EPWORTH AND SCUNTHORPE METHODIST CIRCUIT – Registered number 1133752 TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31[ST] AUGUST 2022
OBJECTIVES AND ACTIVITIES
The Trustees are pleased to present the Annual Report of the Trustees of the Epworth and Scunthorpe Methodist Circuit (hereinafter referred to as “The Circuit”) for the year ended 31[st] August 2022.
The charity’s objective is to act as a resource provider within the area around Epworth and Scunthorpe 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:
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a) The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church;
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b) Any charitable purpose for the time being of any Connexional, District, Circuit, local or other organisation of The Methodist Church;
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c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church;
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d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church.
The Circuit seeks to enable:
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a) The organisation and resourcing of regular public acts of worship open to members of the church and non members alike.
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b) The teaching of Christianity through sermons, courses and small groups. The resourcing of pastoral work including visiting the sick and bereaved.
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c) Taking religious assemblies in local schools.
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d) Promotion of Christianity through the staging of events and services.
ACHIEVEMENTS AND PERFORMANCE
The activity and life of The Circuit has slowly recovered from the restrictions placed upon us due to the Covid19 pandemic and continues to embrace on-line technology for worship and other gatherings and business meetings where appropriate.
We have been able to engage in conversations with neighbouring circuits on things which are of mutual concern and interest for our future, which has resulted in recognising the need to restructure the layout of the North Lincolnshire circuits. Final decisions taken on re-organisation happened in the Spring of 2023 and will be reported in full in next year’s submission. A number of chapels have also taken steps to come together as merged Societies in order to comply with the Methodist Church’s new Trustee and Oversight rules of a minimum of 12 members. These are Gunness and Althorpe, and Beltoft and West Butterwick. No buildings are being sold as a result of this.
The winter of 2021-22 saw some sporadic and localised disruption to worship in parts of the Circuit as local Covid cases flared up. However, broadly
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worshipping patterns returned to their pre-Covid shape, as did most of the other activities run from church buildings. Some church lettings were affected as local groups had ceased to meet during Covid and did not re-form, meaning that finances continued to be a worry in some places.
As well as the usual involvement of local churches with various charities such as The Forge, Lindsey Lodge Hospice and foodbanks, the arrival of a number of Ukrainian families in February 2022 and a particular friendship with a local resident with links into Ukraine led to considerable support both here in the North of Lincolnshire and with aid in the form of clothes and supplies which was taken to the Polish border in vans. The members of the circuit continued to excel in their willingness to help and in the way that they have provided safe spaces and care for the families who have fled the conflict. Alongside this a series of conversations with 2 neighbouring circuits; Barton and Brigg, and Wolds and Trent began to show fruit in terms of planned crosscircuit-border working and possible circuit boundary changes. Rev Angela Long (Superintendent minister) was called upon to put this into particular practice for a time when the Superintendent of Wolds and Trent had to go on long-term sick leave, acting as Superintendent across both Circuits with support from colleagues.
Local Preachers and worship Leaders continued to flourish with the development of study and discussion as part of their quarterly meeting. The Circuit continues to value their contributions to the life of the church communities. Similarly, the pastoral care of ordained staff and local lay people is welcomed. This year saw an uptick in the numbers of baptisms and weddings conducted in the name of the church as families were able to meet in numbers once more to celebrate these significant moments.
FINANCIAL REVIEW
The Circuit’s financial statements for the year ended 31[st] August 2022 have been prepared in accordance with the ‘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) (effective 1 January 2019)’ (Charity SORP -FRS 102).
In addition, they are prepared in accordance with ‘FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (FRS 102), under UK Generally Accepted Accounting Practice as applicable from 1 January 2015 and the Charities Act.
Income for the year was £608,330 (2020/21 - £340,937) and the increase was largely because of additional capital receipts in the year of £269,483 due to the closure of further church buildings.
Whereas charitable expenditure of £271,363 (2020/21 - £276,944) disclosed a slight reduction when compared with the previous year.
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Investment gains in the year were £23,944 (2020/21 - £52,607) and therefore a reduction in gains of £28,663 from the previous year.
The above activities resulted in net increase in movement in funds during the year of £360,911 (2020/21 - £116,600 increase).
Reserves policy
The reserves policy of the Circuit is to hold a minimum sum equivalent to 8 months average expenditure as free reserves.
Free reserves are defined as unrestricted net assets excluding property, other fixed assets and Circuit Model Trust funds as none of these assets are easily converted into ‘on demand cash’
At the year-end such reserves were £216,855 and this is deemed satisfactory as average 8 months expenditure is estimated to be £180,000.
These reserves would enable the Circuit to maintain its mission and ministry on a temporary basis, whilst it adjusted strategy, if individual churches were to encounter difficulty in materially meeting their assessments obligations.
Public Benefit
The trustees confirm that they have had regard to the Charity Commission’s guidance on public benefit.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The governing document for the circuit is the Deed of Union (1932) and Methodist Church Act (1976) Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD). Management of the circuit is undertaken by the Circuit Meeting advised by the Staff and Circuit Stewards Meeting, Circuit Leadership Team, along with the Local Preachers meeting and the Circuit Finance and Property Committees. Managing Trustees of local church property are the Church Councils of those buildings, Managing Trustees of Circuit property are the Circuit Meeting, Trustees for Methodist Church Purposed act as Custodian Trustees overall.
The Circuit has 3 full-time presbyters, the Superintendent having been reinvited for a further 3 years from Sept 2021. Subsequent events from December 2022 mean that the present Superintendent will be leaving the Circuit a year earlier than planned (August 2023) and the Superintendency will be taken on by an existing Circuit minister. There will therefore be 2 Presbyters in the Circuit. There are 5 supernumerary presbyters, 3 of whom are particularly involved in both local church and circuit life, a retired deacon, similarly involved and associate minister status was given by Conference to a retired minister from another denomination. We also continue to employ 3
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part-time administrative assistants and there are numerous other lay volunteer office holders.
