**REGISTERED CHARITY NUMBER: 1134167** **REPORT OF THE TRUSTEES AND** **FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 AUGUST 2025** **FOR** **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** J W Hinks LLP Chartered Accountants and Statutory Auditors 19 Highfield Road Edgbaston Birmingham B15 3BH **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025** |||**Page**|| |---|---|---|---| |**Report of the Trustees**|1|to|8| |**Report of the Independent Auditors**|9|to|10| |**Statement of Financial Activities**||11|| |**Balance Sheet**||12|| |**Cash Flow Statement**||13|| |**Notes to the Cash Flow Statement**||14|| |**Notes to the Financial Statements**|15|to|29| **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025** The trustees present their report with the financial statements of the charity for the year ended 31 August 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** The aims and objectives of the Birmingham Methodist District is expressed in the general calling of the Methodist Church, which is to respond to the gospel of God's love in Jesus Christ, and to live out our discipleship in worship and in mission. We aim to do this through worship, learning and caring, service and evangelism. Methodist people belong to local churches or ecumenical partnerships and are part of the larger connected community of the Methodist Connexion. There are around 4,000 Methodist churches across the country, grouped into Circuits. Birmingham Methodist District is one of 24 districts within the Methodist Church in Britain and comprises some 98 churches grouped into 10 circuits across Birmingham, Staffordshire, Warwickshire, Worcestershire and Herefordshire. ## **District Policy Statement** "The Birmingham Methodist District seeks to help local churches to grow disciples of Jesus Christ for the Kingdom of God, in the following ways: o Through the holiness, transformation and commitment of her members (growth in depth) - both individuals and churches. o Through being a transformed society (growth in the outworking of our discipleship). o Through increased number of disciples of Jesus Christ (growth in numbers of new members). The church seeks to grow not for its own sake but so that it can be an effective agent of the Kingdom of God in the world. We seek to support the mission of circuits and churches in the Birmingham District and help them to be intentional in responding to God's call to serve the present age." The Birmingham Methodist District seeks to be a network of communities where people are included and grow together, being transformed by the love of God and sharing their story of God's grace. In collaboration with others where possible, the District is committed to creating safer spaces and working for a just and sustainable world. We have a vision to be a **growing, evangelistic, justice-seeking and inclusive church without walls** . In the power of the Holy Spirit, we seek to grow disciples of Jesus Christ, by growing:- - In numbers of new disciples - In depth of discipleship - In the transformation of communities and society ## Ensuring our work delivers our aims We review our aims, objectives and activities each year to assess what has been achieved in the previous 12 months. The review considers the success of each key activity and the benefits they have brought to those groups of people we seek to help. The District's **New Places for New People** missional work, in a variety of settings, is reviewed annually through the relevant Oversight Committee to ensure our aims, objectives and activities remain focused on our stated purposes. We refer to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. ## The focus of our work The focus of our work continues to be that of a charity set up to be a network of communities where people are included and grow in their discipleship of Jesus Christ, being transformed by the love of God and sharing their story of God's grace. ## **Public benefit** In setting our objectives, and planning our activities, the trustees have given careful consideration to the Charity Commissioners' general guidance on public benefit and, in particular, to its supplementary public benefit guidance on advancing our objectives, in accordance with the Charities Act 2011. Our charitable activities have been carried out within the framework of our policy statement, namely with the aim of growth, not only within Methodism in Birmingham but also growth in the outworking of our discipleship, by seeking to work for the public benefit of the community around us. Our university chaplaincies and other projects demonstrate our aim to show the love of Jesus Christ outside the church walls. Page 1 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025** ## **OBJECTIVES AND ACTIVITIES** ## **Grantmaking** The Resourcing Mission Committee meets three times a year to oversee the finance function of the district, to approve grants to circuits and churches within the District, and to oversee district property. ## **Volunteers** The Birmingham Methodist District is heavily reliant on volunteers at church, circuit and district level. Volunteers give their time and skills to further the aims of the district. Much of this work is by serving on committees and by acting as trustees. The district is grateful to all of them for their help and commitment. ## **Trustees** Reimbursements of expenses paid to trustees are disclosed in the notes to the accounts. Payments to trustees for services that are required by the District, are also disclosed in the accounts. The District Council ensures that any such services are in the best interests of the District. Measures are in place to ensure that no conflict of interest arises from any such payment. ## **ACHIEVEMENTS AND PERFORMANCE Charitable activities** In the year to 31 August 2025 resources have been deployed in the following ways. - The appointment of the District Secretary to support the District with governance, budgetary, administrative and staffing matters. - The appointment of the District Finance officer to manage the day-to-day operations of financial matters. - The Street Ecclesial Community - Street Banquet continues to grow and serve the