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2023-08-31-accounts

Circuit Accruals Accounts 2022-2023

THE METHODIST CHURCH

Standard Form of Accounts

Accruals Basis for the year ended 31 August 2023

Nottingham South Circuit

Registered Charity - Registration number 1130749

Nottingham and Derby

Circuit No 22

Ministers Reverend Mark Roberts Reverend Tony Simpson

Circuit Stewards

Charles Rayner Rosie Farrow Paul Johns Isleyn Warner Stuart Jones Steve Nicholson

Chris Hammond

Circuit Accountant

Nottingham South Circuit TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

Introduction

Welcome to this annual report reflecting on our achievements during the year and plans for this coming year.

Aims and organisation

The Circuit is the umbrella organisation for all members of the 9 churches which make up the Circuit. The group of churches is served by a team of Ministers, Lay Workers, and volunteers.

Our Mission statement is:

The mission of the Nottingham South Methodist Circuit is to share the Gospel of Jesus Christ by encouraging, resourcing and enabling the people and churches of the Circuit to serve their communities and the wider world

Review of the year

Most of the activity of the Circuit is conducted through its local churches. At the end of October 2021 these 9 churches had a total membership of 495.

The Circuit churches have continued to offer Sunday worship, fellowship groups and activities for children and young people. The Circuit and its churches have also continued to try and find ways of offering the love of Jesus Christ to the communities they serve and pastoral care and support within the church communities themselves. There have been positive signs of growth in many of the churches, with new people joining the congregations, and new ways being found to engage with our communities.

In March 2023 the circuit learned that Rev Nichola Jones would be leaving the circuit in July 2023. The circuit has adjusted the pastoral responsibilities of the remaining ministers to cover the reduction in ministry cover.

During the year Rebecca Bilsbrough was employed as a lay worker to work with children and families in Keyworth.

During the year the Circuit supported the work of its churches through:

Nottingham South Circuit TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

Review of the year

Income trends

Circuit income is predominantly (96%) drawn from the assessment and contributions towards Lay Employee salaries paid by the circuit churches.

Expenditure trends

Stipend expenditure and Lay Worker salaries have increased each financial year in line with conference approved increases and accounts for 68% of total expenditure.

16% of expenditure is the Circuit contribution to the District and Connexion, of which a significant part is used to fund the work of the wider Methodist Church.

Other expenditure includes : Manses - maintenance £12,143 Manse utilities £13,022

Fund balances

As at 31 August 2022 the net current assets of the Circuit were £309k. Of this £72k was held on behalf of Bridgeway Hall. The remaining reserves of £237k, give approximately 9 months cover for expenditure

Plans for 2023/24

Circuit financial plans for the coming year have been prepared on the basis that the circuit staffing will be 2 full time ordained staff, 5 lay staff and an employed circuit administrator. Staff costs include anticipated cost of living stipend and lay employee increases. There will be an incease in District contribution this year. Giving to share contributions from churches have been held flat for yet another year, but church contributions to lay employees will increase in line with costs.

In September the circuit expects to sell the existing manse in Radcliffe on Trent and will then seek to purchase a new one. Allowance has been made in the budget for the expected difference between sale and purchase price.

Nottingham South Circuit

Trustee’s Annual Report on Finance and Governance

Basis of preparation and legal framework

The Charity’s annual report and accounts for the year ended 31 August 2023 have been prepared in accordance with the Charities Act 2011 and the Charities: Statement of Recommended Practice 2015 as applicable to the Financial Reporting Standard(FRSSE) 2015

Full Name of Charity: Methodist Church Nottingham South Circuit

Registration Charity Number: 1130749

Date of registration 27 July 2009

Main communication address 119 Melton Road West Bridgford NG2 6FG

The members of the Nottingham South Methodist Circuit meeting are the Charity Trustees, membership being made up of circuit office holders, ministers and representatives appointed by the local churches.

Fully membership is shown as Appendix A to this report.

Circuit Ministers and officers

Active Circuit Ministers : M D Roberts Circuit Stewards C Raynor S Jones T Simpson P Johns[R Farrow] Circuit Lay Workers I Warner H Roberts M J Blyth J Everett A Kilshaw R Bilsborough

Mr C Hammond ( Circuit Accountant) acted as the principal officer overseeing the day to day financial management and accounting for the circuit during the year.