Related Parties
The Circuit is part of the Lincolnshire District and is also accountable to the Methodist Conference.
The following Methodist Churches are linked to the Circuit --- See Appendix B
Trustee Training
A range of guidance is produced by Methodist Connexion to support the effective running of the circuit, specifically the leaflet ‘The Role of a Trustee in The Methodist Church’ which we endeavour to give to all new Circuit meeting members as induction to their role as trustees.
Safeguarding training and updates were handled by The District in an on-line manner.
Risk Management
We are developing our risk management strategies in response to the changing landscape post-Covid.
Income and Expenditure is being monitored in total and is 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.
REFERENCE AND ADMINISTRATIVE DETAILS;
Full name of Charity: Epworth and Scunthorpe Methodist Circuit
Registration Charity Number: 1133752
Date of Registration:2010
Main communication address: Circuit Office, Ashby Wesley Methodist Church, Ashby High Street, Scunthorpe. DN16 2JT
The members of the Epworth and Scunthorpe Methodist Circuit Meeting are the Charity Trustees, membership bring made up of circuit office holders, ministers and representatives appointed by the local churches. Full membership is shown as Appendix A to this report.
Circuit Ministers and Officers Active Circuit Ministers: Rev Angela Long Rev Paul Braisdell Rev Victoria Atkinson
Circuit Stewards: Mr David Sanderson (Until December 2022)
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Ms Hazel Jackson
Mr Andrew Lockwood Miss Betty Oldridge Mr Mervyn White Mrs Val Hackney (from Sept 2022)
Circuit Administrator: Mrs Mai Lin Grimbleby
PA to the Superintendent – Mrs Louise Howard
PA to the Rev P Braisdell – Mrs Bronwen Braisdell
Andrew Lockwood acted as the principal officer overseeing the day to day financial management and accounting for the Circuit during the year.
Independent examiner: Glover and Co. Chartered Accountants Investment Bankers: Central Finance Board of the Methodist Church Trustees for Methodist Church Purposes Bankers: HSBC, Market Place, Epworth. DN9 1EU
EXEMPTIONS FROM DISCLOSURE
None
FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS
None
Approved by the members of the Circuit Meeting and signed on their behalf by:
Revd. A. Long 31 May 2023
Appendix A
Names of the charity trustees who manage the charity
| Trustee name | Office (if any) | Dates acted | Note |
|---|---|---|---|
| Mrs C Allison |
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| Mrs J. Atkins - Snow | Supernumerary | ||
|---|---|---|---|
| Mrs M Atkinson | |||
| Rev Vicki Atkinson | Minister | ||
| Mr A Bamford | Circuit Safeguarding Officer |
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| Mrs R Barratt | |||
| Mrs I Bell | Missions committee secretary |
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| Mrs B Braisdell | Local Preachers Secretary |
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| Rev P Braisdell | Minister | ||
| Mrs P Briggs | |||
| Mrs E Brown | Until October 2021 |
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| Mrs P Chennells | |||
| Mrs S Chisnell | Until June 2022 | ||
| Mrs A Craddock | |||
| Mrs V Cochrane | |||
| Mrs B Credland | |||
| Mr J Credland | |||
| Mrs L Croot | Local Church Pastor |
Until August 2021 | |
| Mrs C Cuthbertson | Messingham | From June 2022 | |
| Mr A Dawson | |||
| Mrs J Dawson | Until Oct 31 2022 |
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| Mrs M Dick | |||
| Mrs M Drummond | |||
| Rev S Gunson | Supernumerary Minister |
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| Mrs M Hall | |||
| Mrs C. Holmes | Yaddlethorpe Chapel |
From May 2022 | |
| Mr L Holtby | |||
| Mrs L Howard | Circuit Meeting Secretary |
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| Rev N Isitt | Supernumerary minister |
Until May 2022 | Replaced by C. Holmes |
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| Mrs V Isitt | |||
|---|---|---|---|
| Mrs M Jacklin | Until March 2022 | ||
| Mrs H Jackson | Circuit Steward | ||
| Mr P Jackson | Local Preachers Meeting |
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| Mrs M Jones | |||
| Mr M Joyce | Local Church Pastor |
Until September 2021 |
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| Mrs P Kirk | |||
| Dr J Lambert | |||
| Mrs P Layton | |||
| Mrs J Levesley | Wesley Memorial Epworth |
From September 2021 |
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| Mr A Lockwood | Circuit Treasurer | ||
| Mrs J Lockwood | |||
| Rev A Long | Superintendent minister |
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| Mrs S Lynaugh | |||
| Mrs L Mansfield | |||
| Mr W Maw | |||
| Deacon C May | Deacon | ||
| Miss B Oldridge | Circuit Steward | ||
| Mrs J Pike | |||
| Mr D Sanderson | Senior Circuit Steward |
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| Mr R Sheard | |||
| Mrs S Simpkin | |||
| Mr G Simpkin | Winterton | From September 2021 |
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| Mr R Sims | Until June 2022 | ||
| Mrs L Smith | |||
| Mrs J Stocks | MHA rep | ||
| Mrs M Taylor | Until June 2022 | ||
| Mrs P Taylor | |||
| Mrs M Ward | Until September 2021 |
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| Mrs K Welch | |||
| Mr M White | Circuit Steward |
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| Mr J Wilkinson | Wesley Memorial Epworth |
From September 2021 |
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|---|---|---|---|
| Mr K Wilbur | |||
| Mrs C Wood |
Appendix B
