Circuit Annual Report 2020-2021 The South West Tyneside Methodist Circuit consists of 11 Methodist churches one of which has two sites (Strathmore Road Rowlands Gill and Chopwell), and a thriving café and walking church in Greenside linked to Centenary Methodist Church in Crawcrook. We produced acts of worship for You Tube for around 18 months when churches were closed or restricted due to the covid pandemic and 2 telephone services every week for those who cannot attend church. The telephone services are continuing. We employ a Community Mission Worker who has, amongst other things been very involved in establishing the Poverty Truth Commission in Gateshead and working with a number of other community projects in the area. Her contract has been extended by 6 months to complete this cycle of the Poverty Truth Commission which has been delayed by the effects of the covid pandemic lock downs etc. We also employ a youth worker on a part time basis (8 hours at Ryton and 10 in the circuit) Throughout the pandemic she has provided Christian sessions for children and young people on zoom and you tube, a couple of face-to-face events when restrictions have allowed, and You Tube assemblies for local schools. Our churches are beginning to resume some of their usual activities following the various restrictions and lock downs of the last two years, but there is a long way to go before normality is resumed and the financial situation of some churches has been seriously affected and it is possible that some may not recover. Led by the superintendent minister the circuit has embarked upon a programme of “Transformational leadership” with a dedicated group of volunteers. At present they are working with the people of Blaydon Methodist Church. The aims of the organization (Circuit) are included in our Mission Statement and policy. Methodist Churches witnessing together for Christ in South West Tyneside. - We exist to embody the love of God in Christ through the Holy Spirit. We will endeavour to do this by enabling individuals and communities in their worship. - We are committed to accountable and responsible discipleship. We will endeavour to do this by encouraging growth in Christian life and faith. - We aim to enable and enliven people in acts of loving service and discipleship. We will endeavour to do this by equipping people to serve. - We aim to see lives changed through the love of Christ. We will endeavour to do this by developing areas of opportunity and mission. A brief financial review of the year. We have in general achieved our financial targets for the year. Income All Churches have been able to maintain their assessments despite the periods of lock down and restrictions, some with the help of a generous grant from Gateshead MBC. We have continued to receive rental income form the manse in Whickham and we have received a number of grants towards the costs of the Community Mission Worker. During the year we have sold two properties – The Ark at Crawcrook and Greenside Methodist Church. The proceeds were credited to the Circuit Model Trust Fund at TMCP. ## Expenditure Salaries and stipends were increased in line with Methodist Church policy and the living wage. 20.49% of unrestricted income was the circuit contribution to the work of the district and connexion (14.15% of total costs). Other expenditure includes stipends and salaries, manse expenditure travel costs etc. As of 31[st] August 2021, the net circuit assets were £463,428, a considerable increase on the previous year due to the sale of two properties. Plans for 2021-2022 Our financial plans for the coming year have been prepared on the basis that we maintain circuit staff of five ministers, community mission worker (for part of the year at east), part time youth worker and part time administrator. We have planned to use £33,700 from reserves to maintain church assessments at the current level to help churches to cope with the effects of the covid pandemic. Basis of preparation and legal framework The charities annual report and accounts for the year ended 31[st] August 2021 have been prepared in accordance with the “Charities Act 2011” and the “Charities Statement of Recommended Practice 2015” as applicable to the “Financial Reporting Standard (FRS) 102.” Full Name of Charity – South West Tyneside Methodist Circuit. Registered Charity Number 1133266 Date of Registration 1[st] September 2009 Main Contact Address Circuit Office Strathmore Road Methodist Church, Rowlands Gill, Tyne & Wear, NE39 1HX The members of the South West Tyneside Circuit Meeting are the Charity Trustees, membership being made up of circuit office holders, ministers and representatives