BEDS, ESSEX & HERTS •Y4VMETHODIST DISTIIICT The TRUSTEES, ANNUAL REPORT and ACCOUNTS for the year ended 31 August 2024 BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH Year ended 31 August 2024 Trustees, Annual Report Contents Page Trustees, Annual Report... 3-14 Statement of Financial Activities . 15 Balance Sheet...... 16 Notes to the Accounts. 17-33 Declarations and Scrutiny . 34-35 Glossary ofterms CF8: Céntral Finance Board of the Methodist Church manages a Common Deposit Fund and a series of pooled investment funds for"Methodist e'ntities in Great Britain and provides investment advice to those entities. Church: a group of members from fewer than 10 to more than 300 Circuit: a group of Methodist Churches near each other, typically between 10 and 30 CMTF: Circuit Model Trust Fund Connexion: The Methodist Church in GB which includes the Head Office in London at Methodist Church House, all Methodist Districts. Circuits and Churches in Great Britain District: a group of contiguous Circuits, usually between 15 and 30 DAF: District Advance Fund DPC: District Policy Committee FRS: Financial Reporting Stsndard HMRC: Her Majesty's Revenue and Customs MCF: Methodist Church'Fund MMPS: Methodist Ministers, Pension Scheme PASLEMC: Pensions and Assuran￿ Scheme for Lay Employees of the Methodist Church SOFA: Statement of Financial Activities SORP: Statement of Recommended Practice TMCP: Trustees for Methodist Church Purposes. the Custodian Trustee of all Methodist Model Trust property, inGluding Legacies, Endowments and Accumulated Funds BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the m￿HoDIST CHURCH Yearended 31 August 2024 Trustees, Annual Report Objectives and Activities The Bedfordshire, Essex and Hertfordshire Methodist District exists to serve the mission of the Methodist Church of Great Britain. The District comprises 146 local Methodist churches in these three counties, grouped into 11 circuits that are served by a ministerial team of 43.66 (full-time equivalent) presbyters and deacons. The District Synod is the principal governan￿ body of the District, comprising the ministers ststioned in the District plus a larger number of lay representatives appointed by the circuits. There are a number of District offi￿rS appointed to serve thé work of the Synod in"particular ways. The vast majority are lay and ordained volunteers, who undertake District responsibilities in addition to their other roles in the Church. The District officers are led by the District Chair, who is a presbyter appointed to serve the District full-time. The District employs two part-time Safeguarding Officers up to March 2024 and now one full-time Safeguarding Officer, part-time District Property Officer, part-time Finance Manager, full time DistriGt Discipleship Enabler and two part-time personal assistants to the District Chair. The District serves the mission of the Methodist Church by supporting the work of its circuits and local churches and by exercising oversight over them, as specified under the Constitutional PraGtice and Discipline of the Methodist Church of Great Bntain. Principal District activities include the deployment of ministers, ministerial development, continuin,g training for probationer ministers, strategic financial grants to circuits and local churches in support of their mission and ministry, and scrutiny of governance processes in the circuit's. The District Synod meets at least twice in each year to fulfil its governance and oversight responsibilities. As a registered charity, the Synod takes seriously its responsibilities to the Charity Commissioners and adheres closely to the published guidance on public benefit. 2. Achlevements and Perfonnance During the church year ended 31 August 2024, the District Synod. together with the District Policy Committee acting as its executNe body, has continued to discharge its constitutional governance responsibilities in accordance with the Constitutional Practice and Discipline of the Methodist Church. I n addition, the District Policy Committee (DPC) has pursued specific objectives In accordance with the priorities OLrtlined in the Trustees, Annual Report for 2022- 23. The District Synod met twice in representative session (comprising ministers and lay circuit representatives) during the year to conduct essential business: on 16 September 2023, 'hosted by the St Albans and Welwyn Circuit. on 20 April 2024, hosted by the North HertFordshire Circuit. The Synod met in presbyteral session on 13 March 2024, hosted by the Chelmsford Circuit. The Vice-President of the Methodist Conference, Deacon Kerry Scarlett, was in attendance on this occasion as part of her official visit to the district. The deacons stationed in the district accepted an invitation to attend the Synod. The District Policy Committee met four times during the year. On 7 September 2023 and on 12 June 2024 the DPC met in person at the district office. On 15 November 2023 and 7 March 2024, the DPC met via video Gonference. This pattern of meetings has proved effective and has reduced travel costs and carbon emissions in accordance with the districvs environmental policy. BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRI￿ of the METHODIST CHURCH Year ended 31 August 2024 Trustees, Annual Report The only change in district staff during the year has been the retirement of one of the part- time safeguarding officers. In addition to the District Chair's two part-time personal assistants based at the district office, the district now employs a full-time safeguarding officer. a full- time district discipleship enabler, a 0.6￿E district property offI￿r and a district finance manager (10 hours per week). The DPC agreed to extend funding the property officer post at the conclusion of the initial two-year period. Throughout the year, the district staff provided valuable support and guidance to circuits and local churches in their respective areas of work. The location and facilities of the district office in Bishop's Stortford have proved to be beneficial. A 6-year lease signed in 2022 has a break clause in 2025. The district office provides a suitable work base for the District Chair together with his personal assistants. The office is used for small meetings, including the annual induction in September of ministers newly stationed in the district. On 1 September 2023, the number of circuits in the district was reduced from 12 to 11 when the Bishop's Stortford Circuit was absorbed into the Herts and Essex Border Ecumenical Area. This represents a sensible rationalisation of governan￿ arrangements. In September 2023, the district re￿iVed an Eco-church bronze award in recognition of its achievements under the environmental policy. In pursuit of the goals of the environmental policy, the DPC has engaged in a substantial review of its grants policy to support circuit schemes to improve the energy efficiency of manses and church premises. Further work remains to be done. A district visit by the President of the Methodist Conferen￿, Rev, Gill Newton, in October 2023 included visits to two circuits to lead Sunday worship. The president also contributed to leading a day conference on the church's ministry of healing and a formational study day for probationer presbyters and ministers in the first ten years of ministry. The effects of the Covid-19 pandemic continue to be reflected in the number of church closures, which is higher than would otherwise be expected. The DPC, on behalf of the Synod, gave permission for the closure and sale of seven local churches the year. In all cases, these closures were due to an insufficient number of church members to sustain their Sunday worship, mission. and governance. The grants budget has benefitted from an increase in funds through connexional levies placed on propety sales. The district intends to encourage investment in upgrading buildings through its grant5 policy. It is encouraging to report that all the circuits have met their financial assessment during the year with the result that the district has not'suffered an unexpected loss of income. A subgroup of the DPC is reviewing the district budget with the intention of finding ways gradually to reduce the general fund deficit. The district reserves remain sufficient to cover a budget deficit for two to three years. 