Independent examiner Mr M Taylor ACMA 2 Goldstraw Lane Fernwood Newark Notts NG24 3FF

Investment Bankers : Central Finance Board of the Methodist Church Trustees for Methodist Church purposes

Nottingham South Circuit

Aims and organisation

Charity objective is to act as a Resource provider within the area around South Nottingham for the Methodist Church:

The purposes of the Methodist Church are and shall be deemed to have

been since the Date of Union the advancement of:

a) The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church;

b) Any charitable purpose for the time being of any Connexional, District, Circuit. local or other organisation of The Methodist Church;

c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church;

d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church

The organisation and resourcing of regular public acts of worship open to members of the church and non members alike.

The teaching of Christianity through sermons, courses and small groups. The resourcing of pastoral work including visiting the sick and bereaved. Taking religious assemblies in local schools.

Promotion of Christianity through the staging of events and services. Provision of chaplaincy services to the local university and other institutions.

Public Benefit

We confirm the trustees have had regard to the Charity Commission’s guidance on public benefit.

Structure, Governance and Management

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

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

Day to day management of the circuit is undertaken by the Circuit Leadership team along with the Local Preachers meeting.

Trustee Training

A range of guidance produced by Methodist Connexion to support the effective running of the circuit , specifically the leaflet ‘The Role of a Trustee in The Methodist Church’ is given to all new Circuit meeting members as induction to their role as trustees.

Related Parties

The Circuit is part of the Nottingham & Derby District and is also accountable to the Methodist Conference.

The following Methodist Churches are linked to the circuit:

Bradmore Radcliffe-on-Trent Clifton Ruddington Cotgrave Tollerton Keyworth West Bridgford Bridgeway Hall

Other specific organisations with specific linkage - Faith and Light.

Nottingham South Circuit

Risk Management

The major risks have been identified and recorded by the Circuit Leadership Team with professional advice taken as required.

There is a regular annual review process undertaken and recorded.

Income and Expenditure is being monitored in total and is compared with the approved annual budget on a half yearly basis to detect trends as part of the risk management process to avoid unforeseen calls on reserves.

Safeguarding

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

Methodist Connexional practice outlines commitment to the following principles:

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

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

Reserves Policy

The Reserves Policy for the Circuit is to hold a minimum sum equivalent to 6 months’ average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and / or to be able to continue, in the short term, funding planned activities in the event of any inability to raise the full Circuit Assessment from churches.

Name of Circuit

Nottingham South Circuit

Number

22

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

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Total Total
2022-23 2021-22
£ £ £ £ £ £
Income and Endowments from:
1 Donations and legacies 4
2 Charitable activities
2a Assessments or share 274,647 274,647 259,399
2b Other 5 3,300 3,300 3,300
3 Other trading activities 6
3a - Lettings 7,216
3b - Grants 5,379
4 Investments 7 7,056 356 7,412 1,056
5 Other
6 Total 285,003 356 285,359 276,350
Expenditure on:
7 Stipends, salaries, NIC & Pension costs 10 200,390 200,390 173,517
8 District Assessment 47,500 47,500 64,263
9 Methodist Church Fund
10 Telephone, travel and other costs of employment 14,458 14,458 18,210
11 Insurance, utilities, etc 13,022 13,022 9,487
12 Maintenance on manses 12,143 12,143 6,649
13 Expenditure on other Circuit property
14 Depreciation 11
15 Provisions
16 Other Expenditure 8,790 316 9,106 7,445
17 Grants and Donations
18 Contributions to District Advance Fund
19 Total 296,303 316 296,619 279,571
20 Net income/(expenditure) -11,300 40 -11,260 -3,221
21 Property additions
Clifton Building Contribution -5,000
Revaluation of Manses 101,143 101,143 198,698
22 Bridgeway Hall 150,411
23 Bridgeway Hall repairs -35,260 -35,260 -43,000
Actuarial gains /(losses) on defined benefit
24 pension schemes
25 Net movement in funds 89,843 40 -35,260 54,623 297,888
Reconciliation of funds:
26 Total funds brought forward 1,639,178 11,350 107,411 1,757,939 1,460,051
27 Total funds carried forward 1,729,021 11,390 72,151 1,812,562 1,757,939
For information only Money received and passed on to External Organisations
Balance brought forward from last year
Offerings/Gifts - received for External Organisations
Offerings/Gifts - passed to External Organisations
Balance carried forward
Notes to the accounts Unrestricted funds CMTF (Unrestricted) Restricted Funds Endowment Funds
----- End of picture text -----

