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Trustees Report and Annual Accounts for the year ended 31[st] August 2022

Trustees’ Annual report for the year ended 31[st] August 2022

Introduction

The Trustees of the Wharfedale & Aireborough Circuit of the Methodist Church are pleased to present their Report for the year ended 31[st] August 2022.

Review of the Year

The Circuit Meeting was held on 4 occasions during the year and the Circuit Leadership Team met on 6 occasions plus two days at Beamsley in March 2022 to consider the “Planning for Growth” document to determine the most appropriate way forward for the Circuit.

Activities continued to resume as the Covid 19 restrictions were lifted, but all churches were experiencing smaller attendances than pre-Covid. The annual statistics of church membership has shown a continuing decline and, at some stage, this is likely to have implications for future ministerial staffing levels. Whilst many face to face meetings had resumed there was still use of Zoom, particularly during the winter months, to reduce the need to travel. The Circuit Ministerial Team comprised 4 full time Presbyters and a part time Deacon; the Circuit Stewards Team was strengthened with the addition of a Steward with responsibility for property and a new Circuit Meeting secretary was appointed. Although, subject to Conference approval, we expected an additional Presbyter for 2022-2023, there was still a surplus of manses. It was agreed to sell the properties at Bramhope and Yeadon and buy a new Manse in Otley, better located to meet future growth in the town. The former Otley Manse was marketed for sale during 2022-2023.

The congregation at Otley has been supported as it considers its future following the decision to dispose of its present extensive and expensive suite of buildings. A marketing campaign has been ongoing to find potential suitable purchasers and the congregation has continued to meet in the building for worship. The Circuit has supported them financially by meeting costs of surveyors, which should be recovered when the premises are sold.

There have been ongoing conversations about the Local Ecumenical Partnership at Rawdon Trinity and its place within the Circuit.

The Circuit operates 4 unrestricted and 5 restricted separate, open funds within its Accounts. The purpose of each Fund is summarised below and expanded in Notes to the Accounts BS6.

The Circuit’s Funds:

In total the Circuit’s Funds increased by £250.7k in the year as a result of the sale of the two manses at Bramhope and Yeadon and the purchase of a new manse at Otley. Further sale of property is to take place in 2023 when the Circuit disposes of Otley old manse.

The General Fund deals with all the day-to-day expenditure of the Circuit; primarily it meets the cost of the presbyters and employees of the Circuit, contributes to District and Connexion costs and meets the cost of running and maintaining the manses; to pay for these costs the Circuit raises Assessments on each Church in the Circuit with the intention to raise just sufficient income to cover the budgeted expenditure.

The Circuit Model Trust Fund exists to meet the need for major expenditure on Circuit property or to meet Circuit projects, both of which require the ultimate approval of the Trustees for Methodist Church Purposes (“TMCP”). The Fund increased in value from £159k to £503.5k during the year as a result of the proceeds from the sale of two redundant manses and the purchase of a new manse in Otley (the old Otley Manse is currently in the process of being sold), which generated £529k net of costs and £360k after the application of the Connexional Levy of £169k. £2k was paid as a grant to support the employment of a lay worker at Menston MC.

There are two other small Trust Accounts held with TMCP having values of £384.83 and £261.69; we are seeking permission to cash these in given the low values.

There are five Restricted Funds . Four of these were created many years ago, and have small balances carried forward from one year to the next, additionally the CAP Debt Centre Fund created in 2019 has been defined as restricted. Full details of all the Restricted Funds are shown in BS6 to the Accounts.

The CAP Debt Centre Fund was created in 2019 for the purpose of separately managing donations and other income to be used to pay for the operation of a Christians Against Poverty (CAP) Debt Centre. Donations of 7.5k were received and grants of £7.5k from Connexional funds and £1.1k from ACTS435. Expenditure of £19.3k was incurred made up of the costs of employing a part-time Debt Centre Manager and a monthly fee payable to CAP and small grants to clients..

In addition to the Circuit Model Trust Fund, there are 3 more unrestricted funds which are treated as Designated Funds and recorded separately. These are:

The Property Fund was established in 2011 and exists to deal with the uneven incidence of maintenance and repair costs at the Circuit’s 7 manses. (note 9 below)

The Beamsley Fund was created in 2010 when the surplus funds of the Beamsley Chapel were transferred to the Circuit following the closure of the chapel. Since that time the Fund has been augmented by rents received from the tenants at the chapel.

The Fund for the Norwood Chapel and Retreat Centre was created in 2014 when the funds of the Norwood Church were transferred to the Circuit and the congregation became a class of Otley Church. A decision was made at the Circuit Meeting in February 2018 to continue worship at Norwood and maintain a meeting facility. To support the upkeep of the building and running costs, Norwood cottage is let at a commercial rent under an Assured Short Term Tenancy, further supported by the enrolment of ‘Friends of Norwood’ whose contribution mitigates the costs of the Chapel.

In Aggregate the Circuit’s total Funds as at 31[st] August 2022, including the value of 6 manses, a burial ground and the Beamsley Centre, stood at £3,194k, an increase from 2021 of £251k.

The work of the Circuit and its associated churches resumed as the Covid 19 restrictions were relaxed; however, some of the changes forced by the Covid pandemic – eg use of zoom, rather than face to face meetings – has continued where appropriate.

Plans for 2022/2023

At the time the Budget for the current year (2022/23) was prepared it was envisaged that there would be 5 ministers and 5 part-time lay employees supporting administration (37 hours per week), communications (10 hours per week), CAP Debt Centre (16 hours per week) and two Activities Organisers supporting one of the ministers (15 hours a week each) - the equivalent of 2.5 full time employees. Account was taken of known stipend and salary increases for 2022/23 and the

known change in District and Connexion costs; sensible estimates were made about all other Circuit costs. Because of the impact of Covid on church finances it was agreed the increase in the Assessment paid to the Circuit by churches to cover planned expenditure should be restricted to 2% and this resulted in a budget deficit of £10k. Subsequently, the economic crisis has seen inflation at a higher rate than anticipated and all Lay Workers have been given a 10.1% increase in their pay from December 2022.

At the end of August 2022 a part time Deacon retired and a new full time Presbyter moved into the new manse at Otley to serve the Otley & Pool churches and act as the Circuit’s Mission Enabler. The paid Circuit Finance Advisor resigned as at 30[th ] June 2022 and the role of Circuit Treasurer is currently being covered on a voluntary basis. From 1[st] September 2022 we have employed a Circuit Manager on a full-time basis to provide support to the Superintendent Minister and ensure good practice to enable the Circuit to meet all of its legal, regulatory and moral responsibilities. Assistance in specific areas of activity is being provided by Alan Sheath as Property Steward and Richard Lowe as Trustee with Financial Responsibility. The Circuit is also employing two part time Lay Workers (15 hours a week each) to act as “activities coordinators” and provide support to Rev Roger Smith at Guiseley & Yeadon.

A number of Local Preachers have decided they do not wish to continue in that role and so there is an increasing number of Local Arrangement services on Sundays. The Circuit will provide support through provision of both resources and training for local churches to be able to offer appropriate services of worship when preachers are not available.

