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2021-08-31-accounts

Charity Registration No. 1132844

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

LEGAL AND ADMINISTRATIVE INFORMATION

Ministers Rev J Archer Siddall Rev B Savage (resigned 31 August 2020) Rev J Park Layworkers Pastor - W Ashton Pastor - E Archer Siddall Administrator - A Holmes (resigned 30 April 2020) Governance Officer - D Ryan Lay Visitor - K Dunn Lay Visitor - E Whiteoak Evangelism Enabler - J Hood (appointed 1 November 2019) Circuit stewards D Ryan E Wainwright J Shore A Holmes (appointed 1 May 2020) Treasurer D Ryan Charity number 1132844 Registered office Central Methodist Church Lodge Lane Aston Sheffield S26 2BP Accountants Hart Shaw LLP Europa Link Sheffield Business Park Sheffield S9 1XU

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 16

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021

The trustees present their annual report and financial statements for the year ended 31 August 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Deed of Union (1932) and Methodist Church Act (1976) , the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

Charity objective is to act as a Resource provider within the area around Rotherham for the Methodist Church .

The purposes of The Methodist Church are and shall be deemed to have been since the Date of Union the advancement of -

(A) The Christian Faith in accordance with the doctrinal standards and the 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.

How the charity achieves its aims:

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The charity is the controlling body of the Methodist Church in the Rotherham and Dearne Valley area. We seek to promote the Christian Gospel of Hope through the life and teachings of Jesus Christ as contained in the Holy Bible. We do this in many ways but mainly through the operation of 13 Churches in this area. The beneficiaries of our work are many and through discussion at our circuit meeting we constantly seek new ways of spreading the Gospel.

Financial review

The charity is financially solvent and currently holds reserves in excess of Methodist requirements as laid down by conference. We are looking at how our reserves can be deployed in the future including a possible increase in ministry personnel which would require funding for a minimum of 5 years.

The charity are required to hold as reserves within the Methodist church 6 months annual expenditure as a minimum. There is no requirement to spend sums in excess of this.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management

The Rotherham And Dearne Valley Circuit is under the control of the circuit meeting in this area. The actions are outlined and discussed at our quarterly meeting. Reports are presented on a regular basis to explain our current situation.

All financial documents are supplied to the Sheffield District which itself oversees a number of circuits in this area. The day to day running of the circuit is overseen by the Circuit leadership team who are the employed staff and a number of unpaid lay circuit stewards.

The trustees who served during the year were:

M Lumb J Hampshire M Collinson D Styles A Holmes R Hudson P Drabble R Rutherford D Schofield D Ryan M Moran A Wright R Lindley I White J Hindley J Shore J Ollivant A Andrews R Hambrey J Cook L Hill G Hudson Rev. J Park C Taylor W Cutts E Wainwright A Wright J Kilner P Trehern J Hood M Lumb P Na S Hannam V Loveday W Ashton K Dunn M Smith S Tanser C Houghton B Millington R Cauwood K Hester F Wilson M Mellars I Maw Rev. L Broadhead D Guy Rev. J Archer - Siddall Rev. J Barrass E Archer Siddall

All members of the circuit are appointed by the churches in the area of influence plus the paid staff employed by the circuit.

Transfers from restricted funds

With regard to the transfers from the restricted fund. The fund is only restricted in that application has to be made to the head office of the Methodist Church through the electronic consents system. If approval is given to a scheme then funds can be withdrawn. All monies into the restricted fund come from the sale of locally held Methodist land and property.

The trustees' r eport was approved by the Board of Trustees.

David Ryan

Treasurer

16 March 2022

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

I report to the trustees on my examination of the financial statements of Rotherham and Dearne Valley Methodist Circuit (the charity) for the year ended 31 August 2021.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW , which is one of the listed bodies.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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

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 financial statements to be reached.

