**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES** 

**FOR THE YEAR ENDED 31 AUGUST 2022** 

## **Sandy** 

David Germany Andrea Thorpe (to 08/02/2023) Jenny Endersby (from 08/02/2023) Jane Germany **Sharnbrook** Mike Bonney David Barnes Marian Blyth **Shefford** Mairi Perks Andi Pepper Derek Willows (to 31/05/2022) Joe Pepper from (07/07/2022) **Stewartby** Elaine Sullivan – Non voting member **Trinity (Biggleswade)** Owen Williams David Harrison Heather Harrison **Upper Caldecote** Kim Curtis Jon Payne Sandra Payne (from 1 September 21) **Willington** Keith Lilley Paul Phipp Jeanette Pearce **Wootton** David Goodson (to 31 August 22) Thea Lea (to 22[nd] April 2023) Brian Addington (from 1 August 22) Roz Addington 

## **EVENTS SINCE THE END OF THE YEAR** 

Information relating to events since the end of the year is given in the notes to the financial statements. 

## **ENDOWMENT FUNDS** 

The Circuit has Endowment Funds which have arisen as a results of bequests in favour on the Circuit. In accordance with Standing Orders these monies are held by TMCP who manage them on its behalf. 

Page 8 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charity 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 financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Approved by order of the board of trustees on 23 June 2023 and signed on its behalf by: 


........................................................................ Rev M Giles - Trustee 

Page 9 



## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **Opinion** 

We have audited the financial statements of North Bedfordshire Methodist Circuit (the 'charity') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 31 August 2022 and of its incoming resources and application of resources, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities set out on page 9, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

Page 10 



## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **Our responsibilities for the audit of the financial statements** 

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below: 

- We obtained an understanding of the nature of the sector in which the charity operates, including the legal and regulatory framework applicable to the charity. We consider that the most significant are the Charities Statement of Recommended Practice, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and the charity’s constitution. 

- We obtained an understanding of how the charity complies with these requirements by discussions with those charged with governance and reviewing the minutes of Trustee meetings. 

- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with those charged with governance. 

- We inquired of those charged with governance about their own identification and assessment of the risk of irregularities, including any known actual, suspected or alleged instances of fraud. 

- We discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to irregularities or fraud. 

- Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/auditassurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report. 

## **Use of our report** 

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. 


Alberto Di Lorenzo FCA Senior Statutory Auditor 

HW East Midlands Audit LLP, Chartered Accountants and Statutory Auditor First Floor Woburn Court 2 Railton Court Kempston MK42 7PN 

Date: 

_HW East Midlands Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006._ 

Page 11 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **FOR THE YEAR ENDED 31 AUGUST 2022** 

|Notes<br>**INCOME AND ENDOWMENTS FROM**<br>**Charitable activities**<br>Work of the Circuit<br>Other trading activities<br>2<br>Investment income<br>3<br>Other income<br>**Total**<br>**EXPENDITURE ON**<br>Raising funds<br>5<br>**Charitable activities**<br>6<br>Work of the Circuit<br>**Total**<br>Net gains/(losses) on investments<br>**NET INCOME/(EXPENDITURE)**<br>**Transfers between funds**<br>19<br>**Net movement in funds**<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>**TOTAL FUNDS CARRIED FORWARD**|Unrestricted<br>funds<br>£<br>**345,465**<br>**33,019**<br>**692**<br>**586,724**<br>**965,900**<br>**8,214**<br>**375,699**<br>**383,913**<br>**570,573**<br>**1,152,560**<br>**(553,379)**<br>**599,181**<br>**3,099,433**<br>**3,698,614**|CMTF<br>£<br>**-**<br>**-**<br>**3,153**<br>**-**<br>**3,153**<br>**-**<br>**1,116**<br>**1,116**<br>**(1,044)**<br>**993**<br>**553,379**<br>**554,372**<br>**(188,671)**<br>**365,701**|Restricted<br>funds<br>£<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**100**<br>**100**<br>**-**<br>**(100)**<br>**-**<br>**(100)**<br>**1,321**<br>**1,221**|
|---|---|---|---|



The notes form part of these financial statements 

Page 12 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

**FOR THE YEAR ENDED 31 AUGUST 2022** 

|Notes<br>**INCOME AND ENDOWMENTS FROM**<br>**Charitable activities**<br>Work of the Circuit<br>Other trading activities<br>2<br>Investment income<br>3<br>Other income<br>**Total**<br>**EXPENDITURE ON**<br>Raising funds<br>5<br>**Charitable activities**<br>6<br>Work of the Circuit<br>**Total**<br>Net gains/(losses) on investments<br>**NET INCOME/(EXPENDITURE)**<br>**Transfers between funds**<br>19<br>**Net movement in funds**<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>**TOTAL FUNDS CARRIED FORWARD**|Endowment<br>fund<br>£<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**(966)**<br>**(966)**<br>**-**<br>**(966)**<br>**15,375**<br>**14,409**|**31.8.22**<br>**Total**<br>**funds**<br>**£**<br>**345,465**<br>**33,019**<br>**3,845**<br>**586,724**<br>**969,053**<br>**8,214**<br>**376,915**<br>**385,129**<br>**568,563**<br>**1,152,487**<br>**-**<br>**1,152,487**<br>**2,927,458**<br>**4,079,945**|31.8.21<br>Total<br>funds<br>£<br>378,306<br>16,259<br>1,469<br>-<br>396,034<br>4,372<br>445,230<br>449,602<br>182,962<br>129,394<br>-<br>129,394<br>2,798,064<br>2,927,458|
|---|---|---|---|



The notes form part of these financial statements 

Page 13 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **BALANCE SHEET 31 AUGUST 2022** 

|Notes<br>**FIXED ASSETS**<br>Tangible assets<br>13<br>**Investments**<br>Investments<br>14<br>Investment property<br>15<br>**CURRENT ASSETS**<br>Debtors<br>16<br>Cash at bank<br>**CREDITORS**<br>Amounts falling due within one year<br>17<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**NET ASSETS**|Unrestricted<br>funds<br>£<br>**2,183,213**<br>**2,155**<br>**1,400,000**<br>**3,585,368**<br>**33,616**<br>**170,108**<br>**203,724**<br>**(90,478)**<br>**113,246**<br>**3,698,614**<br>**3,698,614**|CMTF<br>£<br>**-**<br>**15,569**<br>**-**<br>**15,569**<br>**7,706**<br>**343,564**<br>**351,270**<br>**(1,138)**<br>**350,132**<br>**365,701**<br>**365,701**|Restricted<br>funds<br>£<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**1,221**<br>**1,221**<br>**-**<br>**1,221**<br>**1,221**<br>**1,221**|
|---|---|---|---|



The notes form part of these financial statements 

Page 14 

continued... 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **BALANCE SHEET - continued 31 AUGUST 2022** 

|Notes<br>**FIXED ASSETS**<br>Tangible assets<br>13<br>**Investments**<br>Investments<br>14<br>Investment property<br>15<br>**CURRENT ASSETS**<br>Debtors<br>16<br>Cash at bank<br>**CREDITORS**<br>Amounts falling due within one year<br>17<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**NET ASSETS**<br>**FUNDS**<br>19<br>Unrestricted funds<br>Restricted funds<br>Endowment funds<br>**TOTAL FUNDS**|Endowment<br>fund<br>£<br>**-**<br>**14,409**<br>**-**<br>**14,409**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**14,409**<br>**14,409**|**31.8.22**<br>**Total**<br>**funds**<br>**£**<br>**2,183,213**<br>**32,133**<br>**1,400,000**<br>**3,615,346**<br>**41,322**<br>**514,893**<br>**556,215**<br>**(91,616)**<br>**464,599**<br>**4,079,945**<br>**4,079,945**<br>**4,064,315**<br>**1,221**<br>**14,409**<br>**4,079,945**|31.8.21<br>Total<br>funds<br>£<br>2,537,349<br>31,988<br>450,000<br>3,019,337<br>29,965<br>205,630<br>235,595<br>(327,474)<br>(91,879)<br>2,927,458<br>2,927,458<br>2,910,762<br>1,321<br>15,375<br>2,927,458|
|---|---|---|---|



The financial statements were approved by the Board of Trustees and authorised for issue on 23 June 2023 and were signed on its behalf by: 


............................................. Rev M Giles - Trustee 

The notes form part of these financial statements 

Page 15 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022** 

|Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>22<br>Net cash used in operating activities<br>**Cash flows from investing activities**<br>Purchase of tangible fixed assets<br>Sale of tangible fixed assets<br>Interest received<br>Net cash provided by/(used in) investing activities<br>**Cash flows from financing activities**<br>Repayment of loans made to<br>Repayment of loans received<br>Net cash (used in)/provided by financing activities<br>**Change in cash and cash equivalents in**<br>**the reporting period**<br>**Cash and cash equivalents at the**<br>**beginning of the reporting period**<br>**Cash and cash equivalents at the end of**<br>**the reporting period**|**31.8.22**<br>**£**<br>**(11,008)**<br>**(11,008)**<br>**(525,442)**<br>**1,078,771**<br>**3,442**<br>**556,771**<br>**3,500**<br>**(240,000)**<br>**(236,500)**<br>**309,263**<br>**205,630**<br>**514,893**|31.8.21<br>£<br>(59,358)<br>(59,358)<br>(556,687)<br>-<br>970<br>(555,717)<br>-<br>240,000<br>240,000<br>(375,075)<br>580,705<br>205,630|
|---|---|---|



The notes form part of these financial statements 

Page 16 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** 

## **1. ACCOUNTING POLICIES** 

## **Basis of preparing the financial statements** 

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the  Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice. 

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. 

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. 

## **Income** 

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. 

Income from trading activities is recognised as earned as the related services are provided. 

Investment income is recognised on a receivable basis. 

Other income is recognised when it is receivable. 

## **Expenditure** 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. 

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. Grants for property schemes are recognised when they have been fully approved,  it is likely that the schemes will go ahead and the total costs can be estimated with a  degree of certainty. 

## **Tangible fixed assets** 

Tangible fixed assets are capitalised if they can be used for more than one year, and cost at least  £1,000.  They are valued at cost or a reasonable value on receipt. Provision is made for depreciation  to ensure the cost less residual value is written off over their useful economic useful lives on a straight line basis. 

The useful lives of fixed assets are: 

Plant and equipment      4 years Freehold property         50 years 

No depreciation is charged on freehold property as they are maintained to a standard to ensure their residual values exceeds their costs. 

Manses are classed as freehold property whilst their intended  long term use is to house ministers. They are reclassified as investment properties once a decision has been taken that their use will change on a permanent basis from housing ministers to being rented out to generate income. 

Page 17 

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**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **1. ACCOUNTING POLICIES - continued** 

## **Investment property** 

Investment properties are properties which have been identified as unsuitable to house ministers but which the circuit wishes to retain in order to generate income needed to meet the operational requirements of the circuit, 

Investment properties are measured at fair value at each reporting date with changes in fair value recognised in 'net gains / (losses) on investments' in the SoFA. 