2.1 Plans for 2024-25 In addition to fulfilling its trust￿ responsibilities and discharging its governance functions, the District Synod with the District Policy Committee acting as its executive intends to: BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Trustees, Annual Report (1) Arrange residential meetings for Circuit Superintendents twice during the year, and a residential retreat for ministers stationed in the district in the first 10 years of their ministry. (2) Arrange an induction day for those ministers (presbyters and deacons) and probationers newly stationed in the district in 2024. (3) Investigate the provision of Human ReSoUr￿S support to circuits. (4) Develop and extend its grants policy to encourage circuits to invest in energy- saving schemes for local churches and manses. (5) Provide grants to enable children and young people living in the district to participate in the 3Generate youth event to be held in October 2024. (6) Progress the regional conversation with the East Anglia District to find ways of working together which will produce economies and lead to more effective ways of supporting circuits and local churches. (7) Plan for the change in connexional policy whereby safeguarding officers are employed centrally rather than by the districts. Financial Review Durlng the year the District received total income of £712k {2022-23'. £503k) and dispersed £498k (2022-23: £693k), To the resulting Surplus was added net unrealised gains of £18k (2022-23: £-1 Ok) on investments to produce a net surplus of £231k (2022-23.. a deficit of £200k). Total funds carried forward are £1,568k (2022-23: £1,336k), It should be noted that the unrestricted reserves funded the purchase cost of the manse (£500k in 2006) which is now valued at £850k and, as a result, the unrestricted readily available reserves total £517k (2022-23.. £279k, on a like-for-like basis) after taking account of commitments to future instalments of grant. It should be noted that the net surplus of £231k has been largely a result of adjustments downwards of short and long-term grant commitments by £43k and unrealised gains of investments of £18k. During the year grants of £178k were awarded compared to £192k in 2022-23. The trustees of the District have every reason to belleve that the District is a going concern, principally because Circuits continue to meet their assessments, and the District has adequate reserves to cover a shorffall in anticipated income. There are no subsidiary undertakings. The District continues to hold the one freehold propety being the Chair's Manse in Bishop's ' stortford. The District has the followlng principal sources of funds: Interest on investments Levies on the Circuit Model Trust Funds of Circuits within the District Assessments on Circuits within the District. Connectional Advance and Property Fund These surns are used to administer the District and to provide grants to Circuits, Churches and individuals in the District so that they may embark on or continue with projects that fulfil the mission of the District by bringing more people to Christ or by providing facilities that might enable this to happen. BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Trustees, Annual Report Methodist Ministers, Pension Fund Trustees are aware that the Methodist Ministers, Pension Scheme is treated as a group defined benefit plan. The net defined benefit cost is recognised by the sponsoring entity, The Methodist Church in Great Britain, as there is no contractual agreement or stated policy for charging the net defined benefit cost to individual entities, such as the District. The District recognises a cost equal to its contributions payable for the period. Further details in respect of these pension arrangements are disclosed in the accounts of The Methodist Church In Great Britain. 3.2 Investment pollcy and perfomiance To comply wlth Methodist Slanding Orders, monies for long term Investment are lodged wlth the Trustees for Methodist Church Purposes (TMCP). TMCP acts as custodian trustee for all real estate held by Districts and for all18rge (individually over £20k) bequests and for the proceeds of sale of any property formerly owned by the District. These sums are invested in unitised investments or held on deposit. The capital returns are close to tracking the movements in the FTSE100 index. The income mirrors the deposit rates available elsewhere. Both the Central Finan￿ Board (CFB) and TMCP take into consideration social, environmental, and ethical considerations, both negatively and positively, In establishing investment policy. Short term deposlts are lodged directly with the CFB and attract good rates of interest. There are no benchmarks for the expected returns or appreciatlon on Investments at TMCP and CFB. It is the District's policy to manage the cash and investment resources of the District so that a rate of return on investment- both by way of dividend and capital appreciatlon - Is obtalned at least a8 good as market rate considering the District's low appetlte for risk. 3.3 Reserves policy The District has a reserves policy covering all its unrestrlcted funds whlch Is reviewed annually. Although grants are made each year out of the District Advance Fund (DAF), it is recognlsed that some grants will be paid by annual instalments and that there will be applications repeated in future years. The trustees seek to ensure that there is sufficient in the DAF to meet these anticipated requests and show those sums payable in 2024-25 as current liability and instalments due after the following year as long-term liabilities in the Balance Sheet. At the year end the unspent DAF balance designated, but not committed, for future grant-making amounted to £290k. The minimum level of the General Fund is such as to pay for six months, budgeted expenditure for the following year. At 31 August 2024 this sum amounted to £144k (2022- 23: £150k) and Unrestricted undesignated reserves at £517k. The trustees are, however, mindful that future income from the Circuit Model Trust Funds (CMTFS) is not secure and it is judged prudent to retain a buffer beyond the quantified need of £144k. Furthermore, some Circuits may find it difficult to meet their future assessments. As in some previous years, if the aggregate sum collected from the CMTFS is not all given out as grants in the same year, there could be a return of levy to the Circuits. It is always expected that the balance on the BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Trustees, Annual Report DAF will decrease, year on year even though this year it has substantially increased. The existen￿ of substantial designated and undesignated reserves at District level should be considered by Circuits within the District when they consider the need for their own reserves which we feel continue to be stretched in this current period. 3.4 The mix offunds The reserves held at the end of the ear were as follows: 2023-24 £k 2022-23 £k Unrestricted funds General Fund District Advance Fund Total unrestricted funds 1,078 290 1,368 1,116 15 1.131 Rock Trust a restricted fund 175 151 District Disciple Enabler &Propety Officer (a designated fund) Total funds 26 55 1.568 1.337 Total unrestricted funds Less.. Tled u in freehold 1,368 851 1,131 852 ert lassets Total readil available reserve8 517 279 As a general policy Trustees have agreed to redu￿ the level of reserves gradually over the foreseeable future and to do this either by awarding, in year, grants in excess of the amount of the levies from the CMTFS and, possibly, by not increasing the circuit assessments by the . amount necessary to meet the budgeted costs and to maintain the reserves. This year has been an exception due to more levies received. The Trustees will continue to monitor how this plays out in the future. All funds are separately invested either with CFB or TMCP. No money is directly invested in property, securities or other forms of investmenL The year-end financial position of the District is healthy in that its resources are not only sufficient to meet future known liabilities but also sufficient for the District to carry out its plans for the following year. 3.5 Purposes of the funds General Fund: this provides a reserve in case of major unforeseen expenditure in administering the District. District Advance Fund: this provides much-needed grants to assist Circuits, Churches and individuals as well as the District in its work, much of which is with the wider community. Rock Trust (a restricted fund): the trustees are able to spend the income, and they do so every year. It provides financial help to young people in part of the Distrlct and elsewhere BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the MEfHODIST CHURCH Year ended 31 August 2024 Trustees, Annual Report who wish to attend residential events. Both the TMCP (long-term investment) and Bank Funds (Current Asset) are under the control of the District Grants Committee. Benevolence Fund.. this is used to provide small sums of money to ministers and lay people in the District where it is believed that a financial gift would help relieve stress, of whatever form. The sums paid out in benevolence during the year exceeded sums received from donor organisations specifically for benevolence in the same period. When the restricted fund was fully dispersed, benevolen￿ payments were made out of the general fund. Designated Fund-This is an annual grant awarded to the District by the Connexion and District Grant Team on a 1..1 basis until February 2023 and from then on for the next two years to be wholly funded by DAF, for the employment of the District Discipleship Enabler. There is also a grant from DAF for the employment of the District Property Officer. 