We are concerned about the disruption that Covid caused to our work with children and young people across the Circuit and are looking to establish a “Circuit Youth” Team in order to take a fresh look at provision in this vital area of our work. The Circuit Leadership Team continue to work on renewing our Circuit Mission Statement around the themes of “Transformational, Sustainable, Missional,” and look at the Connexional Oversight and Trusteeship Report in order to identify the minimum number of Trustees’ bodies necessary for the Circuit and its churches to flourish.

The sale of the old manse at Otley is progressing and we shall then have 5 manses for our current 5 ministers. We are investigating opportunities to make the manses more eco-friendly and have carried out eco audits of all church properties across the Circuit; we will be reviewing the suitability of manses to be fitted with solar panels and the eco credentials of our manses will be a key factor in future provision.

It is hoped the church premises in Otley will be sold during 2022-2023 and the Circuit will continue to support the congregation as it moves to the next stage of its existence in this market town.

The Circuit will be supporting Justice, Dignity & Solidarity Strategy of the Methodist Church by ensuring participation in the Equality, Diversity & Inclusion training by those for whom this is a requirement.

Basis of preparation and legal framework

The Charity’s annual report and accounts for the year ended 31[st] August 2021 have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ireland (FRS 102) (effective from 1 January 2015) – (Charities SORP (FRS (102)).

Full name of Charity The Wharfedale & Aireborough Methodist Circuit Registered Charity Number 1132357 Date of registration 2011 Main communication address 20 Far Mead Croft Burley-in-Wharfedale LS29 7RR From 1[st] September 2022 the communication address is 39 Main Street, Menston, ILKLEY, LS29 6NB.

The Members of the Wharfedale & Aireborough Methodist Circuit meeting are the Charity Trustees, membership being made up of Circuit office holders, ministers and representatives appointed by local churches.

Full membership is shown in Appendix A to this Report

Circuit Ministers and Officers

Active Circuit Ministers

Deacon Elizabeth Day (p-t) Rev. Shannon DeLaureal Rev. Tim Perkins Rev. Roger Smith Rev. Dr. Roberta Topham

As Superintendent Minister, the Reverend Timothy Perkins acted as chair of the Circuit Meeting.

Circuit Employees

During the year, the Circuit employed Mr Michael Fawcett as a part-time administrator through to July 2022 and Circuit Communications Officer from 1[st] August 2022, who acted as Circuit Secretary until the appointment of Mrs Carol Newton, Mrs Carol Tooke, part-time Circuit Finance Advisor until 30[th] June 2022 and Mrs Samantha Price, part-time Circuit CAP Debt Centre Manager.

Circuit Stewards

The Circuit Stewards in office in the year ended 31[st] August 2022 were as follows:

Mrs Hilary Murden Mr Richard Lowe Mrs Margo Atkinson Mrs Vivien Pitts

Mr Alan Sheath

The Independent Examiner is Stewardship Services (UKET) Limited of 1, Lamb’s Passage, London EC1Y 8AB

The Circuit’s Investment Bankers are the Central Finance Board of the Methodist Church and Trustees for Methodist Church purposes

The Circuit’s bank account is held at CAF Bank Ltd.

Aims and Organisation

The Charity’s objective is to act as a resource provider for the Methodist Church within an area north west of Leeds between Rawdon and Guiseley to the south, Pool-in-Wharfedale to the east, Norwood to the north, and Ilkley and Addingham to the west.

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

Promoting of Christianity through the staging of events and services

Provision of chaplaincy services to local 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.

Trustee Training

A range of guidance produced by the 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 an induction to their role as Trustees.

Related Parties

The Circuit is part of the Yorkshire West District and is also accountable to the Methodist Conference.

The following Methodist Churches are linked to the Circuit.

Addingham Methodist Church Ben Rhydding Methodist Church Bramhope Methodist Church Burley-in-Wharfedale Methodist Church Guiseley Methodist Church Hawksworth Methodist Church Christchurch Ilkley LEP Menston Methodist Church Norwood Chapel and day retreat centre Otley Methodist Church Pool-in-Wharfedale Methodist Church Trinity Rawdon LEP Yeadon Methodist Church

Christchurch Ilkley and Rawdon Church operate as part of Local Ecumenical Partnerships (“LEPS”). Christchurch Ilkley is an LEP involving Methodists and the United Reformed Church; that at Rawdon involves Methodists and members of the United Reformed Church and the Baptist Church.

Risk Management

The major risks have been identified and recorded by the Circuit Finance and Property Committees 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 quarterly basis to detect trends as part of the risk management process to avoid unforeseen calls on reserves. The Circuit also monitors the finances of local churches to ensure their ability to pay the Circuit Assessment. Whilst the church at Otley is currently paying a reduced assessment until its future becomes more clear this can be covered from the Circuit Model Trust Fund (CMTF), which has been boosted by income from property sales.

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 recreation 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 care and nurture of, and respectful pastoral ministry with, all children, young people and adults

the safeguarding and protection of all children, young people and adults when they are vulnerable

the establishing of safe, caring communities which provide a loving environment where there is informed vigilance as to the dangers of abuse

we will carefully select and train all those with any responsibility within the church in line with Safer Recruitment principles, including the use of criminal records disclosures and registration with the relevant vetting and barring schemes
we will respond without delay to every complaint made which suggests that an adult, child or young person may be harmed, cooperating with the Police and Local Authority in any investigation
we will seek to work with anyone who has suffered abuse, developing with them an appropriate ministry of informed pastoral care
we will seek to challenge any abuse of power, especially by anyone in a position of trust
we will seek to offer pastoral care and support, including supervision and referral to the proper authorities, to any member of our church community known to have offended against a child, young person or vulnerable adult
in all these principles we will follow legislation, guidance and recognised good practice

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

Reserves Policy

The Circuit’s Reserves Policy is set out in Note BS9 to these Accounts, following a review and recommendations from the Circuit’s Finance team, the reserves policy was updated during 2019. The Circuit’s Reserves as at 31st August 2022 satisfy the Circuit’s tests. Regular monitoring is required to ensure adherence to policy and if necessary, to put into place a plan to augment the Circuit’s funds.

In addition to the cash holdings with the CAF Bank (current account) and Central Finance Board of the Methodist Church (deposit account), the Circuit has access to funds held by the Trustees for Methodist Church Purposes in the Circuit Model Trust Fund.

Responsibilities of trustees under charity law

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

Charity law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. 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.

On 22 February 2023 the Charity Commission granted the trustees a dispensation from having the accounts for the year ended 31 August 2022 audited. The accounts have therefore been independently examined but not subject to audit.