Natalie Bracey FCA Hart Shaw LLP

Chartered Accountants Europa Link Sheffield Business Park Sheffield S9 1XU

Dated: 25 March 2022

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Charitable activities
3
142,231
-
Other trading activities
4
53,861
-
Investments
5
561
2,362
Other income
6
12,001
69,939
Total income
208,654
72,301
Expenditure on:
Charitable activities
7
274,161
28,976
Contributions to DAF
-
32,128
Total resources expended
274,161
61,104
Net gains/(losses) on investments
13
-
8,338
Net (outgoing)/incoming resources before
transfers
(65,507)
19,535
Gross transfers between funds
(9,253)
9,253
Net movement in funds
(74,760)
28,788
Fund balances at 1 September 2020
1,337,698
590,459
Fund balances at 31 August 2021
1,262,938
619,247
Total
2021
£
142,231
53,861
2,923
81,940
280,955
303,137
32,128
335,265
8,338
(45,972)
-
(45,972)
1,928,157
1,882,185
Total
2020
£
489,309
46,901
6,091
141,576
683,877
341,229
12,680
353,909
-
329,968
-
329,968
1,598,189
1,928,157

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

BALANCE SHEET

AS AT 31 AUGUST 2021

Notes
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
16
Investments
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
19
Unrestricted funds
2021
£
£
618,975
53,761
672,736
3,171
3,000
1,240,895
1,247,066
(37,617)
1,209,449
1,882,185
619,247
1,262,938
1,882,185
2020
£
£
728,975
45,423
774,398
3,134
8,200
1,178,417
1,189,751
(35,992)
1,153,759
1,928,157
590,459
1,337,698
1,928,157

The accounts were approved by the Trustees on 16 March 2022

David Ryan Treasurer

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Charity information

Rotherham and Dearne Valley Methodist Circuit is a charity registered in England and Wales. The registered office is Central Methodist Church, Lodge Lane, Aston, Sheffield, S26 2BP.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's Deed of Union (1932) and Methodist Church Act (1976) , the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by conference as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised under the accruals basis. Specific expenditure on charitable activities is charged directly against the activity to which it relates as c osts of raising funds or ex penditure on charitable activities .

S upport and governance costs are charged against the charitable activity they support the most .

Other expenditure represents those items not falling into any other heading.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings

Held at residual value

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

3 Charitable activities

Church collections
Capital revenue
Analysis by fund
Unrestricted funds
Restricted funds
4
Other trading activities
Letting and licensing arrangements
Other income relates solely to unrestricted funds.
2021
£
142,231
-
142,231
142,231
-
2021
£
53,861
2020
£
189,814
299,495
489,309
189,814
299,495
2020
£
46,901

5 Investments

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Interest receivable 561 2,362 2,923 2,097 3,994 6,091

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

6 Other income

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Net gain on disposal of tangible fixed assets
-
69,939
City centre resource
-
-
Church use for events
750
-
Freedom2Serve
11,251
-
12,001
69,939
For the year ended 31 August 2020
74,290
67,286
Charitable activities
Staff costs
Methodist Church Fund
Telephone & travel
Insurance & utilities
Maintenance on manses
Expenditure on other properties
Donations
Other expenditure
Grant funding of activities ( see note 8) - restricted funds
Share of support costs (see note 10)
Total
2021
£
69,939
-
750
11,251
81,940
2021
£
146,592
58,808
12,500
13,960
1,949
19,089
800
17,055
270,753
28,976
3,408
303,137
Total
2020
£
67,286
61,079
13,211
-
141,576
141,576
2020
£
171,918
58,808
15,685
10,929
11,257
40,428
1,109
26,108
336,242
1,979
3,008
341,229

7 Charitable activities

8 Grants payable

During the year one grant totalling £27,796 (2020 - £nil) was made to local churches to assist them in funding building projects.

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

9 Other restricted expenditure

Expenditure of £1,180 (2019 - £1,979) which related to both the Circuit Advance Fund and Ward Legacy Fund.