## **Taxation** 

The charity is exempt from tax on its charitable activities. 

## **Fund accounting** 

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. 

The Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as unrestricted and is therefore shown as a material designated fund. 

Restricted funds can only be used for particular restricted purposes within the objects of the charity.  Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. 

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. 

## **Pension costs and other post-retirement benefits** 

Retirement benefits to presbyters are provided by the Methodist Ministers Pension Scheme (MMPS). This is a defined benefit scheme and the assets are held separately from those of the Circuit. 

Presbyters are not legally employed by the Circuit but they are treated as employed by the Methodist Connexion with their total remuneration being charged to the Circuit only whilst they are stationed within it. The MMPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each period. 

The Circuit operates a defined contribution pension scheme for all other employees. Contributions payable to this are charged to the Statement of Financial Activities in the period to which they relate. 

## **Debtors and creditors receivable/payable within 1 year** 

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. 

## **Judgements** 

No judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies. 

## **Going concern** 

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. 

## **2. OTHER TRADING ACTIVITIES** 

|**OTHER TRADING ACTIVITIES**|||
|---|---|---|
||**31.8.22**|31.8.21|
||**£**|£|
|Income from photocopying|**77**|59|
|Rental income from manse not required in the short term|**32,942**|16,200|
||**33,019**|16,259|



Page 18 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

|**3.**<br>**INVESTMENT INCOME**<br>Dividend income<br>Deposit account interest<br>**4.**<br>**INCOME FROM CHARITABLE ACTIVITIES**<br>Activity<br>Circuit share offers<br>Work of the Circuit<br>**5.**<br>**RAISING FUNDS**<br>**Other trading activities**<br>Costs associated with letting out the manse<br>**6.**<br>**CHARITABLE ACTIVITIES COSTS**<br>Work of the Circuit<br>**7.**<br>**GRANTS PAYABLE**<br>Work of the Circuit<br>The total grants paid to institutions during the year was as follows:<br>Other external grants|Direct<br>Costs<br>£<br>**371,245**|**31.8.22**<br>**£**<br>**403**<br>**3,442**<br>**3,845**<br>**31.8.22**<br>**£**<br>**345,465**<br>**31.8.22**<br>**£**<br>**8,214**<br>Support<br>costs (see<br>note 8)<br>£<br>**5,670**<br>**31.8.22**<br>**£**<br>**-**<br>**31.8.22**<br>**£**<br>**-**|31.8.21<br>£<br>499<br>970<br>1,469<br>31.8.21<br>£<br>378,306<br>31.8.21<br>£<br>4,372<br>Totals<br>£<br>**376,915**<br>31.8.21<br>£<br>350<br>31.8.21<br>£<br>500|
|---|---|---|---|



Grants are paid out of the Circuit Model Trust Fund. 

Page 19 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **8. SUPPORT COSTS** 

## **9.** 

|**SUPPORT COSTS**|||
|---|---|---|
|||Governance|
|||costs|
|||£|
|Work of the Circuit||**5,670**|
|**AUDITORS' REMUNERATION**|||
||**31.8.22**|31.8.21|
||**£**|£|
|Fees payable to the charity's auditors for the audit of the charity's financial|||
|statements|**6,000**|-|
|Independent Examiner's fee|**(330)**|1,860|



## **10. TRUSTEES' REMUNERATION AND BENEFITS** 

Presbyters and Deacons (ministers) are automatically members of the circuit meeting and are therefore trustees. All ministers receive remuneration by way of a standard stipend which is approved at The Methodist Conference on an annual basis. Superintendent Ministers also receive an allowance of 7.5% of the standard stipend. 

No other trustees received any remuneration. 

## **Trustees' expenses** 

Presbyters and the Circuit Outreach Development Enabler are reimbursed for their travel and subsistence whilst carrying out their duties. This includes to and from meeting in their capacity as trustees. 

During the year the Circuit paid expenses to 1  trustees (2021: Nil)   in addition to the above . 

## **11. STAFF COSTS** 

|Wages and salaries<br>Social security costs<br>Other pension costs|**31.8.22**<br>**£**<br>**165,111**<br>**14,779**<br>**36,609**<br>**216,499**|31.8.21<br>£<br>203,087<br>17,203<br>47,457<br>267,747|
|---|---|---|



The use of the word staff should be taken to include both  Presbyters and Deacons who are legally not employees but office holders. Whilst their relationship is technically with God and the Connexion, their stipends are funded from Circuit funds. 

Stipend for Connexional Year 21-22 was £25,824 per annum and superintendent ministers receive a 10% allowance. 

The average monthly number of employees during the year was as follows: 

||**31.8.22**|31.8.21|
|---|---|---|
|Ministers|**5**|7|
|Administrative support|**2**|2|
||**7**|9|



No employees received emoluments in excess of £60,000. 

Page 20 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

|**12.**<br>**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**<br>Unrestricted<br>Restricted<br>funds<br>CMTF<br>funds<br>£<br>£<br>£<br>**INCOME AND**<br>**ENDOWMENTS FROM**<br>**Charitable activities**<br>Work of the Circuit<br>378,306<br>-<br>-<br>Other trading activities<br>16,259<br>-<br>-<br>Investment income<br>590<br>879<br>-<br>**Total**<br>395,155<br>879<br>-<br>**EXPENDITURE ON**<br>Raising funds<br>4,372<br>-<br>-<br>**Charitable activities**<br>Work of the Circuit<br>431,939<br>13,291<br>-<br>**Total**<br>436,311<br>13,291<br>-<br>Net gains on investments<br>178,000<br>2,577<br>-<br>**NET**<br>**INCOME/(EXPENDITURE)**<br>136,844<br>(9,835)<br>-<br>**Transfers between funds**<br>473,775<br>(473,775)<br>-<br>**Net movement in funds**<br>610,619<br>(483,610)<br>-<br>**RECONCILIATION OF**<br>**FUNDS**<br>Total funds brought forward<br>2,488,814<br>294,939<br>1,321<br>**TOTAL FUNDS CARRIED**<br>**FORWARD**<br>3,099,433<br>(188,671)<br>1,321<br>**13.**<br>**TANGIBLE FIXED ASSETS**<br>Freehold<br>property<br>£<br>**COST**<br>At 1 September 2021<br>**2,537,349**<br>Additions<br>**525,442**<br>Disposals<br>**(500,230)**<br>Reclassification<br>**(379,348)**<br>At 31 August 2022<br>**2,183,213**<br>**DEPRECIATION**<br>At 1 September 2021 and 31 August 2022<br>**-**<br>**NET BOOK VALUE**<br>At 31 August 2022<br>**2,183,213**<br>At 31 August 2021<br>2,537,349||Endowment<br>fund<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>2,385<br>2,385<br>-<br>2,385<br>12,990<br>15,375<br>Fixtures<br>and<br>fittings<br>£<br>**559**<br>**-**<br>**-**<br>**-**<br>**559**<br>**559**<br>**-**<br>-||Total<br>funds<br>£<br>378,306<br>16,259<br>1,469<br>396,034<br>4,372<br>445,230<br>449,602<br>182,962<br>129,394<br>-<br>129,394<br>2,798,064<br>2,927,458<br>Totals<br>£<br>**2,537,908**<br>**525,442**<br>**(500,230)**<br>**(379,348)**<br>**2,183,772**<br>**559**<br>**2,183,213**<br>2,537,349|
|---|---|---|---|---|
||||||
||||||
||||||
||||||



Page 21 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **13. TANGIBLE FIXED ASSETS - continued** 

The Trustees for Methodist Purposes act as Custodian Trustees holding the title to the seven properties (Manses) in which the Ministers live. 

## **14. FIXED ASSET INVESTMENTS** 

Included in Fixed Asset Investments is an amount of £14,409  (2021 £15,375) representing two Endowment Funds both of which are invested in the TMCP Mixed Managed Fund. 

## **15. INVESTMENT PROPERTY** 

|**FAIR VALUE**<br>At 1 September 2021<br>Revaluation<br>Reclassification<br>At 31 August 2022<br>**NET BOOK VALUE**<br>At 31 August 2022<br>At 31 August 2021|**£**<br>**450,000**<br>**570,652**<br>**379,348**|
|---|---|
||**1,400,000**|
||**1,400,000**|
||450,000|



The Trustees for Methodist Purposes act as Custodian Trustees holding the title to the property. 

The fair value has been estimated by Roger Trudgill, a surveyor. 

Fair value at 31 August 2022 is represented by: 

|Valuation in 2021<br>Valuation in 2022<br>Cost<br>**1**<br>**DEBTORS**<br>**31.8.22**<br>**£**<br>Amounts falling due within one year:<br>Trade debtors<br>**1,439**<br>Other debtors<br>**32,633**<br>**34,072**<br>Amounts falling due after more than one year:<br>Other debtors<br>**7,250**<br>Aggregate amounts<br>**41,322**|**£**<br>**178,000**<br>**570,652**<br>**651,348**|**£**<br>**178,000**<br>**570,652**<br>**651,348**|
|---|---|---|
||**,400,000**||
||31.8.21<br>£<br>212<br>19,003<br>19,215<br>10,750<br>29,965||
|||19,215|
|||10,750|
|||29,965|



## **16. DEBTORS** 

Other debtors includes £7,250 (2021: £10,750) of loans to 2 (2020:3) churches to enable them to carry out property schemes. None have fixed repayment terms except that they are interest free and must be paid in full within five years of draw down.  Repayments of £3,500 (2021: £Nil) were received during the year. 

Page 22 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|||
|---|---|---|
|Trade creditors<br>Other creditors|**31.8.22**<br>**£**<br>**2,644**<br>**88,972**<br>**91,616**|31.8.21<br>£<br>2,728<br>324,746|
|||327,474|



## **18. LOANS** 

An analysis of the maturity of loans is given below: 

||**31.8.22**||31.8.21|
|---|---|---|---|
||**£**||£|
|Amounts falling due within one year on demand:||||
|Other loans||**-**|240,000|



The loans will be repaid the earlier of on demand or on receipt of the sale proceeds from the Oakley manse. 

