East Mercia Methodist Circuit Reglstered Charlty Number 1132523 Trustees, Report and Audlted Accounts for the year ended 31 August 2024 Po9v2 East Mercla Methodlst Cireult Trustees, Report for the year ended 31 August 2024 nt oduc Thls report and Jccounts covers the year to 31 August 2024. The Circuit seeks to live out the calllnE of the Method15t Church to respond to the 8ospel of God's love In Chrlst nd to Ilve out its dlsclple5hlp and to.. increase awareness of God's presence and to celebrate God'5 love help people to grow and learn as Chr￿tianS through mutual support and care be a good neighbour to people In need and to challenge Inlustice The misslon of the East Mercia Methodist Circult Is to encourage and support people lo be open and responsive to God, each other and the world, In January 2024 the Clrcult Trustees agreed a Clrcult Mlsslon Action Plan whlch set the Clrcults pTlorltlÈs as It responds to the Intention of the Methodlst Church to become a growin8, evangelistlc, Snclusive and lustice-seeklng church. All the decislon5 that we make aboui how we excerclse mlnlstry across the Circult and use our resource5 wlll be 1n.tune with this. Revlew of the ear The Statement of Flnanclal Activities show5 a net deflcit on the General Fund, before other recogn55ed gain5 and losses, of £52,78912023'. surplus of £1.318,7291- This reflects a policy of spending reserves on new inltiatives to 5preJd the word of God. At the end of the year, total reserves were £3,650,43712023,. £3,877,150). Of that, £2,455,000 Is held In flxed assets SL¢ch as freehold and investment property, Income trends The principal funding sources durSn8 the year, excludln8 clrcult merger Items, were: l General Fund Assessments: recelved from the Churches in the Clrcult.. £341,499 12023: £334,175). 2 General Fund and Clrcult Model Trust Fund.. Investment Income: £12,995 IZ023.. £20.6871. 3 Rental Income from manses not required for Ministers.. E16.790 {2023: £24,893?. EM en Itur tre The principal item5 of expenditure were the stipends of minister5 and provlsion of their manse5, as well as the salarle5 of lay workers employed by the Circuit. Stlpends Increase each year In line wlth Increases approved by the Methodlst Conference. Lay workers are pald at or above the Llvlng W3ge Idetermlned each November by the Llvlng Wage Foundation). Lay worker salaries are revlewed annuaSly to take 4¢¢0unt of any chan8e In the scope and seale of responslblllties, Indlvidual performance and local comparators. East Mercla Methodist Clrcuit Trustees, Report for the year ended 31 August 2024 (contlnued) Puge 3 Ex endSture trends continued Fund balances At 31 August 2024, net current asset5 were £1,235,115 {2023: £687,150). Plans for 2024 25 and future The Circuit intends to continue to fund normal operatlng costs from the assessments paid by the Churches, but will fund development work out of reserves. ears Basls of ardtion of accounts and le al framework The Charity's annual report and account5 for the year ended 31 Au8USt 2024 have been prepared in accordance with the Charitles Act 2011 and the Charities: Statement of Recommended Practice 2019 a5 applicable to the Financial Reportlng Standard (FRSI 102. re These flnanclal statements are subject to audit owlng to the gross asset value of the Circult exceeding the relevant threshold. Charlty regl$trntlon number. 1132523 Maln communicatlon address Rugby Methodist Church Centre. Russelsheim Way, Rugby, Warwickshlre, CV22 7TB Pllgv4 East Mercla Method15t Clrcult Trustees. Report for the year ended 31 August 20241contlnuedl Char tnJ5tees The members of the East MeTcla Meihodist Cir¢uii meeling are the Charity Trustees, membershlp beln& made up of clrcuit gffke holders. mlnlstefs and reprc5entativ¢s appointed by rhe local chtJrches (see Appendix to Trustee&, Report Iof a lull list of Trustees). The Circuit meetlng dele8ates the day to day runnlng Df the clrcuSt to a leade￿h[p team. Clrcult Leadefshi Team fort Acrlve Circuit ministers Yto31Au us 2024 Rev Andrtw Farrington- Superlntsndent Deacon Georgina Brooks Rev Nathan Falla Rev Andy Murphy Rev Noel Nhariswa Clrcult monoqer Katherlne Tennyson Clrcuitsteword5 Peter Arnold Marllyn Calvert Peter Canfllln Helen Cross (from Isth January 20241 Rlchard Hunlington luntil 15th January 20241 John Over Adrian Price (from 15th January 20241 Carolyn Rlce Clrcult stuff (not members of the circult leudershlp teLrml Carollne Barrntt Lynne Bone