Circuit Accruals Accounts 2023-24 THE IIqETHODIST CHURCH STAI¥DARJ) FORM OF ACCOUNTS ACCRUALS BASIS FOR THE YEAR ENDED 31 AUGUST 2024 Romford Circuit Circuit no 35132 Registered Charity - Registration number 1132795 Circuit Chaii. Revd Di E Jackson Cii'cuit Ministers Revd K Bell (To 3118124) Revd R Asif Deacon SJ Ri b Revd Dr E Jackson Revd R Maginley Circuit Stewards J Gowlett R Hibbard TPU sle T DÉxon Circuit Treasurer T Smith
ROMFORD METHODIST CIRCUtT TRUSTII S, ANNUAL PORT riOR THE YII AR NDID 31 AUGUST 2024 Introduction The Romfoi'd Methodist Circuit exists to ei)ablc and chanipion the work of cl)urchcs in the Greater London and E55cx area. There were len Churches in thc Roinford Circuit at the begi[ing of the year. The Farmlands Church ¢eased to worship on I Ith Fcbruary 2024 and its fiinds have b¢¢n transferred into the Circuit. Revd Dr E Jackson was the Chair ot the Circuit throughout th¢ ycar. The Chair works togeihcr ivith a team of paid and voluntary officcrs to supty)rt and develop th¢ life of th¢ Ciycuit. On 19 November 2009, the Circuit was entered into the Register of Charities and the chltyUMber is 1132795. The Managing Trustees of the Romford Circuit are the Inembers of thc Circuit Meeting which Ineets at least three tin)es a year to consider thc work of God in the Circuit and Il)e gen¢i'al management of the Circuit and ils business. The membership of the Meeting is governed by the Standing Orders of the Mcthodisl Chur¢h. The officers of ilic Circuit who are appointed by the Cii'cuit Meeting to act upon its behalf con)prise the Superintendent Minister, Ihe Ministerial Staff Team, the Cireiiit Sieivards and Ihc Circuit Financial Steivard (trcasurer). Circuit Property StewaTd and Manse Stewards. Objectives and Activiti¢8 2.1 Alms ond organisation The ain)s of the Circuit Meeting through ils offirS are twofold: lo secure and sustain the Circuit's viability and fijture to give assurance to the genei'al public that the Cii'euit, whicl) is a charity, intends lo use all of the money coining into its care for the purpose of Ihe Charity. 2.2 Romfoi'd Melliodist Cii'cuit Vision Th¢ Circuit's Mission Policy States "The Romford Circuil exists lo fijrther God's Kingdom by enabling and supporting the local Churcl)¢s in their discipleship and mission. resourcing local Churches under thc power of the Holy Spirit to function as ¢ffeetive worship. witness and welfare centres. The Circuit achieves thi5 by holding the following values in all ils dealings with individuals, communities, local and national authorities, other charities and busincs5es. Bible knowledge: Engaging Mqlh the scriptures in our daily lives Serving thc ¢ommunity.' Concern and help for the n¢¢ds of the local cofftmunity Div¢i'sity and Cultt]i'ai relevance: Maintaining the rieh diversity of the Churches and Circuit and communicating the Gospel effectivcly Empowered laity.. Recognising the ministry of the whole people of God Safeguarding: Creating safer spaces for all including children and vulnerable adults Quest for a just world: Actively working for peace with justice" Essentially il provides for the, ministerial oversight and p8sloral care of the ten local churches in the Circuit and the mainl¢nance of seven Circuit manses Review of progre58 And achievements 3.1 Romfoi'd Methodist Circuit Annual Report The Romford Methodist Circuit Annuat Report is prepared and presented io the Circuit meeting. It give5 full detail of the activities of the Circuit ond all the Churches tnjking up th¢ Circuit and the core central resources. 3.2 Circuit Goals The principal purpose of lh¢ Circuit is lo act as a supporting body between Churches 8nd the Connexion. The Clrcuit does nol seek and, in large measure, does not attain direct contact with thc public. The direct contact is by the Churches and it is these that the Circuit supports in their desire to provlde benefit to the public. Thc goa15 Qf the Circuit are list¢d b¢low- To develop lay l¢ad¢rship - in breadth, depth, numbers and ¢onfidence To ensure thal every minister and local preacher 15 engaged in an intentional revicw and d¢v¢lopment of their ministry (primarily through the programmes of MDIL supervision training tmd the Continuing D¢velopmettt of Local Preacher5). Page I
ROMfoRD MEI THODIST CIRCUIT TRUSTEI Ei S, ANNUAL REPORT roR THC Y1< AR ENDED 31 AUGUST 2024 3.3 Plans foi. futui'e years Encourage initiatives for Inission in Chur¢hes within the Circuit. Ensure that all those within the Circuit that should attend the Safeguarding Lcadership Module do so. Ensure that any local i5sucs emanating from the Past Cases Review are dealt with sympathetically, fully oJJd in a timely mJJJner. ri inaneial Plans nnd Revieiv Tlie Circuit's financial Kquirements are reviewed cach year in the context of the aiins listed above and the loeal Churcl)es aJE invitcd to make offers of a share in m¢eling the total cost. The annual budget includes a provision for the gcncr&l maintenance of the manses on the basis of £4,607 allocated to eacl) properti, each year, howcvcr, if large expenditurc TS nceded Mqthin the y¢ar to maintain mans¢s oi. fi][b[sh a newly pui'chased manse, the work nccded will be agreed and authorised on a case by case basis. Large capital Tcquiren)enls aJE Eenerally met from funds held in the CiTcuiI Manse Fund (Designatcd). Circuit income is drawn primarily from the a55essments pftid by the ten Circuit Churehes. During the year assessments increased to £186,732 {2023.' £182,676). Rental income was received during the yeat from the letling of two M¥nses. this incorne is iEgarded as relatively