## **19. MOVEMENT IN FUNDS** 

|**MOVEMENT IN FUNDS**|||||
|---|---|---|---|---|
|**Unrestricted funds**<br>General fund<br>Circuit Model Trust Fund<br>Manse repair costs<br>**Restricted funds**<br>Circuit training fund<br>**Endowment funds**<br>Endowment Fund<br>**TOTAL FUNDS**|At 1.9.21<br>£<br>**3,071,433**<br>**(188,671)**<br>**28,000**<br>**2,910,762**<br>**1,321**<br>**15,375**<br>**2,927,458**|Net<br>movement<br>in funds<br>£<br>**1,157,722**<br>**993**<br>**(5,162)**<br>**1,153,553**<br>**(100)**<br>**(966)**<br>**1,152,487**|Transfers<br>between<br>funds<br>£<br>**(553,379)**<br>**553,379**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**|At<br>31.8.22<br>£<br>**3,675,776**<br>**365,701**<br>**22,838**|
|||||**4,064,315**<br>**1,221**<br>**14,409**|
|||||**4,079,945**|



Net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>Circuit Model Trust Fund<br>Manse repair costs<br>**Restricted funds**<br>Circuit training fund<br>**Endowment funds**<br>Endowment Fund<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>**965,900**<br>**3,153**<br>**-**<br>**969,053**<br>**-**<br>**-**<br>**969,053**|Resources<br>expended<br>£<br>**(378,751)**<br>**(1,116)**<br>**(5,162)**<br>**(385,029)**<br>**(100)**<br>**-**<br>**(385,129)**|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>**570,573**<br>**1,157,722**<br>**(1,044)**<br>**993**<br>**-**<br>**(5,162)**<br>**569,529**<br>**1,153,553**<br>**-**<br>**(100)**<br>**(966)**<br>**(966)**<br>**568,563**<br>**1,152,487**|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>**570,573**<br>**1,157,722**<br>**(1,044)**<br>**993**<br>**-**<br>**(5,162)**<br>**569,529**<br>**1,153,553**<br>**-**<br>**(100)**<br>**(966)**<br>**(966)**<br>**568,563**<br>**1,152,487**|
|---|---|---|---|---|
|||||**1,152,487**|



Page 23 

continued... 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **19. MOVEMENT IN FUNDS - continued** 

## **Comparatives for movement in funds** 

|**Unrestricted funds**<br>General fund<br>Circuit Model Trust Fund<br>Manse repair costs<br>**Restricted funds**<br>Circuit training fund<br>**Endowment funds**<br>Endowment Fund<br>**TOTAL FUNDS**|At 1.9.20<br>£<br>2,460,814<br>294,939<br>28,000<br>2,783,753<br>1,321<br>12,990<br>2,798,064|Net<br>movement<br>in funds<br>£<br>136,844<br>(9,835)<br>-<br>127,009<br>-<br>2,385<br>129,394|Transfers<br>between<br>funds<br>£<br>473,775<br>(473,775)<br>-<br>-<br>-<br>-<br>-|At<br>31.8.21<br>£<br>3,071,433<br>(188,671)<br>28,000<br>2,910,762<br>1,321<br>15,375<br>2,927,458|
|---|---|---|---|---|



Comparative net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>Circuit Model Trust Fund<br>**Endowment funds**<br>Endowment Fund<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>395,155<br>879<br>396,034<br>-<br>396,034|Resources<br>expended<br>£<br>(436,311)<br>(13,291)<br>(449,602)<br>-<br>(449,602)|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>178,000<br>136,844<br>2,577<br>(9,835)<br>180,577<br>127,009<br>2,385<br>2,385<br>182,962<br>129,394|
|---|---|---|---|



A current year 12 months and prior year 12 months combined position is as follows: 

|**Unrestricted funds**<br>General fund<br>Circuit Model Trust Fund<br>Manse repair costs<br>**Restricted funds**<br>Circuit training fund<br>**Endowment funds**<br>Endowment Fund<br>**TOTAL FUNDS**|At 1.9.20<br>£<br>2,460,814<br>294,939<br>28,000<br>2,783,753<br>1,321<br>12,990<br>2,798,064|Net<br>movement<br>in funds<br>£<br>1,294,566<br>(8,842)<br>(5,162)<br>1,280,562<br>(100)<br>1,419<br>1,281,881|Transfers<br>between<br>funds<br>£<br>(79,604)<br>79,604<br>-<br>-<br>-<br>-<br>-|At<br>31.8.22<br>£<br>3,675,776<br>365,701<br>22,838<br>4,064,315<br>1,221<br>14,409<br>4,079,945|
|---|---|---|---|---|



Page 24 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **19. MOVEMENT IN FUNDS - continued** 

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: 

|Incoming<br>resources<br>£<br>**Unrestricted funds**<br>General fund<br>1,361,055<br>Circuit Model Trust Fund<br>4,032<br>Manse repair costs<br>-<br>1,365,087<br>**Restricted funds**<br>Circuit training fund<br>-<br>**Endowment funds**<br>Endowment Fund<br>-<br>**TOTAL FUNDS**<br>1,365,087|Resources<br>expended<br>£<br>(815,062)<br>(14,407)<br>(5,162)<br>(834,631)<br>(100)<br>-<br>(834,731)|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>748,573<br>1,294,566<br>1,533<br>(8,842)<br>-<br>(5,162)<br>750,106<br>1,280,562<br>-<br>(100)<br>1,419<br>1,419<br>751,525<br>1,281,881|
|---|---|---|



Details on agreed expenditure from the Circuit Model Trust Fund can be found within the Other Financial Commitments note to these financial statements. 

The deficit on the CMTF will be reversed on the sale of the Oakley manse which is expected to be in early 2022. 

## **Transfers between funds** 

Amounts were transferred between the CMTF and the general fund on purchase of the manse which  is to be fully finance from the CMTF. The amount transferred during the year represent those source of funds used. The balance will be transferred once the sale has been completed. 

## **20. RELATED PARTY DISCLOSURES** 

## **Transactions between the Circuit and its member churches** 

The Circuit received share offers of £345,465  (2021: £378,306) from the churches within the circuit. 

They received £3,500 (2021 £Nil) in  loan repayments from churches. See debtors note for further details. 

They also received £7,783 in cash funds on the closure of a church within the Circuit. 

The circuit received interest free loans totalling £240,000 in the year to 31 August 2021 which were fully repaid in the year to 31 August 2022. 

## **Transactions between the Circuit and the Beds, Essex and Herts District (BEH).** 

The Circuit paid BEH £17,193 (2021: £19,344) in district assessment. They also paid them £1,002 (2021: £12,234) by way of levies on the net sale of properties and or the balance on monies held in the Circuit Model Trust Fund at start of the financial year.. 

## **Transactions between the Circuit and Connexion** 

The Circuit paid Connexion £67,632 (2021: £68,596) in assessment which is collected by BEH. 

Page 25 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **21. POST BALANCE SHEET EVENTS** 

A decision was taken to close Cranfield  Methodist Church and therefore the Circuit now has responsibility for maintaining and selling the property. 

Wilstead Methodist Church is in the process if being sold for gross proceeds of £407,110. This will be subject to a levy from Methodist Connexion after which the net proceeds will become part of the Circuit Model Trust Fund. 

## **22. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** 

|**31.8.22**<br>**£**<br>**Net income for the reporting period (as per the Statement of Financial**<br>**Activities)**<br>**1,152,487**<br>**Adjustments for:**<br>Gain on investments<br>**(568,563)**<br>Profit on disposal of fixed assets<br>**(578,541)**<br>Interest received<br>**(3,442)**<br>Closed church investment with TMCP<br>**(2,234)**<br>(Increase)/decrease in debtors<br>**(14,857)**<br>Increase/(decrease) in creditors<br>**4,142**<br>**Net cash used in operations**<br>**(11,008)**|31.8.21<br>£<br>129,394<br>(182,962)<br>-<br>(970)<br>-<br>5,569<br>(10,389)<br>(59,358)|
|---|---|



## **23.. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS** 

||At 1.9.21|Cash flow|**At 31.8.22**|
|---|---|---|---|
||£|£|**£**|
|**Net cash**||||
|Cash at bank|**205,630**|**309,263**|**514,893**|
||**205,630**|**309,263**|**514,893**|
|**Debt**||||
|Debts falling due within 1 year|**(240,000)**|**240,000**|**-**|
||**(240,000)**|**240,000**|**-**|
|**Total**|**(34,370)**|**549,263**|**514,893**|



## **24. FUNDS RECEIVED AS AGENT** 

During the year the Circuit received funds from 16  (2021: 17) churches within the Circuit amounting to £ 11,449 (2021: £11,521) which were fully paid over to other Connexional funds. 

Page 26 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022** 

||31.8.22|31.8.21|
|---|---|---|
||£|£|
|**INCOME AND ENDOWMENTS**|||
|**Other trading activities**|||
|Income from photocopying|**77**|59|
|Rental income from manse not required in the|||
|short term|**32,942**|16,200|
||**33,019**|16,259|
|**Investment income**|||
|Dividend income|**403**|499|
|Deposit account interest|**3,442**|970|
||**3,845**|1,469|
|**Charitable activities**|||
|Circuit share offers|**345,465**|378,306|
|**Other income**|||
|Gain on sale of tangible fixed assets|**578,541**|-|
|Funds on closure of churches|**7,783**|-|
|Sundry income|**400**|-|
||**586,724**|-|
|**Total incoming resources**|**969,053**|396,034|
|**EXPENDITURE**|||
|**Other trading activities**|||
|Costs associated with letting out the manse|**8,214**|4,372|
|**Charitable activities**|||
|Wages|**165,111**|203,087|
|Social security|**14,779**|17,203|
|Pensions|**36,609**|47,457|
|Rates and water|**16,403**|21,206|
|Insurance|**7,740**|4,604|
|Light and heat|**(2,672)**|-|
|Telephone|**4,051**|3,837|
|Sundries|**888**|595|
|District Assessment|**17,193**|19,344|
|Methodist Church Fund|**67,632**|68,596|
|Manse repairs|**17,456**|23,556|
|Travel|**7,663**|3,858|
|Circuit administration|**5,747**|6,139|
|Quinquennial costs|**3,450**|3,225|
|Local preacher and supernumerary fees|**1,594**|839|
|Ministerial administration costs|**1,593**|2,985|
|Stationing - inc removal costs|**4,379**|3,079|
|Training|**370**|287|
|Finance charges|**257**|675|
|Carried forward|**370,243**|430,572|



This page does not form part of the statutory financial statements 

Page 27 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022** 

||31.8.22|31.8.21|
|---|---|---|
||£|£|
|**Charitable activities**|||
|Brought forward|**370,243**|430,572|
|District Levy|**1,002**|12,234|
|Licences and subscriptions|**-**|67|
|Legal & professional|**-**|147|
|Grants to institutions|**-**|500|
|Grants to individuals|**-**|(150)|
||**371,245**|443,370|
|**Support costs**|||
|**Governance costs**|||
|Auditors' remuneration|**6,000**|-|
|Independent Examiner's fee|**(330)**|1,860|
||**5,670**|1,860|
|Total resources expended|**385,129**|449,602|
|**Net income/(expenditure) before gains and**|||
|**losses**|**583,924**|(53,568)|
|**Realised recognised gains and losses**|||
|Realised gains/(losses) on fixed asset|||
|investments|**568,563**|182,962|
|**Net income**|**1,152,487**|129,394|



This page does not form part of the statutory financial statements 

Page 28 



**REGISTERED CHARITY NUMBER: 1129523** 

## **REPORT OF THE TRUSTEES AND** 

# **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** 

# **FOR** 





**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

**CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** 

||**Page**|
|---|---|
|**Report of the Trustees**|1 to  9|
|**Report of the Independent Auditors**|10 to  11|
|**Statement of Financial Activities**|12 to  13|
|**Balance Sheet**|14 to  15|
|**Cash Flow Statement**|16|
|**Notes to the Financial Statements**|17 to  26|
|**Detailed Statement of Financial Activities**|27 to  28|





**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

The trustees present their report with the financial statements of the charity for the year ended 31 August 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). 