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

Notes to
the
accounts
Income
1 Donations and legacies
2 Income from monetary investments
3
3 Income from investment properties
4 Assessments on Churches
4
5 Capital Receipts
6 Grants received
5
7 Other charitable income
6
8Total income
Expenditure
9 Grants and donations
7
10 Salaries and associated costs
8
11 Property maintenance
9
12 Connexional assessment & model trust levy
10
13 District Assessment & Levy
10
14 Depreciation
15 Office expenses
16 Other outgoings
11
17Total charitable expenditure
18 Gains/(losses) on monetary investments
19 Gains/(losses) on investment properties
20Net income/(expenditure)
21 Transfers between funds
BS6
22 Other gains/(losses)
23Net movement in funds
24 Total funds brought forward
25 Total funds carried forward

General Fund
(Unrestricted)
Circuit Model
Trust
(Unrestricted)
Designated
Funds
(unrestricted)
Restricted
Funds
Endowment
Funds
Total
2021-22
Total
2020-21
£
£
£
£
£
£
£
0
0
409
2,046
-
-
2,455
552
0
0
341,384
-
341,384
383,604
438,050
-
438,050
182,975
-
-
-
8,600
8,600
5,500
11,625
261
18,946
7,525
38,357
45,019
791,468
2,307
18,946
16,125
-
828,846
617,650
-
2,000
5,000
1,050
8,050
5,500
215,083
-
-
9,531
224,614
276,478
10,000
10,680
1,251
-
21,931
12,563
70,420
168,657
-
-
239,077
126,608
12,176
5,460
-
-
17,636
13,491
0
0
0
0
43,158
2,341
12,602
8,704
66,805
58,321
350,837
189,138
18,853
19,285
0
578,113
492,961
0
0
-
0
0
440,631
-186,831
93
3,160
-
0
250,733
124,689
530,770
-
530,770
-
0
0
0
0
(90,139)
343,939
93
3,160
-
0
250,733
124,689
2,708,073
159,587
65,301
10,793
-
2,943,754
2,819,065
2,617,934
503,526
65,394
7,633
-
3,194,487
2,943,754

Balance Sheet as at 31 August 2022

Notes to the Accounts	General Fund (Unrestricted) £	Circuit Model Trusts (Unrestricted) £	Designated Funds (Unrestricted) £	Restricted Funds £	Endowment Funds £	Totals 2022 £		Totals 2021 £

Fixed Assets
Circuit Manses & Equipment	BS1	2,606,461					2,606,461	2,699,181
Investmentproperties						0		0
Investments							0	0
*Total fixed assets*		2,606,461	0	0	0	0	2,606,461	2,699,181
Current Assets
Debtors	BS2	33,878	0	753	0		34,631	26,394
Loans bythe Circuit	BS2	17,699					17,699	8,499
Investments with TMCP	BS3		503,526				503,526	159,587
Central Finance Board Deposits	BS4	58,155		65,098	7,999		131,252	128,816
Cash at Bank and in hand	BS4	4,507					4,507	11,901
*Total current assets*		114,239	503,526	65,851	7,999	0	691,615	335,197
Current liabilities
Creditors (due in under 1 year)	BS5	102,766		457	366		103,589	90,624
Grantspayable within 2020-21							0	0
*Total current liabilities*		102,766	0	457	366	0	103,589	90,624
*Net current assets/liabilities*		11,473	503,526	65,394	7,633	0	588,026	244,573

*Total assets less current liabilities*		2,617,934	503,526	65,394	7,633	0	3,194,487	2,943,754

Long term liabilities (due after more than oneyear)
Grantspayable after 2020-21						0	0
Loans to the Circuit						0	0
						0	0
*Net assets*	2,617,934	503,526	65,394	7,633	0	3,194,487	2,943,754

Funds of the Circuit							2,617,934 503,526 65,394 3,186,854 7,633 0 3,194,487
General Fund(Unrestricted)		2,617,934	503,526 65,394 7,633 0				2,617,934	2,708,073
Circuit Model Trust Fund (Unrestricted)			503,526				503,526	159,587
Designated Funds(Unrestricted)				65,394			65,394	65,301
*Total Unrestricted Funds*							3,186,854	2,932,961
Restricted Funds					7,633		7,633	10,793
Endowment Funds						0	0	0
*Total Funds*	BS6	2,617,934	503,526	65,394	7,633	0	3,194,487	2,943,754

Cash flow statement for the year ended 31 August 2022

		2022	2021
Statement of cash flows	Note	£	£
Cash from operating activities
Net cash used in operatingactivities		-23,132	-23,643
Cash flows from investing activities
Dividends,interest and rents from investments		0	0
Proceeds from the sale of property,plant and equipment		0	0
Purchase of property,plant and equipment		0	0
Purchase of intangible assets		0	0
Proceeds from the sale of investments		18,174	2,479
Purchase of investments		0	0
Other		0	0
Net cash provided by investing activities		18,174	2,479
Cash flows from financing activities
New borrowing		0	0
Repayments of borrowing		0	0
Net cash used in financing activities		0	0
Change in cash and cash equivalents in the reporting period		-4,958	-21,164
Cash and cash equivalents at the beginning of the reporting period		140,717	161,881
Cash and cash equivalents at the end of the reporting period		135,759	140,717
		2022	2021
Reconciliation of net income to net cash flow from operating activities		£	£
Net income for the reporting period ( as per statement of financial activities)		250,733	124,689
Adjustments for:
Depreciation and amortisation charges		0	0
Profit on the sale of fixed assets		-269,393	-129,785
Loss on the sale of fixed assets
Gains on investments		0	0
Dividends, interest and rents from investments
Decrease/(increase) in stocks		0	0
(increase)/decrease in debtors		-17,437	-6,400
increase/(decrease) in creditors		12,965	-12,147
Net cash used in operating activities		-23,132	-23,643
		2022	2021
Analysis of cash and cash equivalent		£	£
Cash in hand		135,759	140,717
Short term deposit (less than 3 months)
Total cash and cash equivalents		135,759	140,717
12

Notes to the Accounts

Note 1. Basis of Accounting and Accounting Policies

a. Accounting Standard

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ireland (FRS 102) (effective from 1 January 2015) – (Charities SORP (FRS (102)).

b. FRS 102 SORP 2015

The Wharfedale & Aireborough Methodist Circuit meets the definition of public benefit entity under FRS 102.

c. Basis

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

d. Content

The financial information presented is relevant, reliable, comparable and complete. Where estimates are used these are based upon experience, judgement and research. The accounts are expressed in £s Sterling, rounded to the nearest pound.

e. Going Concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

In making this assessment the trustees have considered the impact of Covid-19 and have concluded that its impact on net income will not be material.

f. Consolidation

The Circuit has denominational regulatory oversight in respect of the work of the Churches within the Circuit but has no legal or operational control of those Churches or their governing bodies except in extreme circumstances. For this reason, the financial statements of Churches are not consolidated into these financial statements.

g. Income Recognition

The charity has taken the view that it has only one charitable activity, which is to raise income to support the activities of the churches within the Circuit, and all income is in respect of this one activity

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

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

The Circuit acts as agent in two matters:

The collection from Churches and payment over of their contributions to various Funds controlled and administered by the Methodist Church – “Connexional Funds”
The administration (application, collection and disbursement) of grants requested by Churches within the Circuit from, but not limited to, the District and Connexion

In all these matters the transactions are not reflected in the SOFA because they are the income of either the Connexion or Churches as appropriate. Instead the transactions are disclosed in the Notes to The Accounts as required by SORP(FRS102), module 19.12.

In accordance with the Charities SORP (FRS102), the time of volunteers is not recognised

h. 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.

The Charities SORP requires charities with income over £500,000 to allocate costs to the various activities undertaken by the charity. The charity has taken the view that it has only one charitable activity, which is to support the activities of the churches within the Circuit, and all expenditure is incurred for this one activity.

i. VAT

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

j. Tangible fixed assets for use by the Circuit

The freehold property is shown in the accounts at 2019 deemed values, values were determined by reference to local estate agents in 2014, except where a later purchase was made, then purchase price is used. First time adoption of FRS 102 allows for values to be deemed as the values held 1 Sep 2015. 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. The property has been reviewed for impairment.