street community with a monthly meal. An increasing number of Street Banquet's former guests now serve as hosts of this emerging Christian community. - The District Youth weekend, "Amplify" was held in March 2025 focussing on the theme of climate justice. The weekend attracted some 150 young people and leaders. - Regular Advanced Safeguarding training courses were conducted by the District Safeguarding Officers through the year, and District Safeguarding Officers were TUPE'd by the Methodist Connexion to serve as Connexional officers, now known as Regional Officers for Safeguarding - effective from August 2025. - Approximately £300,000 worth of grants were made to various circuit missional and property projects; and almost £250,000 of grants were made to District projects and activities. - In preparation for the merger of the Birmingham Methodist District with the Wolverhampton & Shrewsbury Methodist District, lay employed staff members were taken through the TUPE process in order to be employed by the new West Midlands Methodist District. - The new Chair of District was appointed through the Methodist Connexion to commence their appointment as Chair of the West Midlands Methodist District on 1st September 2025, and a new manse at a cost of almost £500,000 was purchased for this appointment. - The merger of the Birmingham Methodist District and the Wolverhampton & Shrewsbury Methodist District took place on 31st August 2025. From 1st September 2025, the new District will be known as the West Midlands Methodist District. Page 2 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025** ## **FINANCIAL REVIEW** ## **Financial position** The Statement of Financial Activities for the year ended 31 August 2025 shows incoming resources of £1,489,080 (2024: £1,329,106) and resources expended of £1,475,020 (2024: £1,176,117), generating a surplus of income over expenditure totalling £14,060 (2024: £152,989) prior to fixed asset impairments. In addition, the District fixed asset properties, with the exception of property purchased in the year, were professionally revalued resulting in a net impairment of £547,922. This reflects an impairment of the value of Wesley International House of £710,000 with an increase in the fair value of the manses of £162,078. As a result, the District's net assets have decreased from £6,100,551 as at 31 August 2024 to £5,566,689 as at 31 August 2025. Included within net assets as at 31 August 2025 are general and designated funds with a carrying value of £4,516,064 (2024: £5,044,132) and 3 restricted funds with a carrying value of £1,050,625 (2024: 3 restricted funds with a carrying value of £1,056,419). No fund was in deficit as at 31 August 2025. Income for the year ended 31 August 2025 has increased compared to the year ended 31 August 2024 largely due to the increase of the CPF distribution of £162,484. Grants paid in the year have increased by £94,498 reflecting the additional CPF distribution while support costs have increased by £165,358, mainly in respect of District office costs and administrative costs. During the year, the District purchased a second manse for the new Chair at a cost of £496,739. The District continues to own the manse at 36 Amesbury Road, Birmingham and Wesley International House, Birmingham (one of two Methodist properties in Birmingham and managed by Birmingham International Student Homes, a separate charity). The District also continues to own 47 Grove Avenue, the manse occupied by Rev Neil Johnson, which had been acquired by the City Centre Fund. ## **Principal funding sources** The principal recurring source of income continues to be the mandatory payments by Methodist Circuits in the District. The income to the District Advance Fund is derived from levies to Circuit Advance Funds which, in turn, rely on property sales and disposals for their replenishment. This has enabled the continuation of the number and level of new grants from the District Advance Fund. The year has seen a significant increase in grant from the Connectional Priority Fund (CPF), a grant fund used to support mission, ministry and property projects of connexional significance. ## **Investment policy and performance** To comply with Methodist Standing Orders, money for long term investment is lodged with the Trustees for Methodist Church Purposes (TMCP) or with the Central Finance Board of the Methodist Church (CFB). TMCP Is the legal owner and custodian trustee of all Methodist Model Trust property including legacies, endowments and accumulated funds. CFB manages a common deposit fund and a series of pooled investment funds for Methodist entities in Great Britain. Interest rates from deposits with TMCP and CFB reflect deposit rates available elsewhere. The investment policy of West Midlands Methodist District is aligned with those of TMCP and CFB who take into account the social, environmental and ethical considerations that make investments suitable for the Methodist Church. The District continues to hold its funds in cash deposits with TMCP and CFB. Interest received during the year ended 31 August 2025 was £101,386 (2024: £100,979). Page 3 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025** ## **FINANCIAL REVIEW** ## **Reserves policy** Reserves are represented by the fund balances as disclosed in the balance sheet on page 13 of the financial statements. The balance sheet shows unrestricted reserves (reserves that do not carry any restrictions on how they can be used) of £4,516,064 as at 31 August 2025 (2024: £5,044,132). In assessing our level of free reserves as at 31 August 2025 we also exclude tangible fixed assets totalling £3,661,739 (2024: £3,750,000) and other designated fund balances totalling £854,325 (2024: £1,228,687). This leaves free reserves totalling £77,317 as at 31 August 2025 (2024: free reserves totalling £65,445). The General Fund derives its income principally from circuit contributions (also known as assessments). The majority of this income is paid over to the central Methodist Church Fund, the balance of circuit contributions being held within the General Fund, to finance the day-to-day running costs of the District. The trustees believe that the balance