appointed by the local churches. Full membership list is attached. Circuit Ministers and Officers Rev Ann Varker Rev Janet Capstick Rev Trevor Capstick Rev Brigitta Steele Rev David Charter Community Mission Worker Miss Lucy Zwolinska Circuit Youth Worker Miss Sam Cree Circuit Stewards Mrs Sue Robson Mr Trevor Peacock Mr Trevor Peart Mrs Irene Middlemass Miss Valerie Burn Valerie Burn acted as the treasurer overseeing the day-to-day financial management and accounting for the circuit during the year. Administrator Mrs Jill Harper Hill. Independent Examiner Mrs Roz Tench 18 Southfield Green Whickham Newcastle upon Tyne NE16 4RL Investments and Bank Accounts Central Finance Board of the Methodist Church Trustees for Methodist Church Purposes CAF Bank Aims and Organization Charity objective is to act as a resource provider within the area around south west Tyneside for the Methodist Church. The purposes of the Methodist Church are, and shall be deemed to have been since the date of union the advancement of - a) The Christian faith in accordance with the doctrinal standards and discipline of the Methodist Church. - b) Any charitable purpose for the time being of any Connexional, District, Circuit, local or other organizations of the Methodist Church. - c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church - d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church. The organization and resourcing of regular public acts of worship open to members of the church and non-members alike. The teaching of Christianity through sermons, courses, and small groups. The resourcing of pastoral work including visiting the sick and the bereaved. Taking religious assemblies in local schools. Promotion of Christianity through the staging of events and services. Provision of chaplaincy services inro the local university and other institutions. ## Public Benefit We confirm that the trustees have had regard to the Charity Commissions guidance on public benefit. Structure Governance and Management The governing document for the circuit is the Deed of Union (1932) and the Methodist Church Act (1976). Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD) Day to day management of the circuit is undertaken by the Circuit Leadership Team along with the Local Preachers meeting and the Circuit Finance and Property (part of CLT) and the Circuit Policy Committee (part of CLT). Trustee Training A range of guidance produced by Methodist Connexion to support the effective running of the circuit - specifically the leaflet “the Role of a Trustee in The Methodist Church” is given to all new circuit meeting members as induction to their role as Trustees. Related Parties The circuit is part of the Newcastle upon Tyne District and is also accountable to the Methodist Conference. The following Methodist Churches and linked to the circuit. Blaydon Burnopfield Centenary Crawcrook (Including Greenside Café Church) Dunston Hill Fellside Ravensworth Road (Dunston) Ryton Spoor Memorial (Whickham) Strathmore Road – two sites – Rowlands Gill and Chopwell Sunniside Whitehall Road (Gateshead) Risk Management Any major risks identified will be recorded by the Circuit Leadership Team (none have been identified) and professional advice will be taken if required, Income and expenditure are monitored in total and compared with the approved annual budget on a half yearly basis to detect trends as part of the risk management process to avoid unforeseen calls on reserves. Safeguarding Every person has a value and dignity which comes directly form the creation of people in Gods own image and likeness. Christians see this potential as fulfilled by God’s recreation of us in Christ. Among other this this implies a duty to value all people as bearing the image of God and therefore to protect them from harm. Methodist Connexional practice outlines commitment to the following principles - The care and nurture and respectful pastoral ministry with all children, young people, and adults. - The safeguarding and protection of all children, young people, and adults when they are vulnerable. - The establishing of safe, caring communities which provide a loving environment where there is informed vigilance as to the dangers of abuse. - We will carefully select and train all those with any responsibility within the church in line with the Safer Recruitment principles, including the use of criminal records, disclosures and registration with the relevant vetting and barring schemes. - We will respond without delay to evert complaint made which suggests that an adult child or young person may have been harmed, cooperating with the police and local authority in any