short tei'ni in nature. Exp¢nditure excluding capital levies on property salc5 redu¢ed to £415,537 (2023.. £437,614) mainly due lo the decrease in ihe DAF levy on the value of thc Ciicuit Model Trust Fund. Ai 3 l August 2024, unrestricted reserves, excluding the prortY fund, stood £1,057,633 (2023.. £1,062,952). Ttie Circuit's Funds are split in the following categories.. Unrestricted Funds Getkeral Fund- this fijnd together wffith other unrestricted funds represent at le&st six months expenditure of the Circuit's general activities and whilst this represents a significgnt sum, in normal circumstances it is considered important tliat this level of thnding b¢ n)aintained to m¢ct unexpected expenditur¢. Th¢ balance at the y¢ar ¢nd was £6,298,324 (2023.. £6,270,883) after adjustm¢nls for accruals, including £6,200,000 relating to the manses wiihin the Cir¢uil but where thc title lies with the Trustees for Meihodisl Church Purposes. Cii'cuit Model Trnst Fund - the residual balatt of fimds which arost from the sale of Churches previously closed and sold and the PTeYious sale of Manses (Balgnce at the year end £839,435 after £45.000 of this fund was transferred to dcsiEnal¢d thnds to ass15t mcmber churches by ivay of ant. Designated fiunds Manse Fund - fi]nds held for maint¢nance and upkeep of manses used by mini51crs and manses not Cu¢tlY 0pIed by inisters which are let. Otl)er (Church support) - fund5 hcld to enable Circuit to as515t member Churches with urgenl or ¢xceptionRI needs. Restricted fi und5 CiTCUit Benevolent Fund - funds held to allow the Circuit to respond quickly to inStanS of poverty and hardship {Balance at the ye. end £2,083). The balance is considered adequate. Mission Outreach Fund (Fonnerly Youth Foruin and Sela1 Project Fund) - These fvnds are for circuit outreach work. The Collicr Row Mission Outreach Proje¢l was started on 14 January 2018. The Mission Outr¢ach Project inanag¢ment teEun included R¢vd Dr E Jackson, Revd K Bell, Deacon S J Rigby, Joan Pugsley and Turplin Dixon. Aveley Beqiiests and Fun¢ral Collections- funds deriving from legaci¢s for th¢ benefit of the former Aveley Church and funeral collections wher¢ the family have made specific requests (Balances al the year end £10,635). Page 2
ROMfoRD , THODIST CIRCUIT TRUSTIIS, ANNUAL REPORT riOR THE YEIAR l<NDED 31 AUGIIST 2024 4.1 Investment Policy Thc investment of surplus funds is operated through the Central Finance BO.d (CFB) of the Metl)odist Chur¢h. CFB aims to provide higli quality investment scivice seeking above averagc returns for long term investors, whilst ensuring that thc 5e¢ui'ilies held by all its fuiids ar¢ in line with the ethical policy of the Methodist Church. The Circuit holds unit trust investments and also fvnd5 in a deposit accouttt ivith CFB. The Restricted Funds are mftnaged by TTvsfres for Methodist Purposes (TMCP). These funds are also invested with the CFB. 4.2 Res¢ives Poliey Our Resei'ves Policy relates lo our ui)iestriclcd thnds which are fiEely available ftir any or all of the purposes of the Ciiruit. It is our policy lo hold at least six months expenditure iii haJ]d lo enable us to meet any calls for ndIng requiren)cnls. In addition, it is oiir policy lo l)old a manse resei've nd sufficient lo meet forcsceable major expendithre. Trustees Rcsponsibililies For each financial year cnding 31 August, the trustees are responsible for prcp&ing th¢ Truslees, Annual Report and il)e finatkcial slateinenls in accordance with applicable law and Unitcd Kingdom Accounting Standards (United Kiiigdom Generally Accepted Accounting Pra¢li¢e). The law applicablc to ¢hwili¢s in England & Wules requires the Irustees to prepare financial slatetnents which give a true and fair view of the state of affairs of the eharity ld of the incoining resources and application of resources of the charity . In piEparing these fin8ncial stateinenls, the trustees are required to: select suilable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP 2019 IFRS 102). make judgements and estimates that are reasonabl¢ and prudent. sta¢c wh¢ther applicable accounting slkwdards have bccn followed, subject to any material departures disclosed and explained in the financial statcmenls. prepare the financial slal¢ments on the going con¢ern b&8is unless it 15 inappropriate to PlEsume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at gny lime the financial position of the ¢harity smd enable them to ¢nsure that the financial statements coinply with the Standing Orders of the Methodist Church, the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. They are also respoDsibl¢ for safeguarding the assets of the charity and h¢n¢e for laking reasonable steps for the prevention and detection of fraud and other irr¢gularities. 5.1 Risk Management Jl)e Circuit has been considering the various risks facing thc Circuit and the impact and the likelihood of issues happening, which will be reviewed every feiv Ye5. The headings und¢r which the risks arc being ¢alegorised include-. Gov¢riYdnce Risks ittcluding Trustees, Responsibilities Operational Risks including Resources, People and Propcty Finan¢i&l Risks External Risks and ILgal Risks Page 3