Churches in the Epworth, Scunthorpe and Gainsborough Circuit Alkborough Methodist Churchg (Sold Oct 2021) Althorpe Methodist Church Ashby Wesley Methodist Church Beltoft Methodist Church Burton upon Stather Methodist Church Crowle Methodist Church Ealand Methodist Church (Sold May 2023) Epworth Methodist Church Gainsborough Methodist Church Gunnesss Methodist Church Haxey Methdodist Church Laughton Methodist Church Lea Methodist Church Marton Methodist Church Messingham Methodist Church Misterton Methodist Church Old Brumby United Church Owston Ferry Methodist Church Roxby Methodist Church (sold ….?) Scotter Methodist Church Upton Methodist Church West Butterwick Methodist Church WInteringham Methodist Church Winterton Methodist Church
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Clrcuit Accruals Accounts 2021-2022 THE THoD1sT CHURCH STANDARD FORM OF ACCOUNTS ACCRUALS BASIS for the year ended 31 August 2022 Epworth and Scunthorpe Circuit R•gisteTed Charlty - Registron nunl)•r 1133752 ThLS will apply to am Ch¥th"es in Scoyand and al Chanties in England Wales vkni¢h arts Rtyislered Charil'es Lincolnshire Distrlct ireuit No 17 101 Mini8tgr8 REV'D ANGELA L REV'D PAUL BRAISDELL REV'D VICTORIA ATKINSON Circuit Steward8 MR DAVID S4NDERSa MISS BErrY OLDRIDGE MRS HAZEL JACK MR MEFNYN WHITE Circuit Tr8a8urer MR ANDREW LCCKWOOD
Name of Circuit. Epworth arKI sCUnth Methcxlist Circuit Circult No: 17101 Statsment of Financial Activities (SOFA) for the year ended 31 August 2022 Clrcuit G1 Model Fund Trust (Unrestrlcto (Unrtstrlrto Trtal d) d) 2021.22 Nrtes to thè accounts Total 20121 Income 1 DonatJns and 2 hme tom mor inients 3 hy)mé tom investrnenl Fffope 4 Assessments on Chufd 5 Capitsl Receyts 6 GranÈ 7 Other charitsbl8 IrKom8 8 Total Incon 1,5T5 1011 17,) 17,820 178.%3 178,263 345,CW ell.673' 405,673 7 17,840 184,636 136,19) 61248 608,330 340.937 Expondlturn 9 Grants and donatsxs 10 SaL9rf8s and (48 ujsts 11 Propety cc6ts 12 ConnexDnal &8S8811 moJ81 tlIY 13 DisidAss8ssment& L 14 Dev 15 Off£8 exper688 16 Clw outyolngs 17 Total charable ewdttUTe Net nme baforo Invesln*nl galnslkMe8 18 Gainsllbss851 on monetsry Inents 19 Gainsllb&8esl on investrnentpropprks 20 Nat 1n¢oThl{oxpendre} 21 Transkn t¢tren JS 22 Ctsr 91) 23 Net moveThnt In ndS 24 Total fursds br(whl foward 25 Total funds carrd fOard 12,Cf I,7T1 17.638 11068 160,777 17,638 8,134 50,512 9,418 9,361 127,685 38,110 31,784 48,756 9,707 8,546 2,456 276,944 63,993 2,607 50,000 116,600 8,134. 40,704 9,418 9,&1 2,7S3 252,719 18.644 271,363 293,363 43,804 336,%7 12 13 25,(hJ) 31&363 4548 360,911 11 411028 1,195,440 I,7,468 .51,117 360,911 246.157 1,441,597 195,010 1,W2,508 116,600 1,324,997 1,441,597 1W19
ol cl Epw(th ar Cvrx CN0. 17h11 Balance Sheet as at 31 August 2022 rAn•rl Tot•kn 2rt Tolth 2021 Fu•th RY•dAM•ty CkwlK4awts & ))Nl 12 13 545.ts)1 485. 16.8 kn¥eoknen 15,753 147 15.753 r•t41ffx•d•••rt• Cb 15 10,T91 14 179287 179.287 229.348 133, 81,470 4JT, &)8rd tJ.114 83.114 Cvrr•ntUIIII•• C¥edknr4ldu• kn l fv¥1 GrPhY•t11 17 42 42,129 42.459 42, ,In A51 JK717 I,•M5# 1.41,J•7 Long tenn lknbll•8 Grb p ibl• alArmcft 1 1A41, Fwid• o1th• Ctr¢u 1W19 1811 i.&J7.46 1.195.44Q TrFLIj IUmsKdl ribJnBbd . i0•) 19&040 246.157 fA41,7 FLTh ErknwlFvr 1J41,>7
Epworth and Scunthorpe Methodist Circuit Notes to the accounts for the year ended 31 Au8USt 2022 l. Accounting and accounting policles 1.1 Basls of preparatlon of financial statements The f]nancial statements have been prepared in accordance with the 'Accounting and Reporting bv Charltles: Statement of Recommended Practice applicable to charitles preparing thelr accounts in accordance with the Financial Reportin8 Standard appllcable in the UK and Republic of Ireland IFRS 102) leffettive l January 20191, Icharlty SORP-FRS 102). In addltlon, they are prepared in accordance wlth 'FRS 102 The Financlal Reportln8 Standard appllcable In the UK and Republlc of Ireland. IFRS 102). under UK Generally At¢epted Accounting Practice as appllcable from l January 2015 and the Charities Act. These statements are also prepared under the hlstorlc cost conventlon as modified by the revaluatlon of certain assets. The trustees confirm that the entlty has met the definition of a public beneflt entlty as defined under FRS 102. The flnancial statements are prepared In sterllng which is the functlonal currency of the entity. 1.2 Consolldatlon The Clrcult has denomlnational regulatory oversight in respert of the work of the Methodlst Churches wlthln the Circult but has no le8al or operational control of those churches and their 8overnlng body except In extreme circumstances. For this reason, the financial statements of individual churches wlthln the Clrcult, of whlch each are consldered a separate charlty, are not consolldated Into these financlal statements and therefore these accounts represent solely the actlvities of the Clrcult. 1.3 Income re¢ognltlon Income Is brought into account when there is entltlement, the amount is reliably measurable and once It Is more Ilkely than not that the economic benefrt of the income will be forthcomln8. Capital recelpts are the deemed resldual fair value of transfers to the Clrcuit of redundant church assets (see note 41. 1.4 £xpendltureltTansfers Thls Is recognised when a liability is Incurred, or a constructive obligation arlses, where the amount Is rellably measurable, and it is considered more likelythan not that there will be an oufflow of economlc benefit. Where expendtture has been pald out of the general fund but that subsequently an application is made to apply it to the Circuit Model Trust Fund {CMTF) that is held for the Circuit'5 Use then upon approval and transfer of the funds byTrustees for Methodist Church Purposes ITMCPI this transfer will be accounted for in the Statement of Financial Activrties. Sometimes the timin8 of the two transactions will lie in different accounting periods and the nature of the expenditure underlyingthis transfer during the accounting period can be seen in note 11.