## **OBJECTIVES AND ACTIVITIES** 

## **Objectives and aims** 

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

The Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church Any charitable purpose for the time being of any Connexional, District, Circuit, local or other organisation of the Methodist Church 

Any charitable purpose for the time being of any society or institution or subsidiary or ancillary to the Methodist Church; Any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church. 

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 benefit guidance on advancing our objectives as set out above. 

The calling of the Methodist Church is to respond to the Gospel of God's love in Christ and to live out its discipleship in worship and mission. We will use the Circuit's resources to: 

Increase awareness of God's presence and celebrate God's love; Help people to grow and learn as Christians through mutual support and care; 

Be a good neighbour to people in need and challenge injustice; Make more followers of Christ. 

In all of the above we will seek to work ecumenically wherever possible. 

We will follow the Holy Spirit who is calling us to: LOVE God with all our heart, soul, mind, and strength; LOVE one another, as Jesus loved his followers,; 

LOVE all others, even enemies, as God does and; 

be DISCIPLES OF JESUS, becoming like Christ, behaving like Christ, bringing others to meet and follow Christ working for GOD'S KINGDOM that God's will be done in the Church, and on earth for all, as it is in heaven. 

We seek to put our Mission Statement into action in the following ways: 

Resourcing worship in each church, as required, week by week and also by worshipping together as a whole Circuit to celebrate particular special occasions within the Circuit; 

Exercising ministry ecumenically with a number of ministerial colleagues from other denominations with whom we are in partnership to varying degrees; 

Involving Supernumerary (retired) ministers in leading worship and other aspects of Circuit life as far as they wish and as their circumstances permit; 

Continuing partnerships with Methodist charities and other agencies and charities; Supporting chaplaincy within the MHA Care Homes within the Circuit; Providing regular communication of useful information and links on relevant issues: 

Providing practical and prayer support to churches to enable them to resource their local mission. 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Circuit strategic plan** 

The achievement of the implementation of the circuit strategy to reduce to 5 ministers has been in place from 2021.  To that end, Rev Andrew Hollins moved away from the circuit summer 2022, Rev Michael Giles took on the responsibility of Superintendent, Rev Silas Wood became deputy superintendent and Rev Leslie Noon joined the team from September 2022.  Together with colleagues Rev Lorna Valentine and Rev Chris Sandy, this achieved the 5 ministers that the strategy required.  Additional circuit support was deemed necessary with the reduced ministerial staffing and Stephanie Field has taken on additional responsibilities to become the Circuit Manager. 

The strategy group continue to meet to look at stationing and staffing over the next 3 to 5 years which were deemed to be critical in the life of the circuit.  The group looked at budgets and plans for either 4 or 5 ministers from 2024 when Rev Lorna Valentine leaves, but felt that at the present time, 5 was the most workable option. 

Page 1 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Circuit strategic plan (continued)** 

Suggestions for areas of pastoral charge were shared with the Circuit meeting of February 2023 and feedback and consultation is ongoing.  A finalised strategic plan and profile for stationing will need to be agreed by the June 2023 Circuit Meeting. 

## **Staffing matters** 

Review of lay appointments.  Stephanie Field is now the Circuit Manager which encompasses her Safeguarding Role Appointment of assistant superintendent 

Leslie Noon accepted an appointment for stationing from 1 September 2022 to Priory, Howard Memorial Church Cardington and TSB comprising of Trinity, Sandy and, Beeston. 

Rev Silas Wood invitation was extended by 3 years to August 2026 

## **Property matters** 

The Circuit bought a manse in Biggleswade at a total cost of £525,442. This was to replace an existing manse which was sold for proceeds of £581,631. 

The Putnoe manse has been reclassified as an investment property and was let during the year. 

The Coles Close manse in Bedford, having been deemed to not meet CPD requirements was reclassified as an investment property in August once it was vacated by the superintendent minister once he left the Circuit. It has now been let 

The Oakley manse was sold for proceeds of £517,137. 

Following the energy efficiency review of the Wootton manse the solar panels were fitted to its roof. 

## **Closure of churches** 

A decision has been taken to cease worship at Wilstead Methodist Church was accepted by the circuit at the September 21 circuit meeting. The Circuit took on the responsibility of the building and it order to minimize costs let a charity use the facilities at no cost to them. 

The church building is now in the process of being sold having had an offer accepted after the year end of £407,110. 

Cranfield Methodist Church ceased to Worship on 28[th] August 2022 and is under offer. 

## **Ecumenical Matters** 

It has continued to explore local ecumenical partnerships at Cardington, Stewartby and Lidlington Andrew Hollins, The Superintendent Minister served as the Methodist District ecumenical officer for Bedfordshire and chairs churches together in Bedfordshire up to August 2022. 

## **Worship** 

The Circuit continued to encourage churches in the diversity of their worship and helped to resource this through the preaching plan. 

The Local Preachers and Worship Leaders Meeting continued to meet regularly, exercising oversight over accredited and trainee Local Preachers, plus commissioned and trainee Worship Leaders. 

## **Safeguarding** 

The Circuit continued the monitoring of DBS requirements (including renewals) and the delivery of Creating Safer Space training for all appropriate people working with children and vulnerable adults. The District introduced on line training during the year. 

## **Other Circuit matters** 

The Circuit magazine continued to be published quarterly alongside the quarterly Preaching Plan. Meetings of Church property stewards and treasurers were held to ensure all churches were supported and informed about their current obligations and responsibilities.  Eco Church support meetings were held and we became the 2[nd] Circuit in the Country to achieve a A Rocha Eco Church Bronze Award 

## **FINANCIAL REVIEW** 

## **Financial position** 

The Mission Resources Mission Stream (MRMS) continued to meet throughout to consider the resourcing issues of matters such as property, finance and human resources including requests from churches and make recommendations to the Circuit meeting where applicable. 

Page 2 



**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **FINANCIAL REVIEW** 

## **Financial position** 

The Circuit Meeting was presented with 3 draft Budgets for 2022/26 showing figures for 2022/23 to 2025/26; maintaining 5 Presbyters - deficit £211,677, 2023/26 - 5 Presbyters dropping to 4 in final year, deficit £163,279 and 2023-/6 5 Presbyters dropping to 4, deficit £118,280. The strategic group noted the effects on budget of the number of ministers with 5 being unsustainable into the future with current resources.  Churches have been asked to look at ways in which they can work in partnership or sharing into the future to release the current burdens on resources.  In addition, a review of the circuit share system has been deemed necessary and so it is unlikely that churches will continue to set their own share offer into the future.  This remains a work in progress. 

## **Principal funding sources General Fund** 

The principal source of income for the Circuit is the share offers paid by the Churches. The Circuit continues to have a policy of asking each Church to decide how much they can afford to pay given their own funds and together with the Circuit's financial requirements.  Church treasurers meet on at least an annual basis to discuss the issues before making recommendation to their individual church councils. Each church council is asked to agree an amount which is then included in the following year's Circuit budget which is approved by the Circuit meeting. Circuit share offers are due quarterly in advance. Total share offers amounted to £345,465  which is a significant reduction over pre Covid years. This reflects the current state of finances in individual churches which have been, in most cases, negatively impacted by the restrictions imposed by Covid. This financial situation is unlikely to be reversed in the the foreseeable future. 

The principal revenue expenditure of the Circuit is the payment of Circuit staff which amounted to £216,499 Whilst Ministers are appointed by the Connexion they are paid for by the Circuit according to rates agreed by Methodist Conference. 

## **Circuit Model Trust Fund (CMTF)** 

The principal source of income for the Circuit Model Trust Fund is the sale of properties and associated investment income of those resulting funds. Two manses were sold during the year which amounted to net proceeds of £1,078,771. 

Total District Levy was £1,002 which will be used to further mission work within the Connexion. This continues to reduce year on year as funds held dwindles. 

## **Reserves policy** 

The Circuit Model Trust Fund (CMTF) has arisen as result of the sale of manses and church buildings no longer required within the Circuit. The use of these funds is determined by CPD and are therefore recognised as being designated funds. 

The general reserves policy is to maintain adequate funds to meet the day to day expenditure of the Circuit. This was reviewed during the year and set at a level of six months of general expenditure. 

The General Fund as at 31 August 22 amounted to £3,698,614 of which £3,615,346 can only be realised on the sale of fixed assets comprising predominantly of five manses and three  investment properties meaning there was £83,268 of funds available to meet the day to day financial requirements of the Circuit. This is equivalent to approximately just less than three months of normal expenditure. 

Unrestricted funds also includes £22,838 designated for the manse repair costs where these are over and above expected annual costs. The reduction during the year relates to the installation of solar panels. 

## **FUTURE PLANS** 

The Strategic Working Group (SWG) continues to meet to consider the Strategic Plan and offer advice to the Circuit Leadership Team (CLT), who report to the Circuit Meeting. 

A decision has been made regarding Cranfield Methodist Church ceased to worship on 28[th] August 2022.  The building is currently up for sale. 

Following extensive consultation and increased working together, at the Spring Church Councils, Ampthill, Flitwick and Clophill Methodist Church decided to become 1 church across 3 sites.  The model of working will be carefully considered and explored with a view to others in the circuit learning from the experience and making decisions about changed ways of working and sharing into the future as appropriate for the local church context. 

The Putnoe, Coles Close and Kempston Manses are being let. The manse in Biggleswade is now completed and occupied. 

Page 3 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document** 

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. 

The North Bedfordshire Methodist Circuit was formed on 1 September 2011 from the merger of the previous Bedford South and Ampthill Circuit, the Biggleswade Circuit and the Bedford North Methodist Circuit. The charity number was carried forward from the old Bedford North Circuit. It is part of the Bedfordshire, Essex and Hertfordshire District which in turn is part of the Methodist Connexion in Great Britain whose constitution is governed by an Act of Parliament. 

The Circuit is governed by the Deed of Union (1932) and the Methodist Church Act 1976 as amended March 2011. Overall control of the Circuit rests with the Methodist Conference. The Connexional Office implements decisions made by Conference and is also responsible for the stationing of ministers in individual Circuits. Connexional decisions are passed to the Chair of the District and the appropriate Officers of the District for regional implementation. The District passes the control down to Circuit level for local implementation by the Superintendent Ministers, ministerial staff and Circuit Stewards via the medium of the Circuit Meeting. 