3.6 Collaborative arrangements with connected charities One of the District's main sources of funding was the assessments obtained from each Circuit within the District'based on the membership and staffing levels of the Circuit and this was used to defray most of the cost of administering the DistriGt. This sum amounted to £125k {2022-23'. £125k). This has been kept the same for the last three years mainly to reduce the District Reserves which were on the higher side and to lessen the impact on Circuit and Church finances which were starting to recover from the covid-19 period. Each year the District is allocated a sum by the London Mission Fund (LMF). In 2023-24 this amounted to £56k (2022-23.. £56k) which can be used to pay for or contribute to the cost of certain activities within the District. This sum is now remitted to the District. Grants were awarded to various projects around the District. The District also obtained from each Circuit with a reserve, known as a Circuit Model Trust Fund (CMTF), a levy based on the size of the Circuits, CMTFS at the start of the connexional year (01 September). In 2023-24 this sum was £245k (2022-23,. £131 k) and was credited to the District Advance Fund (DAF). In addition to thts figure there were General Receipts of £29k received during the year to bring the figure to £274k. The remaining £4k from the total figure of £278 was an overpayment which needs to refunded back to the DAF TMCP account. Furthermore, £20k was received for Warm Spaces Initiative grants under the Designated Funds of which £5k was refunded back to DAF. The District holds no funds as custodian trustee. It does, however, quarterly receive from Circuits within the District the Circuits, contributions to the Methodist Church Fund (MCF). These sums are collected as agent for the MCF and are passed to the MCF later in the same quarter. Funds received by the District as agent are not recognised as income or as an asset in the financial statements because the funds are not within the District's control. No fee is earned in respect of this agency arrangement and the District incurs no cost through providing this a￿angernent. Trustees, Responsibilities For each financial year ending on 31 August the Trustees are required to prepar8 financial statements that give a true and fair view of the District's financial activities during the year BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Trustees, Annual Report and of its financial posrtion at the end of the year and to prepare an annual report for that year. In preparing these financial statements, the Trustee5 have: selected suitable accounting. policies and applied them consistently using the accruals method made judgements and estimates that are reasonable and prudent followed the applicable SORP and accounting standard, SORP{FRS102) as updated, including FRS102 adopted the going concem basis. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the District and enables them to ensure that the financial statements comply with the law. They are also responsible for safeguarding the assets of the District and ensuring their proper application under charity law, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Distrlct's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and trustees, reports may differ from legislation in other jurisdictions. Structure, Governance and Management The District is an unincorporated association and is governed by the Methodist Church Act 1976, the Deed of Union and the Model Trust Deeds of the Methodist Church and was registered with the Charity Commission on 1 February 2010. 6.1 structure Circuits are groups of Churches; Circuits pay the stipends of most ministers and may emp5oy lay (unordained) staff to serve the Churches in the Circuit; most decisions are made at or ratified by the half yearly Circuit Meeting. A District is a group of contiguous Circuits and makes its decisions at the half yearly Synods. The Methodist Conference meets once each year and is the supreme governing body in the Church. Overall control rests with the Methodist Conference. The Connexional Office implements decisions made by Conference and is also responsible for the stationing of presbyters and deacons (collectively known as ministers) in individual Circuits within the District. Connexional decisions are passed to the Chair of the District and the appropriate officers of the District for implementation. The District passes control down to Circuit level for local implementation by the Superintendent Minister, ministerial staff and Circuit stewards, and authority is delegated to the Circuit Meeting for certain matters. The Circuit Meeting passes control down to Church Councils for local implementation by the presbyter. the Church Stewards and other officers, and authority is delegated to Church Councils as Managing Trustees. BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH Year ended 31 August 2024 Trustees, Annual Report 5.2 Purpose of the District The District is an expression. over a wider geographical area than any Circuit, of the Connexional character of the Church. The purposes of the Methodist Church are and shall be deemed to have been since the date of the union the advancement ot. the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church, and any charitable purposes for the time being of any Connexional, District, Circuit, local or other organisation of the Methodist Church, and any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church, and any purpose for the time being of any charity being a charity subsidiary or ancillary of the Methodist Church. The primary purpose of this District is to advance the mission of the Church in Bedfordshire, Essex and HertFordshire: by providing opportunities for Circuits to work together and support each other, and by offering to Circuits resources of finance, personnel and expertise. The District serves the Local Churches and Circuits and the Conference in the support, deployment and oversight of the various ministries of the Church, and in programmes of training. 5.3 Governance The District operates within a statutory framework of regulation and seeks to ensure that it follows Methodist Standing Orders. It relies on the Connexional Office at 25 Tavistock Place, London WC1 H 9SF to provide guidance on changes that could affect the District. The members of the District Policy Committee (DPC) are annually appointed by a vote of the Synod for a continuous term not normally exceeding six years. The Chair of District is ex officio chair of the DPC. When a position becomes vacant on the District Policy Committee, nominations are invited from ministers and lay members of Circuits within the District. The Chair of the District then shares with noMin￿S what the roles involve. If they wish to be considered for a role, their names and reasoned statements are taken to the District Policy Committee and the District Synod for appointment. Members may be either ministers or lay people attending Churches in the area covered by the District. The District Policy Committee normally meets four times each year and deals with routine and exceptional matters. It oversees the work of the Grants Committee, finance, propety. the District office, the District manse. stationing of ministers, safeguarding, authorisations to preside at cornmunion, and extensions to local preacher training. It also liaises with The Learning Network. io BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Trustees, An,nual Report 5.4 Responsibilities of the District Policy Committee to fonnulate and promote policies which will advance the mission of the Church in the Circuits and Local Churches and. in particular. to supervise the use of resources of personnel. propety and finance and to assist Local Churches and Circuits having exceptional problerns to encourage inter-circuit and ecumenical co-operation to act in an executive capacity in matters remitted to the Committee by the Synod to keep within its purview all District concems not deaEt with elsewhere to contribute and respond, as the case may be, to the development of Connexional policies as reflected in the work of the conferen￿ and the Methodist Council, and to carry out its other responsibilities with any such development in mind to be aware that the stipend of the Chair of the District is set- currently by reference to average wages and the change over a year in the Consumer Prices Index - by the Methodist Conference as for all ministers within the Connexion constantly to be aware of the public benefit guidance issued by the Charity Commission. vi Reference and Administrative Details 6.1 Name of the charity The Bedfordshire, Essex and Hertfordshire District of the Methodist Church sometimes abbreviated to 'BEH District,. 6.2 Charity registration number 1133921, registered in England and Wales 6.3 Principal Office H17, Peek Business Centre Woodside, Dunmow Road Bishop's Stortford Herts CM23 5RG 01279 657 195 vw.behdistrict.or .uk 6.4 Chair of the District Rev Dr David M Chapman from 1 September 2016. Reappointed 1 September 2022. 6.5 Secretary of the Synod Rev Zena Smith appointed from 1 September 2022. 6.6 Assistant Secretary of the Synod (Presbyteral) Rev Caroline Weaver was appointed 01 September 2021. li BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH Year ended 31 August 2024 Trustees, Annual Report 6.7 District Treasurer No Replacement has yet.b￿n appointed but Mr Nichodimus Kawadza was appointed the District Finance OffI￿r on 1 September 2019 and later to District Finance Manager on 1 April 2022 to look after all the District's finan￿ activities. 