The Circuit has made use of the deemed cost option on transitioning to FRS102.

k. Investment Properties

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

From time to time the Circuit may hold residential property (formerly manses) which is surplus to its normal staffing requirements. Where this is the case and it is anticipated that the property is unlikely to be used as a manse within a period of two years, the property is classified as Investment Property (whether let or not) and any lets are at market rates unless there is a compelling reason not to do so in furtherance of the Circuit’s charitable objectives.

l. Investment - Monetary

The Circuit’s investments are in monetary assets classified as basic financial instruments under FRS 102 and are held by the Trustees for Methodist Church Purposes (TMCP) as custodian trustees. The valuations, at market value, are those provided by TMCP.

m. Receivables and Prepayments; Bank and Cash (Basic Financial Instruments)

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

n. Loans as Basic Financial Instruments

Where concessionary loans (i.e. free of interest) are made or received by the Circuit to further its charitable purposes and these are repayable after more than one year, they are initially recognised at the amount paid or received, with the carrying value adjusted in subsequent years to reflect repayments and any accrued interest, adjusted for impairment where necessary. Where there is objective evidence of impairment, an immediate loss is recognised in the SOFA. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised are recognised immediately in the SOFA. Where loans require the calculation of a discounted cash flow valuation, this will be so marked.

o. Methodist Connexional Funds

The Methodist Church Connexion raises assessments against Circuits and these are paid quarterly to their Districts. The Circuits raise assessments against Churches in the Circuit. The District quarterly remits to The Methodist Circuit Fund most of the sum received from the Circuits. A small sum is retained by the District to meet its own costs. The Circuit may act as agent for ad hoc collections for various funds controlled and administered by The Methodist Church. These are detailed in Note BS7 below.

p. 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 are funds which are held for a narrower purpose. There are no Endowment funds. Details of each material fund and the movement on those funds are disclosed in note BS6 to these accounts.

q. Ministers’ Manse Costs

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

r. Grants

Grants made by the Circuit from its own funds are recognised in full at the time of agreement to make a grant without performance conditions or as and when the Circuit accepts that there is a legal or operational obligation to make the payment if it is subject to performance conditions. When the grant to be accrued is recurrent over more than one year the balance payable in future years, discounted to net present value where the difference is material, is treated as a provision for future commitments in the balance sheet against the appropriate fund, the provision being released in future years in accordance with the originally agreed terms. In cases where the grant has been charged to one fund but for ease of payment has been transferred to another fund any future payment provision is applied to the fund from which the grant will ultimately be paid.

s. Pension and Staff Costs

The Charity makes payments to the Methodist Ministers' Pension Scheme '(MMPS)' which is a defined benefit scheme operated by The Methodist Church. The Circuit accounts for contributions paid for by the ministers and the circuit as a defined contribution as no liability for past service sits with the circuit. A defined contribution pension scheme operates for the lay staff. All circuit contributions to the scheme are charged to the income and expenditure account in the period to which they relate.

Note 2. Glossary of Terms

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

Church: a group of members from fewer than 10 to more than 300

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

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

CLT (Circuit Leadership Team): A group (comprising mostly, but not exclusively) of Circuit trustees responsible for the day to day administration and policy formation of the Circuit. Generally the CLT comprises the Presbyters and Deacons stationed within the Circuit and the Circuit Stewards.

CMTF: Circuit Model Trust Fund

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

Connexional Funds: The designated and/or restricted Funds held and administered by the Connexion in furtherance of its charitable and mission objectives.

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

DAF: District Advance Fund

FRS: Financial Reporting Standard

HMRC: Her Majesty’s Revenue and Customs

Lay Employees: Personnel employed by the Circuit on generally accepted commercial employment terms

Ministers (Including Superintendent): Probationer or Ordained Methodist Presbyters and/or Deacons who have pastoral and administrative responsibility for the Churches within the Circuit

MMPS: Methodist Ministers’ Pension Scheme

PASLEMC: Pension and Assurance Scheme for Lay Employees of the Methodist Church

Pensions Trust: The Pensions Trust, the organisation through which the Circuit arranges a pension scheme for Lay Employees

SOFA: Statement of Financial Activities

SORP: Statement of Recommended Practice

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

General Fund	Circuit Model Trust Fund	Circuit Model Trust Fund	Restricted Funds Other	Restricted Funds Other	Restricted Funds CAP	Property Reserve	Beamsley Fund	Norwood	Timble	Total Designated Unrestricted 0 0 0 0 0 0	Total 2022 409 2,008 38 283,907 154,143 0 440,505 Total 2022 23,719 14,453 28,003 37,398 53,835 2,575 97,672 44,255 2,500 -5,000 4,400 2,991 34,583 341,384 Total 2022 7,500 1,100	Total 2021 170 358 24 0 0 182,975

409 283,907 154,143		2,008 38
438,459		2,046		0	0	0	0	0	0	0		183,527
						Property Reserve	Beamsley Fund	Norwood	Timble			Total 2021 23,719 14,453 28,003 37,398 53,835 2,575 97,672 44,255 2,500 37,220 4,400 2,991 34,583
General Fund	Circuit Model Trust Fund		Restricted Funds Other
23,719 14,453 28,003 37,398 53,835 2,575 97,672 44,255 2,500 -5,000 4,400 2,991 34,583
341,384		0		0	0	0	0	0	0	0		383,604
						Property Reserve	Beamsley Fund	Norwood	Timble			Total 2021 5,500 0
General Fund	Circuit Model Trust Fund		Restricted Funds Other



0		0		0	8,600	0	0	0	0	0	8,600 0	5,500

General Fund	Circuit Model Trust Fund	Restricted Funds	Restricted Funds	Property Reserve	Beamsley Fund	Norwood	Timble	Total Designated Unrestricted 0 (2,046) 0 7,000 10,272	Total 2021 24,650 (5,719) 0 7,000 10,163

13,343 (2,043)		Other	CAP		7,000	(2,046) 10,272
11,300	0	0	0	0	7,000	8,226	0	15,226	36,094

In Feb 2021 the Trustees concluded there is no requirement for the Bramhope manse to be held by future use by a minister and disposed of the property in Nov 2021. Norwood cottage is connected to the Chapel and cannot be disposed of seperately - it is not held for investment purposes. The manse at Otley was let on AST from January 2021 until March 2022 and is currently being marketed for sale.