Susanne Cunnln8ham Flona Farrington Anna Glttlngs Ruth Henderson Katle Hitchcox Clare Plckerlng Mandie Prlce janet Tlmperlev Mellssa Wheeler Anthony OrT Peter Candlln acted a5 the prlnclpal officer overseeing th• day lo day flnancla5 management and accountln8 for the Clrcult durln8 the year. Audltors JW Nlnks LLP- Chartered Accountants and Statutory AudltEirs B•nkers Central Flnance 80OTd of the Method15t Church Trustees for MethDd15t church Purposès The C￿OperatIVe Bank HSBC UK Ims an an The charlty'5 objective is to act as a resource provider In East Mercla for the Methodlst Church. The purp05e5 of the Methudlst Church are and shall be deemed to have been slnce the Date of Unlofi the advantement of.. al The Christian faith in a£cordan¢e wlth the doctrlnal 5tand?rd5 and dlsclpline ol The Method15t Chufth; bl Any charitable purpose lorthe tlme bein8 of any Connexional, Olstrlrt, Clrcult, local or other or8anisatlon of The Methodist Church,. cl kny tharitable purpose for the tlme belng of any society or In5tltutlon 5ubsldiary or ancillary lo The Methodlst Church., dl Any purpose for the tlme being of any tharity bein8 a charity subsidiary or ancillary to The Methodist Church. Puye S East Mer¢la Methodist Circuit Trustees, Report for the year ended 31 August 2024 (continued) Alms and or anlsatlon contlnued The Circuit encourages and support5 the Methodist churches in East Mercia in: the organisation and resourcing of regular public acts of worship which are open to members of the church and non members alike. the teaching of Chr15tianity through sermons, courses and small groups. the resourcing of pastoral work including visiting the sick and bereaved. taklng religious assemblies in local schools. promotion of Chrlstianity through the staging of events and servlces. provision of clubs, activltles and 5UPPOrt groups with a Chrlstlan ethos. supportlnB Other charlties in the UK and overseas financlally and with prayer. The Clrcuit reviews it5 aims, oblectlves and activlties and identifles opportunitie5 for future action. It promote5 mlsslon and glves approprlate support to churches that demonstrate that they are outward looking, mission focused, not averse to chan8È and taking risk and. where posslble and 3pproprlate, seeking to work in partnership wlth others. Publlr Beneflt The trustees conflrm that they have had regard to the Charity Commisslon's guidance on publlc benef It. Structur Governance and Mana ement The governing document for the circuit is the Deed of Unlon119321 and Methodlst Church Act119761. Detailed governance arrangements are outlined withln the Constltutional Prartice and Di5clpllne of the Methodist Church by order of the annual conference ICPDI. Day to day mana8ement of the Circuit15 undertaken by the Circult Leadership team. Selectlon ol Trustees and Tralnln of Trustees Trustees are appointed a5 set out in the Constitutional Practlce and Olscipline of the Methodist Chur¢h, Appointment Is made by lotal churches or exlsting trustees or, in the case of minlsters, on statlonln8 in the Clrcult. A range of guldancE produced by Methodlst Connexlon to 5UPPOrt the effectlve running of the Circuit Is given to Clrcult Meeting members, in particular the leaflet 'The Role of a Trustee In The Methodist Church, 15 8lven to all new Circuit Meeting Members as Induction to thelr role as trusiees. Other tralnlng is provlded to Trustees appropriate to thelr role and responsibility wlthln the Circuit. Related Partle5 The Circuit is part of the Northampton Methodist Distrlct and Is also accountable to the Methodlst Conference. The following Methodlst Churches orbd Local Ecumenical ProSects ILEPI arè linked to the Circult.. Bllton, Broadwell, Burton Latimer, Kettering Central, Cornerstone Corby, Daventry. Desborough St Giles Church ILEPI, Hillmorton Paddox. Hillmorton Ouffy Place, Kibworth. Long Lawford, Lutterworth, Market Harborough, Naseby, Newbold Iclrcuit Project), Rothwell, Rugby, Maklng Connexions Icircuit Projecll. The trustee5 and their c105e family members are a150 related parties. Poge 6 East Mercla Methodlst Clrcuit Trustees, Report for the year ended 31 August 20241contlnued) Risk Mana ement 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 compared with the approved annual budget on a half yearly basis to detect trends as part of the risk management process and avoid unforeseen calls on reserves. Safe uardin Every person has a value and dignity which comes dlrectly