investigation. - We will seek to work with anyone who has suffered abuse developing with them, an appropriate ministry of informed pastoral care. - We will seek to challenge any abuse of power, especially by anyone in a position of trust. - We will seek to offer pastoral care and support, including supervision and referral to the proper authorities to any member of our church community known to have offended against a child, young person, or vulnerable adult. - In all these principles we will follow legislation, guidance and recognised good practice. The South West Tyneside Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy, government legislation, guidance, and safe practice in the circuit and in the churches. The South West Tyneside Circuit commits itself to the provision of support, advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable. Reserves Policy The reserves policy for the circuit is to hold a minimum sum equivalent to 4 months average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and/or to be able to continue in the short-term funding planned activities in the event of any inability to raise the full circuit assessment from churches. The Circuit Funds Document is attached, Name of Circuit Circuit No 2015 ## **South West Tyneside** ## **Statement of Financial Activities (SOFA) for the year ended 31 August 2021** |**Notes to**||**Circuit Model**|**Designated**|||| |---|---|---|---|---|---|---| |**the**|**General Fund**|**Trust**|**Funds**|**Restricted**|**Endowment**|**Total**| |**accounts**|
**(Unrestricted)**|**(Unrestricted)**|**(unrestricted)**|**Funds**|**Funds**|**2020-21**| ||£|£|£|£|£|£| |**Income**||||||| |1 Donations and legacies||||||0| |2 Income from monetary investments|144|425||12||**581**| |3 Income from investment properties|10,800|||||**10,800**| |4 Assessments on Churches|277,050|||||**277,050**| |5 Capital Receipts||329,054||||**329,054**| |6 Grants received||||21,000||**21,000**| |7 Other charitable income|12,297|3||3,535||| |8**Total income**|**300,291**|**329,482**|**-**|**24,547**|**-**|**654,320**| |**Expenditure**||||||| |9 Grants and donations||10,000||||**10,000**| |10 Salaries and associated costs|199,858|||27,566||**227,424**| |11 Property maintenance|15,871|||||**15,871**| |12 Connexional assessment & model trust levy||89,898||||**89,898**| |13 District Assessment & Levy|61,552|3,082||||**64,634**| |14 Depreciation||||||**0**| |15 Office expenses|5,798|||||**5,798**| |16 Other outgoings|17,276|||1,908||**19,184**| |17**Total charitable expenditure**|**300,355**|**102,980**|**0**|**29,474**|**0**|**432,809**| |18 Gains/(losses) on monetary investments||||||0| |19 Gains/(losses) on investment properties||||||| |20**Net income/(expenditure)**|**-64**|**226,502**|**0**|**-4,927**|**0**|**221,511**| |21 Transfers between funds||||8,000||8,000| |22 Other gains/(losses)||||||| |23**Net movement in funds**|**-64**|**226,502**|**0**|**3,073**|**0**|**229,511**| |24 Total funds brought forward|113,235|111,644||9,038||233,917| |**25 Total funds carried forward**|**113,171**|**338,143**|**-**|**12,111**|**-**|**463,428**| Name of Circuit **Circuit No 2015** ## **South West Tyneside** ## **Balance Sheet as at 31 August 2021** **----- Start of picture text -----**
GN
General Fund Circuit Model Designated Restricted Endowment Totals Totals
(Unrestricted) Trusts Funds Funds Funds 2020/21 2019/20
Notes to the (Unrestricted) (Unrestricted)
Accounts £ £ £ £ £ £ £
Fixed Assets
Circuit Manses & Equipment 0 R
Investment properties 0 R
Investments 0
Total fixed assets 0 0 0 0 0 0 0
Current Assets
Debtors 0 S
Loans by the Circuit 0
Investments with TMCP 338,143 338,143 111,642
Central Finance Board Deposits 115,001 12,111 127,112 140,765 T
Cash at Bank and in hand 28,169 28,169 11,510
Total current assets 143,170 338,143 0 12,111 0 493,424 263,917
Current liabilities
Creditors (due in under 1 year) 0 U
Grants payable within 2020-21 0 V
Total current liabilities 0 0 0 0 0 0 0
Net current assets/liabilities 143,170 338,143 0 12,111 0 493,424 263,917
Total assets less current 143,170 338,143 0 12,111 0 493,424 263,917
Long term liabilities
(due after more than one year)
Grants payable after 2020-21 0 V
Loans to the Circuit 0