Other Income Supernumary fees waived Bookings Collections Donations Friends of Norwood Events Transfer in (Mary Shepherd Fund) Funeral Fees Total Other Income Total Other Charitable Income

325	0 325 1,005 1,005 1,397 1,397 5 7,530 90 90 779 779 0 261 444 444 3,720 11,831	0 410 1,638 6,330 230 0 0 317
1,005 0
1,397 0
0 7,525 5
90
779
261
444
325 261 0 7,525 0 444 3,276 0		8,925
11,625 261 0 7,525 0 7,444 11,502 0	18,946 38,357	45,019

General Fund 0	Circuit Model Trust Fund 2,000 0 0	Restricted Funds Other	Restricted Funds CAP 1,050	Property Reserve	Beamsley Fund 5,000	Norwood	Timble	Total Designated Unrestricted 0 5,000 0	Total 2021 2,000 3,500 0


0	2,000	0	1,050	0	5,000	0	0	5,000	5,500

General Fund	Circuit Model Trust Fund	Restricted Funds Other	Restricted Funds CAP	Property Reserve	Beamsley Fund	Norwood	Timble	Total 2021 153,421 38,173 12,159 5,084 3,069 947 2,908 3,000 1,183

119,139 31,190 10,793 4,050 3,807
2,776 3,681 2,556 1,213
179,205	0	0	0	0	0	0	0	219,944
4.5 33,077			9,459 72 0					5.70 51,649 2,697 2,188

1,646
1,155
35,878	0	0	9,531	0	0	0	0	56,534
0.67			0.4					1.60
215,083	0	0	9,531	0	0	0	0	276,478
			0.40			0.00	0.00	7.30

Note 8 Contd

The circuit employed lay staff involved in administration activity; 0.25 fte administrator plus 0.5fte Finance Advisor until 30 June 2022, 0.4fte CAP Debt Centre Manager No employee received employee benefits in excess of £60,000. There is no accrual for holiday pay as it is not material; the holiday year ends on 31st August All staff are paid at or above the real living wage.

Pensions

Ordained ministers and deacons are members of the Methodist Ministers' Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in

2014 that Methodist ministers are not employees of the Church but for simplicity, when dealing with National Insurance and pension contributions, the terms employee and employer are used as they would be in an employing document.

2 of 4 Lay Employee had pension contribution paid in 2021-22 with two employees chosing to opt out, any new employee will be automatically enrolled in an appropriate workplace pension arrangement.

The Connexion accounts for MMPS and shows the figures in the annual Methodist Church in Great Britain accounts.

Costs of Superintendent, Ministers and Deacons

The Superintendent of the Circuit, the other ministers and the remaining members of the CLT are considered as Key Management Personnel.

The Superintendent is the Chair of the CLT and the Circuit Meeting. The members of the Circuit Meeting are the trustees of the Circuit. The stipends, employers NIC and employer's pension contributions and other expenses of ministers of the Circuit are administered by a central payroll bureau of the Methodist Church with costs recharged monthly to the Circuit.

Manses are provided by the Circuit and the Circuit maintains the property. The value of Council Tax and water charges paid by the Circuit are not disclosed here as HMRC does not regard this as a benefit in kind in the hands of the minister.

Note 8 contd. Payments to Trustees

The ministers of the Circuit undertake the primary executive roles within the Circuit and apart from the ministers and lay employees, no member of Circuit Meeting or CLT was in receipt of any payment for stewardship services undertaken on behalf of the Circuit, although certain travelling and administration costs were reimbursed in relation to specific projects. The Circuit's key management comprise the trustees and key staff named on the Charity Information page Total employment benefits payable to key management for the year were as follows:

		Other	Employer
	Wages &	Employment	Pension
Trustee	Salaries	Benefits	Contribution	2022	2021
Rev Roger Smith	£25,824	£0	£6,947	£32,771	£32,090
Rev Timothy Perkins	£25,824	£2,582	£6,947	£35,353	£34,942
Rev Roberta Topham	£25,824	£0	£6,947	£32,771	£32,090
Deacon Jennifer Parnell	£0	£0	£0	£0	£32,090
Rev Shannon DeLaureal	£25,824	£0	£6,947	£32,771	£32,090
Rev Leonora Wassell	£0	£0	£0	£0	£5,105
Deacon Liz Day	12653	0	3404	£16,057	£15,871
Rev Martin Atkins	£0	£0	£0	£0	£5,105
Key management connected to trustees
Mrs B L Downes (wife of Mr R Downes)	£2,561	£0	£75	£2,636	£15,416
Other Key Management
Finance Adviser (CT)	£17,992	£0	£1,496	£19,488	£23,194

Prior year comparative analysis:

		*Other*	*Employer*
	*Wages &*	*Employment*	*Pension*
*Trustee*	*Salaries*	*Benefits*	*Contribution*	*2021*
Rev Roger Smith	£25,224	£0	£6,866	£32,090
Rev Timothy Perkins	£28,076	£0	£6,866	£34,942
Rev Roberta Topham	£25,224	£0	£6,866	£32,090
Deacon Jennifer Parnell	£25,224	£0	£6,866	£32,090
Rev Shannon DeLaureal	£25,224	£0	£6,866	£32,090
Rev Leonora Wassell	£5,105	£0	£0	£5,105
Deacon Liz Day	£12,507	£0	£3,364	£15,871
*Rev Martin Atkins*	£5,105	£0	£0	£5,105
Key management connected to trustees
*Mrs B L Downes (wife of Mr R Downes)*	£14,515	£0	£901	£15,416
Other Key Management
Finance Adviser (CT)	£21,450	£0	£1,744	£23,194

R Smith, T Perkins, R Topham, S DeLaureal and J Parnell served as church leaders and received the above payments in that capacity for serving in that capacity and not for serving as trustees, these payments are permitted by the charity's governing document.

General Fund	Circuit Model Trust Fund	Restricted Funds Other	Restricted Funds CAP	Property Reserve	Beamsley Fund	Norwood	Timble	Total Designated Unrestricted 10,680 120 0 128 949 3,350 899 5,355 (20,680) 801 450 450	Total 2022 10,680 120 0 128 949 3,350 899 5,355 0 21,481 450 450	Total 2021 1,759 2,379 1,666 722 976 3,081 810 3,081 0 11,393 1,170 1,170

				10,680
				120 0 128 949 3,350 899 5,355
10,000 10,000	10,680 10,680	0		(20,680) 801	0	0	0
				450
0	0	0		450	0	0	0
10,000	10,680	0	0	1,251	0	0	0	1,251	21,931	12,563

Manse Maintenance

The Circuit is Managing Trustee for 6 manses, 5 of which were occupied by ministers of the Circuit as at 31st August 2022. Otley Manse (Newall Hall Park) became unoccupied in August 2020 and the Circuit let this property for the period Jan 2021 until March 2022 one year on an Assured Shorthold Tenancy agreement whilst a review of requirements was undertaken As at August 2022, Otley (NHP) was unoccupied and being marketed for sale.

The Circuit is responsible for the payment of Council Tax, water charges and insurance at each manse occupied by a minister.