from the creation of all people bein8 made in God's own image and likene55. Christians see this potent131 as fulfilled by God's re-creation of us in Christ. Among other thing5 this implies a duty to value all people as bearing the image of God and therefore to protect them from harm. Methodlst Connexional practice outllnes commltment to the following prlnciples.. the care and nurture of, and respectful pastoral mlnlstry wlth, all children, young people and adults the safeguarding and protertion of all children, young people and adult5 when they are vulnerable the establishing of safe, ca ring communities which provide a loving environment where there is informed vigilance as to the dangers of abuse. We will caref ul ly select and train all those with any responsibility within the Church, in line with Safer Recruitment principles, including the use of criminal records dlsclosures and registration with the relevant vetting and barring schemes. We will respond wlthout delay tc every complalnt made which suggest5 that an adult, child or young person may have been harmed, cooperating wlth the pollce and local authority in any investigation. We wlll seek to work wlth anyone who ha5 suffered abuse, developing wlth them an appropriate ministry of informed pastoral care. We will seek to challenge any abuse of power, especially by anyone in a posltlon of trust. We will seek to offer pastctral 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, yOLtng person or vulnerable adult. In all these principles we will follow legislation, guidance and reco8nised good practice The Circuit commit5 Itself to ensuring the implementation of Connexional Safeguarding Pollcy., government legislation, guidance and safe practice in the circuit and in the churches. The Circuit commit5 Itself to the provision of support, advlce and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilitie5 in safeguarding and promoting the welfare of children and adults who may be vulnerable. East Mercia Methodist Circuit Trustees. Report for the year ended 31 August 2024 Icontinued) Reseryes Poll The Reserves Pollcy for the Circuit is to hold a minimum sum equivalent to 4 months, average expendlture. Thls should be suffldent to meet any unforeseen Item of major expendlture on manses and contlnue planned actlvltles for the short term In the event of any inabillty to ralse the full clrcult assessment from churche5. At 31 August 2024, the Clrcult held unrestrlcted reserves of £1,483,034, excludin8 reserves held as tanglble flxed assets. Of thls, £1,422,9661s the value of the Investment propertles due to be sold. Thus the cash reserves of £106,518 held by the Clrcult represents £46,450 In excess of the amount detemlned under the Circuivs resebves policy. The arcult contlnues to develop a strategy to utlllse surplus reser¥es for the furtherance of Its obJertlves. Poge8 East Mercia Methodlst Circuit Trustees. Report for the year ended 31 August 2024 (contlnued) ststement of Trustees. Respon51bilities The tru5tee5 are responsible for preparin8 the Report of the Trustee5 and the financial statements in accordance with applicable law and Unlted Kingdom Accounting Standards (United Klngdom Generally Accepted Accounting Practice). The law applicable to charitles in England and Wales, the Charltles Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provislons of the trust deed requlres the trustees to prepare financial statements for each flnancial year whSch give a true and falr view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expendlture, of the charity for that period. In preparing those financial statements, the trustees are required to; select sultable accountlng pollcles and then apply them conslstently; observe the method5 and princlples in the Charity SORP; make judgements and estimates that are reasonable and prudent; prepare the financial statements on the going concern basls unless It is inapproprlate to presume that the charity Wfll continue in busine55, The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the flnancial position of the charity and to enable them to ensure that the financial statements comply with the Charitles Act 2011, the Charlty {Accounts and Reports) Regulations 2008 and the provlslons of the trust deed, They are also Tesponsible for safe8uardin8 the assets of the charlty and hence for takin8 reasonable steps for the prevention and detection of fraud and other Irregularltles. Approved