**----- End of picture text -----**
## **Notes to the Accounts** ## **1 Basis of accounting** The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS102 – the Charities SORP (FRS102) and taking note of the Update Bulletin 1 issued in 2016. ## **2 Funds** The funds held constitute: General Funds held for any purpose of the Circuit which are Unrestricted. The Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as unrestricted. Restricted funds which are held for a narrower purpose . There are no Endowment funds. Details of each material fund are disclosed in the final note to these accounts. Any funds may be represented by more than just cash. ## **3 Accounting policies** ## **Basis** These accounts have been prepared on the basis of historical cost except that investments are shown at their market value at the end of the year, on the accruals basis to show a true and fair view of the Circuit’s financial position and activities. ## **Incoming Resources** Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability. ## **Resources Expended** This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources. ## **Grants** Grants made by the Circuit from its own funds are recognised in full at the time of agreement or when the Circuit accepts that there is a legal or operational obligation to make the payment. ## **VAT** Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers. ## **Tangible fixed assets for use by the Circuit** Tangible fixed assets are capitalised if they can be used for more than one year, and cost at least £500. The freehold property is shown in the accounts at 2021 deemed values, . No depreciation is provided on the building because the trustees consider the current residual fair value of the manse buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. Any depreciation would not be material. The property has been reviewed for impairment.. ## **Investment Properties** Investment properties - no property is currently deemed to not be held for the long term purposes of the charity. ## **Investments** Investments are valued in the balance sheet at market value at the year end. Investment income is included in the accounts when receivable and any gains or losses on revaluation at the year end are shown in the SOFA. ## **Debtors and Prepayments** ## **Creditors** Creditors include both sundry expenses and specifically the 1st quarter assessment received in August. ## **4 Payment to Trustees** Trustee expenses |Number of Trustees
Total amount|**2020/2021**
0
£0|**2019/2020**| |---|---|---| ||0|0| ||£0|£0| Expense payments primarily relate to reimbursement for travel and computing costs ## **5 Fees for examination or audit of the accounts** |Independent examiner’s or auditors' fees for reporting on the accounts
Other fees (eg: advice, accountancy services) paid to the independent
examiner or auditor|2020/21
£
0
NIL|2019/20
£| |---|---|---| ||0|0| ||NIL|NIL| ## **6 Paid employees** |**Staff Costs paid during the year were:**
Gross wages, salaries and benefits in kind
£
Employer’s National Insurance costs
£
Pension costs
£
Total staff costs
£
**Average number of full-time equivalent employees in the year**
**were:**|2020/21
39337
2343
2076
43756
3|2019/20| |---|---|---| |||26570| |||1752| |||1576| |||29898| |||| ||3|2| ## **7 Capital Commitments and Contingent Liabilities** At the 31 st August 2015 there are no capital commitments. No Contingent liabilities were identified at 31st August 2015. ## **8 For information only Money received and passed on to External Organisations** |**Balance brought forward from last year**
Offerings/Gifts - received for External Organisations
Offerings/Gifts - passed to External Organisations
**Balance carried forward**|2020/21
£
3000
3000
0||2019/20| |---|---|---|---| ||||£| ||||| ||||4163| ||||4163| ||||0| ## **9 Tangible Fixed Assets** ## **Cost or valuation** |**Cost or valuation**||||||| |---|---|---|---|---|---|---| ||**Land**
**£**|**Manses**
**£**|**Other**
**buildings**
**£**|**Fixtures,**
**fittings**
**and**
**equipment**
**£**|**Payments**
**on account**
**and assets**
**under**
**construction**
**£**|**Total**
**£**| |Balance brought forward|0|1295990|2290121|146143||3732254| |Additions||0||||0| |Revaluations (+/-)||63754||7814||71568| |Disposals (-)|||2290121|100000||2390121| |Transfers * (+/-)||||||| |Balance carried forward|0|1359744|0|53957||1413701| |**Accumulated depreciation**||||||| |Balance brought forward||||00||0| |Depreciation charge for
year (-)||||0||0| |
Revaluations (+/-)||||||| |Disposals (-)||||||| |Transfers* (+/-)||||||| |Balance carried forward||||0||0| |**Net book value**||||||| |Brought forward|0|1295990|2290121|146143||3732254| |Carried forward|0|1359744|0|53957||1413701| The additions relate to installation of double glazed UPVC windows at 116 Wrenbury Road and replacement of the fascia’s and remodelling of the flue at 16 Booth Lane South. ## **10 Investment assets** **The circuit has no Investment properties The circuit has no common investment fund holdings** ## **11 Loans** The Circuit currently has no loans ## **12 Analysis of restricted and designated funds 2020/21** |**Restricted Fund**