The membership of the Circuit Meeting is laid down in the Constitutional Practices and Discipline of the Methodist Church. 

## **Charity constitution** 

In simple terms the Circuit Meeting is made up of: Circuit Ministers; Circuit Stewards and other office holders undertaking Circuit roles; Circuit lay workers; representatives from the churches within the Circuit (being the church Treasurer, church steward plus one other elected member per 100 members of the church); other Methodist Ministers (including Supernumeraries) residing within the Circuit wishing to take up appointment and Authorised Ministers working with Methodist churches within the Circuit who wish to take up appointment. The voting members of the Circuit meeting are the Managing Trustees of the Circuit. 

Certain matters, principally those relating to property issues, must be referred to the District and the Connexional office - through the Trustees for Methodist Church Purposes (TMCP), acting as Custodian Trustees, but most matters are determined by the Circuit meeting itself. 

## **Recruitment and appointment of new trustees** 

Whilst the appointment of the managing trustees is determined in accordance with the Standing Orders of the Methodist Church we aim to ensure members of the Circuit Leadership Mission Stream and the Circuit Stewards include a broad range of experience and expertise including pastoral, financial and property matters. 

Funds are allocated within the Circuit and also accessed via the District to provide training for ordained and lay members of staff. The District offers training for all new Circuit Stewards. 

All members of the Circuit meeting are encouraged to read the leaflet " The Role of a Trustee in the Methodist Church". 

## **Organisational structure** 

The Circuit Stewards together with the Superintendent Minister, other Ministers and Probationers are responsible for ensuring the decisions of the Circuit meetings are upheld and acted upon. 

Both the Circuit Stewards and the Circuit Leadership Team  meet on a regular basis to review the work within and/or policies of the Circuit and to make recommendations to the Circuit Meeting. They also have an overview of the Circuit Mission Streams who coordinate the varied aspects of the Circuit's work and are as follows: 

The Strategic Working Group meets as directed by the leadership team to review the strategic plan and make recommendations on how to implement it. It is made up on minister and steward representations. 

The manse committee meets twice a year. This meeting is responsible for implementing the agreed maintenance programme for the manses and consists of the circuit property and finance stewards and manse stewards and secretaries. 

Mission resources mission stream - responsible for the overview and management of all resources including property and finance 

Social Action mission stream 

The management of the Circuit is supported by paid, part time lay workers who are the Circuit Manager and Finance Officer. 

Page 4 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management** 

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. 

In accordance with the Charities (Accounts and Reports) Regulations 2008, the Circuit, through the Circuit Leadership Team (CLT), has carried out a review of our policies. The Circuit has: 

- Identified the need to produce a written Health & Safety Policy 

- Reviewed its insurance cover and sums insured to ensure they are appropriate for the current environment 

- Reviewed and updated (where necessary) the Circuit Safeguarding policy 

## **The Trustees for Methodist Purposes (TMCP)** 

The Trustees for Methodist Church Purposes hold the Circuit's Model Trust Funds. From these funds they deduct a levy, proportional to the funds held, which goes towards the running of the Methodist Church nationally. They act as Custodian Trustees holding the title to the eight properties (Manses) in which the Ministers live. The Circuit, acting as Managing Trustee, is responsible for the day to day management of the properties and has the right and obligations of exercising power or discretion over them. 

The individual church buildings are the responsibility of their Church Councils. 

## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 1129523 

## **Principal address** 

c/o Willington Methodist Church Station Road Willington MK44 3QH 

## **Auditors** 

HW East Midlands Audit LLP Woburn Court, 2 Railton Road Woburn Road Ind Est Kempston Bedford MK42 7PN 

## **Surveyors** 

Cube Building Consultancy Franklin House 2 Steppingley Road Flitwick Bedford MK45 1AJ 

## **Bankers** 

National Westminster Bank Plc 81 High Street Bedford 

Central Finance Board 9 Bonhill Street London EC2A 4PE 

Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ 

Page 5 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES** 

**FOR THE YEAR ENDED 31 AUGUST 2022** 

## **Trustees** 

The Circuit Meeting comprises the following trustees and non-voting members. 

## **Circuit Ministers** 

Rev Andrew Hollins   - Superintendent Minister and chair of Circuit meetings (to 31 August 22) Rev Michael Giles - Superintendent Minister and chair of Circuit meetings from 1 September 22) Rev Lorna Valentine Rev Silas Wood (Deputy Superintendent (from 01/09/2023) Rev Chris Sandy (from 01/09/2021) Rev Leslie Noon (from 01/09/2022) 

## **Circuit Stewards** 

Michael Carr Anne Foley (to 23/12/2021) Nicholas Guy Jane McVey Alan Davis Philip Timms (from 01/09/2022) Christina Costin Webb (from 23[rd] February 2023) 

## **Circuit Finance Steward** 

Suzanne Goodson (to 31/08/2022) 

## **Circuit Property Steward** 

Richard Ward (non voting member) 

## **Circuit Safeguarding Officer** 

Stephanie Field (Voting from 23/12/2021) 

## **Circuit Meeting Secretary** 

Mary Millar 

## **Local Preacher Meeting Secretary** 

Janet Watts 

## **Supernumerary Ministers** 

Jeremy Arthern (to 31/05/2022) Rev  Cass Howes (From 01/09/2022) Rev Julie Bradshaw (From 01/09/2021) 

## **Methodist Ministers resident in Circuit** 

**District Synod Representatives (DSR)** Margaret Olney (to 29/02/2023) Maryan Pateman Alison Baalham (to 07/07/2022) Jenny Snelson Roz Addington 

## **Church Representatives:** 

## **Ampthill** 

Brian Kerr (to 14/03/2022) Patsy Aston Ann Jones (from 14/03/2022) Debbie Bushman (from 08/03/2021) 

**Beeston** 

Sonia Butler Jennifer Sutcliffe Cynthia Dent **Clapham** Rosemary Isaacs Helen Gadsden Carolyn Maynard 

Page 5 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

**REPORT OF THE TRUSTEES** 

**FOR THE YEAR ENDED 31 AUGUST 2022** 

**Clophill** Anne Cooper John Errick Fraser Wood **Cranfield** Paul Lowe (to 28/08/2022) Stephen Hobbs (to 28/08/2022) Pat Davies (to 28/08/2022) **Flitwick** Angela Brydon Margaret Olney (from 01/11/2022) Anne Foley (from 15/02/2023) 

**Haynes** Mervyn Barden Glennis Barden Margaret Braybrook **Henlow** Susan Watson Brenda Ballantine Pat Larman (to 09/03/2023) **Howard Memorial Church (Cardington)** Ruth Caves Ken Oliver **Kempston East** Roger Skipper Rosemary Simms Barbara Tipping Julie Constant **Kempston West** Peter Smith Lynda Smith Jean Prettyman **Langford** Jenny Broadbridge Gwen Arnott Stephanie Barker **Lidlington LEP** Tim Mason Joseph Peall Jeff Bulled – Non Voting Member **London Road** Andrew Constant John Caves (DSR) Courtney Aims (from 22/08/2021) **Oakley** Jeanette Letch Graham Follett Noel Evans (to 01/04/2023) **Park Road** Clive Kirkman Ruth Johnson (to 31/05/2022) Paul Lowe Janice Skerman (from 25/10/2022) **Priory** Tony Johnson (to 31/05/2021) Carmen Rowe Keith Gaunt Liz Little (to 21/02/2023) Lynne Gound **Putnoe Heights** Jenny Snelson Sue Allen Andrew Dennison 

Page 8 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES** 

**FOR THE YEAR ENDED 31 AUGUST 2022** 

## **Sandy** 

David Germany Andrea Thorpe (to 08/02/2023) Jenny Endersby (from 08/02/2023) Jane Germany **Sharnbrook** Mike Bonney David Barnes Marian Blyth **Shefford** Mairi Perks Andi Pepper Derek Willows (to 31/05/2022) Joe Pepper from (07/07/2022) **Stewartby** Elaine Sullivan – Non voting member **Trinity (Biggleswade)** Owen Williams David Harrison Heather Harrison **Upper Caldecote** Kim Curtis Jon Payne Sandra Payne (from 1 September 21) **Willington** Keith Lilley Paul Phipp Jeanette Pearce **Wootton** David Goodson (to 31 August 22) Thea Lea (to 22[nd] April 2023) Brian Addington (from 1 August 22) Roz Addington 

## **EVENTS SINCE THE END OF THE YEAR** 

Information relating to events since the end of the year is given in the notes to the financial statements. 

## **ENDOWMENT FUNDS** 

The Circuit has Endowment Funds which have arisen as a results of bequests in favour on the Circuit. In accordance with Standing Orders these monies are held by TMCP who manage them on its behalf. 

Page 8 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022** 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charity 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 financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Approved by order of the board of trustees on 23 June 2023 and signed on its behalf by: 


........................................................................ Rev M Giles - Trustee 

Page 9 



## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **Opinion** 

We have audited the financial statements of North Bedfordshire Methodist Circuit (the 'charity') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 31 August 2022 and of its incoming resources and application of resources, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities set out on page 9, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

Page 10 



## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **Our responsibilities for the audit of the financial statements** 

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below: 

- We obtained an understanding of the nature of the sector in which the charity operates, including the legal and regulatory framework applicable to the charity. We consider that the most significant are the Charities Statement of Recommended Practice, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and the charity’s constitution. 

- We obtained an understanding of how the charity complies with these requirements by discussions with those charged with governance and reviewing the minutes of Trustee meetings. 

- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with those charged with governance. 

- We inquired of those charged with governance about their own identification and assessment of the risk of irregularities, including any known actual, suspected or alleged instances of fraud. 

- We discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to irregularities or fraud. 

- Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/auditassurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report. 

## **Use of our report** 

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. 