Nottingham South Circuit

Balance Sheet as at 31 August 2023

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Unrestricted Circuit Model Restricted Endowment Totals this Totals last
Trust Fund Funds year year
(Unrestricted)
£ £ £ £ £ £
Tangible Fixed Assets
Notes
Land & Buildings 11 1,503,732 1,503,732 1,402,589
Equipment 11
Investment properties 12
Investments 12
Total fixed assets 1,503,732 1,503,732 1,402,589
Current Assets
Debtors and Prepayments 13 6,876 6,876 9,472
Cash at Bank and in hand 97,713 97,713 106,593
Trustees for Methodist Church
Purposes deposits 11,390 11,390 11,350
Central Finance Board Deposits 125,114 72,151 197,265 224,211
Loan 12,000
Total current assets 229,703 11,390 72,151 313,244 363,626
Creditors and Accruals (due in
under 1 yr) 14 4,414 4,414 8,276
,
Net current assets (liabilities) 225,289 11,390 72,151 308,830 355,350
Total assets less current
liabilities 1,729,021 11,390 72,151 1,812,562 1,757,939
Loans and creditors due after 1
year 14, 16
Provisions for liabilities and
charges 14, 16
Net assets 1,729,021 11,390 72,151 1,812,562 1,757,939
Funds of the Circuit
Unrestricted funds 1,729,021 1,729,021 1,639,178
Circuit Model Trust Fund
(Unrestricted) 11,390 11,390 11,350
Restricted funds 72,151 72,151 107,411
Endowment funds
Total Funds 1,729,021 11,390 72,151 1,812,562 1,757,939
----- End of picture text -----*

*Details - see Note 11

Summary of the Internal Organisations reporting to the Circuit Meeting. Note that the funds of an Internal Organisation would normally be Restricted funds unless it could be clearly shown that they could be used for any Methodist purpose.

Internal Organisations
Total
Opening
balance
Receipts
Payments
Net Receipts/
Payments
Adjustments
Closing
balances

Nottingham South Circuit

Notes to the Accounts

1 Basis of accounting

The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities applicable in the UK (effective from 1 January 2015) – the Charities SORP (FRSSE) – in replacement for the SORP’s 2005 version specified in its related 2008 Regulations and in accordance with the ‘true and fair override’ provision contained therein.”

2 Funds

The funds held constitute: General Funds held for any purpose of the Circuit which are Unrestricted. The Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as unrestricted. Restricted funds which are held for a narrower purpose . There are also the following Endowment funds as listed. Details of each material fund are disclosed in the final note to these accounts. Any funds may be represented by more than just cash.

3 Accounting policies

Basis

These accounts have been prepared on the basis of historical cost except that investments are shown at their market value at the end of the year, on the accruals basis to show a true and fair view of the Circuit’s financial position and activities.

Income Recognition

Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability.

Resources Expended

This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources.

Grants

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

VAT

Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.

Tangible fixed assets for use by the Circuit

These are capitalised if they can be used for more than one year, and individually cost at least £1,000. The freehold property is shown in the accounts at the insurance reinstatement value plus 30% of this value for the value of land, the land component is deemed to be £350k. No depreciation is provided on the building because the trustees consider the current residual fair value of the manse buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. Any depreciation would not be material. The property has been reviewed for impairment.

Investment Properties

Investment properties - no property is currently deemed to not be held for the long term purposes of the charity.

Investments

Investments are valued in the balance sheet at market value at the year end. Investment income is included in the accounts when receivable and any gains or losses on revaluation at the year end are shown in the SOFA.