TMCP is a body corporate established bythe Methodist Church for the custody and administration of monetarylproperty assets and consequently is the Custodian Trustee for all land and buildings and some monetary investments of the Charity. 1.5 Grants Grants made by the Circuit from its own fund5 are recognised in full at the time of approval of the agreement unless there are performance conditions attached whlch are within the control of the Circuit and in which case it will normally be recognised when these have been fijlfilled. 1.6 Penslons The Circuit makes payments to the Methodist Mlnisters, Pension Scheme which Is a defined benefits scheme. The Scheme is effectively a multi-employer Scheme operated by the Methodlst Church and as insufficient information is available to use defined benefit accountln8 the Circuit accounts for It as a defined contributions scheme. Further details are as dlsclosed In notes 6 and 21. 1.7 Taxatlon As the Circult Is a re8lstered charlty It Is potentially exempt from taxation on income and 8alns however It Is not VAT re8lstered and therefore all Input VAT Is charged with the expense to which it relates. 1.8 Tanglble flxed assets These are capitalised If they Can be used for more than one year, and Indlvidually cost at least £500. Tan8lble flxed asset property cons15ts of manses and other bulldlngs used in the work of the Methodlst Church. They have been owned for many years and as the cost of Indlvldual propertles Is unknown, they contlnue to be dlsclosed In the accounts at deemed cost belng 80% of Insured value as of I September 2013. If the trustees consider that there is evldence of impairment then an impalrment charge Is made a8alnst the Indivldual property, otherwise depreclatlon Is provided on bulldln8s at the rate of 2% per annum on deemed cost which Is desl8ned to wrlte the propertSes down to zero over thelr estimated useful economlc Ilfe. Land Is not depreclated. If a Socletyi Wlthln a Circult, We to close then usually the SponSIbl11ty for safe-keepin8 and malntenance of the church buildin8 is passed to the relevant fjrcult who wlll retaln the asset pending disposal or alternatlvely brin8 It into Use In some way as to benefrt the local community. On Society closure any redundant Church building 15 recognised, at fair value, as effettively a donation (included in Capital Receipts) and as an asset withln the Circuit accounts. If the building is held pending sale, then it is included in investment property until dlsposal. Upon final disposal any difference between fair value and disposal proceeds Is treated as a profrt/los5 on disposal. Office equipment is depreclated at 33% per annum on cost from the month that the asset is acqulred. All land and buildings are held as Custodlan trustee byTMCP as noted in accounting policy 1,4. 1.9 Investment property The Circuit may hold property which is surplus to its requirements. Where this Is the case, and that the property is no longer held for Church Society use then it IS transferred from tan8ible fixed assets to investment properties and valued at fairvalue. See also accounting policy 1.4 regarding Custodian trustee.
1.10 Financial instruments The charity holds assets and liabilitie5 that qualify as basic financial instruments which are therefore Initially recognised at their transactional value and Subsequently measured at settlement value, other than Investment properties and other investments whid) are then subsequently valued at fair value. 1.11 Monetary Investments The Circuit's monetary investments are held by TMCP as custodian tru5tees15ee accounting policy 1.41 and the valuations, at market value, are provided by TMCP. The unrealised 8ains/losses arising on investments for the financial year are disclosed in the Statement of Financlal Actlvlties {SOFA). 1.12 Funds All funds are unrestrirted, and detalls of the funds are disclosed in the financlal statements. 1.13 Crttlcal Accountin8 Estimates and Jud8ements The Trustees are required to adjust as necessary estimates and Jud8ements regardlng the carryln8 amount of assets and Ilabilities In the application of the Charlt(s accounting policies. These estimates and lud8ements are based on experlence and other relevant factors however artual results may differfrom these recorded estlmate5. They are revisSted on a re8ular basis and any revisions are reco8nlsed as they arlse. The only area where the trustees conslder there could be a slgnlflcant rlsk of materlal adjustment Is In the valuatlon of Investment Propertles which are based on falr value. However even Ifthese valuations proved to be materlally lowerthan as stated In the finandal statements the trustees are confldent that the Clrcult's ablllty as a 8oin8 concern wlll not be compromlsed. 2 Income from Investment propertles A disused a Church buildin8 has been leased to a re8Sstered charity The Forge Prolect, whlch provides rellef forthe homeless in the local area, The rent is due annually on a lease wlth a current rent of £10,000 pa and thls Income Is reco8nlsed at the polnt that It is due to be recelved. The amount reco8nlsed In the year was £10,000 {2020/21- £10,000). In additlon, a small pocket of land is held by the Clrcult at an annual rent of £20 {see also note 231. In relation to this asset £20 was credited to Income duringthe current year12020121- £401. Furthermore, a manse currently surplus to requirements has been rented out durln8 the year wlth a gross rent received of £7,80012020121- £7,8CX)I. 3 Assessment on Churthes At the year end, the Circuit comprised 17 Church Societies (last year 19), and each is assessed for contribution to meet the overall net Costs of the Circuit. Before making this assessment, the Circuit WIIS prepare a budget in order to determine the amount of additional income required In order to provide a balanced bud8et and this wlll then form the basis of assessment on the local churches. Thls apportionment of the assessment on individual churches Is determined annually bythe Circuit using a formula which considers the number of members in each Church, its anticipated income, and unrestrlcted funds at its disposal.