ROMfiORD THODIST CIRCUIT TRUSTII S, ANNUAL REI PORT riOR THE, YEI AR END£D 31 AUGUST 2024 Strlleture* governance and management 6.1 Structure The Romford Methodist Circuit is an unincorporatcd association and is governcd by tlie Methodist Church Act 1976, the deed of Union and the Model Trust Deeds of the Methodist Church. It registered wilh the Charity Commissioneis on 19 November 2009. Circuits are the Coordinating charilies for local gToups of Chui¢h¢s' Circuits pay the stipends of the minislers and cmploy lay staff lo serve the Chuicl)es in the Circuit. most decisions arc made at or ratified by the Circuit meetings. The Methodist Conference meets once each year as the suprerne denominational body for all Methodist Churches. Ovei'all regulatory authority resls with the Nlethodist Conference. 2 The Connexional office implements decisions made by Confrren¢¢ and is also responsiblc for th¢ slalioning of presbytcrs and deacons (collectively known as inÉnisters) in individual Circuits M'iihin the District. 3 The Circuit Meeting passes regulatory control down lo ehurch coiincils for local impleinentation by the pre5bCr, the Church Stewards, and oilier officers, and this regulatory authority is then exercised by church councils as Managing TrLlStce5 Ot their charity. 6.2 Pui'pose of the Cii'¢ui¢ Th¢ purposes of the Roniford Meihodisl Circuit $e and deemcd to have been since the dale of the union the advancement of. the Christian faiih in accordance willi the doctrin81 standards and ihe discipline of the Methodist Church, and any choritable purposcs for the time being of any conncxional. Distriet, Circuit, local or other organisalion of the Methodist Churcli, and any charitable purpos¢ for the time ixing of society or institution subsidiary or oncillary to Ihe Methodist Church, and any purpose for the time being of any ¢harity being a subsidiary or om¢ill8ry of the Methodist Church. The primary pun)ose of this Circuit is to advan¢¢ the mission of ihe Church in London, Essex and Thurrock by.. providing opportunities for Churches to work tog¢thcr and support each other offering lo Churches resource of finance. personnel and expertise. 6.3 Govcrninee Dctailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by the ordei. of the annual conferen¢e (CPD). Day to day management of the Circuit is undertakcn by the Circuit Leadership team along with the Local Preachers meeting and the Circuit Finance and Property Committee. 6.4 Publie Benefit Requirement Th¢ truslees had due regard to Ihc guid8mce published by the Charities Commission in compliance with its duties under section 4 of the Charities Act 201 This guidance sets out two key prineiples.. The orgatTrisation must hayc an identifiable benefit. The benefit must be lo the public or a section of the public. The Church exists 10- incr¢asc awareness of God's Presencc and lo ¢el¢biate God's love. - help people to fften and grow as Christian4 through mutU81 support smd caTe' and be a good ncighbour lo people in need and Challenge injusli¢¢. The trusle¢s consider that for these ieasons the charity meets thesc public ben¢fii requirements. Page 4
ROMfoRD THODIST CIRCUIT TRUSTEI S, ANNUAL REPORT FOR THE YEI AR NDED 31 AUGUST 2024 6.5 Rclated PartleS Th¢ Circuit is parl of Ihe London District and is also a¢¢ounlable to the Methodist Confcrcnce. The following Metliodist Churchcs are linked lo the circuit.. Gidca Park, Harold Wood, Hornchurch, Roniford, Upminsler, Rainham, Brentwood, South Ockendon, Farmlands {to I I FcbruJry 2024) and Havering Rolld. Reference and Administi'alion Delai15 7.1 The full name of Ilic Charity is Roinford Methodist Circuit. 7.2 The Romford Methodist Circuit is registered as a charity with the Charity Con]mission in England and Wale5. Thc organisalion's CharityNo is 113279S. 7.3 The addres5 of thc Circuit for correspondence is Circuit Mi55ion Outrea¢h Centre, Clockhouse Lanc, Ron)ford, RM5 3QP.The nanie of Ihe person to corresponden¢e should be addressed ivas Rcvd Dr E Jackson, Circuit Chair. 7.4 The tnanaging trustees that served during the year weie.. Revd Dr E Jackson, Revd R Asif, Revd K Bell, Revd R Maginley. Deacon S Rigby In addition therc were some 45 lay managing trustees. A full list of trustees is available on the Charity Commission website. The Circuit's Bankers are.. HSBC, Co-operative Bank and the Central Finance Board of the Methodist church"CFB" 7.S Investments managed by the Circuit are held by Truslees for Methodist Church Purposes"TMCP" 7.6 Trustee TrAining A lange of guidance produced by Methodisl Connexion to support the effective running of the Circuit, specifically the leaflet 'The rolc of a Trustee in the Methodist Church, is givcn to all new Circuit meeting members as induction to their role as Iriistees. Trustee training was held on 28 Noveinber 2017. 7.7 Disclosure of information to Auditors In so far as the trustees are awar¢'. Ih¢r¢ is no relevant audit infoTmalion of which ihe Charitys auditors are unawott; and the trustees h&v¢ lak¢n 911 the steps that they ought to have taken lo make themselves aware of any relevant audit inforn]ation and to cslablish that the auditois are alv of that tnfoiinalion. 7 Auditoi's The auditors Clay Ratnage Strevens & Hills had been auditors to the Circuit from ycar ended 31 August 2016. Appi'oved by Ilie managing trustees on and signed on their beha]f by: Revd Dr E Jaekson Circuit Chair PaE¢ 5