Debtors and Prepayments

Debtors relate to the payment of the September stipend in August and overpayment of the Apprentice levy

Creditors

Creditors include Giving to share received in August for the next financial year and expenses paid after date

Impact of Accounting changes

There has been no accounting changes

Nottingham South Circuit

4. Donations and legacies Unrestricted Circuit Model
Trust Fund
Restricted 2023
Total
2022
Total
£ £ £ £ £
Donations -
Legacies -
Total - - - - -
5. Charitable activities -
other
Unrestricted Circuit Model
Trust Fund
Restricted 2023
Total
2022
Total
£ £ £ £ £
Cotgrave Trust Grants
Total
6. Other trading activities
3,300
3,300
Unrestricted
£
-
Circuit Model
Trust Fund
£
-
Restricted
£
3,300
3,300
2023
Total
£
3,300
3,300
2022
Total
£
District grants
Rental income
Total - - - - -
7. Investment income Unrestricted Circuit Model
Trust Fund
Restricted 2023
Total
2022
Total
£ £ £ £ £
Central Finance Board 7,056 7,056 1,003
TMCP 356 356 53
Other
Total 7,056 356 - 7,412 1,056
£
£
£
Nottingham South Circuit
to the Circuit by agreement with
avel and computing costs
£
he accounts
ependent examiner or auditor
2023
-
-
300
500
2022
-
-
300
500

8. Payment to Trustees

Payments made to trustees for additional services provided to the Circuit by agreement with the Circuit Meeting

Number of trustees who were paid expenses Nature of the expenses Expense payments primarily relate to reimbursement for travel and computing costs Total amount paid

9. Fees for examination or audit of the accounts

Independent examiner’s or auditors' fees for reporting on the accounts

Other fees (eg: advice, accountancy services) paid to the independent examiner or auditor

Staff Costs paid during the year were:
Gross wages, salaries and benefits in kind
Employer’s National Insurance costs
Pension costs
Total staff costs
Average number of staff employed during the year were:
£
10. Paid employees
£
£
£
163,403
12,821
24,166
200,390
9
139,826
10,195
23,496
173,517
8

Nottingham South Circuit

11 Tangible Fixed Assets

Detail of assets held,

State number of manses, specifically reference other buildings managed by the circuit and separately identify property treated as investment property. Providedsummary information in respect of other categories and specific reference should be made in resppect of any assets under construction.

Cost or valuation

Balance brought forward (3 Manses)
Additions
Revaluations (+/-)
Disposals (-)
Transfers * (+/-)
Balance carried forward (3 Manses)
*Basis*
Rate
Balance brought forward
Depreciation charge for year (-)
Revaluations (+/-)
Disposals (-)
Transfers (+/-)
Balance carried forward
Brought forward
Carried forward
Accumulated depreciation
Net book value*
Residential
Land
Other Land
Manses
Other buildings
Other fixed
assets including
motor vehicles
Fixtures, fittings
and equipment
Payments on
account and
assets under
construction
Total
£
£
£
£
£
£
£
£
1,402,589
1,402,589
101,143
101,143
1,503,732
1,503,732
SL or RB
SL or RB
SL or RB
SL or RB
-
-
1,402,589
-
-
-
-
1,402,589
-
-
1,503,732
-
-
-
-
1,503,732

** Indicate the method of depreciation by deleting the method not applicable (SL = straight line; RB = reducing balance). Also indicate the rate of depreciation: for straight line, depreciation is based on the anticipated life of the asset (in years); for reducing balance, a percentage annual deduction is made each year.

Nottingham South Circuit

12 Investments

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

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

Analysis of investment movements

Total
Investments listed on a recognised Stock Exchange
Investments held in common investment funds,
Securities not listed on a recognised Stock Exchange
Net gain/(loss) on revaluation
Carrying (market) value at end of year
Other investments
Change in investment values
Carrying (market) value at beginning of year
Add:additions to investments at cost
Less:disposals at carrying value
2023
2022

Nottingham South Circuit

13. Analysis of current assets

Debtors and prepayments
Other debtors
Total debtors and prepayments
Analysis of cash at bank
Bank balance held in HSBC
Trade Creditors
Other Creditors
Total Current Liabilities
Pre paid assessments
Accrued income
Total Cash and Bank
Analysis of current liabilities and long term creditors
£
£
£
2023
£
6,876
6,876
97,713
97,713
4,414
4,414
2022
£
9,472
9,472
106,593
106,593
8,276
8,276

14. Analysis of current liabilities and long term creditors

15. Capital Commitments and Contingent Liabilities

At the 31 st August 2023 the Circuit has no capital commitments.