6.8 Names of trustees The following served as trustees throughout part or all of the year 2023-24 or were trustees at the time of this report being approved: Mr Bob Butcher (Grants Secretary). Appointed 01 September 2007 to 12 June 2024. Rev Dr David Chapman ex officio (Chair, ex officio). Appointed 01 September 2016. Reappointed 01 September 2022. Mr David Germany (Synod Elected Lay Member- Beds). Appointed 01 September 2011. Rev Mark Hammond (Synod Elected Ministerial Member- Herts). Appointed 01 September 2017. Rev Zena Smith ex officio (Synod Secretary). Appointed 01 September 2022. Mr Keith Norman (Lay Stationing Representative). Appointed 27 April 2013. Rev Tom Osborne (District Ecumenical Officer- Essex). Appointed 01 September 2017. Rev Rachael Hawkins (Deputy Chair of the District). Appointed 01 September 2022. Rev Chris Sandy (Synod Elected Ministerial Member- Beds). Appointed 18 September 2021. Mrs Jenny Harris (Synod Elected Lay Member- Herts). Appointed 01 September 2020 to 31 August 2024. Mr Steve Watson (District Property Officer). Appointed 4 January 2022. Rev Christine Preece (Synod Elected Ministerial Member- Essex). Appointed 17 September 2022. Mrs Sheila Pollard (Methodist Council Representattve). Appointed 01 September 2022 to 31 August 2024, Rev David Jebb (District Ecumenical Officer- Herts). Appointed 01 September 2022. Mr Stuart Watkin (Learning Network Officer). Appointed 15 March 2022, Rev Cassandra Howes (District Ecumenical Officer- Beds). Appointed 01 September 2023. Mrs Angela Brydon (District Discipleship Enabler). Appointed 01 September 2023. Mr Steve Rogers (Secretary to DPC). Appointed 01 September 2023. Mr Eric Smart (Synod Elected Lay Member- Essex). Appointed 16 September 2024. Mr Tony Trevers (Grants Secretary). Appointed 12 June 2024. Mr David Edney (Synod Elected Lay Member-Herts). Appointed 01 September 2024. Most trustees attended all meetings of the DPC to which they were entitled to attend in the year and the attendance rate for all 19 trustees who served throughout the year and all four meetings of the DPC during the year was 84 % (2022-23: 88 % ). The Managing Trustees for the District are the members of the District Policy Committee. No trustee claims exemption from disclosure of his or her name here. 6.9 Chair's PAS Miss Carol Griggs & Mrs Sarah SLrtherland 12 BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 . Trustees, Annual Report 6.10 Bankers HSBC plc Town Centre Dane Street stevenage Herts SG1 1BY Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE Lloyds Bank Victoria Branch PO Box 1000 BX1 ILT 6.11 Investment managers and custodlan trustees Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ 6.12 Indepandent Examiner appointed 16 September 2014 Vincent Chandler FCA FCCA of Moore Green, Chartered Accountants 22 Friars Street Sudbury Suffolk C010 2AA Approvals The Trustees, Report and the Financial Statements were approved by the District Policy Committee on 15 MAACH2025 and were, for information. presented to the Synod on Jo MA/ 2025. Rev Dr David M Chapman (signed) Steve Rogers (signed) S ts/-7. Rev Dr David M Chapman Chair of the District Steve Rogers DPC Secretary Date: Date: )8 fvTh101 1<2 rfrtLCH 2c)2f. 13 BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Trustees, Annual Report Financial Statements The Financial Statements comprise- the Statement of Financial Activities for the year ended 31 August 2024 (page 15) the Balance Sheet as at 31 August 2024 (page 16) the Notes to the Accounts (pages 17 to 33). 14 ## BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 ## Statement of Financial Activities for the year ended 31 August 2024 |||||**District**||||| |---|---|---|---|---|---|---|---|---| |||**Notes**||**Advance**||||| |||**to the**|**General Fund**|**Fund**|**Designated**|**Restricted**|**Total**|**Total**| |||**accounts**|**(Unrestricted)**|**(Unrestricted)**|**Funds**|**Funds**|**2023-24**|**2022-23**| ||||**£**|**£**|**£**|**£**|**£**|**£**| ||**Income and Endowments from:**|||||||| |1|**Donations and legacies**|5|1,162|||9,956|11,118|100| |2|**Income from investments**||12,341|42,948||1,929|57,218|30,909| |3|**Income from charitable activities**|||||||| |4|Assessments on circuits||110,801||||110,801|125,013| |5|From Circuit Model Trust Funds|||277,734|102,000|8,570|388,304|177,288| |6|Contribution to the cost of the Chair|4|51,778||||51,778|45,723| |7|Connexional Advance & Property Fund|||91,064|||91,064|83,286| |8|Other income|5|1,692||||1,692|41,087| |9|**Total income**||**177,774**|**411,746**|**102,000**|**20,455**|**711,975**|**503,406**| ||**Expenditure on charitable activities:**|||||||| |10|Grants and donations|6|1,904|135,541|15,000||152,445|392,993| |11|Salaries and associated costs, inc Chair|7|240,062||||240,062|220,130| |12|Property|8|43,422||||43,422|32,486| |13|Office expenses|9|14,478|1,571||431|16,480|20,844| |14|Synods, committees, Conference|10|14,020||||14,020|11,320| |15|Other outgoings|11|21,938||5000|5,055|31,993|15,130| |16|**Total expenditure**||**335,824**|**137,112**|**20,000**|**5,486**|**498,422**|**692,903**| |17|**Net unrealised gains on current assets**|||||||| ||**Net unrealised gains/(losses) on**|||||||| |17|**investments**||**8,636**|||**9,156**|17,792|**-10,200**| |18|**Net income**||**-149,415**|**274,634**|**82,000**|**9,156**|**231,345**|**-199,698**| |19|**Transfers between funds**|13|112,000||-112,0000|0|0|0| |20|**Net movement in funds**||**-37,415**|**274,634**|**-30,000**|**24,126**|**231,345**|**-199,698**| ||**Reconciliation of funds:**|||||||| |21|Total funds brought forward||1,115,599|15,181|54,549|151,069|1,336,398|1,536,096| |22|**Total funds carried forward**||**1,078,184**|**289,815**|**24,549**|**175,195**|**1,567,743**|**1,336,398**| 15 BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Balance Sheet as at 31 August 2024 Dlstrfct Advance Fund to Ihe Accounts General Fund De51gT7atBd Restricted Fund. Fund Total 3110812023 Total Fixed assets Tanglble fixed assets 14 850,G57 850,657 851,314 Investments with TMCP 15 137.851 779.079 160,226 1,077,156 827,556 Total Ilx8d assets 988,508 779,079 160,226 1,'927.813 1,678,870 Current assots Debtors and prepayments 16 11,245 11,245 16,498 G Central finance Board deposits h Cash al bank 17 86,332 7,956 3,960 24,549 114,841 22,926 180,668 17 14,969 Totsl current a8sets 105,533 3,960 14,969 149,011 205,710 Lex. CuTfont Ilabllltlos Credft(ffs due In under one year Grants payable in 2024-25 Total Current liabilltle8 18 15.856 15.856 384,724 400,080 -.251,589 12.273 316.109 328,382 -121672 19 384,724 384724 -38I764 15,856 89,676 Net current assgtslllabllltt05 24,S49 14,969 Total assets less current liabllltle8 1,07&184. 3x315 24,549 174195 1,676,243 1.551198 Less.. Long term Ilabllities {due after moro than ong ygarl q Grants payable from 202&26 108,500 108,500 219.800 Net assots 1,078,184 289,816 24549 175,195 1,567,743 1,336,398 Funds of the DlslrlGt General FLmd (unrestricted) District Advance Fund (unrestricted) 20.1 1.078.184 1,078,184 289,815 1,115.599 15.181 289,815 Total unre5tr1cted funds 1.367.999 1.130.780 Deslgnale(l Funds 21 24.549 24,549 54,549 Restricled FurKJ 21 175.195 175.195 151.069 Total Funds 1,074184 Under the authority of the trustees given al Iheir meeting on 289,815. 24,549 175,195 1,567.743 4,336,398 J3 MRJLCkl 2025 Signed Rev DF David M Chapman, Chalr of DSslrfct and signed by Sleve Rogers. OPC Secretary SY-T. Date of signing Date of signing Is tIrtLCFrf 202S 16 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny Basis of Accounting and Accounting Policies Accounting standard The financial statements have been prepared in accordance with SORP(FRS102) as updated, being the current version of Accounting and Reporting by Gharities.. Statement of , Recommended PractiGe. See also v Accounting framework, below. Public benefit entity The Bedfordshire, Essex and Hertfordshire (BEH) District meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) below. 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. The accruals basis has been used and trustees present accounts that show a true and fair view of the District's financial position and activities. iv Content The financial information presented is relevant, reliable, comparable and complete. Where estimates are used these are based on experience, research and judgement. The accounts are expressed in £Sterling, rounded to the nearest pound. Rounding differences should be ignored. VKlhere the content of this yearfs accounts is different from that of the previous year, the comparative yearfs numbers have been adjusted and restated to be in the sam& fonnat and on the same basis. Accounting framework The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Repothng by Ch8nties." Statement of Recommended Practice [SORP(FRS102)] as amended, with the adoption of Section 1A of Financial Reporting Standard 102, in replacement for the SORP'S 2005 version specified in its related 2008 Regulations and in accordance with the 'true and fair override, provision contained therein. vi Golng concern To the best of their knowledge and belief the trustees confirm that there are no material uncertainties that would call into question the District's financial viability for at least 12 months from the date of approval of these accounts. Consolidation The District oversees the work of ministers (presbyters and deacons) and lay workers in Churches and Circuits within the District bLrt has no power to control Circuits or Churches. . ministers or lay workers except in extreme circumstances, none of which applied in the year. For this reason, the financial statements of Churches and Circuits within the District are not consolidated into these financial statements. Income recognition Income is brought into account when it is more likely than not that the economic benefit of the income will be forthcoming. No attempt is made to measure the value of senil￿S donated by volunteers. Detsils of how the contribution to the cost of the District Chair has been determlned appears in Note 4. A similar figure appears in the Expenditure at Note 7. 