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2021-08-31-accounts

THE METHODIST CHURCH TRUSTEES’ ANNUAL REPORT AND ACCOUNTS ACCRUALS BASIS for the year ended 31 August 2021

Redhill & East Grinstead Circuit Registered Charity number 1133918

South East District Circuit No.36/11

Ministers

Rev. Melvyn Cooke (Superintendent) Rev. Felicity Al-Hassan Rev. Ralph Ward Rev. Clive McKie Deacon Irene Tafirenyika

Circuit Stewards

Mrs. Elizabeth Grant Mrs. Elizabeth Gregory Mr. Tony Brown

Circuit Steward/Treasurer

Circuit Finance Officer

Ian Pattison (acting) Jennifer Barnes

REDHILL & EAST GRINSTEAD METHODIST CIRCUIT Registered Charity number 1133918

Trustees' report and financial statements for the year ended 31 August 2021

Superintendent Minister of the Redhill and East Grinstead Circuit is Rev. Melvyn Cooke. Correspondence should be addressed to him at 4 Harwood Park, Redhill RH1 5EJ .

Structure, Governance and Management

The Redhill and East Grinstead Circuit forms part of the South East District of the Methodist Church and is governed by the Constitutional Practice and Discipline of the Methodist Church. With effect from 1 February 2010 the Circuit has been registered as a Charity with the Charity Commission. The following Methodist Churches are linked to the Circuit: St. Paul’s, Crawley; Trinity, East Grinstead; Horley; Redhill; Reigate.

The members of the Circuit Meeting, which meets at least twice a year, are the Trustees of the Circuit. Those who served as Managing Trustees during the year to 31 August 2021 and until approval of these accounts are as follows:

Rev Felicity Al-Hassan (resigned 31/8/2021) Mrs Sheila Jones Rev Gillian Baalham (from 1/9/2021) Mrs Joyce Jordan Mr Andrew Barnes Rev Clive McKie Rev Elisabeth Brooks (from 1/9/2021) Mr Ken Newbury Mr Tony Brown Mrs Pauline Newton Mrs Margaret Bruce Mrs Pat Oakley Mr Simon Bruce Mrs Christine O'Donnell Mr Robert Burridge Deacon Jenny Parnell (from 1/10/2021) Mr Clive Coleman Mr Ian Pattison Rev Melvyn Cooke Mrs Mary Pulfer Ms Janet Dyson Mr Geoff Ridgway Mr Paul Fox Mr Andy Roberts Mr Rex Giles (from 1/5/21) Mrs Linda Roberts Mrs Elizabeth Grant (resigned 31/8/2021) Mrs Fiona Straszynski Mrs Helen Greaves (from 1/9/2021) Mr Stephen Tickell Mrs Elizabeth Gregory Ms Lorraine Valler Mr John Hewer Rev Ralph Ward (resigned 31/8/2021) Mr John Hill Mrs Jacqui Waters Mr Jay Jayasundara (resigned 1/1/2020) Mr Andrew Willock Mr Barry Jones Mrs Rosemary Willock

REDHILL & EAST GRINSTEAD METHODIST CIRCUIT Registered Charity number 1133918

Trustees' report and financial statements for the year ended 31 August 2021 (continued)

Bankers

Lloyds Bank, Redhill Branch, 1 London Road, Redhill, Surrey RH1 1ND CAF Bank

Central Finance Board of the Methodist Church – Investment Banker

Independent Examiner

Light Work Accounting Ltd Wessex House, Upper Market Street, Eastleigh, Hants SO50 9FD

Review of year’s activities

The year has been marked by the continued impact of the Covid-19 virus. Churches were closed from December 2020 until March 2021, affecting worship and community activities. Each church has responded positively to the changed circumstances, for example using live streaming of Sunday services and using on-line meetings in place of in-person fellowship.

The Taketime project is continuing to grow. As 2020/21 was the final of three years of funding from central Methodism, plans have been put in place to ensure funding for the following three years.

Public Benefit

The Trustees have regard to the Charity Commission guidance on public benefit. All our activities are undertaken to further our charitable purposes for the public benefit. We aim to be a good neighbour to people in need and to help people to learn and grow as Christians through mutual support and care. We work to increase awareness of God’s presence and to celebrate God’s love.

Financial Review

The charity’s income and expenditure has been largely as budgeted, with all churches able to pay their contributions (assessments) to the Circuit.

The Statement of Financial Activities summarises the year’s income and expenditure. We continue to review all regular items of expenditure to make sure that we are spending our resources wisely. The Balance Sheet at 31st August 2021 shows total Circuit Funds held of £2,184,336. This amount includes the figure of £1,974,450 representing the value attributable to the five Circuit manses, leaving a net amount of ‘free unrestricted reserves’ of £191,622.