by order of the board of trustees on 4 March 2025 and signed on it5 behalf bv: Trustee- The Revd Nothan Stuart Follo App•ndxA Pw9 East M•rda Methodlst artuit ar￿1¢ M•et7￿ M•mbersNp MINISTERS Nathan Falla DÈacon Georgina Bro¢Jks Rev Andrew Fattl￿on Rev Andy Murphv Rev Noel N￿rI$￿a Chalr SUPERNUWRARIE MINISTERS O•vld Colllnson Jane Gaffney laln Rennlt TrevorThomas Allson Tomlln Davld Tomlln aRCUiTSTÉWARDS Peter Arnold Marllyn Calvert Petw Candlln Helen Cross RI(￿rd HuntlnRton John Over Adrlan Prke Carolyn Rlce CIRCUITMA14AGER Katherlne Tenny50n CHURCH REPRESENTATIVES Ebeneezer Amo-Balden stephen Arthur Pat 8a550n Lynn 81sckhur5t Da¥Sd Brlerley Judlth Brlerley Stuart Bussey Steven Burt Flona Clark50n Mlchael Curtls WendyCurtl$ Ruth Fltch Glllian Glenn Helèn Green Pettr Gre4nawav Ma8gle Hadklss Andrew HavMn5 Susan H*lnlnk Rlchard Huntlntton Ada-june Kuso8bo Derek LIH Michael Mar¥eits Jtanne Moore Petsr Mulr Roger Plper Peter5huker Karen Tomkln5 PatrfckToole Barbara Walker Susan Walter5 Howard Warrener Jeff Wells Ann Wlndow Angelawoollscroft 11 111111111 111 Iiiiiilliuiiiilliii . Iiiiiiiiiiiiiiiiiiiiiilliiiiiiii 11111 11111 IL, uiii 11111 11114 11111 Iiiill 11111 ulu 11 11111 1111 11 111 12 East ￿rtia Methodist Clr¢ult Cash Flow Statement fur the year ended YI August 2024 2024 2023 Net lexpeThdlturel I Income loi the reporting perSod 1126,7131 I,S68,226 Adjustments for.. Losses on Investments IJKrease In debtor% Inu?ase In creditars 92.926 15,9241 6.392 234,485 17.4681 20.403 Clth nows from operaiini •dl¥ltles 95,394 247.420 vesiin Purchase of iangible fixed as5e15 PrD¢eeds from sale ol i$$et5 Assets acqulred on clrcuSt mèr8•r Proceeds ffom now loans 1420,0001 65.502 11,295,000) 405,000 N•tcash us•d In In¥•rtlrw artlvlll 11,715.0001 Ch•np In c•sh Jnd cash equivbknnts In th* reportSn8 perlod 1110,8171 100,646 C•sh •nd cash equlvalents •t Ibe bEtInnI￿ of th• feportln¢ perlod 334,737 234.091 C•sh 4nd S 111,067 25,684 275,785 240,822 1,433 21.360 18,561 1,077 43,846 41,111 143 1.486 1,250 18.337 342,477 301,744 Awrw number offull tlme e4ul¥•l•nt numbqr of •mploy•d durlni th• y••r w•r•: Mlnisters Mlssion staff Admlnlstratlon SJXI 00 8.00 2.00 15.(N) 10.00 Poge17 East Mercia Methodist Clrcuit Notes to the Accounts for the year ended 31 August 2024 11. Stlpends, Salaries and Assoclated costs Icontinued) No employees received employee benefits that totalled more than £60,000. There Ss no accrual for holidav pay as it Is immaterial. All staff are paid at or above the living wage as calculated by the Living Wage Foundation. Methodist Ministers are not employees of the Methodist Church although for simplicity, when accounting for National Insurance and pension contrlbLJtions, the term5 employer and employee are used as thev would be in an employing bodv. Contributions are made to the Methodist Ministers, Pension Scheme for all ministers. This is a defined benefit scheme whlch is accounted for in the financial statements of the Methodlst Church in Great Britian. This scheme is in deficit but a plan for the removal of the deficlt is being implemented. Lay workers have the optlon of joining a defined contribution pension Scheme which the Circuit has set up with NEST. Each minister is entitled to a 3 month sabbatical every 7 years and the expense5 incurred by the mlnister are met by the Connexion with the Circuit continuing to pay the stlpend, The Clrcult does not accrue for holiday pay cover as the remainln8 Staff cover as needed without extra pay. Payments to Trustees The superintendent Mlnister, other ministers of the Circuit and the Circult Stewards con5tltute the Circuit Leadership Team and are considered as Key Management Personel. The Superintendent chairs meetin8s of the Circuit Leadership Team and the Circuit Meeting. The Circult Leadership Team, together wlth church and other representatives, are members of the Circuit Meeting and are the Trustees of the Circuit. The stlpends, employer's Natlonal Insurance and employer's pension contrlbutlons and other expen5e5 of the ministers of the Clrcult are paid by the Circult, as determlned by the Methodlst Church, and are separately disclosed as Part of staff costs above. Manses are provlded by the Clrcult and the Circult maintalns the property. Year ended 31.8.24 Year ended 31.8.23 Payments rnade to trustees who are part of the leadership team Travel expenses Phone expenses Payments made to trustees who are not part of the Circult