Part of this Church Assessment is to relmburse the Circuit for monies required from both Dlstrict and Connexion to cover certain costs incurred on behalf of individual Churches that make up the Circuit. However. as these costs cannot be identified and as the contractual relationship is between the Circuit, Distrlct and Connexion (rather than individual Churches) then it is deemed appropriate show these income and costs in full rather than to net down as in a principal/a8ent relationship. These Assessments are receivable quarterly in advance and are treated as deferred income If received In advance of the relevant period at the year end. Transactions wlth Individual churches, Distrlrt and Connexion are garded as related party transactions. 4 Capltal Recelpts This relates primary to the fair value of church bulldln8s In relatlon to a closed soclety and these propertles are then transferred to the Circuit pending sale or other use. The relevant asset is shown net of all related selling fees. Sales of Methodist property are also subject to a CPF levy by the Connexion calculated on a sliding scale based on eventual selling prlce and these are disclosed in expenditure as Connexional Levv fees. Any hlstorlc grants made bythe connexlon to the closed church are also reclaimed from the proceeds of sale. Net current assets recelved from the closed Society would also be Included under thls headlng. Soclety assets transferred durln8 the year and/sold were as follows: 2021-22 Genernl 2021>21 General cMrF CMTF Church Buildln8S Cash recelved from closed Socle Total 345,0(X) 60,673 129,460 6,730 6,730 345.0 60,673 129.460 Property dlsposals One Church buildlng was sold durlng the year (2020121-onel and the net proceeds after the CPF levy, Is credited to CMTF and two other church buildin8s have been closed, are shown In 8eneral fund and wlll be disposed In the foreseeable future. Sale of Rlddlngs Church property Also, durin8 the previous year120201211 ownership of the redundant Rlddin8s Church property was transferred to Lace Housing Llmlted, a registered society under Co-operatlve & Communlty Benefit Soclety Act 2014, for nil consideratlon. Thls transattlon Is not reflected In accountlng terms In these accounts as normally proceeds from the sale of a property prevlously owned by a closed church society Is credited to income as'capltal receipts, but as proceeds were nll no entry is required. The original valuation for an expected sale of this property was £60,IYX) but commercial reality proved to be very different. due to a difficult restrirtive covenant (limitations on usel and vandalism, and after consultation with the Methodist Churth and the Charity Commission a sale at nil consideration was agreed as bein8 the best price achlevable. S Grants and donatlons made by the arcult
Grant5 and donations as listed below have been agreed duringthe year and are recognised in accordance with the accounting pollcy as stated in note 1.5. )r 2021-22 General 2021>21 Generdl cMrF CMTF The Forge Project Grants to local Churches Other donations Tot31 9,900 10,841 1.227 12,068 9,900 6 Salarles and assoclated costs 2021-22 Genernl 20221 General CMTF CMTF Idi Stipends Ministers, flxed allowances Administrators, Gross Pay Social Security costs Pension costs Pension deficit contributlon (see note 21) Apprenticeship Levy Ministers, Telephone i Ministers, travel costs Minister's relocation costs Total 80,055 1,068 14,005 7.642 20,840 30,CK)O 403 1,957 4,807 79.124 577 13,903 7.274 20,598 398 2,227 1,892 1,692 127,685 160,777 nt Trustees, rernuneratlon Ministers of the Circuit beln8 Reverend A. Long (Superintendent Mlnlsterl, Reverend P. Bralsdell and Reverend V. Atklnson were also trustees of the Circuit. Their stipend and allowances are determined annual in advance bythe Methodlst Conference and the relevant Circult is responsible for meetlng these costs. They all received a stlpend of £25,824 pa (2020121- £25,524) and the 5uperlntendent minlster also received the Superintendent Allowance of £2,582 pa {2020121- £2,552). At the year-end salary of £6,956 12020121- £6,671) had been paid in advance lone monthg 5alaryl. It should be noted that the superintendent mintster has also similar responslbllltles In a nel8hbourin8 Circult but wlth her full salary cost met bythe Epworth & Scunthorpe Circuit. It Is estlmated that approximately 15%120% of hertime is taken with these additlonal duties and therefore the cost to the Circuit of this arrangement for the current year is estimated at approximately £6,60012020121- £6,500). is normal practice for a minister to be awarded a three-month sabbatical after a period of service wlthin the Methodist Church, but no cost Is accrued for this as it 15 the custom during these times for the Circuit to operate wlthout any additional assistsnce except for the availability of a neighbouring circuit minlster to art in a consultancy role should such a situation be deemed necessary. An amount of £20,840 {2020121- £20,598) was payable Into the defined benefit penslon scheme to whlch all these minlsters are members. At the year-end £1,811 {2020/21-£1,736} had been paid In advance into the Scheme.