17 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny Individual amounts categorised as Other income in the SOFA will be shown separately if they are considered material. The District acts as agent in three matters: the collection of quarterfy assessments from circuits which are paid to the MCF. the payment of expenses of delegates from the District to the Methodist Conference. These items are shown in the accounts-see Note 5. the collection taken at the Spring Synod on behalf of the Methodist Ministers, Children's Relief Association. In all these matters the transactions are not refiected in the SOFA because, in acting as agent for the MCF, there is no obligation on the District to make up any shortfall in assessments from Circuits. Sums received as Circuit assessments cannot, therefore, be recognised as income in the District as they are the income of the MCF, not of the District. The value of time donated by volunteers is not recognised. Further information on this matter is provided in the Trustees, Annual Report. ix Expenditure This is recognised when incurred, regardless of the date of payment. Liabilities are recognised as soon as there is a legal or constructive obligation committing the District to pay out resources and that payment becomes probable. Until then, any material contingent liabilities are noted. Grants Grants are made annually even when an application is for a recurrent grant over rnore than one year, A satisfactory report of substance from the individual or grantee body on the previous yearfs activities and outcomes is critically reviewed by the Grants Committee and is necessary to trigger payment of any further instalment. Grants that are payable in th'e future and were committed at 31 August 2024 are shown on the Balance Sheet either as a current liability (where the grants are payable by 31 August 2025) or in Long Term Liabilities (if payable after 31 August 2025). xi VAT Since the District is not VAT registered, expenditure is inclusive of VAT where charged by the supplier. Tangible fixed assets These are capitalised if they can be used for more than one year, and individually cost at least £1000. For the current year the property is shown at its revalued amount. No depreciation is provided because the trustees consider the residual value of the manse building is not less than cost and the depreciation would be immaterial. The propety has been reviewed for impairment and none is provided. Furniture and Fittings has been depreciated at 20 % on a straight-line basis. Investments The investments are in monetary assets and are held by the Trustees for Methodist Church Purposes (TMCP) as custodian trustees. The valuations, at,market value, are those provided by TMCP. The unrealised gainsllo&ses arising on investments at the end of the year are shown as incomelexpenditure in the SOFA and in Note 22 below. 18 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the M￿HODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny xlv Debtors and Creditors; Bank and Cash Debtors are stated at the amounts owed to the.District or prepaid by the District. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or at the amount advanced to the District. Subsequently, creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit account balances are shown at the realisable values. Loans Ilthere concessionary loans (i.e. free of interest) are made to (or received by) the District to further its charitable purposes. and are repayable after more than one year, they are initially recognised at the amount paid (or received), with the carrying value adjusted in subsequent years to reflect repayments and any aGGrued interest, adjusted for any impairment, if necessary. Where there is objective evidence of impairment, an immediate impairment loss is recognised in the SOFA. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the SOFA. Methodlst Church Fund The District aGts as agent for the Methodist Church Fund (MCF) by collecting its assessments on Circuits and does not, therefore, include the assessments in the SOFA. If a Circuit is late in paying its MCF assessment to the District but such sum is received before the quarterly transfer to the MCF, the amount paid late will be shown as a debtor in the District's accounts. xvii Funds The trustees have adopted a policy for all unrestricted reserves which is that, over the medium term, there should be a gradual diminution in the balance in each fund. This includes all unrestricted reserves (the General Fund and DAF) but not the restricted funds being The Rock Trust Fund and the Benevolenc6 Fund. There is no Endowment Fund. Chair's manse costs The District is required to provide residential accommodation for the Chair and his family. The District bears the cost of repairs, rna1ntenan￿, buildings insurance, Council Tax and water charges for the Chair. Note 8 below discloses the aggregate cost to the District of these elements. Assessments on Circuits The District is made up of the following Circuits: North Bedfordshire South Bedfordshire Colchester Tendring Chelmsford Southend and Leigh South Essex Herts and Essex Border Ecumenical Area St Albans and Welwyn West Hertfordshire and Borders North Hertfordshire Bishop's Stortford-UntiS 3110812023 34-6 34-10 34-11 34-12 34-13 34-14 34-15 34-18 19 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRI￿ of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny All Circuits paid their assessments to the District and to the MCF during the year. An assessment on Circuits is annually dete￿ined by Districts by reference to the number of staff (both stipendiary and lay workers involved in mission) in the Circuits and the number of Church members but may also take into account a Circuit's ability to pay. Contributions to the Methodist Church Fund (MCF) In addition to the assessments on the Circuits to help defray the costs of running the District, the District acted as agent for the Methodist Church Fund which levied assessments on the Circuits in this District totalling £526k (2022-23". £497k) all of which were collected and paid over to the MCF in the year. No balance was held at the end of the year., no fee is received for this service which is perfomied at nearly nil cost to the District. These sums collected for and remitted to the MCF do not appear elsewhere in these financial statements. Cost of Chair and Trustees The Chair of District chairs meetings of the District Policy Committee (DPC). The members of the DPC are the trustees of the District. The stipend, employer's NIC and employer's pension contributions of the Chair of District are paid by the Methodist Connexion. The Chairfs other costs are met mostly by the District. 2023-24 2022-23 Sti end of Chair of District, Rev Dr David Cha Employer's National Insurance Contributions Em lo er's pension contributions District Chair Allowance Com in Mist Allow Once off Grant Cash cost aid b the Connexion Chair's ex enses Total cost man 39,105 4,063 8,415 26,928 3,644 7,243 6,732 176 1,000 45.723 194 see SOFA 7,008 58,786 53,037 Since the stipend-related costs above (i.e., £51, 778. 2022-23: £45,723) are borne by the Connexion, they appear both in the Income of the District and the Expenditure of the District (See Note n. The aggregate expenses of the Chairfs accommodation were £7,008 (See Note 8) making the total cost of his emoluments £58,786 {2022-23: £53,037). The Chair of District is the sole paid key management person and is supported by members of the DPC. No accrual is made for the Chairfs entitlement to a sabbatical as he would continue to be paid during his sabbatical and there would be littte additional cost incurred by those taking on the Chairfs responsibilities in the short term. 20 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 ## Declarations and Scrutiny ## **4.1 Payments to trustees** It is District policy to offer to reimburse members of the District Policy Committee and others involved in the administration of District affairs for expenditure properly incurred in carrying out their duties. The Chair of the District undertakes the primary executive role within the District. Apart from the Chair of District, the District Property Officer and District Discipleship Enabler no member of the District Policy Committee was in receipt of any payment for work undertaken on behalf of the District, although certain travelling and administration costs were reimbursed whenever this was requested. Two members of the trustees are employees of the District. Travel expenses have been reimbursed to some 7 (2022-23: six) trustees [members of the District Policy Committee (DPC)] who, in aggregate, have received the cost of travel incurred in attending meetings of the DPC and this amounted to £398 (2022-23: £285). ## **5 Donations and Other Income** The District does not undertake fundraising for its own purposes, other than as noted below. ## **a Donations** ||2023-24