Reserves Policy

The greatest potential financial risk faced by the Circuit relates to the five manses. The Reserves Policy agreed by the Circuit is to maintain a balance of unrestricted funds equivalent to three times the annual manse maintenance allocation.

REDHILL & EAST GRINSTEAD METHODIST CIRCUIT Registered Charity number 1133918

Independent Examiner’s Report to the Members of the Circuit Meeting

I report on the Circuit accounts for the year ended 31st August 2021, which comprises of an income statement, balance sheet and notes to the accounts.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

Basis of Independent Examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Circuit and a comparison of the accounts presented with those records. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent Examiner's statement

In connection with my examination, no matter has come to my attention:

Siignature:

Name: Light Work Accounting Limited Address: Wessex House Upper Market Street Eastleigh 28 April 2022 Hants SO50 9FD Date : …..................................................

REDHILL & EAST GRINSTEAD METHODIST CIRCUIT Registered Charity number 1133918

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

Income
Note
Donations
4
Charitable activities:
Assessments
5
Other
Income from VAT
Investments
6
Other trading Activities
7
TCMP - Take Time
8
TCMP - Trust
8
Expenditure
Stipends, NIC & Pension costs
11
CMTF charges
District Assessment
Methodist Church Fund
Travel, subsistence & allowances
Telephone, Admin, Circ.Office
Ministers’Resources & Shirts
Insurance, CounTax, WaterRate
Maintenance of Manses
Training
Mexicogrant
Taketime
Accountancy
Independent Examination fee
10
Total
Net income (expenditure)
Transfer between funds
Net movement in funds
Reconciliation of funds
Fund balances brought forward
Fund balances carried forward		 Total
Unrestricted
Total
Restricted
Total
Funds
Total
Funds
Funds
£
Funds
£
31-Aug-21
£
31-Aug-20
£
-
18,863
18,863
-
253,253
-
253,253
251,500
-
32,342
32,342
6,213
-
-
-
2,504
229
-
229
1,556
6,550
-
6,550
13,440
-
44,534
44,534
45,628
234
-
234
-
260,266
95,739
356,005
320,841
135,263
46,268
181,531
168,560
1,873
-
1,873
1,909
58,295
-
58,295
13,024
14,025
-
14,025
60,487
7,856
-
7,856
7,623
2,948
-
2,948
6,520
628
-
628
876
20,443
-
20,443
17,401
18,984
-
18,984
32,814
-
-
-00
475
-
-
-00
525
-
31,207
31,207
6,867
750
-
750
750
250
-
250
250
261,315
77,475
338,790
318,081
-1,049
-
18,264
-
17,215
-
2,760
-
-1,049
18,264
17,215
2,760
2,167,121
-
2,167,121
2,158,110
2,166,072
18,264
2,184,336
2,167,121

The notes form part of these financial statements

ote 31*Aug-ZL 31-Aug-20
Fixed Assets
TangibleAssets L,975,450 L,975,450
CurrentAssets
Debtors Lz 16,459 15,953
DepositAccount 2A8,788 153,942
Cashatbank L7,LO7 3,746
CAFaccount 24,757 6,25L
TMCPfund 22 69,342
267,133 249,234
Currentliabilities
Creditors fallingduewithinoneyear 13 (58,2471 (57,563)
Net CurrentAssets 208,985 LgL,67L
NetAssets 2,r941336 2,L67rrzL
Funds:
Unrestricted funds 2,L65,472 2,L67,LZL
Restrictedfunds L4 L8,254
TotalFunds 2,L94r336 2,L67,Lzr

Registered Charity number 1133918

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Basis of accounting

The financial statements of the charity have been prepared in accordance with the Charities SORP 2015 (FRS102); ‘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 (FRS102) (effective January 2015)’. The financial statements have been prepared under the historical cost convention.

2 Funds

The funds held constitute General Funds held for any purpose of the Circuit which are unrestricted. Restricted funds are for a specific purpose, currently there are no restricted funds.

3 Accounting Policies

Income Recognition

Income is included in the Statement of Financial Activities (SOFA) when: The Circuit becomes entitled to the resources; the trustees are reasonably certain they will receive the resources; the monetary value can be measured with sufficient reliability. The majority of the charity’s income comes from the 5 churches which comprise the Circuit.

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.

Investment income - Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Circuit; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Tangible fixed assets for use by the Circuit

The freehold property is shown in the accounts at 2015 deemed values, of which the land component is deemed to be £657,388. No depreciation is provided on the buildings because the trustees consider the current residual fair value of the manse buildings (on the assumption that they had reached the end of useful economic life by the year end) to be not less than their current value. Any depreciation would not be material. The properties have been reviewed for impairment.

REDHILL & EAST GRINSTEAD METHODIST CIRCUIT Registered Charity number 1133918

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

3 Accounting policies (continued)

Going Concern

The Trustees have considered the impact of COVID-19 on the Charity’s income and operating cost base. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the Trustees are confident that they have in place plans to deal with any financial losses that may arise.