Leadershlp Team for additional services - preachi ng fees and related expenses Number of trustees who were paid expenses Year ended 31.8.24 Year ended 31.8.23 12. Fees for audit of the accounts Audit fees 5,640 5,640 PoqeJ8 East Mercia Methodist Clrcuit Notes to the Accounts for the year ended 31 August 2024 13. Tanglble Fixed Assets Churches Manses Total Cost or valuatlon Balance at I September 2023 Additions Transferred to assets held for resale Balance at 31 August 2024 250,000 2.175,000 450,000 1420,0001 2,205.000 2,425,OlJO 450,000 1420,0001 2,455,000 250,000 Depredatlan Balance at I September 2023 Charge of year Balance at 31 Au811St 2024 Net book value At 31 Au8USt 2024 At 31 August 2023 250,000 250,000 2,205,000 2.175,000 2,455,000 2,425,000 8asl$ of dftpr•¢latlon not not depreciated depreciated Churches at 31 August 2024 comprlse: Newbold Methodist Church Manses at 31 August 2024 comprise: Dunsmore Avenue, Rugby Hall Close, Kettering Farndale Vlew, Market Harborough Ourrell Drlve, Rugby Abbotsbijry Drive, Daventry Durlng the year ended 31 August 2023, professlonal valuatlons were obtalned on all churches and manses, and a further professlonal valuatlon durin8 the year ended 31 August 2024 on the manse5 recorded wlthin current asset investments. Each property is deemed to have a land component of £50,000. 14. Investment Property Cost or valuatlon Balan￿ at I September 2023 Transfer to current asset Investments Balance at 31 Au8USt 2024 765.000 1765,0001 Durlng the year ended 31 Au8USt 2023, professlonal valuatlons were obtalned on all Investment properties. 15. Current Asset Investments 8alonce at I Septembor 2023 Transfer frorn tangible f ixed assets Transferfrom investment property Capital proceeds Revaluation loss on property Balance at 31 Au8U5t 20Z4 396,394 420,000 765,000 165,5021 192,9261 1,42Z,966 Pw19 East Mercla Methodls¢ Urcult Plotes to the Ac¢ounts forthe yeor ended 31 Au8USt 2024 16. Debtors JIAu8urt 2024 31 August 2023 Prèpayments accrued irtcome 29M83 23,159 17. Crtdltors due In less than one y¢ar 31 August 2024 31 August 2023 CMTF loan Accruals and deferred ￿n￿mÉ d05,000 75.533 480,513 67,140 67. 140 Genéral Unrestricted Unl￿trIcted Funds CMTF Funds ReArfcted Funds Endowment Funds Toial 18. R•s•r¥e$ Al I Septembtr 2023 lexpendlturel / Incom• forthe ye¥r Transler between funds At 31 Au8usl 2024 3.699,251 1145,7151 165.5021 3,4g8,034 124,086 167.9081 65.502 121.680 53,329 113,09Jl 3,877.150 1226.7J31 3,650,437 40.259 The PUfPQ5e of the General UnrÈstrftted Fund Is for use at the dlscfetlon of the Trusiees In ihe furtherancg ol the oblertlves of the arcult. About 85% of thls fvnd 15 held as freehold PToperty and so Ss not available to mèet expenditure In the short term. The purpose of the Clrcult Model Trust Fund ICMTFI Isfor use at the discreilon ol the Tru>tees IA th¢ furtherance of the obltalves of the Circult. its main sourc¢ of income Is coniflbuilons from ihe Sale of manses and church buildlnBs in the Or¢ul¢, after ¢entriburlons and levie5 to tht cOnn￿lon determined by the Methodist Churth. AlthoLt8h technlcally an Unfe5trScied Fund undor the control of rhe Clrcuit MeÈtin8, Pflor approval Is stlll requlred Irom the 015trfct to uilllse the￿ fund5. The puip05è of tli• Restria•d Fund is to supportthe work of the lay M15510Th Staff active in Churche5 around the ClrculL The purpose otth* Endowm•nrt Fund Is to support mlsslon work the wldw Methodlst Church. Pogezo East Mer¢la Methodist Circuit Notes to the Accounts for the year ended 31 August 2024 19. Related party transactlons Year ended 31 August 2024 In¢trme Paid to or from goods related provided party to related party Year ended 31 August 2023 Income Paid to or from goods related provided party to related Party Name of related partv Relationshlp De5ulption of transactlon Methodist churches wlthin the East Mercla Circult Northampton Methodlst D15trlct Churche5 wlthln the Clrcult Asse55ments Ishare of circult costsl 341,499 334,175 Methodist Di5trlct In whlch the Clrcult Is located District Advance Fund contrlbutlon 3,704 105,835 Northampton Methodlst D15tr1ct Methodlst District In whlch the Clrcult is located D15trl¢r contributlon5 and expenses 79,260 71,584 There were no amounts owed to related parties at the year end. There is an amount of £67,51112023: £55,045) within creditors In respect of deferred clrcult assessments. 20. Operatlng Lea5e$ The rnlnlmum future lease payments receivable under non