Alberto Di Lorenzo FCA Senior Statutory Auditor 

HW East Midlands Audit LLP, Chartered Accountants and Statutory Auditor First Floor Woburn Court 2 Railton Court Kempston MK42 7PN 

Date: 

_HW East Midlands Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006._ 

Page 11 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **FOR THE YEAR ENDED 31 AUGUST 2022** 

|Notes<br>**INCOME AND ENDOWMENTS FROM**<br>**Charitable activities**<br>Work of the Circuit<br>Other trading activities<br>2<br>Investment income<br>3<br>Other income<br>**Total**<br>**EXPENDITURE ON**<br>Raising funds<br>5<br>**Charitable activities**<br>6<br>Work of the Circuit<br>**Total**<br>Net gains/(losses) on investments<br>**NET INCOME/(EXPENDITURE)**<br>**Transfers between funds**<br>19<br>**Net movement in funds**<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>**TOTAL FUNDS CARRIED FORWARD**|Unrestricted<br>funds<br>£<br>**345,465**<br>**33,019**<br>**692**<br>**586,724**<br>**965,900**<br>**8,214**<br>**375,699**<br>**383,913**<br>**570,573**<br>**1,152,560**<br>**(553,379)**<br>**599,181**<br>**3,099,433**<br>**3,698,614**|CMTF<br>£<br>**-**<br>**-**<br>**3,153**<br>**-**<br>**3,153**<br>**-**<br>**1,116**<br>**1,116**<br>**(1,044)**<br>**993**<br>**553,379**<br>**554,372**<br>**(188,671)**<br>**365,701**|Restricted<br>funds<br>£<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**100**<br>**100**<br>**-**<br>**(100)**<br>**-**<br>**(100)**<br>**1,321**<br>**1,221**|
|---|---|---|---|



The notes form part of these financial statements 

Page 12 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

**FOR THE YEAR ENDED 31 AUGUST 2022** 

|Notes<br>**INCOME AND ENDOWMENTS FROM**<br>**Charitable activities**<br>Work of the Circuit<br>Other trading activities<br>2<br>Investment income<br>3<br>Other income<br>**Total**<br>**EXPENDITURE ON**<br>Raising funds<br>5<br>**Charitable activities**<br>6<br>Work of the Circuit<br>**Total**<br>Net gains/(losses) on investments<br>**NET INCOME/(EXPENDITURE)**<br>**Transfers between funds**<br>19<br>**Net movement in funds**<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>**TOTAL FUNDS CARRIED FORWARD**|Endowment<br>fund<br>£<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**(966)**<br>**(966)**<br>**-**<br>**(966)**<br>**15,375**<br>**14,409**|**31.8.22**<br>**Total**<br>**funds**<br>**£**<br>**345,465**<br>**33,019**<br>**3,845**<br>**586,724**<br>**969,053**<br>**8,214**<br>**376,915**<br>**385,129**<br>**568,563**<br>**1,152,487**<br>**-**<br>**1,152,487**<br>**2,927,458**<br>**4,079,945**|31.8.21<br>Total<br>funds<br>£<br>378,306<br>16,259<br>1,469<br>-<br>396,034<br>4,372<br>445,230<br>449,602<br>182,962<br>129,394<br>-<br>129,394<br>2,798,064<br>2,927,458|
|---|---|---|---|



The notes form part of these financial statements 

Page 13 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **BALANCE SHEET 31 AUGUST 2022** 

|Notes<br>**FIXED ASSETS**<br>Tangible assets<br>13<br>**Investments**<br>Investments<br>14<br>Investment property<br>15<br>**CURRENT ASSETS**<br>Debtors<br>16<br>Cash at bank<br>**CREDITORS**<br>Amounts falling due within one year<br>17<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**NET ASSETS**|Unrestricted<br>funds<br>£<br>**2,183,213**<br>**2,155**<br>**1,400,000**<br>**3,585,368**<br>**33,616**<br>**170,108**<br>**203,724**<br>**(90,478)**<br>**113,246**<br>**3,698,614**<br>**3,698,614**|CMTF<br>£<br>**-**<br>**15,569**<br>**-**<br>**15,569**<br>**7,706**<br>**343,564**<br>**351,270**<br>**(1,138)**<br>**350,132**<br>**365,701**<br>**365,701**|Restricted<br>funds<br>£<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**1,221**<br>**1,221**<br>**-**<br>**1,221**<br>**1,221**<br>**1,221**|
|---|---|---|---|



The notes form part of these financial statements 

Page 14 

continued... 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **BALANCE SHEET - continued 31 AUGUST 2022** 

|Notes<br>**FIXED ASSETS**<br>Tangible assets<br>13<br>**Investments**<br>Investments<br>14<br>Investment property<br>15<br>**CURRENT ASSETS**<br>Debtors<br>16<br>Cash at bank<br>**CREDITORS**<br>Amounts falling due within one year<br>17<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**NET ASSETS**<br>**FUNDS**<br>19<br>Unrestricted funds<br>Restricted funds<br>Endowment funds<br>**TOTAL FUNDS**|Endowment<br>fund<br>£<br>**-**<br>**14,409**<br>**-**<br>**14,409**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**14,409**<br>**14,409**|**31.8.22**<br>**Total**<br>**funds**<br>**£**<br>**2,183,213**<br>**32,133**<br>**1,400,000**<br>**3,615,346**<br>**41,322**<br>**514,893**<br>**556,215**<br>**(91,616)**<br>**464,599**<br>**4,079,945**<br>**4,079,945**<br>**4,064,315**<br>**1,221**<br>**14,409**<br>**4,079,945**|31.8.21<br>Total<br>funds<br>£<br>2,537,349<br>31,988<br>450,000<br>3,019,337<br>29,965<br>205,630<br>235,595<br>(327,474)<br>(91,879)<br>2,927,458<br>2,927,458<br>2,910,762<br>1,321<br>15,375<br>2,927,458|
|---|---|---|---|



The financial statements were approved by the Board of Trustees and authorised for issue on 23 June 2023 and were signed on its behalf by: 


............................................. Rev M Giles - Trustee 

The notes form part of these financial statements 

Page 15 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022** 

|Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>22<br>Net cash used in operating activities<br>**Cash flows from investing activities**<br>Purchase of tangible fixed assets<br>Sale of tangible fixed assets<br>Interest received<br>Net cash provided by/(used in) investing activities<br>**Cash flows from financing activities**<br>Repayment of loans made to<br>Repayment of loans received<br>Net cash (used in)/provided by financing activities<br>**Change in cash and cash equivalents in**<br>**the reporting period**<br>**Cash and cash equivalents at the**<br>**beginning of the reporting period**<br>**Cash and cash equivalents at the end of**<br>**the reporting period**|**31.8.22**<br>**£**<br>**(11,008)**<br>**(11,008)**<br>**(525,442)**<br>**1,078,771**<br>**3,442**<br>**556,771**<br>**3,500**<br>**(240,000)**<br>**(236,500)**<br>**309,263**<br>**205,630**<br>**514,893**|31.8.21<br>£<br>(59,358)<br>(59,358)<br>(556,687)<br>-<br>970<br>(555,717)<br>-<br>240,000<br>240,000<br>(375,075)<br>580,705<br>205,630|
|---|---|---|



The notes form part of these financial statements 

Page 16 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** 

## **1. ACCOUNTING POLICIES** 

## **Basis of preparing the financial statements** 

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the  Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice. 

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. 

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. 

## **Income** 

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. 

Income from trading activities is recognised as earned as the related services are provided. 

Investment income is recognised on a receivable basis. 

Other income is recognised when it is receivable. 

## **Expenditure** 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. 

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. Grants for property schemes are recognised when they have been fully approved,  it is likely that the schemes will go ahead and the total costs can be estimated with a  degree of certainty. 

## **Tangible fixed assets** 

Tangible fixed assets are capitalised if they can be used for more than one year, and cost at least  £1,000.  They are valued at cost or a reasonable value on receipt. Provision is made for depreciation  to ensure the cost less residual value is written off over their useful economic useful lives on a straight line basis. 

The useful lives of fixed assets are: 

Plant and equipment      4 years Freehold property         50 years 

No depreciation is charged on freehold property as they are maintained to a standard to ensure their residual values exceeds their costs. 

Manses are classed as freehold property whilst their intended  long term use is to house ministers. They are reclassified as investment properties once a decision has been taken that their use will change on a permanent basis from housing ministers to being rented out to generate income. 

Page 17 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **1. ACCOUNTING POLICIES - continued** 

## **Investment property** 

Investment properties are properties which have been identified as unsuitable to house ministers but which the circuit wishes to retain in order to generate income needed to meet the operational requirements of the circuit, 

Investment properties are measured at fair value at each reporting date with changes in fair value recognised in 'net gains / (losses) on investments' in the SoFA. 

## **Taxation** 

The charity is exempt from tax on its charitable activities. 

## **Fund accounting** 

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. 

The Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as unrestricted and is therefore shown as a material designated fund. 

Restricted funds can only be used for particular restricted purposes within the objects of the charity.  Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. 

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. 

## **Pension costs and other post-retirement benefits** 

Retirement benefits to presbyters are provided by the Methodist Ministers Pension Scheme (MMPS). This is a defined benefit scheme and the assets are held separately from those of the Circuit. 

Presbyters are not legally employed by the Circuit but they are treated as employed by the Methodist Connexion with their total remuneration being charged to the Circuit only whilst they are stationed within it. The MMPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each period. 

The Circuit operates a defined contribution pension scheme for all other employees. Contributions payable to this are charged to the Statement of Financial Activities in the period to which they relate. 

## **Debtors and creditors receivable/payable within 1 year** 

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. 

## **Judgements** 

No judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies. 

## **Going concern** 

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. 

## **2. OTHER TRADING ACTIVITIES** 

|**OTHER TRADING ACTIVITIES**|||
|---|---|---|
||**31.8.22**|31.8.21|
||**£**|£|
|Income from photocopying|**77**|59|
|Rental income from manse not required in the short term|**32,942**|16,200|
||**33,019**|16,259|



Page 18 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

|**3.**<br>**INVESTMENT INCOME**<br>Dividend income<br>Deposit account interest<br>**4.**<br>**INCOME FROM CHARITABLE ACTIVITIES**<br>Activity<br>Circuit share offers<br>Work of the Circuit<br>**5.**<br>**RAISING FUNDS**<br>**Other trading activities**<br>Costs associated with letting out the manse<br>**6.**<br>**CHARITABLE ACTIVITIES COSTS**<br>Work of the Circuit<br>**7.**<br>**GRANTS PAYABLE**<br>Work of the Circuit<br>The total grants paid to institutions during the year was as follows:<br>Other external grants|Direct<br>Costs<br>£<br>**371,245**|**31.8.22**<br>**£**<br>**403**<br>**3,442**<br>**3,845**<br>**31.8.22**<br>**£**<br>**345,465**<br>**31.8.22**<br>**£**<br>**8,214**<br>Support<br>costs (see<br>note 8)<br>£<br>**5,670**<br>**31.8.22**<br>**£**<br>**-**<br>**31.8.22**<br>**£**<br>**-**|31.8.21<br>£<br>499<br>970<br>1,469<br>31.8.21<br>£<br>378,306<br>31.8.21<br>£<br>4,372<br>Totals<br>£<br>**376,915**<br>31.8.21<br>£<br>350<br>31.8.21<br>£<br>500|
|---|---|---|---|



Grants are paid out of the Circuit Model Trust Fund. 