ROMFORD THODIST CtRCUIT Ir+4D[I P[1 ND[I NT AUDITORS, PORT TO THE, TRUSTCI [1 S OF T, ROMFORD METHODIST CIRCUIT Opinion We have audited the financial slalemenls of Romford Methodist Circuil (the 'charity') for Ihe year ended 31 August 2024 whieh comprise Sialement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting polieies. The financial r¢porting framework that has been applied in their preparation is applicable laiv and Unitcd Kingdom Accoiinting StaJ)dw'ds, including Financial Rewbrting Standard 102 The Financial Reporting SlandaTd applicable in the UK and Republi¢ of ITeland (United Kingdom Genei?Ily Accepted Accounting Practice). In our opinion the financial slalements.. give a truc JJ)d fair view of the state of the charity's affairs as al 31 Augusl 2024, and of its incoiiiing rcsources 8nd applicalion of resources, for the yeaj. theii ended; hav¢ been properly prepared in accordancc ivith Unit¢d Kingdom Generally Accepted Accounting Practice; and Iiav¢ beeiTr pYepa¥ed in accordance ivith tlie requiirments of Ilie Cliarities Act 2011. BA8is of opinion We conducted oui. audit in ac¢oi'dance with Intern81ional Stand'ds on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities undei. those slandw'ds are thrther described in Ihc Auditor's responsibilities for the audit of the financial statements section of our repoit. We are independcnt of the charity in accordance with the ethical r¢quir¢ments that are levant to our audit of the financial statements tn the UK, includii)g the FRC'S Ethical Standard. we have lfilled our other ethical responsibilities in accordkince with these Tequir¢ment5. We believe that ihe audit evidence we have obiained is suffici¢nl and appropriate to provide a basi5 for our opinion. Concluslons relAting to going concer In auditing th¢ financial statements, we liave concluded that the tn]slees' use of the going concern bosis of accounting in the preparation of thc financial stateinents is appropriate. Based on the ivork we have pcrformed, we have nol identified any mateTial utic¢rtainties iel&ling to events or condilions that, individually or collectively, may ¢asl significant doubt on ihe charitys ability lo continue as a going concern for a FKriod of al least tsvelve months from ivhen Ihc financial statements are authorised for issue. Our responsibilitlcs and the Irswnsibilities of the trustees with lEst to going con¢¢rn are described in the relevant sections of this rep)rt. Othei. information The trustees are responsible for the other inform81ion. The other infornialion comprises the inforniation included in the Irustccs, annual report other than the financial statements and our auditor's report Ihereon. Our opinion on the financial statements does not cover the other infoi'niation and, excepl to the extent otherwise explieitly stated ii) our report, we do not express any form of assurance conclusion thereon. In conneclion with our audit of the financial statements, our rcsponsibility is to read the other information and, in doing so, consider whether the other information is Inaterially inconsistent with the fanCIal statetnents or our knowledge obtained in the audil or othcrwise appears lo be materially misslat¢d. If we identify sucl) Inaterial in¢onsisl¢n¢ies or apparent material misstalemcnt5, we are required to determine whether Ih¢r¢ is a malerial misstat¢ment in the financial statements or a material ma55taten)ent of the other informatton. If. based on the work we have performeLt we conclude that ilierc is a material misslatement of this otheT infom]ation, we are required io report ihat fact. We have nothing lo report in this regard. MAlteiB on iYhi£h Ive are required to report by exception We have nothing lo report in respect of the following matters in relation to which thc Charities (Accounts and Rerts} Regulations 2008 require us to Teport to you if, in our opinion.. the information givcn in tl)e financial statements is inconsi51cnl in any material respeet with the triistees. rcport. or suffi¢ienl accoiinting record5 havc not been kept; or the fancial statements are not in a'e¢MCnt with the accoiinling records. or we have not received all the information and explanations we r¢qull'e for our aiidit. Page 6
ROMfiORD METHODIST CIRCUIT INDEPINDCI i¥rr AiJDfToRS' REPORT TO THE TRUSTEI S OF THE ROMfiORD METHODIST CIRCUIT Responsibilitie5 of trustees As ¢xplained n)ore 1]Y in the trustees, responsibilities statemenl set out on page 3, the trustccs responsible for the preparation of financial stateinents which givc a tru¢ and fair view, and for such inlernal control as the trustees delerniine is necessary lo cnable th¢ pparatiOn of financial slal¢menls that are free froin material misstatement. whether due to fraud or error. In preparing the financial stateinenls, the trustCC5 ¢ responsible for assessing the charity's ability to Continue as a going concern, disclosing, as applicable, n)attcrs iclated to going eoncem and using the going concern basis of accounting unless the trustecs either intend to liquidate the charity or lo cease operations, or have no rcalislic aliernalive bul to do so. Auditoy's I'esponsibililies foy the Rudit of the rtn4neial stxlemenls We have been appointed as auditor under seelion 144 of the Charities Act 2011 and report in aeeordance with tlie Act and leVant regulalions made or having effect tlicieundcr. Our obje¢lives are to obtain reasonable assuran¢¢ about whether the financial statements as a whole are free from material n)isslalement, whether due to fraud oi. Crror, and lo issue an aiiditor's report that in¢lud¢s our opinion. Reasonable assui'ance is a high Icvel of assurance, but is ttot a gUantee that an audit conducted in accordance with ISAS {UK) will always detect a n)alerial misstat¢ment when il exists. Misstoteinenls can arise froin fraud or error and are considered malcrial if, individually or in the aggregate, Ihey could reasonably be expected io influence the economic de¢isions of usei's ¢ak¢n on the basis of these financial stateinents. To identify risks of illalcrial misstalenient due to fraud {"fraud risk5") we assessed events or conditions that could indicate an incenlive or pressure to coinmit fraud or provide