**Name**|**Opening**
**Balance**|**Incoming**
**Resources**|**Resources**
**Expended**|**Transfers**|**Closing**
**Balance**|**Purpose of the**
**fund**| |---|---|---|---|---|---|---| |||||||| |Benevolent Fund|763|0|0||763|Support for
individuals in
specific need| |||||||| |Community
Mission Worker|8275|32547|29474||11348|Available for
funding outreach
and development
work| |||||||| |Circuit resource
centre|0|0|0||0|| |||||||| |Totals||||||| ||9038|32547|29474||12111|| ## _````Comparative analysis of restricted and designated funds 2019/20_ |**Restricted Fund**
**Name**|**Opening**
**Balance**|**Incoming**
**Resources**|**Resources**
**Expended**|**Transfers**|**Closing**
**Balance**|**Purpose of the**
**fund**|**Purpose of the**
**fund**| |---|---|---|---|---|---|---|---| ||||||||| |Benevolent Fund|763|0|0||763|Support for
individuals in
specific need|| ||||||||| |Development
Fund|10584|24101|26410||8275|Available for
funding outreach
and development
work|| ||||||||| |Circuit resource
Fund|0|0|0||0|Fund designated
for the
maintenance of the
centre.|| ||||||||| ||||||||| |Totals||||9038|||| ||11347|24101|26410||9038||| **----- Start of picture text -----**
0
Net assets 143,170 338,143 0 12,111 0 493,424 263,917 W
Funds of the Circuit
General Fund (Unrestricted) 143,170 143,170 143,237
Circuit Model Trust Fund 338,143 338,143 111,642 W
(UDesignated Funds (Unrestricted)t i t d) 0 0
Total Unrestricted Funds 481,313 254,879
Restricted Funds 12,111 12,111 9,039
Endowment Funds 0 0
Total Funds 143,170 338,143 0 12,111 0 493,424 263,918
**----- End of picture text -----**
Signed Circuit Treasurer Nameofcircuit ..5)o.H8...ts/w.l. -fJN.S.iat..................... . Declarations and Scrutiny I confirmthatthese accruals-based accountsforthe year to 31 August2021 have been prepared from Ihe records of the Circuitand that they indude all funds underthe control of the Circuit meeting. signatu￿ of treasurer... Date...S.1. 0: Name and address of treasurer . .LJf... NL-I I qmw.... Postcode.................. Presentation to the Clrcuit meeting I confimi thatthe annual reportand accountsforthe year ended 31 August2021 werelwill be. presented to the Circuitmeekn'ng held on .l&...3..JJ.. Signature ofthe Chairof the meeting IndependentExaminerfs Reportto the Trustees of the 1133?6L Charity Number....... Responslbllltles and basls of report I report to the trustees on my examination of the accounts of the.. Circuitforthe year ended 31 August2021 set outon pages . As th8 Circuit's trustees, you are responsibleforthe preparation of the accounts in accordancewith the requirements of the Charities Act 2011 ('the Act,). I report in ￿SpeCt of my examination of the Circuit's accounts carried out undersection 145 of the Act and, in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission undersecb'on 145(5)(b) of the ACL delete or circle as appropriate Nameofclrcuit........ Wf-tr (¥N.¢%. i.rJ.fr-. Indopendent Examlnerfs Statement he Circuit's gross income exceeded £250,000 and l am qualified to undertakethe examination by being a qualified member of (insert name of applicable listed body)l. Delete [ ] if not applicable. I have completed my examination. I confirm that no mat8rial matt8rs have come to my attention in connection with the examination (otherthan thatdisclosed below") which give me cause to believe that in, any material respect.. the accounting records were notk8Pt in accordance with section 130 of the Act., or the accountsdo not accord with the accounting records. or the accountsdo not comply with the applicable requirements conceming thefomiand content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirementthat the accountsgive a 'true and fairf view, which is nota matter considered as part of an independent examinalion Delets if not applicable ie all R&P accounts the trustees, annual reportis not consistentwith the accounts Delete ifnot applicable ie all R&P aGGounts. I have no concems and havecome across no other matters In connection with the examinationtrj which attention should be drawn in this report in order to enable a proper understanding of the accountsto be reached. I havethave not"obtained independentverification of all investrnentswith theTrustees for Methodist Church Purposes or held in otherlrusts, bank balan￿s and funds atthe Central Finance Board of the Methodist Church which are individuallyin excess of £10,000 (ten Ihousand pounds) at the balance sheetdate. Signature of IndePend￿teXaMiner Name of independentexaminer £Ac44 Relevantprofessional qualrfication of independentexaminer A.J.T Name of fimi (whereappropriatel Address Post Cod8 Date delete or circle as appropriate September 2021