Page 19 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **8. SUPPORT COSTS** 

## **9.** 

|**SUPPORT COSTS**|||
|---|---|---|
|||Governance|
|||costs|
|||£|
|Work of the Circuit||**5,670**|
|**AUDITORS' REMUNERATION**|||
||**31.8.22**|31.8.21|
||**£**|£|
|Fees payable to the charity's auditors for the audit of the charity's financial|||
|statements|**6,000**|-|
|Independent Examiner's fee|**(330)**|1,860|



## **10. TRUSTEES' REMUNERATION AND BENEFITS** 

Presbyters and Deacons (ministers) are automatically members of the circuit meeting and are therefore trustees. All ministers receive remuneration by way of a standard stipend which is approved at The Methodist Conference on an annual basis. Superintendent Ministers also receive an allowance of 7.5% of the standard stipend. 

No other trustees received any remuneration. 

## **Trustees' expenses** 

Presbyters and the Circuit Outreach Development Enabler are reimbursed for their travel and subsistence whilst carrying out their duties. This includes to and from meeting in their capacity as trustees. 

During the year the Circuit paid expenses to 1  trustees (2021: Nil)   in addition to the above . 

## **11. STAFF COSTS** 

|Wages and salaries<br>Social security costs<br>Other pension costs|**31.8.22**<br>**£**<br>**165,111**<br>**14,779**<br>**36,609**<br>**216,499**|31.8.21<br>£<br>203,087<br>17,203<br>47,457<br>267,747|
|---|---|---|



The use of the word staff should be taken to include both  Presbyters and Deacons who are legally not employees but office holders. Whilst their relationship is technically with God and the Connexion, their stipends are funded from Circuit funds. 

Stipend for Connexional Year 21-22 was £25,824 per annum and superintendent ministers receive a 10% allowance. 

The average monthly number of employees during the year was as follows: 

||**31.8.22**|31.8.21|
|---|---|---|
|Ministers|**5**|7|
|Administrative support|**2**|2|
||**7**|9|



No employees received emoluments in excess of £60,000. 

Page 20 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

|**12.**<br>**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**<br>Unrestricted<br>Restricted<br>funds<br>CMTF<br>funds<br>£<br>£<br>£<br>**INCOME AND**<br>**ENDOWMENTS FROM**<br>**Charitable activities**<br>Work of the Circuit<br>378,306<br>-<br>-<br>Other trading activities<br>16,259<br>-<br>-<br>Investment income<br>590<br>879<br>-<br>**Total**<br>395,155<br>879<br>-<br>**EXPENDITURE ON**<br>Raising funds<br>4,372<br>-<br>-<br>**Charitable activities**<br>Work of the Circuit<br>431,939<br>13,291<br>-<br>**Total**<br>436,311<br>13,291<br>-<br>Net gains on investments<br>178,000<br>2,577<br>-<br>**NET**<br>**INCOME/(EXPENDITURE)**<br>136,844<br>(9,835)<br>-<br>**Transfers between funds**<br>473,775<br>(473,775)<br>-<br>**Net movement in funds**<br>610,619<br>(483,610)<br>-<br>**RECONCILIATION OF**<br>**FUNDS**<br>Total funds brought forward<br>2,488,814<br>294,939<br>1,321<br>**TOTAL FUNDS CARRIED**<br>**FORWARD**<br>3,099,433<br>(188,671)<br>1,321<br>**13.**<br>**TANGIBLE FIXED ASSETS**<br>Freehold<br>property<br>£<br>**COST**<br>At 1 September 2021<br>**2,537,349**<br>Additions<br>**525,442**<br>Disposals<br>**(500,230)**<br>Reclassification<br>**(379,348)**<br>At 31 August 2022<br>**2,183,213**<br>**DEPRECIATION**<br>At 1 September 2021 and 31 August 2022<br>**-**<br>**NET BOOK VALUE**<br>At 31 August 2022<br>**2,183,213**<br>At 31 August 2021<br>2,537,349||Endowment<br>fund<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>2,385<br>2,385<br>-<br>2,385<br>12,990<br>15,375<br>Fixtures<br>and<br>fittings<br>£<br>**559**<br>**-**<br>**-**<br>**-**<br>**559**<br>**559**<br>**-**<br>-||Total<br>funds<br>£<br>378,306<br>16,259<br>1,469<br>396,034<br>4,372<br>445,230<br>449,602<br>182,962<br>129,394<br>-<br>129,394<br>2,798,064<br>2,927,458<br>Totals<br>£<br>**2,537,908**<br>**525,442**<br>**(500,230)**<br>**(379,348)**<br>**2,183,772**<br>**559**<br>**2,183,213**<br>2,537,349|
|---|---|---|---|---|
||||||
||||||
||||||
||||||



Page 21 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **13. TANGIBLE FIXED ASSETS - continued** 

The Trustees for Methodist Purposes act as Custodian Trustees holding the title to the seven properties (Manses) in which the Ministers live. 

## **14. FIXED ASSET INVESTMENTS** 

Included in Fixed Asset Investments is an amount of £14,409  (2021 £15,375) representing two Endowment Funds both of which are invested in the TMCP Mixed Managed Fund. 

## **15. INVESTMENT PROPERTY** 

|**FAIR VALUE**<br>At 1 September 2021<br>Revaluation<br>Reclassification<br>At 31 August 2022<br>**NET BOOK VALUE**<br>At 31 August 2022<br>At 31 August 2021|**£**<br>**450,000**<br>**570,652**<br>**379,348**|
|---|---|
||**1,400,000**|
||**1,400,000**|
||450,000|



The Trustees for Methodist Purposes act as Custodian Trustees holding the title to the property. 

The fair value has been estimated by Roger Trudgill, a surveyor. 

Fair value at 31 August 2022 is represented by: 

|Valuation in 2021<br>Valuation in 2022<br>Cost<br>**1**<br>**DEBTORS**<br>**31.8.22**<br>**£**<br>Amounts falling due within one year:<br>Trade debtors<br>**1,439**<br>Other debtors<br>**32,633**<br>**34,072**<br>Amounts falling due after more than one year:<br>Other debtors<br>**7,250**<br>Aggregate amounts<br>**41,322**|**£**<br>**178,000**<br>**570,652**<br>**651,348**|**£**<br>**178,000**<br>**570,652**<br>**651,348**|
|---|---|---|
||**,400,000**||
||31.8.21<br>£<br>212<br>19,003<br>19,215<br>10,750<br>29,965||
|||19,215|
|||10,750|
|||29,965|



## **16. DEBTORS** 

Other debtors includes £7,250 (2021: £10,750) of loans to 2 (2020:3) churches to enable them to carry out property schemes. None have fixed repayment terms except that they are interest free and must be paid in full within five years of draw down.  Repayments of £3,500 (2021: £Nil) were received during the year. 

Page 22 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|||
|---|---|---|
|Trade creditors<br>Other creditors|**31.8.22**<br>**£**<br>**2,644**<br>**88,972**<br>**91,616**|31.8.21<br>£<br>2,728<br>324,746|
|||327,474|



## **18. LOANS** 

An analysis of the maturity of loans is given below: 

||**31.8.22**||31.8.21|
|---|---|---|---|
||**£**||£|
|Amounts falling due within one year on demand:||||
|Other loans||**-**|240,000|



The loans will be repaid the earlier of on demand or on receipt of the sale proceeds from the Oakley manse. 

## **19. MOVEMENT IN FUNDS** 

|**MOVEMENT IN FUNDS**|||||
|---|---|---|---|---|
|**Unrestricted funds**<br>General fund<br>Circuit Model Trust Fund<br>Manse repair costs<br>**Restricted funds**<br>Circuit training fund<br>**Endowment funds**<br>Endowment Fund<br>**TOTAL FUNDS**|At 1.9.21<br>£<br>**3,071,433**<br>**(188,671)**<br>**28,000**<br>**2,910,762**<br>**1,321**<br>**15,375**<br>**2,927,458**|Net<br>movement<br>in funds<br>£<br>**1,157,722**<br>**993**<br>**(5,162)**<br>**1,153,553**<br>**(100)**<br>**(966)**<br>**1,152,487**|Transfers<br>between<br>funds<br>£<br>**(553,379)**<br>**553,379**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**|At<br>31.8.22<br>£<br>**3,675,776**<br>**365,701**<br>**22,838**|
|||||**4,064,315**<br>**1,221**<br>**14,409**|
|||||**4,079,945**|



Net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>Circuit Model Trust Fund<br>Manse repair costs<br>**Restricted funds**<br>Circuit training fund<br>**Endowment funds**<br>Endowment Fund<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>**965,900**<br>**3,153**<br>**-**<br>**969,053**<br>**-**<br>**-**<br>**969,053**|Resources<br>expended<br>£<br>**(378,751)**<br>**(1,116)**<br>**(5,162)**<br>**(385,029)**<br>**(100)**<br>**-**<br>**(385,129)**|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>**570,573**<br>**1,157,722**<br>**(1,044)**<br>**993**<br>**-**<br>**(5,162)**<br>**569,529**<br>**1,153,553**<br>**-**<br>**(100)**<br>**(966)**<br>**(966)**<br>**568,563**<br>**1,152,487**|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>**570,573**<br>**1,157,722**<br>**(1,044)**<br>**993**<br>**-**<br>**(5,162)**<br>**569,529**<br>**1,153,553**<br>**-**<br>**(100)**<br>**(966)**<br>**(966)**<br>**568,563**<br>**1,152,487**|
|---|---|---|---|---|
|||||**1,152,487**|



Page 23 

continued... 



## **NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **19. MOVEMENT IN FUNDS - continued** 

## **Comparatives for movement in funds** 

|**Unrestricted funds**<br>General fund<br>Circuit Model Trust Fund<br>Manse repair costs<br>**Restricted funds**<br>Circuit training fund<br>**Endowment funds**<br>Endowment Fund<br>**TOTAL FUNDS**|At 1.9.20<br>£<br>2,460,814<br>294,939<br>28,000<br>2,783,753<br>1,321<br>12,990<br>2,798,064|Net<br>movement<br>in funds<br>£<br>136,844<br>(9,835)<br>-<br>127,009<br>-<br>2,385<br>129,394|Transfers<br>between<br>funds<br>£<br>473,775<br>(473,775)<br>-<br>-<br>-<br>-<br>-|At<br>31.8.21<br>£<br>3,071,433<br>(188,671)<br>28,000<br>2,910,762<br>1,321<br>15,375<br>2,927,458|
|---|---|---|---|---|



Comparative net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>Circuit Model Trust Fund<br>**Endowment funds**<br>Endowment Fund<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>395,155<br>879<br>396,034<br>-<br>396,034|Resources<br>expended<br>£<br>(436,311)<br>(13,291)<br>(449,602)<br>-<br>(449,602)|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>178,000<br>136,844<br>2,577<br>(9,835)<br>180,577<br>127,009<br>2,385<br>2,385<br>182,962<br>129,394|
|---|---|---|---|