an opp)rtunity to commit fraud. Our risk ass¢ssmenl procedures included- Obtaining an und¢rstanding of ihe legal and regulatory fran)¢works applicable to the charity. Obtained an understanding of how the charity is complying with those legal and iEgulalory frameworks by making enquiries lo the tste¢S. -The sllsceptibility of tlie charity's fanCIal statements to material Inisstatement caused by fraud or other irregularilies were assessed with the rollowing procedures: Idei)tifying and assessing the design effectiveness of controls which trusle¢s have in place to pievent dete¢l fraud Undei'standing how those ¢h8rged with governance consid¢rcd the potential for override of controls ad tnanagement biases Idenltfying and testing journal entries, in particular any journal entries posted w&th urfftusual account combinations Polential fraud risk5 that had been identified ihroughoul the ploNing and commen¢em¢nl of the audit were communicated to the audit team. Because of the Inh¢¢ limitations of an audit, there is a risk that w¢ will not det¢et ail irregularities, including thos¢ l¢ading to a material tnisstalen)ent in the financial statements or non-con)pliance with regulation. This risk increases the more that Wmplj8n with a law or regulation is removcd from the events and t1]SactIOnS rcflccled in Ihe finan¢ial slalements, as we will be Icss likely to become aware of instances of non- compliance. The risk is also greater regwding irregularili¢s oeeurring due to fraud rather than error. 8s fraud involves inlenlional conceajmenl, forgery, collusion, omi55ion or misrepr¢s¢ntation. A fijrther description of our responstbililies for the audit of the financial statements is loeated on the Financial RetKTrrting Council's website at.. https.'IlWww.frc.org.uk/librarylstdordS-cOdeS-poI1cyIaudIt-aSSUranCe-and-eIhl¢sIaudlt0rs-r¢SponSIb1Il1IeS-f0r-thc-aud1V. This description forms part Clay RAlnage Streven$ & Hi118 Charterod Aecountants & Statutory Auditoi Suite D, The Business Centre Faringdon Avenue Romford, Essex RM3 8EN Ccg fvly rf,6(f Date: gltl WLf Clay Ratnage Strevens & Hills is eligible to act as an auditor in ternis of section 1212 of the Companies Act 2006. Page 7
ROMfoRD METHODIST CIRCUIT STATCI MEI NT OF f4 INANCIAL ACTtVITIES FOR THE YEAR ENDED 31 AUGUST 2024 General Fiiiid (Unrestricted) Cii'eull l¥Iodel Trust fiund (iJnresti'i¢ledl Designated ri unds nrestrieted Othei. Funds (Restricted) TotAI 2023-24 TotAI 2022-23 l Donations & Legacie5 2 Inl¢rest and Investnicnt InGome 843 235 1,078 37.513 45J91 186.732 693 28,239 14,032 186.732 3.217 345 6,057 31,014 31,236 52,222 182,676 3 Other income 4 Ass¢5sinent on Churches 5 Conttibirttons from Cir¢uit Model Tritst Funds 6 Coiinexional Advance & Propety Fund 7 Capital r¢c¢ipls Refund of contribution to 8 Grants (in¢liiding trfs from DAF) 9 Mws¢ Rent Received 20,000 20,000 38,577 329,291 25,000 33,775 325,602 38,577 42,139 10 TotAI Itheome 229,846 57J06 ExpeDdiliire I l Grants gthd Donations 5,000 5,000 191,409 70,789 8,254 113,714 236 12 Salaries and associated costs 159,846 29,300 7.684 53,692 236 31,563 22.524 570 199,718 78,402 6,696 127,455 749 13 Property (incl Ins., C t. utilili¢s etc) 14 Offi¢e Expeiises (Admin.. tel. trav¢l ¢t¢.) 1 S District assessmet)t 18,965 60,022 16 Depreciation 17 Other Expendithr¢ (in¢l training) 7,048 7,724 4,715 2,304 21,791 20,454 18 Audit 10 4.344 262,150 132,304) 56,709 24,405 3,036 4,344 415,537 (86,246) 4,140 437,614 112,0121 19 TotAI xpendlture 20 Net IiicoDielIExped1tre) 21 Transfers b¢tsv¢¢n fijnds 67,746 (67,7461 (90,000) 1157,746) 28,680 13,459 31,541 4S,000 56,961 345 18 1,750 2,09S 22 Siib Total (86246) 3.036 1112,0121 23 Transfrr of balances from Farmlands Church 24 Gain{loSSeS) on sale of Mo]15 25 Gaind(lossesl on revaluation fixed assets 26 0ainsl(lossesl.' on investm¢nt assets 27 Net iDYestment In funds 28 Total funds brought foThv8rd from last year li 80.222 177,524) 916,959 80,222 {2,988) 8,622.537 (22,939) 1134,951) 8.757,488 27,441 6,270,883 45,000 75,110 2,095 1,359,585 29 TotAI lunds cari'led forwai'd At end of ytAr 6,298,324 839,435 120,110 IJ61,680 8,619049 8,622,537 For information only: Money recelved and PA5sed on to IixternRI OrgAnisati011s BalAnce brought fonvRrd Irom IAst year OfferÈngslGifts- received for Exteind Organisotion5 Offeiings/Gifts- passeil to Extetnal Organisations BAIAnce still to be pald 180 (180) The notes on pages 10 to 16 fomTr part of these accounts. Page 8
ROMFORD METHODIST CIRCUIT BALANCE SHEET AS AT 31 AUGUST 2024 General rtund (Unrestrietedl Circuit Model Trust fiiind re5trieled) DesignAted Funds (Unrestrieted) Other Funds (Restricted) Total 2024 TolAI 2023 Tanglble filxed Assets Manse and other fixed assets io 6,200,236 1.249,764 7,450,000 7,450.236 lJ)vestment Properties 1ilV¢Stnienls li 837,040 837,040 45.000 45,000 882,040 916,959 TolulfLKedu5sels 6,2110,236 1,249.764 8J32,040 8 J67,195 Current A$5el$ Debtors aiid Pr¢paym¢nt5 12 29.096 2,000 94 31,190 26,371 Central Finance Boai'd and Ti'u51ees for Methodist Church Pui'poses deposits etc 13114 100,753 4,983 68,871 127,891 302.498 280,515 Cash at Bank and in hand 14 18,953 148,802 5.202 23 24,178 357,866 20.952 327,838 Tolalciirreiil llsseis 4,983 76,073 128,008 Creditol's And Aecruails (diie i undei. one ear 15 50,714 2,588 963 16,092 70.357 72,496 Net tui'rent {lihbillties)/Assets 98.088 2,395 75.110 111,916 287,509 255,342 TotAI Assets le8S ¢UI'lYlIt liKbilittts 6298 J24 839,435 120,110 la61,680 8,619,549 8,622537 Long tei'm Ilabllltles Grat)ts Poyable Other liabilities due aft¢r onc y¢ar Nel assels 6,298,324 839,435 120,IJO 1061,680 8,619,549 8,622,537 Fund5 of the Clreiilt General Fund (Unrestricted) Ircuit Model Trust Fun (Unrestri¢ted) 6.298J24 6298,324 6,270,883 839,435 839,435 916,959 Designated Funds (Unrcstricled) Total Uni'esti'icted funds 120,110 120,110 7257,869 1,36l,680 1,361,680 8,619,549 75,110 7,262,952 1.359,585 1,359,585 8,622537 oilier Funds {Restrict¢dl Total Restricted fiinds 1,361.680 Tolfil Fuiids 17 6,298,324 839,435 120,110 1,361,680 The notes on pag¢5 10 to 16 form part of these accounts. Approved by th¢ munagiiig tnistees on and signed on their behalf by.. Revd DT E Jackson Circuit Chair Page 9