The cost of ongoing maintenance and improvements to all properties is funded through a designated 'Property Reserve' and a transfer of £2,000 p.a. per occupied manse is made from the General Fund plus a provision for update on changeover . The level of transfer is reviewed by the trustees each year. The Circuit owns and manages the Greenhill Burial site in Rawdon

General Fund	Circuit Model Trust Fund	Restricted Funds Other	Restricted Funds CAP	Property Reserve	Beamsley Fund	Norwood	Timble	Total Designated Unrestricted 0	Total 2021 12,694
12,176
12,176	0	0	0	0	0	0	0	0	12,694
								0 0 0 0	73,418 53,190 0 797
70,420
	168,657 5,460
82,596	174,117	0	0	0	0	0	0	0	127,405

General Fund	Circuit Model Trust Fund	Restricted Funds Other	Restricted Funds CAP	Property Reserve	Beamsley Fund	Norwood	Timble	Total Designated Unrestricted 444 0 207 0 0 0 0 1,449 0 0 0 0 0 0 0 0 0 0 0 0 0 0 230 0 750 80 6,942 2,500	Total 2021 6,233 12,677 4,288 4,130 334 8,999 0 878 394 330 661 2,425 813 1,200 18 65 0 0 0 0 64 6,200 2,923 480 1,584 0 1,125 2,500

5670 14854 4178 3825 478						444 207	0
6000			433 242 7,200 829

0 698 614						1,449

1,041 1,200 95 60	552

773						250	(20)
3,582 90	1,789				750	80 6,942 2,500
43,158	2,341	0	8,704	0	750	11,872	(20)	12,602	58,321

Note 12

Budgeted and Actual expenditure in the year ended 31st August 2022 (General Fund only)

A comparison of actual expenditure incurred in 2021-22 with that budgeted is set out below

REVENUE Assessment raised Interest and Investment Income Other Rents at vacant manse TOTAL REVENUE EXPENDITURE Stipends, NIC & Pension costs Salaries and NIC Connexional Assessment District Assessment Telephone & Travel Insurance, utilities etc Maintenance on manses Manse Reserve Heating and Lighting allowance Computer allowance Supernumerary costs Ministerial Invitations and associated costs Stationery & Office Supplies Postage Plan Production Bookroom Supplies Independent Examiner's fee ORCH Leeds Extension Fund Other expenditure Greenhill Burial Site Maintenance Legal Costs Property Inspection Costs Actual/ budgeted profit/loss	Actual Budget	Saving/ Loss
	341,384 375,210 409 540 325 4,000 11,300 7,912	(33,826) (131) (3,675) 3,388
	353,418 387,662	(34,244)
	161,122 165,644 35,879 56,933 71,387 70,414 11,209 12,182 7,768 13,500 29,004 22,860 10,000 10,000 0 8,000 3,279 3,305 1,213 990 2,776 2,200 2,556 6,000 613 1,240 82 155 698 1,220 1,041 600 1,200 1,200 0 3,000 60 65 864 1,200 450 700 3,582 0 6,000 5,000 350,783 386,408 2,635 1,254	4,522 21,054 (973) 973 5,732 (6,144) 0 8,000 26 (223) (576) 3,444 627 73 522 (441) 0 3,000 5 336 250 (3,582) (1,000)
		35,625

		1,381

The principal variations against budget relate to the reduced assessment contributed by Otley MC , lay staff cost savings were due to resignation of finance manager, no property manager in post and later than planned recruitment of a Circuit Manager.

General Fund	Property Reserve 0	Beamsley Fund 0	Norwood 0	Timble 0	Total 2021 475,000 320,000 477,601 420,030 375,000 250,000 327,500 0 0 0 2,645,131 50,000 4,050 54,050


2,606,461 0 0 0	0	0	0	0	2,699,181

The Circuit owns 6 manses. All the manses then held were informally valued by reference to local estate agents as at 31st August 2014. The new Manses at Far Mead Croft and at St Oswald's Walk, Turner Lane Addingham and East Busk Lane acquired in 2014, 2015, 2018 and 2022 respectively are included at cost.

The Beamsley Church has been included at a value reflecting its current use; its income is limited to a market agreed rent charged to the Beamsley Project charity.

For insurance purposes it has a replacement cost value of £2,496,000. The Greenhill Cemetary site is owned by the Circuit, it is insured and maintained at the

Circuit's expense.

Fixtures, fittings and equipment provided by the Circuit are expensed and do not form part of the balance sheet and there is therefore no requirement for depreciation. The freehold on residential property is shown at deemed historical cost representing each property's gross carrying value at 1 September 2015 per the transitioning relief allowed under first time adoption of FRS102.

General Fund	Circuit Model Trust Fund	Restricted Funds Other	Restricted Funds CAP	Property Reserve	Beamsley Fund	Norwood	Timble	Total Designated Unrestricted 0 0	Total 2022 3,499 14,200	Total 2021 3,499 5,000
3,499 14,200
17,699	0	0	0	0	0	0	0	0	17,699	8499
15,633 6,131 487 1,376 0 1,750 1,859 0 27,236 0 6,642 0 0 6,642	0 0	0 0	0	0 0	0 0	253 500 753 0 0	0 0 0	0 253 0 0 0 0 0 500 753 0 0 0 0 0	15,633 6,384 487 1,376 0 1,750 1,859 500 27,989 0 6,642 0 0 6,642	13,840 189 344 1,098 0 1,750 786 440 18,447 0 2,947 0 5,000 7,947
33878	0	0	0	0	0	753	0	753	34631	26394

All sums prepaid at 31 August 2022 were for activities that took place in 2022/23 Loan to West Yorkshire District is expected to be repaid from 2025 but is under review

	Circuit Model Trust Fund 503,526


General Fund	Circuit Model Trust Fund	Restricted Funds Other 4,508
58,155 4,507

Monetary balances held at the Central Finance Board of the Methodist Church and at CAF Bank are all available on demand and without loss of interest. The split of these balances across General, Designated and Restricted Funds is management judgement.

Note BS5 General Fund Creditors, Accruals and Loans (due in under 1 yr) Creditors: Expense claims payable for final Qtr 1,609 Independent Examiner's Fee 4,800 Heating and Lighting and Telephones 70 Otley Christian Resources Hub 0 Total creditors 6,479 Accruals: Water Charges payable 140 Council tax due 1,144 Accrued relocation and invitation costs 9,000 Total accruals 10,284 Amounts received in advance 1st Qtr's Assessments Received in Advance 84,123 Connexional Funds 1,880 Total amounts received in advance 86,003 102,766	Circuit Model Trust Fund	Restricted Funds	Restricted Funds CAP 338 28 366	Property Reserve 285 285 0 0	Beamsley Fund 0 0 0 0	Norwood 42 42 0 130 130	Timble 0 0 0	Total Designated Unrestricted 0 0 327 0 327 0 0 0 0 0 130 130	Total 2021 2,051 3,600 0 3,000 8,651 0 0 9,000 9,000 71,193 1,780 72,973

		Other


4,800 70

0 6,479 140 1,144 9,000 10,284 84,123 1,880 86,003	0 0 0	0 0 0
102,766	-	-	366	285	-	172	-	457	90,624

All amounts received in advance have been released to income in the following year

General Fund	Circuit Model Trust Fund 159,587	Restricted Funds Other 4,508	Restricted Funds CAP 6,289 16,125 (19,285)	Property Reserve 30,135 0 (1,251)	Beamsley Fund 23,109 7,444 (5,750)	Norwood 12,073 11,502 (11,872)	Timble (20) 0 20	Total 2021 2,819,065 434,675 (492,961) 182,975 182,975 0
2,708,073

353,418 (350,837) 438,050 (530,770)	2,307 (189,138) 530,770	0 0
2,617,934	503,526	4,508	3,129	28,884	24,803	11,703	0	2,943,754

Note BS6 contd

Capital Receipts

Sale of Manses at Bramhope and Yeadon and Purchase of Manse at Otley East Busk Lane

The manse at Bramhope was sold in November 2021 and replaced with a Manse at East Busk Lane Otley in the financial year as a approved replacement project. The manse at Yeadon was sold in July 2022 and proceeds were subject to a Connexional Levy.