10 Support costs

Support
costs
Governance
costs
£
£
Administration
costs
3,408
-
3,408
-
Analysed between
Charitable
activities
3,408
-
2021
£
3,408
3,408
3,408
2020
Basis of allocation
£
3,008
Charitable activities
3,008
3,008

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

11 Trustees

During the year, 6 Trustees have been paid remuneration and had received other benefits from an employment with the Rotherham and Dearne Valley Circuit. The Trustees only received remuneration in respect of services they provide undertaking their roles under their contract of employment, and not in respect of their role as Trustees. The value of Trustees' remuneration and other benefits was as follows:

2021 2020
£ £
E Archer-Siddall Remuneration 25,380 24,672
Pension contributions paid 1,522 1,357
A Holmes Remuneration - 7,062
Pension contributions paid - 424
W Ashton Remuneration 20,580 20,016
Pension contributions paid 1,235 1,101
D Ryan Remuneration 10,637 6,672
Pension contributions paid 638 367
J Hood Remuneration 25,380 20,560
Pension contributions paid 1,522 740
Rev J Archer-Siddall Remuneration 28,273 31,352
Pension contributions paid 6,873 -
Rev J Park Remuneration - 8,967
Pension contributions paid - 2,368
Rev B Savage Remuneration - 5,860
Pension contributions paid - 1,452
K Dunn Remuneration 5,460 -
Pension contributions paid - -

During the period, 10 (2020: 13) Trustees received reimbursement of expenses.

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

12 Employees

Number of employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
2021
Number
8
2021
£
124,993
9,814
11,785
146,592
2020
Number
10
2020
£
147,406
9,121
15,391
171,918

There were no employees who received total employee benefits (excluding employer pension contributions) of more than £60,000.

13 Net gains/(losses) on investments

Restricted Total
funds
2021 2020
£ £
Revaluation of investments 8,338 -

14 Tangible fixed assets

Tangible fixed assets
Freehold land and
buildings
£
Cost
At 1 September 2020 728,975
Disposals (110,000)
At 31 August 2021 618,975
Carrying amount
At 31 August 2021 618,975
At 31 August 2020 728,975

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

15 Fixed asset investments

Ward Bequest
£
Cost or valuation
At 1 September 2020 45,423
Valuation changes 8,338
At 31 August 2021 53,761
Carrying amount
At 31 August 2021 53,761
At 31 August 2020 45,423

Other investments were subject to valuation by The Trustees For Methodist Church Purposes . The investment is revalued on an annual basis.

16
Debtors
Amounts falling due within one year:
Prepayments and accrued income
17
Current asset investments
Loans
18
Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income
2021
£
3,171
2021
£
3,000
2021
£
34,209
3,408
37,617
2020
£
3,134
2020
£
8,200
2020
£
32,984
3,008
35,992

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 September
2019

£
Circuit Advance Fund
285,731
Ward Legacy c/o Eastwood
46,239
331,970
Movement in funds
Incoming
resources
Resources
expended
£
£
656,178
(396,873)
914
(1,730)
657,092
(398,603)
Transfers
Balance at
1 September
2020

£
£
-
545,036
-
45,423
-
590,459
Movement in funds
Incoming
resources
Resources
expended
Transfers Revaluations,
gains and
losses
Balance at
31 August
2021
£
£
£
£
£
72,301
(61,104)
9,253
-
565,486
-
-
-
8,338
53,761
72,301
(61,104)
9,253
8,338
619,247

The Circuit Advance Fund holds the capital receipts from the sale of properties.

The Ward L egacy is a trust fund which was set up to benefit a number of churches and circuits in the Sheffield District. Due to restrictions in the legacy only interest can be drawn from the fund each year.

ROTHERHAM AND DEARNE VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

20
Analysis of net assets between funds
Unrestricted
fund
Restricted
fund
2021
2021
£
£
Fund balances at 31 August 2021 are
represented by:
Tangible assets
618,975
-
Investments
53,761
-
Current assets/(liabilities)
590,202
619,247
1,262,938
619,247
Total
2021
£
618,975
53,761
1,209,449
1,882,185
Total
2020
£
728,975
45,423
1,153,759
1,928,157

21 Related party transactions

There were no disclosable related party transactions during the year (2020 - none) .