The Trustees do however recognise that significant uncertainty exists surrounding the duration and impact of COVID-19 and hence there is inherent risk regarding the success and sustainability of these plans. This risk represents a material uncertainty which may cast significant doubt about the Charity’s ability to continue as a going concern, however the Trustees have concluded that the Charity remains a going concern whilst such viable options are available to it. The Trustees therefore continue to adopt the going concern basis of preparation for these financial statements.

Taxation

As a Charity, the Circuit is exempt from tax on income and gains falling within the available tax exemptions to the extent that these are applied to its charitable objects. No tax has arisen on the charity.

Debtors and Prepayments

Debtors relate to the payment of September stipends in August, Council Tax & Water Rates paid in advance.

Cash at bank and in Hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors include the 1[st] quarter assessment received in August from Circuit churches and unpaid accrued expenses.

Financial Instruments

The Circuit only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

REDHILL & EAST GRINSTEAD METHODIST CIRCUIT Registered Charity number 1133918

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

4 Donations

Donations received in the year are came from Taketime, and is a restricted fund to be used for TakeTime Activities.

5
Charitable Activities
Assessment:
Crawley
East Grinstead
Horley
Redhill
Reigate
Total Assessment		 Unrestricted
Restricted
Total
Funds
Funds
31-Aug-21
£
£
£
39,000
-
39,000
60,000
-
60,000
32,500
-
32,500
60,000
-
60,000
60,000
-
60,000
251,500
-
251,500		 Total
31-Aug-20
£
39,000
60,000
32,500
60,000
60,000
251,500

The sum of £251,500 (2020: £251,500) was received in 2020/21 as unrestricted funds.

6
Investment Income
Central Finance Board
7
Other trading income
Rental income		 Unrestricted
Restricted
Total
Funds
£
Funds
£
31-Aug-21
£
229
-
229
Unrestricted
Restricted
Total
Funds
Funds
31-Aug-21
£
6,550
£
-
£
6,550		 Total
31-Aug-20
£
838
Total
31-Aug-20
£
13,440

Rental income is paid on a shorthold tenancy agreement of 12 months.

8 TMCP Fund

The ‘Trustees for Methodist Church Purposes’ (TMCP) administered the sale of Manse 40 Reigate Road and the purchase of 4 Harwood Park in 2019. A balance of £58,885 (2020 :£69,342) was held at the year end.

REDHILL & EAST GRINSTEAD METHODIST CIRCUIT Registered Charity number 1133918

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

9 Payments to Trustees

No payments were made to Trustees for additional services provided to the Circuit in either 2020/21 or 2019/20. Trustees were reimbursed payments made by the trustees on behalf of the Circuit in 2020/21.

Expenses reimbursed
10 Fees for examination of the accounts
Independent examiner's fee for reporting on the Accounts:		 Total
31-Aug-21
£
6,290
Total
31-Aug-21
£
250		 Total
31-Aug-20
£
7,840
Total
31-Aug-20
£
250

11 Paid Employees

The Circuit has one paid employee this year and last year, and is shown in restricted funds. The stipend, employer’s NIC and employer’s pension contributions of the 4 Ministers are paid by the Methodist Connexion. The Circuit provides funds to meet the cost.

The Supreme Court held in 2014 that Methodist ministers are not employees of the church. However, when dealing with NI Contributions and pension contributions, the terms ‘employer’ and ‘employee’ are used as they would be in an employing body.

Gross Stipends
Employer's NI costs
Pension Costs		 Total
31-Aug-21
£
152,312
8,799
20,420
181,531		 Total
31-Aug-20
£
123,692
11,448
33,420
168,560

The average number of persons employed by the circuit during the year was as follows:

TakeTime
Stipendiary ministers		 Total
31-Aug-21
No.
1
4		 Total
31-Aug-20
No.
1
4

REDHILL & EAST GRINSTEAD METHODIST CIRCUIT Registered Charity number 1133918

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

Debtors
Prepayments and Accrued income:
Stipends
Council Tax and Water Rates
Income due on VAT		 Total
31-Aug-21
£
15,705
754
-
16,459		 Total
31-Aug-20
£
14,300
1,080
573
15,953

12 Debtors

13 Creditors

Assessment received in advance
Other		 Total
31-Aug-21
£
56,375
1,872
58,247		 Total
31-Aug-20
£
56,375
1,188
57,563

14 Restricted funds

Restricted fund balance at the 31 August 2021 is £18,264. Balance is the surplus Taketime funds.

15 Prior year adjustments

CAF account bank balance at the 31 August 2020 was omitted from the financial statements. A correction of £6,251 was made to the opening reserves.

Current account opening balance adjustment of £3,746 has been included in this years accounts due to being understated in the 31 August 2020 financial statements