ROMfoRD Mll THODIST cIRCT NOTES TO ACCOUNTS FOR THE YCAR ENDEI D 31 AUGUST 2024 Ae£ounling frameivork And accounting policies Aceounting frarneivork Tlie financial statements have been prcpared in accordancc with Accounting and Reporting by Charities: Sialemenl of Reeommended Practice applicable to charities preparing their accounts in accordan with the Fiiiancial Reporting Standard applicable in the UK and Republic of Irelatid issued in Octobei. 2019, the Financial Repoiting Slandard applicablc in tlic Uiiited Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Aecepted Accounting Practice. Public benefit entity The Circuit meets ihe definition of a public benefit entity under FRS 102. Assets and liabilities oxc initially recognised at historical cost or transaction value unless otherwise stated in the relevant a¢¢ounlin8 poli¢y notes below. Basis These accounts have been prepared on the basis of historieal cosl exeepl that Manses are shown at their market value at the end of the year, on tlie accruals basis to show a truc and fair vicw of the Circuit's financial position and activities. iv Content The finan¢ia] inforniation presented is relevant, reliable. coinporable and complete. Where estimates arc uscd Ihcsc ba5cd on experience, research and judgement. The a¢¢ounls ar¢ expr¢ss¢d in £Sierling, rounded to the nearest pound. FRS102 SORP 2019 These accounts are compliant wilh FRS 102 and with the FRS 102 SORP 2019. vi Going eoneei'n Based on the monetary assets and human resources available at 31 August 2024, the trustecs bclicve that the Circuit is a going concern. Con501idation The Cireuit oversees the w)rk of ministers and lay workers in Churches Mqihin the Circuit, but does not have control over those Churches, ministers or IAY workers except in extreme circumstances, none of which were applicable. For this ieason, the financial statements of the Chur¢h¢s within the Cir¢uit are not consolidated into these fmancial statemenls. Ministerial oversight and pa$toro1 ¢ar¢ of the len local chlli'ches in the Circuit Income is brought into account whcn At is more likely than not that the economic benefit of the in¢om¢ will acuue to the Circuit. No attempt is made to measure the value of services donated by volunteers. In accordance with the Charities SORP (FRS 102), the lime of volunteers is not recognised. ix Expenditure This is recognised when a liability 15 incurrcd, or a constructive obligatiott l$es, that ullS 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 C0115tTU¢tive obligation committing the Circuit lo pay out resouw¢s. Page 10
ROMfiORD Mri THODIST CtRCUIT NOTES TO THE, ACCOUNTS FOR THE YEI AR EI NDED 31 AUGUST 2024 Grants Granls .¢ i¢¢ognised annually only as and when any perfonnance eondilions attaching to the award are met, even when the award is for a iEcurrent grlt over more tha one ycar. All grants aWd¢d for pa)qncnt in future financial years are ¢ondition81 on the Grants Committee being satisfied, on the basis of progrcss repoils from the granlce, Iliat tli¢ granvs achieveinents to date juslify ihe payment of fiirther instalments of that grant. Such commitmenls are noted as eontingent liabililies and included within the Circuit Advance Fund or other relevant designated fvnd in these accounts. VAT Sii)ce the Circuit is not VAT registered, all input VAT 15 charged with the expen5e5 to which it rclatC5. TAngible fixed Asset5 Thcsc are capilrllised if they Can be used for more than one year. The Manses are shoivn in the accounls at market valuation at the end of thc financial yew. Debtors and creditors. bank cash Debtors are slated at the amounts owed lo the Cireuit or PiEpaid. Creditors are initially recognised at settleinent amount after ally trade discounts, where normal credit tcrm5 applyy or amounl advanced to Ihe Circuit. Subs¢quently creditors that are cuirent liabilities are mcasured at thc casl) or other consideration ¢xFK¢ted to be paid. The liquid thnds of bank balances and deposit a¢eowil balances are shown at the realisable values. xlv Minister5, mAnse e05ts The Ciycuit is required to provide accom1n0d10n for eacli Minister and his / her faJnily. The Circuit be5 th¢ c051 of repairs. maintcnance. building insurance. Council Tax and water ¢harges. These costs are not shown separately as benefits-in-kind for Ministers as HMRC does not seek lo tax these re¢¢ipts in the hands of the Ministeis. Page 11