A current year 12 months and prior year 12 months combined position is as follows: 

|**Unrestricted funds**<br>General fund<br>Circuit Model Trust Fund<br>Manse repair costs<br>**Restricted funds**<br>Circuit training fund<br>**Endowment funds**<br>Endowment Fund<br>**TOTAL FUNDS**|At 1.9.20<br>£<br>2,460,814<br>294,939<br>28,000<br>2,783,753<br>1,321<br>12,990<br>2,798,064|Net<br>movement<br>in funds<br>£<br>1,294,566<br>(8,842)<br>(5,162)<br>1,280,562<br>(100)<br>1,419<br>1,281,881|Transfers<br>between<br>funds<br>£<br>(79,604)<br>79,604<br>-<br>-<br>-<br>-<br>-|At<br>31.8.22<br>£<br>3,675,776<br>365,701<br>22,838<br>4,064,315<br>1,221<br>14,409<br>4,079,945|
|---|---|---|---|---|



Page 24 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **19. MOVEMENT IN FUNDS - continued** 

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: 

|Incoming<br>resources<br>£<br>**Unrestricted funds**<br>General fund<br>1,361,055<br>Circuit Model Trust Fund<br>4,032<br>Manse repair costs<br>-<br>1,365,087<br>**Restricted funds**<br>Circuit training fund<br>-<br>**Endowment funds**<br>Endowment Fund<br>-<br>**TOTAL FUNDS**<br>1,365,087|Resources<br>expended<br>£<br>(815,062)<br>(14,407)<br>(5,162)<br>(834,631)<br>(100)<br>-<br>(834,731)|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>748,573<br>1,294,566<br>1,533<br>(8,842)<br>-<br>(5,162)<br>750,106<br>1,280,562<br>-<br>(100)<br>1,419<br>1,419<br>751,525<br>1,281,881|
|---|---|---|



Details on agreed expenditure from the Circuit Model Trust Fund can be found within the Other Financial Commitments note to these financial statements. 

The deficit on the CMTF will be reversed on the sale of the Oakley manse which is expected to be in early 2022. 

## **Transfers between funds** 

Amounts were transferred between the CMTF and the general fund on purchase of the manse which  is to be fully finance from the CMTF. The amount transferred during the year represent those source of funds used. The balance will be transferred once the sale has been completed. 

## **20. RELATED PARTY DISCLOSURES** 

## **Transactions between the Circuit and its member churches** 

The Circuit received share offers of £345,465  (2021: £378,306) from the churches within the circuit. 

They received £3,500 (2021 £Nil) in  loan repayments from churches. See debtors note for further details. 

They also received £7,783 in cash funds on the closure of a church within the Circuit. 

The circuit received interest free loans totalling £240,000 in the year to 31 August 2021 which were fully repaid in the year to 31 August 2022. 

## **Transactions between the Circuit and the Beds, Essex and Herts District (BEH).** 

The Circuit paid BEH £17,193 (2021: £19,344) in district assessment. They also paid them £1,002 (2021: £12,234) by way of levies on the net sale of properties and or the balance on monies held in the Circuit Model Trust Fund at start of the financial year.. 

## **Transactions between the Circuit and Connexion** 

The Circuit paid Connexion £67,632 (2021: £68,596) in assessment which is collected by BEH. 

Page 25 

continued... 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022** 

## **21. POST BALANCE SHEET EVENTS** 

A decision was taken to close Cranfield  Methodist Church and therefore the Circuit now has responsibility for maintaining and selling the property. 

Wilstead Methodist Church is in the process if being sold for gross proceeds of £407,110. This will be subject to a levy from Methodist Connexion after which the net proceeds will become part of the Circuit Model Trust Fund. 

## **22. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** 

|**31.8.22**<br>**£**<br>**Net income for the reporting period (as per the Statement of Financial**<br>**Activities)**<br>**1,152,487**<br>**Adjustments for:**<br>Gain on investments<br>**(568,563)**<br>Profit on disposal of fixed assets<br>**(578,541)**<br>Interest received<br>**(3,442)**<br>Closed church investment with TMCP<br>**(2,234)**<br>(Increase)/decrease in debtors<br>**(14,857)**<br>Increase/(decrease) in creditors<br>**4,142**<br>**Net cash used in operations**<br>**(11,008)**|31.8.21<br>£<br>129,394<br>(182,962)<br>-<br>(970)<br>-<br>5,569<br>(10,389)<br>(59,358)|
|---|---|



## **23.. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS** 

||At 1.9.21|Cash flow|**At 31.8.22**|
|---|---|---|---|
||£|£|**£**|
|**Net cash**||||
|Cash at bank|**205,630**|**309,263**|**514,893**|
||**205,630**|**309,263**|**514,893**|
|**Debt**||||
|Debts falling due within 1 year|**(240,000)**|**240,000**|**-**|
||**(240,000)**|**240,000**|**-**|
|**Total**|**(34,370)**|**549,263**|**514,893**|



## **24. FUNDS RECEIVED AS AGENT** 

During the year the Circuit received funds from 16  (2021: 17) churches within the Circuit amounting to £ 11,449 (2021: £11,521) which were fully paid over to other Connexional funds. 

Page 26 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022** 

||31.8.22|31.8.21|
|---|---|---|
||£|£|
|**INCOME AND ENDOWMENTS**|||
|**Other trading activities**|||
|Income from photocopying|**77**|59|
|Rental income from manse not required in the|||
|short term|**32,942**|16,200|
||**33,019**|16,259|
|**Investment income**|||
|Dividend income|**403**|499|
|Deposit account interest|**3,442**|970|
||**3,845**|1,469|
|**Charitable activities**|||
|Circuit share offers|**345,465**|378,306|
|**Other income**|||
|Gain on sale of tangible fixed assets|**578,541**|-|
|Funds on closure of churches|**7,783**|-|
|Sundry income|**400**|-|
||**586,724**|-|
|**Total incoming resources**|**969,053**|396,034|
|**EXPENDITURE**|||
|**Other trading activities**|||
|Costs associated with letting out the manse|**8,214**|4,372|
|**Charitable activities**|||
|Wages|**165,111**|203,087|
|Social security|**14,779**|17,203|
|Pensions|**36,609**|47,457|
|Rates and water|**16,403**|21,206|
|Insurance|**7,740**|4,604|
|Light and heat|**(2,672)**|-|
|Telephone|**4,051**|3,837|
|Sundries|**888**|595|
|District Assessment|**17,193**|19,344|
|Methodist Church Fund|**67,632**|68,596|
|Manse repairs|**17,456**|23,556|
|Travel|**7,663**|3,858|
|Circuit administration|**5,747**|6,139|
|Quinquennial costs|**3,450**|3,225|
|Local preacher and supernumerary fees|**1,594**|839|
|Ministerial administration costs|**1,593**|2,985|
|Stationing - inc removal costs|**4,379**|3,079|
|Training|**370**|287|
|Finance charges|**257**|675|
|Carried forward|**370,243**|430,572|



This page does not form part of the statutory financial statements 

Page 27 



**NORTH BEDFORDSHIRE METHODIST CIRCUIT** 

## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022** 

||31.8.22|31.8.21|
|---|---|---|
||£|£|
|**Charitable activities**|||
|Brought forward|**370,243**|430,572|
|District Levy|**1,002**|12,234|
|Licences and subscriptions|**-**|67|
|Legal & professional|**-**|147|
|Grants to institutions|**-**|500|
|Grants to individuals|**-**|(150)|
||**371,245**|443,370|
|**Support costs**|||
|**Governance costs**|||
|Auditors' remuneration|**6,000**|-|
|Independent Examiner's fee|**(330)**|1,860|
||**5,670**|1,860|
|Total resources expended|**385,129**|449,602|
|**Net income/(expenditure) before gains and**|||
|**losses**|**583,924**|(53,568)|
|**Realised recognised gains and losses**|||
|Realised gains/(losses) on fixed asset|||
|investments|**568,563**|182,962|
|**Net income**|**1,152,487**|129,394|



This page does not form part of the statutory financial statements 

Page 28 



HW East Midlands Audit LLP Woburn Court Railton Road Bedford MK42 7PN 

The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your audit of the charity’s financial statements for the year ended 31 August 2022. These enquiries have included inspection of supporting documentation where appropriate and are sufficient to satisfy ourselves that we can make each of the following representations. All representations are made to the best of our knowledge and belief. 

## **General** 

1.  We have fulfilled our responsibilities as directors / trustees as set out in the terms of your engagement letter, under the Charities Act 2011 for preparing financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), for being satisfied that they give a true and fair view and for making accurate representations to you. 

2.  All the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. 

3.  All the accounting records have been made available to you for the purpose of your audit. We have provided you with unrestricted access to all appropriate persons within the charity, and with all other records and related information requested, including minutes of all management and trustee meetings and correspondence with The Charity Commission. 

4.  The financial statements are free of material misstatements, including omissions. 

5.  The effects of uncorrected misstatements (as set out in the appendix to this letter) are immaterial both individually and in total. 

## **Internal control and fraud** 

6.  We acknowledge our responsibility for the design, implementation and maintenance of internal control systems to prevent and detect fraud and error. We have disclosed to you the results of our risk assessment that the financial statements may be misstated as a result of fraud. 

7.  We have disclosed to you all instances of known or suspected fraud affecting the entity involving management, employees who have a significant role in internal control or others that could have a material effect on the financial statements. 

8.  We have also disclosed to you all information in relation to allegations of fraud or suspected fraud affecting the entity’s financial statements communicated by current or former employees, analysts, regulators or others. 

## **Assets and liabilities** 

9.  The charity has satisfactory title to all assets and there are no liens or encumbrances on the charity’s assets, except for those that are disclosed in the notes to the financial statements. 

10.  All actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as appropriate. 

11.  We have no plans or intentions that may materially alter the carrying value and, where relevant, the fair value measurements or classification of assets and liabilities reflected in the financial statements. 

## **Accounting estimates** 

12.  Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. 

## **Legal claims** 

13.  We have disclosed to you all claims in connection with litigation that have been, or are expected to be, received and such matters, as appropriate, have been properly accounted for and disclosed in the financial statements. 

## **Laws and regulations** 

14.  We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements. 

## **Related parties** 

15.  Related party relationships and transactions have been appropriately accounted for and disclosed in the financial statements. We have disclosed to you all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with legislative and accounting standards requirements. 



## **Subsequent events** 

16.  All events subsequent to the date of the financial statements which require adjustment or disclosure have been properly accounted for and disclosed. 

## **Going concern** 

17.  We believe that the charity's financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity's needs.  We also confirm our plans for future action required to enable the charity to continue as a going concern are feasible.  We have considered a period of twelve months from the date of approval of the financial statements. We believe that no further disclosures relating to the charity's ability to continue as a going concern need to be made in the financial statements. 

## **Grants and donations** 

18.  All grants, donations and other income, the receipt of which is subject to specific terms or conditions, have been notified to you. There have been no breaches of terms or conditions in the application of such income. 

We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. 

Yours faithfully 


.............................................................................................................................. 

M Giles - Signed on behalf of the board of trustees 

Date : 23 June 2023