Bramhope Sale November 2021	Bramhope Sale November 2021		Otley East Busk Lane Purchase June 2022
SALE			PURCHASE
Sale Price	£611,500		Purchase Price	£554,780	B
Solicitor	£1,332		Solicitor	£1,789
Searches			Searches	£0
Estate Agent	£6,261		Fees	£0
Net Proceeds	£603,907	A1	Net Costs	£556,569	E
Yeadon Sale May 2022
SALE
Sale Price	£490,000
Solicitor	£1,291
Searches	£2,656
Estate Agent	£4,410
Net Proceeds	£481,643	A2

Net Proceeds of Sales	£1,085,550	C
Net Capital Receipts and Purchases (C-B)				£530,770
MCH Levy on sale of Yeadon	£168,657	D
Net Capital Receipts after Levy (C-E-D)				£360,324
Capital Receipts were £1,085,550 - asset value of Bramhope and Yeadon (320,000+327,500)				£438,050

Unrestricted Funds

The General Fund deals with all the day-to-day expenditure of the Circuit; primarily it meets the cost of the presbyters and employees of the Circuit, contributes to District and Connexion costs and meets the cost of running and maintaining the manses; to pay for these costs the Circuit raises Assessments on each Church in the Circuit with the intention to raise just sufficient income to cover the budgeted expenditure

The Circuit Model Trust Fund exists to meet the need for major expenditure on Circuit property or to meet Circuit projects, both of which require the ultimate approval of the Trustees for Methodist Church Purposes ("TMCP"). The Fund's resources are derived from the proceeds of sales of property.

The Property Fund was established in 2011 and exists to deal with the uneven incidence of maintenance and repair costs at the Circuit's 7 manses. It is itself funded

by a fixed annual transfer from the General Fund of £14,000 (£2,000 per Manse) plus an additional £12,000 from general funds towards the cost of refurbishment on change of minister and its expenditure comprises the actual cost of manse maintenance and repair

arising in the year. The purpose of this arrangement is to enable a fixed sum to be included in the Circuit's annual budget from which the assessments are to be raised. The Beamsley Fund was created in 2010 when the surplus funds of the Beamsley Chapel were transferred to the Circuit following the closure of the chapel. Since that time the Fund has been augmented by rents received from the tenants at the chapel, The Beamsley Project, less the costs of maintaining the property.

The Fund for the Norwood Chapel and Retreat Centre was created in 2014 when the funds of the Norwood Church were transferred to the Circuit and the congregation became a class of Otley Church. Since that time the Fund has been increased by rent received on the Warden's house at the Property, bookings received from the use

of the Retreat Centre and collections at Church services and organised fund-raising events. Expenditure comprises the costs of maintaining the property and the running of the Retreat Centre.

The Timble Fund was created in 2019 following the cessation of regular worship at the chapel. Cash balances held by the chapel were transferred to the Circuit Trustees pending closure of the chapel and its eventual sale in June 2021

Restricted Funds

There are four 'Other' Restricted Funds . These were created many years ago, and have small balances carried forward from one year to the next. The Circuit intends to review the continued purpose of each during this year.

The CAP Debt Centre Fund was created in 2019 following the formation of a CAP Debt Centre, the fund comprises donations from churches and members

of the Circuit and a connexional grant received. Funds are used for the employment of a CAP Debt Centre Manager, a monthly fee payable to Christians Against Poverty and expenses specific to to clients or expenses of the Debt Centre activity.

Note BS6 contd

Restricted funds excluding CAP can be further analysed as follows

Balance brought forward at 1 Sep 20 Income Expenditure Revaluation Transfers Balance carried forward as 31 Aug 21	Training Fund Local Building Education & Preachers' Fund Youth Fund Library Fund 696 135 2,500 1,178 0 0	Total 2022 4,508 0 0 0 0
	696 135 2,500 1,178	4,508

Note BS6 contd

The Assets and Liabilities of the various funds as at 31 August 2022 were as follows;

General Fund unrestricted 2,606,461 51,577 62,662	Circuit Model Trust Fund unrestricted 0 0 503,526	Restricted Funds Other 0 0 4,508	Restricted Funds CAP 0 0 3,491	Property Reserve unrestricted 0 0 29,169 (285) 0 0	Beamsley Fund unrestricted 0 0 24,803 0 0 0	Norwood unrestricted	Timble unrestricted	Total 2021 2,699,181 34,893 300,304 (90,624) 0 0

						0 753 11,126 (172) 0 0	0 0 0 0 0 0
(102,766) 0	0 0	0 0	(366) 0

0	0	0	0
2,617,934	503,526	4,508	3,125	28,884	24,803	11,707	0	2,943,754

Prior Year comparative analysis

The Assets and Liabilities of the various funds as at 31 August 2021 were as follows;

*General Fund* unrestricted 2,699,181 34,264 65,252 (90,624) 0 0	*Circuit Model* *Trust Fund* unrestricted 0 0 159,587 0 0 0	*Restricted* *Funds* *Other* 0 0 4,508 0 0 0	*Restricted* *Funds* *CAP* 0 0 6,289 0 0 0	*Property* *Reserve* unrestricted 0 0 30,135 0 0 0	*Beamsley* *Fund* unrestricted 0 0 23,109 0 0 0	*Norwood* unrestricted	*Timble* unrestricted	*Total Designated* *Total* *Unrestricted* *2021* 0 *2,699,181* 629 *34,893* 64,668 *300,304* 0 *(90,624)* 0 0 0 0

						0 629 11,444 0 0 0	0 0 (20) 0 0 0
*2,708,073*	*159,587*	*4,508*	*6,289*	*30,135*	*23,109*	*12,073*	*(20)*	*65,297* *2,943,754*

Note BS7

Agency Collections and Payments

Churches within the Circuit have made payments to the following Methodist Church Funds. Some of these payments have been routed through the Circuit and some have been paid direct. None of these pa yments a ppear elsewhere in these accounts.

Payments routed through the Circuit bank account: Fund for the Support of Presbyters & Deacons Methodist Ministers' Housing Society Fund for Property Payments made direct Fund for the Support of Presbyters & Deacons Methodist Ministers' Housing Society Fund for Property Total sums paid: Fund for the Support of Presbyters & Deacons Methodist Ministers' Housing Society Fund for Property	Total Total 2022 2021 475 475 475 475 830 830
	1,780 1,780
	435 435 100 100 1,205 1,205
	1,740 1,740
	910 910 575 575 2,035 2,035
	3,520 3,520

Note BS8

Volunteer Contributions

Every entity (Connexion, District, Circuit, Church) within the Methodist Church in Great Britain is heavily reliant upon volunteers who contribute their skills, time and money in the furtherance of the work of the Church. In the Circuit the principal contribution is by serving on committees of the Circuit which deal with mission, manses, finance, policy, grants, training, safeguarding and other. The Circuit is grateful to all volunteers for their help and commitment. No attempt has been made by this Circuit to place a monetary value on non-monetary contributions in accordance with the SORP.