ROMFORD MEITHODIST CIRCUIT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUCUST 2024 A5se55ment Churches For Ili¢ ¢urrent and future year5, an asses5rnent on churche5 15 delemiined annually using a procedu kno1 as"Give and Share" vheFeby Churches offer Contributions towards the CiTCUlt budget depending on tlie total r¢quiied and ability to pay. Assessments 011 Churche5 In th¢ Circuit for the year8re as folloivJ'. Churcli Ns)m¢ 2023-24 2022-23 Romford CoJitTibulion 19.5(X) 2.000 4,000 10,800 18,299 21.800 2,0(K) 8.000 10.064 17.072 Souili Ockendon Contributioii Fjrmlands Contribiition (cea5¢d ivor5hip I l FebTuary 2024) Raiiiham Contributioii Havering Road Contribiitio tr- Ll Gidea Park Contribution 20,(X)O 23.000 22.646 14.750 51.737 186,732 16,800 21.646 22,646 13,500 49,148 182,676 HaTold Wood Contribution BretJttvoDd Contribution Horncliuich Contribution Upminsler Contribution Other In¢ome 2023-24 31,014 10,546 3.402 429 2022-23 36.667 10.546 5.009 Mast and hall hire Circuit Mission Outrcach C¢ntre- Fotmerly Collier Row Church Reiilal in¢ome Circuit Mission Outreach Centre Upminster m8nse expenses reimbursed by Neivliain Methodist Chu]rh Miscellaneous income 45.391 52,222 Grants iyere made during the y¢#r as Shown In the table below: 2023-24 2022-23 Grants lo member Churche5 5,000 5.000 88l&ries And As50CiHted costs 2023-24 2022-23 Gross Pay Employ¢¢s National InsuTon¢¢ Contribution Employerfs pension contribution to the defjned benefit 5chetne Lay staff Gross PAY lay staff Employels National Jnsurance Lay staff employefs pension contribuiion to the defjned contribution 5cheine Apprentice levy Payroll and pension admin charges R¢fund of contribution to MMPS 138,413 12,915 36,169 25,123 957 128.250 11,693 33.538 23,038 675 1.507 814 1,283 761 480 480 (24,969) 191.409 199,718 Gross salaTiC5 psid to five ministers and two lay staff in theyear. Page 12
ROMfiORD METHODIST CIRCUIT NOTES TO THC ACCOUNTS FOR THE YEIAR ENDED 31 AUGUST 2024 SalArie5 #550Cinted costs (Continued) PAyiiient lo Tru$tt¢$ It is Circuit policy lo offer to T¢imbut5e membets of the Circuit Meeting ond others involved in Ilie adininislratiotl of Circuit affairs for expenditur¢ properly incurd In canying out their duties. The Chair of Ilie Circuit undertakes the primary ¢x¢¢utive role ivithin Il)e CiTCUIt. Apart from the Chair of the Circuit and Miiiisl¢TS. no tnember of th¢ Cir¢uit Council was in receipt of any payment for IiY)rk undertaken on behalf of the Cir¢uit. aiihougli certaiji trdvellijig aiid 8dminisltalion c051s iYer¢ ieimbursed ivheii¢ver tliis ivds requ¢sted. During the year, the Circuit paid £1,788 {2023 - £1.3381 to Mr T Pugsl¢y. a trustee. for repair iiY)rk carried out al varioiis Manses and to Ilie Collier Row preTnises. No accrual is fftadc for th¢ ChaiV5 entitl¢m¢nt lo 4 5abbaticul as her fijnciions are undertaken by other Circuit Chair or delegated petson5 at minimol extra eost to the Circuit. P¢n81ons Most ordained presbcr8 and deacons are membets of tlie Metli<Klisl Ministers, Pension Scheme (MMPSI. This is a defined ben¢fil scheme. The Supieme Court held in 2014 that Methodist ministers (Ivliicli tertt] include5 presb¢[$ and dvd¢onsl are not employees of the cliuh. For siinplicity, hoivev¢r, when dealing iwth National Iiisurnnce Contributions and pe115ion contributions, the term5 'eJnployerf and eTnploye¢' are used as they ivould be in an eJnployin8 body. The MMPS 15 in deficit but a plan for reinov81 of the deficit is bein8 implemented. It ivould be difficult to det¢miine the liability that Could fall otj the London District gtld no attempt ha5 beeii made lo attetnpt thi5 valuation. The lay workers are enrolled in a defined contributioii sclieme managed by The Pension Trust. Property costs Manse repai Jnsutance and vtilities 2023-24 2022-23 24.782 32.493 19,404 20,034 16,057 15.329 10,546 10,546 70,789 78,402 11 should be noteit that the Circuit chair and mini5teTial team Are required to oc¢upy the Circuit Inanse5. Citciiit pays for the Mgns¢ nd project centre repairs on a regular basis. Any major turb1$hMentS ar¢ discussed and approved at the Circuit meeting before Ilie vork starts. Circuit pays for Manse's insuranees, utilities and couiicil tax for all the Manses occupied by ¢hair 8nd tn]stees ekcept for two Manses Thl)ich are let out. CoJn¢il lax CMOP 5hate of lost rent oiriee expenses Telephone TFavel 2023-24 2022-23 4,185 2,671 974 3.631 2,595 72 Postage and stotion¢ry Software 248 190 Bank charge5 176 208 8.254 6.696 Other expellditure Pre4¢hets fees ond expenses Removal costs 202J-24 2022-23 1.077 3.393 600 Ministers, relotIon allowance Training and eonfetence Sundries 218 184 1.352 10,367 7,157 1,735 1.628 3224 8.536 1.769 43 Olher¢harge5 Prof¢65ioD31 f5 and stjrvey costs Mission Outreach Fund Activities and Resources tA)an interest 21.791 20.454 Pagc 13
ROl¥triORD MEI THODIST CIRCUIT NOTES TO THE ACCOUNTS riOR THE YEAR EIYDED 31 AUGUST 2024 Fees for exarnination or audit of the accounts 2023-24 2022-23 Aiiditors, fees 1.956 2.388 4,344 .863 2.277 4.140 Oilier fees (e.g.: advice, accountancy 5¢tVlCe5) 10 Totfil T Angible fiixed As5el$ Other Land LaDd TolAI rfixed Buildings DuildiDg5 (Other) IMan5es) As5e15 Cost or valuHtIo Balaiice at 1st Sept 2023 Additions in the year Contribution Teceived 236 2.050.0(K) 5.400.000 7,450,236 Depre¢iation Revalu)tions in theyeor Disposals in year Balance at 31st August 2024 {236) (2361 2,050,000 5.400.000 7,450,(X)o Th¢ Land and Buildings were revalued 8t 31 August 2022 and agreed by the Trustees. No depreciation is provided on Ilie bliilding because the trustees consider the current fair value of the Jnanse buildings lon the a5suinption tliat il had reached the end of its us¢fvl economic life by the year-end) to be not les5 than ils cUrn1 value. Any depreciation ivould not b¢ material. The mgnses hav¢ been revi¢w¢d foi impaitment. lthYe$tm¢nt propei'tles No tnansc ss currently deemd to be held for the long t¢mi investment purposes of the Circuit. I I InVeStentS Unit trLlSts at rnarkct valu6 Balgnce at 1st Sept 2023 Additions in the year Dispos81s in year Revaluations in th¢ year Balance at 3 1st August 2024 916,959 953,269 (1,068,410) 80,222 882.040 Page 14