In addition, a £30,000 contribution was made to the Methodist Church of Great Britaln towards their appeal to increase the pension reserve held by them specifically for future funding of the pension deficits of their various Pension Schemes. Further details are given In note 21. Their remuneratlon and pension cost as stated is lar8ely connected to their role as minister rather than as a trustee and in view of this and the complexities involved in apportionment it is not considered necessary to identify costs between the two roles. In addition, manses are provided for each minister and their respectlve family, and these properties are maintained bythe Circuit who also make payments for buildings insurance, council tax and water charges. See note 7 for details. These costs are not re8arded as a taxable benefit by HMRC and therefore have not been disclosed as remuneration in any of these notes. Two laytrustees recelved remuneration for administrative tasks carrled out durln8 the year and they were Mrs L. Howard £4,30212020121- £4,145) and Mrs B. Braisdell (wife of Reverend P. Braisdelll £3,019 12020121- £2,908). Otherwise no further lay trustees were remunerated in either year. Key Mana8ement Personnel The Clrcult Leadershlp Team, who are responsible for policy formulatlon and day to day admlnlstratlon of the actlvitles are re8arded as the Key Management Personnel and thls team conslsts of the three Mlnlsters noted previously and several non-remunerated lay trustees. The aggregate beneflt durln8 the year of this key mana8ement team {excludin8 Employer Natlonal Insurance) was £131,96312020121- £100,299). Average number of employees throu8hout the yearwere 3 full-time mlnlsters (2020121-31 and 3 part-tlme admlnlstratSon staff12020121-31. No employee recelved remuneration of more than £60,LXKI durlngthe year {2020121- nlll. Penslons. All penslon costs relate to the Methodlst Ministers, Penslon Scheme, thls Is effectlvely a multl-employer deflned beneflt scheme as noted In Accountln8 Policies note 1.6, further detalls of the Pension Scheme deficlt are reported in note 21. Lay employees have the option to joln a defined contributlons penslon scherne although none have done so to date. Trustees, expenses The three Mlnlsters {2020121- 31 were reimbursed total expenses of £7,17512020121-£6,2861 durlng thelr employment and whilst It Is not possible to analyse the function of all these expenses It is consldered that almost all these expenses relate to relmbursement whilst they were carrylng out thelr role as minlsters as opposed to as trustees. It Is therefore considered that no further analysis would be useful. In addltlon, 612020121- 5) lay trustees were relmbursed a total of £4,249 (2020121-£4,5021 during the year and this included £317 (2020121- £95) to a wife of one of the Ministers. These relmbursements were largety for travel and stationery costs. 7 Property costs
The Circuit is Managing Trustee for three manses occupied by ministers stationed in the Circuit, with a further one on a residential let contract and which is now classed as an investment property. There is a150 an additional buildin& former church, which Is leased to Ihe Forge Projecy, a registered charity. which works with and assists homeless people within the local area and this property is also regarded as an Investment property. 2021-22 General 202(21 General cMrF cMrF Insurance Council Tax and Water for manse5 Manse repairs Costs of closed Church buildings Costs of property on resldentlal let Qulnquennial inspections Total 3.978 8,215 2,942 776 827 3,654 7,931 10,760 12,257 1,708 1,8iJ) 38,110 17.638 8 Dlstrlct Assessment and L The Dlstrlct Assessment is calculated in proportion to church members and stafflng wlthln the varlous ClrcuSts withln the Llncolnshlre Dlstrict. The levy Is calculated on a sllding scale percentage of the Clrcuiys CMTF account balances as at 31 Au8USt in the prevlous accountln8 year. 2021-22 General 20221 General CMTF CMTF Dlstrict Assessment District Lev Total 40,704 42,372 9,808 9,808 6,384 6,384 40,704 42,372 These are re8arded a5 related party transartions. See note 20. 9 Other Outgolngs Other Out8olngs of £3,455 (2020121- £2,456) includes a char8e of £702 {2020121- £355) by Trustees for Methodist Church Purposes ITMCPI and this is a charge against the CMTF. This is regarded as a related partytransaction. See note 20. 10 Independent Exarnlner The fee for the independent examlnatlon of these accounts was £26412020121- £2641 and the Independent Examlner provided no additional seprfices durin8 either of the two years. 11 Transfers between funds Transfers out of CMTF are usually for specific projects, require further approval and are usually based upon anticipated costing of the expenditure. Transfers of £93,665 were made from CMTF to the General Fund for these purposes and this consisted of monies for Qrcuit property repairs of £4,665 {2020121- £11,882), contributions to costs of closed churches in the Circuit of nil12020121- £13,990), grants to local churches of £9,00012020121- nil) for speclfied costs, £50,(1202012I- nil) to support local churches assessments and £30,00012020121- nil) to support Ministers, Pension Fund defidt. io
The net effect of the above Is a transfer from CMTF to General Fund of £93,665 (2020/21-£25,872 to General Fund). 12 Flxed Asset5- arcuit Manses and Equlpment Land and Buildln8S Office Equipt Total At cost or valuatlon Balance brought forward and carrfed forward 619,179 1,154 620,333 A¢¢umulated depre¢latlon Balance brought fonmard Depreclatlon charge for year Balance carrled forward 74,275 9,323 83,598 1,057 95 1,152 75,332 9,418 84,750 Net reallsable value at I September 2021 Net reallsable value at 31 Au Ust 2022 544.904 535,581 97 545,001 535,583 Land and bulldlngs conslst of Clrcult Manses. 13 Flxed Assets- Investment Propertles Land and Bulldln8S At valuatlon As at I September 2021 Revaluatlon In year Added In year As at 31 Au8USt 2022 485,000 25,000 345,01)0 855,0(10 The investment properties have been valued by the Circuit Leadership Team at fair value wlthout any professional advice but where possible by assessment of similar property prices in the area and wlth any other relevant Information that they have obtalned. Custodian to all propertles Included In the financlal statements is held by TMCP and Indlvidual properties will only be released under certain conditions. In addltion, If property was released a lewi, based on the disposal proceeds achieved, would a150 be payable. However, see also, See note 20 as re8ards the structure of TMCP. 14 Investment Assets (TMCP) The funds that support the CMTF are held by TMCP in Twstees interest bearing bank accounts or as Managed Equity Funds and interest and dividends are credited on a regular basis. li