£|2022-23
£| |---|---|---| |Ministers Benevolent Fund|100|100| |District Benevolent Fund|912|0| |Ministers Training Fund|150|0| |**Total**|**1,162**|**100**| Each year the District Synod invites donations from the members of Synod for the Methodist Ministers’ Children’s Relief Association. The amount donated and paid over in the year was £0 (2022-23: £49). ## _**b Other income**_ **[£1,693 (2022-23: £1,087)] in the SOFA includes:** ||2023-24
£|2022-23
£| |---|---|---| |From MCF for costs of delegates from BEH attending the
annual Methodist Conference|1,240|893| |Probationers Retreat Refund|452|0| |Thorley Parochial Church damage deposit refund|0|110| |HSBC Refund|0|83| |**Total**|**1,692**|**1,087**| 21 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH .Year ended 31 August 2024 Declarations and Scrutiny Grants and Donations and Related Support Costs Grants and donations of £152,445 were made during the year (2022-23: £392,993 in year). 2023-24 2022-23 From General Fund Benevolence Other In year grants Refund Decrease in liabiltties Rock Trust 419 1,485 183,226 (5,000) 42,685 49 2,040 1,904 From DAF 135,541 1g2,252 166,652 From Restricted Funds From Designated Funds Warm Spa￿s Grants 15,000 15,000 32.000 Total 152 445 392 993 The sum of the grants paid in the year through the DAF was £178,226(2022-23: £192,252). Adjusting for decrease in grant provision of £42,685 gives us a total figure of £135,541 shown above. Expenditure on charitable activities through the District Advance Fund This fund reoeives formulaically determined contributions from the Circuit Model Trust Funds held by Circuits within the District and redistributes the monies to grantees in the District through relevant grants as assessed by the District Grants Committee. During the year the following grants were made: 2023-24 2022-23 2023-24 2022-23 Grants Returns Net 39,051 Grants 27,639 Returns 39,051 To Churches For Projects 16,283 30,057 44,476 106,576 To Circuits For Ministry Ret PIA Net Net 27.639 57,460 106,576 85,879 To Institutions 66.690 101,936 For equipment Grants 112,936 Returns {5,000) Net 107,936 Grants 3,600 Net 3,600 178,226 To others Other 55,367 76,316 89.016 To individuals 1.300 192,252 Total 178.226 192,252 The income of the fund was £411.746 (2022-23: £244,271) during the year. The charge to the SOFA is the sum paid in grants during the year [£178,226., (2022-23: £192,252)] lep￿ the uplift in the aggregate liabilities (current and long term) for future instalments of grant [£42,685 (2022-23: £166,652)] to £493,224 (2022-23: £535,909). 22 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny Designated funds received of £102,000 even though shown separately, were received through District Advance Fund. An amount of £82.000 (2022-23: £82,000) was used ￿ntrallY within the District. The Grants Committee is aware that grant applications must demonstrate public benefit. The support costs for grant-funding to third parties are insignificant (principally because the secretary of the Grants Committee is a volunteer and undertakes the vast majority of this work) and are not separately disclosed. Salaries and Associated Costs Gross salaries paid with effect from April 2024 for two full time and four part time staff (2022- 23: seven) were as follows: 2023-24 2022-23 Gross Employer's National Insurance Contributions Employer's pension contributions to defined contribution schemes and death in service benefit Total costs of 6 (2022-23: 7) 4xpart time&2xfull time staff Cost of Chair see Note 4) TPT DC Life Assurance renticeshi levies Total staff costs 145,382 14,372 142,201 10,734 27,466 20,523 187,220 51,778 244 820 240.062 173.458 45,723 247 702 220,130 Total weekly contracted hours for 4 part time staff and two full time staff (2023: seven) 148 148 No employee received employee benefits that totalled more than £60.000. There is no accrual for holiday pay as it is immaterial; the holiday year ends on 31 August. All staff are paid at or above the living wage. Two of the six part time employees were engaged exclusively in safeguarding matters'(with one full time since April 2024), two provided secretarial assistance at the District office and one dealt with all financial matters. One part time staff dealt with property matters in the District. One full time staff was the District Discipleship Enabler. Pensions Most ordained presbyters and deacons are members of the Methodist Ministers, Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers (which term includes presbyters and deacons) are not employees of the Church. For simplicity. however. when dealing with National Insurance Contributions and pension contributions, the terms 'employer' and 'employee' are used as they would be in an employing body. 23 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 ## Declarations and Scrutiny On the other hand, lay employees are contractually employees and have the option of joining the Pension and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC). This is a defined benefit scheme, and the employing Churches and Circuits contribute as employers to this scheme. All our employees contribute to pensions schemes not administered on behalf of the Methodist Church. The BEH District has received from The Pensions Regulator an acknowledgement of declaration of compliance in connection with the automatic enrolment duties. The Connexion accounts for both Methodist pension schemes and shows the figures in the annual Methodist Church in Great Britain accounts. The MMPS in deficit the previous years is now in surplus. It would be difficult to determine the liability that could fall on the BEH District and no attempt has been made to attempt this valuation. ## **8 Property Costs** |
**Property Costs**||| |---|---|---| ||2023-24
£|2022-23
£| |District office,rent and services|36,414|25,172| |Chair’s manse|7,008|7,314| |**Total**|**43,422**|**32,486**| ## **9 Office Expenses (General fund) and TMCP charges** ||2023-24
£|2022-23
£| |---|---|---| |Printing, postage and stationery|2,451|2,201| |Telephone|2,995|3,306| |Insurance|1,576|1,489| |Safeguarding|3,491|2,297| |Independent examination|1,240|1,190| |Other costs|2,279|3,652| |TMCP Charges|357|362| |**Total charged to General Fund**|**14,478**|**14,497**| |TMCP charges/payments to Trustees|2,002|6,347| |**Total**|**16,480**|**20,884**| Included in the other costs of £2,279 are website management costs of £942, Safeguarding IT Equipment of £300, Farewell luncheon and gift for one retiring safeguarding officer for £584, Annual Maintenance of the District Office Fire Protection of £252 and the rest on miscellaneous expenditure. ## **10 Synods, Committees, Conference** ||2023-24
£|2022-23
£| |---|---|---| |Synods& Committees|3,575|3,049| |The Methodist Conference
expenses(reimbursed)|1,241|893| |Chair’s travel|7,691|6,209| 24 BEDFORSHIRE, ESSEX and HERTFORDSHIRE.DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny Committee. as char 1,513 14.020 District Poli Total 1,169 11,320 11 other Outgoings 2023-24 2022-23 Trainin other costs Depreciatlon District ex enses 15,985 10,522 3,253 657 698 16,130 657 2,165 22.118 Deslgnated Fund Warm Spaces Grant refund Restricted Fund Payment to Rock Trust trustees Total 5,000 4,875 31,993 16,130 Included in the other costs of £3,311 are expenses for accounting software expenses (£165), Finance costs (£490), District Discipleship expenses (£1,363), Propety Officer expenses (£1 ,154). District costs of £2,165 relate mostly to District Supervision session expenses (£1 ,360) with the rest to various district travel expenses claims. 12 Investment Management During the year, the District paid £7,233 (2022-23: £6,709) to TMCP, the custodians of the District's investments (District Advance Fund, the Rock Trust and part of the General Fund). The sum of £7,233 was levied at 0.20/0 on the value of the funds at the end of the previous year and Is shown a5 partly allocated to the DAF (£1,571), Rock funds (£5,305) and General Fund (£357): £2,002 as Office expenses and £4,875 as Other Outgoing expenses in the SOFA, (See Note 9 above,) The sum of £9,156 (2022-23: £5,249) represents a net unrealised gain on the Invested funds of The Rock Trust. More information can be found in Note 21 Restricted Fund. There was an unrealised gain of £8,636{2022-23: -£4,951) on part of the General Fund. The gross unrealised gains of £17,792 (2022-23: _£10,200). 13 Transfers between Funds The transfer between funds shown on the SOFA represents sums that were transferred from one fund to another under the direction of the trustees. ' During the year £82,000 {2022-23: £82,000) was withdrawn from the District Advance Fund to contribute to the funding of the following: training grants, district discipleship enabler, safeguarding and administrative assistance. Within the £82,000 figure above there was transfer of £42,000 which was done to the General Fund to meet the salarylexpenses of the District Discipleship Enabler. 