Note BS9

Reserves Policy

The Circuit considers it suitably prudent to maintain sufficient Funds within its General Fund to pay 25% of the succeeding year's budgeted expenditure. The Circuit will hold cash reserves in its current account or deposit account at Central finance Board (CFB) equivalent to 3 months general fund expenditure plus the fund balance of total restricted funds plus the fund value of CAP Debt Centre Fund

Reserves Test as at 31st August 2022

2022

Required General Fund 2021/22 25% expenditure Total Restricted Funds Value Total Cash at Bank & CFB 31/8/2022 Deficit/Surplus	96,602 7,633
	104,235

	135,759

	31,524

Appendix A -Trustees 1[st] September 2021 – 14[th] June 2023

Superintendent Minister / Rev Timothy M Perkins

Chair of Trustees

Trustees:

Mr Joost Aarste Tuyn Rev Rita Armitage Mrs Margo Atkinson Mr George Auterson Mr Peter Bastow Ms Catherine Birkby Mrs Joan Bosomworth Mr David Brown Mr Ken Brown Mr John Burland Mrs Juliana Caukwell From 1[st] September 2022 Mr Howard Chaplin Deacon Elizabeth Day Rev Shannon DeLaureal Mr Ryk Downes Finished 31st August 2022 Mr Ken Duckles Finished 31st August 2022 Mrs Marjorie Emsley Mr Michael Fawcett From 1[st] September 2022 Ms Margaret Fielding Mrs Jean Fletcher Finished 31st August 2022 Mr David Gouldsborough Mrs Hazel Goodwin Mrs Sue Gray Mrs Isabel Griffith Mrs Penny Gwilt From 1[st] September 2022 Mrs Elizabeth Hoyle Mrs Lindsey Hurst Ms Anne Huby Finished 31st August 2022

Mr Steve Jennings From 1st September 2021 Mrs Judith Johns Finished 31st August 2022 Mr Richard Lowe Mrs Debbie Mashiter Mrs Gillian MacIntosh Mrs Olwyn Marshall Finished 31st August 2022 Mr Neil Mofoot Mrs Sarah Morrish From 1[st] September 2022 Mrs Hilary Murden Mrs Carol Newton From 1st September 2021 Mr Michael Noble Mrs Judith Norby From 1[st] September 2022 Mrs Angela Pearson Mrs Vivien Pitts Mr Alan Pratt From 1st April 2022 Rev Keith Reed Mrs Marion Rider Mr Andrew Robson From 1[st] September 2022 Mr Alan Sheath From 1st September 2021 Mrs Pam Smith Rev Roger Smith Mr Chris Solomon Mr Ken Spence Finished 31st August 2022 Mr Norman Sykes Mrs Janet Thompson Mrs Shirley Tillotson Rev Roberta Topham Mrs Joan Wilkinson Finished 31st August 2022

Declarations and Scrutiny

I confirm that these accruals-based accounts for the year to 31 August 2022 have been prepared from the records of the Circuit and that they include all funds under the control of the Circuit meeting.

Signature of Trustee with Financial Responsibility: R F Lowe

Date 2[nd] February 2023

Name and address of Trustee: Richard F Lowe

3 The Robins, Burley-in-Wharfedale Post Code…LS29 7PR

Presentation to the Circuit meeting

I confirm that the annual report and accounts for the year ended 31 August 2022 was presented to the Circuit meeting held on 23[rd] March 2023

Signature of the Chair of the meeting: Timothy M Perkins

Name of the Chair of the meeting: Rev Timothy Perkins

Date 23[rd] March 2023

Independent Examiner’s Report to the Trustees of the

Wharfedale & Aireborough Methodist Circuit

Charity Number 1132357

Responsibilities and basis of report

I report to the trustees on my examination of the accounts of the Wharfedale & Aireborough Circuit for the year ended 31 August 2022 set out on pages 1 to 33. As the Circuit’s trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

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

Name of Circuit: Wharfedale & Aireborough No 27/15

Independent Examiner’s Statement

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

The Circuit’s gross assets as at 31 August 2022 exceeded £3.26million and usually a charity with this level of assets would require the accounts to be audited, not independently examined. However, on 22 February 2023 the Charity Commission exercised one of its discretionary powers and granted the charity an exemption from audit for the year ended 31 August 2022. Having inspected the dispensation, I am satisfied that the Circuit is entitled to have an independent examination for the year in question.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which give me cause to believe that in, any material respect:

the accounting records were not kept in accordance with section 130 of the Act; or
the accounts do not accord with the accounting records; or

the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view, which is not a matter considered as part of an independent examination; or
the trustees’ annual report is not consistent with the accounts.

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

I have obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10,000 (ten thousand pounds) at the balance sheet date.

Signature of independent examiner …… Archie McDowall ……………………………….

Name of independent examiner : Archie McDowall BA, CA

Relevant professional qualification of independent examiner: Member of the Institute of Chartered Accountants of Scotland

Name of firm (where appropriate): Stewardship Address: 1 Lamb’s Passage, London, EC1Y 8AB 22 June 2023 Date …………………………………………

2022-08-31-accounts

Trustees’ Annual report for the year ended 31[st] August 2022

Introduction

Review of the Year

The Circuit’s Funds:

Plans for 2022/2023

Basis of preparation and legal framework

Circuit Ministers and Officers

Active Circuit Ministers

Circuit Employees

Circuit Stewards

Aims and Organisation

Public benefit

Structure, governance and Management

Trustee Training

Related Parties

Risk Management

Safeguarding

Reserves Policy

Responsibilities of trustees under charity law

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

Balance Sheet as at 31 August 2022

Cash flow statement for the year ended 31 August 2022

Notes to the Accounts

Note 1. Basis of Accounting and Accounting Policies

a. Accounting Standard

b. FRS 102 SORP 2015

c. Basis

d. Content

e. Going Concern

f. Consolidation

g. Income Recognition

h. Resources Expended

i. VAT

j. Tangible fixed assets for use by the Circuit

k. Investment Properties

l. Investment - Monetary

m. Receivables and Prepayments; Bank and Cash (Basic Financial Instruments)

n. Loans as Basic Financial Instruments

o. Methodist Connexional Funds

p. Funds

q. Ministers’ Manse Costs

r. Grants

s. Pension and Staff Costs

Note 2. Glossary of Terms

Note 8 Contd

Pensions

Costs of Superintendent, Ministers and Deacons

Note 8 contd. Payments to Trustees

Manse Maintenance

Note 12

Budgeted and Actual expenditure in the year ended 31st August 2022 (General Fund only)

Capital Receipts

Sale of Manses at Bramhope and Yeadon and Purchase of Manse at Otley East Busk Lane

Unrestricted Funds

Restricted Funds

Note BS6 contd

Note BS6 contd

The Assets and Liabilities of the various funds as at 31 August 2022 were as follows;

The Assets and Liabilities of the various funds as at 31 August 2021 were as follows;

Agency Collections and Payments

Note BS8

Volunteer Contributions

Note BS9

Reserves Policy

Reserves Test as at 31st August 2022

2022

Chair of Trustees

Declarations and Scrutiny

Presentation to the Circuit meeting

Independent Examiner’s Report to the Trustees of the

Wharfedale & Aireborough Methodist Circuit

Charity Number 1132357

Responsibilities and basis of report

Independent Examiner’s Statement