TMCP is the legal owner and custodian trustee of all Methodist model trust property. and this is held on behalf of local managing trustees who are responsible for the day-to-day operational control. It is ensured byTMCP that through providing guidance and direction that the managing twstees comply with Charity Law and Methodist regulation and policy as determined by the Methodist Conference. 2021-22 20221 Fixed assets-managed E uity funds Current assets-cash deposits Total 15,753 179,287 195,040 16,809 229,348 246,157 IS Debtors All debtors and prepayments are due withln one year and are as follows: 2021-22 202fy21 Debtors Prepayments Total 13,834 10,162 23,996 10.797 10,797 16 Loans made bythe arcult At the end of the year a loan was owed to the Clrcult from one of the local churches of £1,08512020121- £1.9631 a part repayment of £878 havln8 been repaid in the year. Repayment of the balance of thls loan Is anticipated wlthln the near future. 17 Credltors (due In under one year) 2021-22 2021>21 Deferred Income Creditors Accruals Total 36,122 460 6,047 42,629 40,160 162 2,137 42,459 Deferred Income includes £36,08212020121- £40,ICM)) for church assessments which a recelved quarterly in advance. 12
18 Movements In Funds All funds owned bythe charity are unrestricted and consists of two funds with a summary of the movements bein8 as follows: Balance at 1109121 Income Expendlture Inrfment 8ain/ (loss) Transfer Balance at 31108122 General Fund Circuit Model Trust Fund Total 1,195,440 246,157 546.082 62,248 1252,719) {18,644) 25,OCM) (1,056} 93,665 {93,6651 1,607,468 195,040 1,441,597 608,330 1271,363) 23,944 1,802,508 The purpose of these funds is described as follows: General Fund The General Fund is for use at the discretion of the trustees In fijrtherance of the general objectives of the Circuit. Clrcult Model Trust Fund The Circuit Model Trust Fund Is also for use In the general objectlves of the Circult. Its maln source of Income Is fom)ulal¢ally determined contributions from the sale of manses and church buildings in the Circuit. Although this fund meets the definition of an unrestrlcted fund under the control of the Clrcult Meetin& prlor approval is stlll required from TMCP to access these funds. 19 Analysls of Net Assets between Funds Fund balances at 31 August 2022 are represented bv: General CMfF Total Tangible fixed assets Fixed asset investments Investments Net current assets Total 535,583 855,IXJO 535,583 855,000 15,753 396,172 1,802,508 15,753 179,287 195,040 216,885 1.607,468 Fund balances at 31 August 2021 are represented by: General cMrF Total Tangible fixed assets Fixed a55et investment5 Investment5 Net current assets Total 545,001 485.C 545,(XJl 485,QM)O 16.809 394,787 1,441,597 16.809 229,348 246,157 165,439 1,195WO 13
20 Transactlons wlth Related Parties Related parties include the Methodist Church, Connexion, the knncolnshire District, other Methodlst churches within the circuit, and TMCP. None of the Circuit trustees made donations dirertly to the Circuit during the year or preceding year. All the Circuit trustees are members of a church within the Circuit and may be trustees in their churche5. During the year A5sessmÈnts were receivable from churches within the Circuit of £178,26312020121 . £184.6361 and none of these monies We outstanding at elther year-end. In addition, a donatlon of £4,OCKJ12020/21- nil) wa5 received from a local church. Durin8 the year grants and donations were made to churche5 and other related partles of £12,068 (2020/21- nill. Also, a loan made in a previous year of £1,963 was partly repald resultln8 in a balan¢e at the year-end of £1,08512020121- £1,963) to a church withln the Circult. The Clrcuit pald, durlng the year £50,512 (2020/21- £48,756) in assessments and levles to the Llncolnshlre Methodlst District. No amounts were outstandin8 at the year-end12020121- nil) Also, durin8the year, the Clrcuit pald TMCP the custodians of the Circult's Investments (CMTFI management char8es of £702 {2020/21- £355). No amounts were outstanding at the end of elther year. Custodlanshlp of property remain wlth TMCP (see notes 12 and 131 and some Investments and cash deposits (see note 141 are held wlth them. As noted previously assets held by TMCP will only be released Subject to strict condltlons. The Clrcult sold a redundant church bullding durlngthe year and the net dlsposal proceed5 of £60,673 12020121- £129,460) was recelved by TMCP {who are the legal owner of most Methodist property). They deducted the Connexlonal Priority Fund Levy of £8.134 {2020/21- £31,784) and remitted the balance of £52,53912020121- £97,676) to the approprlate CMTF held bythe Circuit. No monie5 were outstandSng at the year-end (2020/21- nill. No amounts were pald (2020/21- £2671 to C.J. Enterprlses durlngthe year and thls Is an entity controlled by the Clrcult Treasurer, Mr A. Lockwood. The previous year payments were for property repalrs and no amounts were outstandin8 at either the beginnin8 orthe end of elther of the years. In addltion, the Circuit recelved donatlons from local churches during the year of £11,95012020-21- nlll as a result of the appeal by the Methodlst Church of Great Britain for additional funding to cover the pension scheme deficits and these monies were then remitted to the Methodist Church forthat purpose durin8 the year, and therefore nothlng was outstanding at eitheryear-end. As thi5 transactlon was regarded as a principal and agent relationship these transactlons are not dlxlosed In the SOFA and further detail of the Pension Scheme deficit is 8ivÈn in note 21. 21 Penslon Schemes The Methodist Church has several defined benefft pension schemes. They are structured In various ways and most are considered unllkely to affect the Circuit other than the Minlsterfs Pension Scheme and a simllarly constructed lay employee defined benefrt pension scheme, the latter of which is not accepting future accruals. At the last full actuarial revaluation dated 31 August 2020 these two schemes were in deficit by, in total, approximately £30m. Full details of all pension schemes can be seen in the Methodlst Church of Great Britain financial statements which can be accessed at www.methodist.or .uk website. 14