25 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny A transfer of £30,000 was done from the Designated Fund to the General Fund to meet the District Properties Officer costs. 14 Tangible Fixed Assets The value of the District manse. 1 Friars Wood, Bishop's Stortford, is believed to be considerably greater than its historical cost in 2006 shown in the aGcounts. The Trustees considered it prudent to show the property at its current market value of £850k, and a revaluation reserve has been created within the general fund to account for the increase in value from cost amounting to £350k. As the property has been revalued no depreciation is required. Depreciation of Furniture and Fittings is 200h on straight line basis. Cost blfiNd Revaluation bffiNd Depreci ation Land Buildings Plant and machinery Total Cost or valuatlon Property Furniture & Fittin 180,000 300,000 20,000 500 000 350 000 850,000 3,286 2,629 2,629 657 Total 180.000 300,000 20,000 503,286 350,000 850,657 15 Investments with Trustees for Methodist Church Purposes The funds that support part of the General Fund, the Dlstrict Advance Fund and The Rock Trust are held by TMCP In the Trustees, Interest Fund or the Managed Mixed Fund on whlch interest and dividends are credited to the accounts. These are regarded as medium- and long-term investments and are shown on the Balance Sheet as Fixed assets. TMCP is the Custodian Trustee of all Methodist Model Trust property and is held for and on behalf of local Managing Trustees (in BEH, the DPC) who are responsible for the day to day management of the property. TMCP ensures that, through providing guidance and acting under their direction, the Managing Trustees comply with charity law and Methodist law and polity as determined by the Methodist Conference. 15.1 Holdlngs at 31 August 2024 (2023) General DAF Rock Total Fund Trustees, Interest Fund Managed Mixed Fund Total 17,588 13,770 120,263 116,627 137,851 126 397 779,079 551,090 32,720 32,720 127,506 118,349 160,226 161069 829,387 597,580 247,769 234,976 1,077,156 827,556 779,079 551090 26 BEDFORSH5RE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny 16 Debtors and Prepayments All sums shown as Debtors on the General Fund at 1 September 2023 were received during the following year. All sums paid in advance at 1 September 2023 (with the exception of rent deposit) were for activities or servi￿S related to 2023-24 and were charged to the SOFA in that year. It is expected that payments in advance at 31 August 2024 will be expensed in 2024-25. 2023-24 2022-23 Trade debtors Pre ments Insurance (116+114+60) District Office rent Probationary Retreat 2024-Share of costs Training grants (583+1,200 Retreat deposits (1,000+735+275) Total ments Peek deposit-new District Offices Benevolence funds donation accrual Total debtors 290 2.188 283 1,838 4,518 1,783 1,776 10,198 6,300 2,010 4,488 6,300 456 11,244 16,498 17 Central Finance Board (CFB) Deposits and Cash at Bank The District has Iwo current accounts one at HSBC plc and the other at Lloyds bank, both authorised institutions. The sum held on this account is immediately available. In addition, the District has a deposit account at CFB, a common deposit fund. Interest is earned on this account and is credited monthly. the sums deposited can be withdrawn without notice and without loss of interest. The District has no other financial instruments. These sums are viewed as being liquid and are shown as Current assets on the Balance Sheet. 18 Creditors 2023-24 2022-23 Creditors Independent examination Salaries and consultant fees Safe uardin Manse ex enses other DC Posta Tele hone Synodslcommittees Travel- DC District Disci 1,200 386 242 61 1,100 103 206 137 18 83 103 48 862 151 rintin DC 80 98 636 765 86 leshi Enabler ex enses 27 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRI￿ of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny Office ex enses TPT DC Life Assurance char District Offices-Electrici Pro Officer ex enses Trainin Cleanin Total trade creditors AccrualslProvision Ecumenical rant Pension contributions Taxation and Social Security Threadneedle credit Total creditors 120 21 66 33 es 137 3,032 90 6,819 3,051 7,825 7,825 185 452 760 12,273 452 760 15,856 It is expected that all sums accrued at 31 August 2024 will be paid during the year to 31 August 2025. 19 Grant Commitments Expenditure on charitable actlvltles: Dlstrlct Advance Fund Some grants are payable in annual instalments. The District expeGts to receive a report of the outcomes of the first (or subsequent) year's activities funded by the grant. Future instalments are shown as Current liabilities (if payable within one year of 31 August 2024) and as Long-term liabilities (where due after one year). The following analyses are available.. 2023-24 2022-23 End of year commitments to pay one off grants or the first instalment in a future ear Anticipated second or subsequent instalments where the first in5talment was aid in 2023-24 or earlier Total anticipated commitment at 31 August 2024 384,724 108,500 493,224 524,609 535,909 Grants payable by year 2023-24 2024-25 2023-24 2022-23 316.109 121,300 63,500 35,000 535.909 384,724 63,500 45,000 493,224 2025-26 2026-27 493.224 535,909 Total anticipated commitrnent at31Au ust 2024 493,224 535,909 After recognising the liabilities for future grants payable through the DAF, there is a sum of £289.815 available for future grants. In the following year and subsequent years, further sums are expected to be credited to the DAF from the CMTF levies of those years. 28 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the MEfHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny The award of a grant by the District does not create a contractual relationship. No individual or institution received grants of such a magnitude that they should be separately reported. 20 Unrestricted Funds 20.1 General Fund- balance £1,078,184 at 31 August 2024 (2023: £1,115,599) The purpose of the fund is for use at the discretion of the trustees in the furtherance of the general objectives of the District and which have not been designated for other purposes. About 79 % of this fund is held as a freehold property, the District manse for the Chair of District which is based on its revalued amount of £850k (2023: Revalued £850k) included in the general funds balance above. 20.2 District Advance Fund- balance £289,815 at 31 August 2024 (2023: £15,q81) The purpose of the fund is to receive monies from investments and to pay grants by annual instalments on applications made. £3.960 of this balan￿ was an overpayment which need to be refunded back to TMCP during 2024-25. 21.1 Restricted Funds- balance £175,195 at 31 August 2024 (2023: £151,069) These Rock Trust funds are made up of TMCP investments and the Bank funds both. managed by the District Grants committee. The funds at 31 August 2024 were: 202&24 2022-23 TMCP Held Funds Bank Held Funds 160,226 14,969 156,318 Total 175,195 156,318 The Rock Trust, a restricted fund, exists to support residential and other activities 'undertaken by young people who currently live in the former London NE District of the Methodist Church. All the fund's assets are managed by TMCP and the net income (after charges) is paid direct to the administrators of the Rock Trust. Grants are awarded by the trustees of the Rock Trust, being the trustees of the District. a Rock Trust Funds held by TMCP .Movements during the.year were as follows: 2023-24 2022-23 Market value at 01 Se ember 2023 Investment income received during the year Net unrealised gain (loss) on the value of investments at the year end Grants paid during the year TMCP administration char .151,069 5,306 156,318 4,684 9,156 4,875 -430 -5,249 -4,239 445 29 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny ust 2024 160,226 Market value at 31 Au 151,069 This is made up as follows: CFB Mana ed Mixed Fund Trustees, Interest Fund Total 127,506 32,720 160,226 118,349 32.720 151,069 Market valuations have been provided by TMCP. b Rock Trust Funds held at the Bank These were brought under the control of the District Grants Committee during 2022-23 which again can only be used for the costs of young people attending residential events. Movement during the year were as follows: 2023-24 2022-23 enin balance at 01 Se tember 2023 Investment income received during the year 9,956 5,073 Total income 15,029 Grants paid during the year Bank administration charge -60 Balance at 31 Au ust 2024 14,969 The Benevolence Fund which is now accounted for through the General Fund stands at £1,565(2023: £822) - provides financial support to ministers and lay people in the District in need of support. The Benevolence receipts and payments were processed through the General Fund. (See page 15 on Donations income and Note 6 above on payments.) 