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Nottingham South Circuit
16. Loans
Source Purpose of loan Amount New Loan interest Repayable in Balance at
brought borrowings the year year end
forward
Totals X
Repayment due Totals
Due within 12 months 31/08/2018
Due between 1 and 5 years 31/08/2019 31/08/2020 31/08/2021 31/08/2022
Due later than 5 years
Note: the two totals X and Y must agree Y
----- End of picture text -----

Nottingham South Circuit

17. Detailed analysis of individual fund movements

Unrestricted Funds

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Unestricted Fund Name Opening Income Expenditure Transfers Closing Balance Purpose of the fund
General 216,589 285,003 -296,303 205,289 General purposes of the Circuit
Designated Manses R & M 20,000 20,000
Designated Growth Fund
Designated Building schemes
Sub Total 236,589 285,003 -296,303 225,289
CMTF ** 11,350 356 -316 11,390
Totals 247,939 285,359 -296,619 236,679
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Restricted Funds

Restricted Funds
Restricted Fund Name
Bridgway Hall
Opening
Balance
Income
Expenditure
107,411
-35,260
Transfers
Closing Balance
Annual income
What the income was used for
Purpose of the fund
Building fund
72,151
Totals
Endowment Name
107,411
-35,260
72,151
Totals
How the capital is invested
The current value of the capital

The reasons for the transfers between funds were as follows:

Nottingham South Circuit DECLARATIONS

Accountant

I confirm that I have prepared the accounts from the records of the Circuit and that they include all funds under the control of the Circuit Meeting

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Signature of Accountant C J M Hammond Date 03-Dec-23
Name Chris Hammond
Address
24 Glenmore Road West Bridgford Nottingham NG2 6GH
Presentation to the Circuit Meeting for approval.
I confirm that the Accounts have been presented to the Circuit Meeting on
and were approved.
Signature of the Chair of
the meeting
Name of the Chair of the
Mark Roberts
meeting
Date
_______________
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Independent Examiner’s Report to the Trustees of the

Nottingham South
e Circuit Accounts for the year ended 31stAugust
Circuit
2022

This Report is on the Circuit Accounts for the year ended 31[st] August

Respective responsibilities of Trustees and Examiner

The charity's trustees are responsible for the preparation of the accounts. The Charity’s Trustees consider that an audit is not required for this year under Section 144 of the Charities Act 2011(the Charities Act) and that an independent examination is needed.

It is my responsibility to:

Nottingham South Circuit

Basis of Independent Examiner’s Report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent Examiner’s Statement

In connection with my examination, no matter has come to my attention:

(1) which gives me reasonable cause to believe that in any material respect the requirements:

• to keep accounting records in accordance with Section 130 of the Charities Act.

• to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act

have not been met; or

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Name M R TAYLOR Signature M R Taylor

Relevant Professional qualification or body

ACMA

Address 2 Goldstraw Lane Fernwood Newark Notts NG24 3FF Date 02/12/2023

Nottingham South Circuit

Appendix A

CIRCUIT MEETING MEMBERSHIP as at 31st August 2023

MINISTERS

Revd. M D Roberts Revd. T Simpson

SUPERNUMERARY MINISTERS Revd M Crawford

LAYWORKERS Mrs H Roberts Mr M J Blyth Mrs J Everett Ms A Kilshaw

CIRCUIT STEWARDS Mr S Jones Mr C Rayner Mr P Johns Ms R Farrow Ms I Warner Mr S Nicholson

CIRCUIT ADMINISTRATER Mrs R Patterson CIRCUIT SECRETARY Mrs H Roberts CIRCUIT ACCOUNTANT Mr C Hammond

CIRCUIT SAFEGUARDING OFFICER Mr J Heard

PROPERTY SECRETARY Mr S Nicholson

CIRCUIT CHURCH REPRESENTATIVES CIRCUIT CHURCH REPRESENTATIVES
BRADMORE Ms P Lerwell RADCLIFFE-ON-TRENT
S Shipman S Fogg
Mrs S B Clark H Hancock
CLIFTON
Mr J Carver RUDDINGTON
Mr P Carver Mrs J Clark
Mr W B Jones Mrs S Gunn
Mr B K Farrow
COTGRAVE TOLLERTON
C Morris Mrs Y J Shorten
L Beaumont WEST BRIDGFORD
Mrs M E Heard
KEYWORTH Mr J D Heard
J Curtis Mr C Morrey
S Jackson K Hobdell
Mr A J Withington M Thurston
C Rayner
BRIDGEWAY HALL P Thomas, C Warner