Negotiations have taken place between the trustees of these pension schemes and representatives of the Methodist Church so that satisfactory funding can be put in place to cover these obligations. As a result of these deficits financial contributions have been requested, as a onewoff, from individual Circults and churches to Increase the Pension Reserve held by the Methodist Church of Great Britain and so that funds are available to fund the deficit as required. Therefore during the year, the Circuit contributed £30,000 and sent a further £11.950 that it had received for this purpose from the local churches to the Methodist Church of Great Britain. It is not antlcipated that any further monies will be donated in this respect. As the Clrcuit Is not dlrectly Involved in these negotiations, we are unable to conclude on the matter, but we are not aware that any request for further funding either now or in the foreseeable future wlll be made and the trustees are confident that no decision will be made that wlll compromise our8olng concern basis. 22 Events after the reportln8 date Publlc health We Continue to be vi8llant to publ1¢ health and to adapt and safely execute our operatlons durlng the coronavirus pandemic. To date there has been no si8nificant financial Implicatlons because of coronavlrus but we continue to monitor the situation closely and wlll take correctlve actlon If regarded necessary. 23 Contln8endes Property A small pocket of land wlth an estlmated value of £IO.000 (Included In Investment property at thls value) Is held. Thls land Is currently used by the local Parish Councll as part of a chlldren's playground and the Councll pay a nomlnal rent for tt although no legal agreement 15 held by the Clrcult. The Leadershlp Team contlnues to revlew thls arrangement and seek to re8ularlse the sltuatlon. 15
DECLARATIONS Tr89gurer 1 confirm that I h8v• Ihe ac(ourt8 ftom th• rnrAvd8 clthè *KI th91 th•y includa all fvftd$ undgr the control of th• C1t SnauJr8 of TMa8iw•r Namo 85 W•qt strrt W•# Buttw. DN173LG Prniontatlon to the'Clr¢ult Pl••tlnq for •pwoval. and w•r• or WW b• on. ? IZ IL Signatur• olth Ch•tr dtho meetlng Nom• ol Ih Cholr of th• n9 [s Iz3 16
Independent examinerfs report to the trustees of the Epworth and Scunthorpe Methodist Circuit. I report to the trustees on my examlnatlon of the accounts of the Epworth and Scunthorpe Methodist Circuit for the year ended 315t August 2022. Responslbllftle$ and basls of report As the charity trustees of the Trust you are responsible for the pparatIOn of the accounts In accordance with the requirements of the Charities Act 20111.the ACV). I report in respect of my examlnation of the TrusV5 accounts carrled out under sectlon 145 of the 2011 Act and In carrying out my examination I have followed all the applicable Directions 8iven by the Charity Commission under sectlon 14515)Ibl of the Act. Independent examlnerfs ststement I have completed my examination. I confirm that no material matters have come to my attentlon In connectlon wlth the examlnatlon glvln8 me cause to belleve that In any material respect: l. accountSn8 records were not kept In respect of the Trust as requlred by sectlon 130 of the Act; or 2. the accounts do not accord wlth those records; or 3. the accounts do not comply wlth the applicable requlrements concernin8 the form and content of accounts set out in the Charities (Accounts and Reports) Re8ulatlons 2C(J8 other than any requlrement that the accounts 8Ne a 'true and falr vlew whKh Ss not a matter consldered as part of an Independent examination. I have no concerns and have come across no other matters In connertion wlth the examlnation to whlch attentlon should be drawn In thls report in order to enable a proper understandin8 of the accounts to be reached. Sl8ned: Name: fALlI6 CAHI84L Relevant professional qualTfKation or membership of professional bodies lif any): Address.. OA17 IJT Date: 17
Independent examinerfs report to the trustees of the Epworth and Scunthorpe Methodist Circuit. I report to the trustees on my examlnatlon of the accounts of the Epworth and Scunthorpe Methodist Circuit for the year ended 315t August 2022. Responslbllftle$ and basls of report As the charity trustees of the Trust you are responsible for the pparatIOn of the accounts In accordance with the requirements of the Charities Act 20111.the ACV). I report in respect of my examlnation of the TrusV5 accounts carrled out under sectlon 145 of the 2011 Act and In carrying out my examination I have followed all the applicable Directions 8iven by the Charity Commission under sectlon 14515)Ibl of the Act. Independent examlnerfs ststement I have completed my examination. I confirm that no material matters have come to my attentlon In connectlon wlth the examlnatlon glvln8 me cause to belleve that In any material respect: l. accountSn8 records were not kept In respect of the Trust as requlred by sectlon 130 of the Act; or 2. the accounts do not accord wlth those records; or 3. the accounts do not comply wlth the applicable requlrements concernin8 the form and content of accounts set out in the Charities (Accounts and Reports) Re8ulatlons 2C(J8 other than any requlrement that the accounts 8Ne a 'true and falr vlew whKh Ss not a matter consldered as part of an Independent examination. I have no concerns and have come across no other matters In connertion wlth the examlnation to whlch attentlon should be drawn In thls report in order to enable a proper understandin8 of the accounts to be reached. Sl8ned: Name: fALlI6 CAHI84L Relevant professional qualTfKation or membership of professional bodies lif any): Address.. OA17 IJT Date: 17