ROMf%ORD MCI THODIST CIRcurr NOTES TO THE ACCOUNTS riOR THE YEAR NDEI D 31 AUGUST 2024 12 D¢blors And prepAyMents 2023-24 2022-23 PrepAym¢]Jts Acerued incoNae Stipends paid in advanc¢ 13.711 1,368 2.094 3,385 6.000 2.044 2.588 31.190 15.612 1,298 674 Council tax and utilitlC5 Rent receivable Insuranee 2,939 Cliurcli assessment due ConlTibuiion to Inanse runnin8 costs A¢¢ed investment income 5.848 Total 26,371 13 Trustees for Methodist Church PurpoxtS Tlie funds that support tlie Circuit Model Trust Fund gre held by TMCP. TMCP is the legal owneT and Custodian Twstee of all Methodist Model TTUSt property. in¢lyding Legacies, Endoivments and Accumulated funds. TMCP ensure that, througli providing guidance and a¢lin8 under their direction, tlie Managing Ttustees ¢omply with charity laiv and M¢thodi5t law and policy as detern)ined by the Methodist Conferenc¢. 14 Centrfti fiin&Dce BoArd IcfiB) And tash at bhthk The circuit ha5 a ¢unYnt a¢¢ounl with HSBC UK Bank plc and a current account at The Co-operative Bank Plc, boili authorised institutions. The sums held on the accouiit are immediately avai18ble. In addition, the Circuit has three deposit accounts al CFB. Interest is earned on these CFB accoutlls and ciedited monthly. This number excludes the restricted fijnd o¢counts. 15 Credltors snd ficcrued expenses Creditor$ 2023-24 2022-23 Expenst5 reimburseinent Audit and accountancy fees 444 465 4,344 4,788 4.140 4.605 Atei'uAls defei'red income Deferred incojne foractlvlty n¢Kt year Other acen]ed property expetJ5es Accrued investment income 62,741 65,173 2,718 2.588 240 Agent$ fees related lo rent arre4r5 Total of Creditor5 Accrued exp¢N$es 70,357 72,496 16 GrAnt coniml(Tnen15 A furth¢r gtant of £60.000 over 3 yeaTS ivas agreed by the District Advonce Fund to support the Circuit Mission Outreach Project from 2025r26. Poge 15
ROMfoRD METHODIST CJRCUIT NOTE4 S TO THE ACCOUNTS FOR THE YEAR ENDID 31 AUGUST 2024 17 Cir¢vlt funds (Unrestricted And Re5trictedl The Circuit maintains a numb¢r of 5¢parat¢ fund5. The putpose, type, movement and stale as at the end of year i5 duMented b¢low. The fund5 held conslittite.. General Funds ftir any purpose and Cir¢vit Development Fund, the capital nomially being unavailable ftr spending and the income from i¥hich is ¢itlier R¢strt¢led or Unrestricted. Details of eacli materlal fund aTe di5cI05ed in the nol¢s beloiv. Project General Funds- Unrestricted 2023-24 6,298,324 2022-23 6.270.883 Foi u5¢ Ot the discretion of the trustees in the thrtheranee of the objective5 of the Circuit. Thb5 excludes fund5 Ivhich have been d¢signated for a spe¢ifi¢ purpose. Circuit Model Trust Fund The residual ba18nce of funds ivhich arose from die sale of Churche5 pvIOUslY ¢losed aiid 501d and the previous sale OE Manses. For specific purposes but not Te5tTiCted by dociimeiit 01 deed to tlial purpose alone. 839.435 916,959 Unr¢5trict¢d Designated Funds- Unrestri¢led Manse Fund for the mainte118nce of manses 75,110 45,0(M) 75,110 Other- to a551sI mcinbeT Churchcs Mis$ioi) Outreach Fund- Restricted {FormeTly Youth Foruml Special Project Fund) Circuit Mi55ion Outreach 3.537 1.345,425 3.537 .344,484 Collier flow Mission Outreach 0jeCt l£gaGies und funeral colle¢lions For use for the PUTpose5 5CIfIed in the relevant Wills or family requesis 10,635 10,065 Circuit Benevolent Fund- Re5tricied To help meet the exceptional needs of presbytels and deacons Circuit lay employees and their d¢p¢ndents wqthin the Romford Circuit that cannot be met at a local Chutch 01 Circiiit level alone, by ptoviding o r¢sourc¢ froin ivhich confidential pa)qnenls can be made at the discretion of the TTUSttts. 2.083 1.499 11 8,619,549 8,622,537 18 Transfer belween funds 2023-24 2022-23 Property siirplus transfer to general fLmd Other designated fund ttan5fr1 to general fund CfvffF transf¢r to general fund Contribution from general fund to circuit mi5510 Transfer donation from CMTF to Benevolent Fund 18.459 2,781 25,000 100,732 40,000 1.750 518 CMTF trasfer to designated fund 50.IK)O 19 Volunteer ¢ontrlbutlon Every entity Icotfftexion. District. Circuit. Church) Iirythin the MethiSt church in GB is heavily reliant on volunteers who contribute their skills, tim¢ and money in the fi]rtherance of the woik of th¢ Chuieh. Principally thts contriblltiott is by servin8 on comJnitt¢¢s of the Circuit that deal mission. manse4 finance, policy, gTants, traiiiing, developinent. We are grateful to dl of thein foT their lielp and commitment. 20 Conneeted Orginl$Allon$ And relHttd pHrties ConnEcted organisations include th¢ Methodist Connexion, Ilie District and Churches wilh]"n th¢ Circuit. CFB and TMCP. All of these entities have their owi trustees or dii¢ctOT5 and autonomous administration. Details of transactions occuring during the year were as folloME'. Nme of Conne¢t¢d Org4nÉ$afion Rt¢tlpts P4ymtnts Donor.. Churches within the RomfoTd CiTCUlt- Assessments 186,732 20.000 DonorlDonee'. The tA)iidon Districl Ilevieslwts) Donee.. Meth(Klist Church Fund via the London District Grant Paid to Churcli¢s within the Romford Cir¢uit 67,754 45,960 Donee.. 206,732 118.714 Pa8e 16
DECLARATIONS Treasurer 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 Signature of Treasurer Name Tom E J Smith FCA CTA Address Circuit Mission Outreach Centre, Clockhouse Lane, Romford RM5 3QP Date 11¥1102S Presentation to the Clrcult Meeting for approval. I confirm that the Accounts will be presented to the Circuit Meeting on l April 2025 for approval. Signature of the Chair of the meeting Name of the Chair of the meeting Rev Dr E Jackson Date