21.2 Designated Fund Designated Fund- balance £24,549 at 31 August 2024. {2023: £54,549) This is made up as follows: District Disci leshi Enabler District Property OffI￿r Total 2023-24 2022-23 20,549 4,000 24,549 20,549 34,000 54.549 These are designated funds received from District Grants Team for the employment of the District Discipleship Enabler and the employment of the District Property Officer. 30 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny 22 Fund Movements 22.1 Summary of fund movements 2023-24 Restated Balance at 01-Sep-23 Note 1 Change in Liabilitiesl Gains Fund Income (Note 2) Balance at 31-Aug-2024 Expendtture Transfers General 1,115,599 177.774 -335.825 112,000 8,656 1,078,184 District Advance See Note 1 below Totsl unrestricted Rock Trust Designated Funds Total restricted Totsl Funds 15,181 411.746 -137.112 289,815 1.130.780 151,069 54,549 205,618 1,336,398 589.520 20.455 102.000 122.455 711,975 472,937 -5,485 -20,000 -25,485 498,422 112,000 8,656 9,156 1.367.999 175,195 24,549 199,744 1,567,743 -112,000 -112,000 9.156 17,792 Note 1 The DAF balances brought forward at the beginning of the year and carried forward at the end of the year are after providing for future grants. The liability for future grants at 31 August 2024 was £493,224 being a decrease of £42,685 over the provision brought forward. Note 2 The amount of £177,774 excludes £8,656 of net unrealised gains., the amount of £20,455 excludes £9,156 of net unrealised gains. the amount of £711,975 excludes £17,792 of net unrealised gains. 22.2 Summary of fund movements 2022-23 Restated Balance at 01-Sep-22 Note 1 Fund Income (Note 2) Change In Liabllltlesl Gains Expendiiure Transfers Balance at 31-Aug-2023 General District Advance See Note 1 below Total unrestricted Rock Trust Designated Funds Total restricted Total Funds 1,123,009 181,894 -295,653 111,300 4,951 1,115,599 214,220 244,827 -193,914 -83,300 -166.652 15.181 1,337,229 156,318 42,549 198,868 1,536,096 426.721 4,684 72,000 76,684 503N05 489.567 4,684 -32,000 -36,684 -526,251 28,000 -171,603 -5,249 1.130.780 151.069 54,549 205,618 1,336.398 -28,000 -28,000 -5,249 -176,852 Note 1 The DAF balances brought forward at the beginning of the year and carried forward at the end of the year are after providing for future grants. The liability for future grants at 31 August 2023 was £535,909 being an increase of £166,652 over the provision brought forward. Note 2 The amount of £181,894 excludes £4,951 of net unrealised losses. the amount of £4.684 excludes £5,24g of net unrealised losses. the amount of £503,405 excludes £10,200 of net unrealised losses. 31 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrut,iny 23 Analysis of Net Assets among Funds Fund balances at 31 August 2024 are represented by: Unrestricted general and designated funds Restricted funds Total funds Tangible fixed assets Fixed asset investments 850,657 916,930 134,041 (400,580) 850,657 1,077,156 149,010 (400,580) (108,500) 160,226 14,g69 Current assets Current liabilities Payables due after one ear Total (108,500) 1,392,548 175,195 1,567,743 24 Related Parties None of the District trustees made donations direct to the District during the year or in the preceding year. All of the District trustees are members of one or another Church and Circuit within the District and may be trustees in their Churches andlor Circuits. Related parties include the Methodist Connexion, Circuits and Churches within the District, other Methodist Districts in Great Britain, the Methodist Ministers, Children's Fund, CFB and TMCP, except as reported in Note 5. All of these entities have their own trustees or directors. The following table shows the receipts from and payments to related parties during 2023-24. 2023-24 Re￿Ipts 2023-24 Payments 2022-23 Receipts 2022-23 Payments Names of Connected Organisations Donee.. Methodist Church Fund Donee: TMCP Donor: Northampton District Methodist Church Donor.. Methodist Church Connexion Donor.. Circuits within BEH (assessments) Donor.. Circuits within BEH (levies) Donor.. Churches within BEH Donor.. Circuits within BEH Donee.. Circuits within BEH Donee.. Churches within BEH Donee.. Individuals (re 3 Generate) (525,819) (14,290) (497,387) (8,743) 9,290 20,451 8,743 622,400 83,286 100 636.620 91.064 100 20,451 (57,460) (44,476) 1,060 Information about payments to trustees appears in Note 4.1. 32 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny 25 Volunteer Contributions Every entity (Connexion, District, Circuit, Church) within the Methodist Church in GB is heavily reliant on volunteers who contribute their skills, time and money in the furtherance of the work of the Church. At the BEH District the principal contribution is by serving on committees of the District that deal with mission, manses, finance, policy, grants, training, development, safeguarding. We are grateful to all of them for their help and commitment. No attempt has been made by this District to value the non-monetary contributions to the District in monetary terms. 26 Capital Commitments and Contingent Liabilities There were no capital commitments or contingent liabilities at the year-end (2022-23.. Nil). 27 Lease Commitments The District has contraGts or obligations for the following: New Office accommodation rent to be reviewed at the end of the third-year c.£17,OOOpa plus VAT first year rent (2021-22), £21,OOOpa plus VAT second year rent (2022-23) and £25.OOOpa plus Vat third year rent (23-24). This is due for review in May 2025. In addition, there are short term obligations as follows: Reprographic equipment at the District office c.£761month Telephones at the District office and the District manse c.£2501month Security alarm system at the manse c.£281month Membership of the Friars Wood Residents, Association c.£601month The total liability of these is not considered material. 28 Independent Examiner An accrual has been made for the fee of the independent examiner in the sum of £1,200 for the year (2022-23.. £1,100). The charge in the SOFA represents the provision for this yearfs fee. No additional services have been sought from or provided by the independent examiner during the year. 33 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny I confirm that these accrual-based accounts for the year ended 31 August 2024 have been prepared from the records of the District and that they include a51 funds under the control of the District Po icy Cornmittee, being the trustees of the District. Signe .Date: Nichodimus Kawadza, District Fin e Manager Presentation to the District Policy Committee for approval I confirm that the Trustees AnnuaF Report, the Statement of Financial Activities, the Balance Sheet and the Notes to the Accounts for the year ended 31 August 2024 were presented to the District Policy Committee at its meeting on I'S 2025. Signed.. Date: JEfvL￿￿ loa5 Rev Dr David M Chapman, Chair of District Independent examiner's report to the Trustees of the Bedfordshire, Essex and Hertfordshire District of the Methodist Church for the year ended 31 August 2024 The trustees are responsible for ensuring that the annual report and accounts present a true and fair view of the District's income and expenditure for the year and of the assets and liabilities at the balance sheet date. The trustees consider that an audit is not necessary for this year under s144 of.the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to: examine the accounts under s145 of the Charities Act, follow the procedures laid down in the general Directions given by the Charity Commission under s145(5)(b} of the Charities Act. and state whether particular matters have come to my attention. Basis of independent examIne￿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 District and a comparison of the accounts presented with those records. It also includes consideration of any unusual items, in nature or scale. or disclosure in the accounts seeking explanations from the trustees concerning such matters. 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. My report is limited to those matters set out in the statement below. 34 BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the m￿HoDIST CHURCH Year ended 31 August 2024 Declarations and Scrutiny Independent examiner's statement I have Comple￿ rny examination. I confirm that no materia] matters have come to my attention in connection wth the examination gThiing me cause to bdieve that in any material respect 1. accounting recards vHe not kept in resFect of the charty as requÈred by sectton 130 of the Ac(. or 2. the acrA)unts do not acEord with those r￿OrdS. or 3. the a￿A)Unts do not comply vAth the appIl￿ble requirements conceming the fonn and content of ac£ounts set out in the Charthes (Accounts and Reports) Regulations 2008 other than ary requirement that the accounts give a Irue and far view which is not a matter considered as part of an irmkpendent examination. . I have no COn￿mS and have come acmss no otlEr matter5 in c(MrEction with the examination to . which attention should be drawn in this report in othto enable a proFEr understanding of the accounts to be reach&l. I have not obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10,000 (ten thousand pounds) at the balance sheet date. Signed: Date: Kri(03(Loir Vincent Chandler FCA FCCA Independent examiner Moore Green 22 Friars Street Sudbury Suffolk C010 2AA 35