on the General Fund should be in the region of £30K to £40K to cover four to six months of District running costs. If the District makes a surplus over budget for any particular year that surplus is returned to the circuits via a future budget. Taking this into account we believe that the amount held within the General Fund at 31 August 2025 is in line with our reserves policy. The Manse Major Repair Fund seeks to build up a reserve, by means of annual transfers from the General Fund, to be used for any significant costs that may arise in the future relating to the district manse. Income in the District Advance Fund is derived principally from distributions from the Connexional Priority Fund (i.e. from central Methodist sources) and from levies on trust funds held at circuit level (i.e. from local Methodist sources). Decisions regarding District Advance Fund spending and its allocation to projects are made by the Resourcing Mission Committee. Reserves held in the District Advance Fund will be sufficient to cover the future grant commitments from that fund. The reserves policy of the District Advance Fund is that at any point in time the total of the future commitments from the District Advance Fund will not exceed the cash held within that fund. At the same time the District ensures that future grant commitments almost match the amount held within the District Advance Fund, meaning that there will not be excess reserves held within the District Advance Fund. For all restricted funds the reserves policy is to hold grants and donations within dedicated ring-fenced funds, to be used for the specific purposes of those grants and donations. ## **Going concern** The trustees of the District have every reason to believe that the District is a going concern. The circuits continue to meet their assessments and reserves are considered adequate. Reserves policies are reviewed annually. There are no subsidiary undertakings. Methodist membership is in decline across all districts with a resultant loss of income at church level. However, proceeds from the sale of church buildings are partly used to meet ongoing costs at circuit level, including the circuits' assessment payments to the District. ## **FUTURE PLANS** Our plans for the year ending 31st August 2026 include:- ## Staff Recruitment Completion of recruitment of the District Staff team including a Communications Officer, Human Resources Officer, District Property Advisor, Personal Assistant to the District Chair, District Administrator, and a Faith-based Community Organiser. These appointments are in response to the needs expressed by the Circuits for greater support from the District in these areas of the church's work. To safely recruit the District's Resolution Officer(s), District Probationers' Secretary, Sabbatical Secretary, District Policy Committee Secretary, and fill other District officer vacancies. ## District Office location To identify a new central office location for District staff. ## District Mission Action Plan To review the new West Midlands District Mission Action Plan. ## Climate Justice To increase the number of buildings achieving A Rocha Eco-Church awards to meet the 2030 climate justice targets, through adding solar panels, electric vehicle chargers and other adjustments. Page 4 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The District, as part of the Methodist Church, is constituted under the terms of the Deed of Union of 1932, which was promulgated under the authority of legislation that is now found in the Methodist Church Act 1976. This Act provides the foundation on which all the remainder of the constitutional structure of the Church is raised. ## **Recruitment and appointment of new trustees** Trustees are appointed based on their experience and skills, independence of thought and commitment to the furthering of the objectives of the Methodist Church. The Methodist Church runs a number of seminars relating to the induction and training of trustees and trustees of the district are expected to attend. Most appointees are trustees of other organisations and will also have experience and training with the other organisation. ## **Governance and organisational structure** The governing body of the Methodist Church in Great Britain is the Conference. Under the authority of the Act and the Deed of Union, Conference makes and amends Standing Orders, which are published annually in the Constitutional Practice and Discipline of the Methodist Church. This is the basis for governance of the Church as a connexion of local churches, circuits and districts working together within the one framework. The District Synod is the principal body responsible for the affairs of the District and is constituted in accordance with the Deed of Union and Standing Orders. It is the church court for the District, serving as a link between the Conference and the Connexional Team on the one hand and the Circuits and Local Churches on the other. It has oversight of all District affairs. The Synod annually appoints the members of the District Policy Committee whose responsibilities include the formulation and promotion of policy and the supervision of the use of resources of personnel, property and finance. Under charity law the members of the District Policy Committee are treated as the Trustees of the Charity and the names of the Trustees who served during the year or have been appointed since are shown above. The District Policy Committee nominates persons to the Synod for appointment as district officers and as members of the District Policy Committee and other district committees. In addition, the Chair of the District, the Secretary of the Synod and any member of the Methodist Council nominated by the Synod are ex-officio members of the District Policy Committee. ## **Key management remuneration** In the trustees' opinion, the key management personnel of the District responsible for the direction, control, running and operation of the District on a day-to-day basis consists of the Board of Trustees and the District Secretary. ## Key management personnel - trustees All of the trustees give of their time freely and no trustee received remuneration during the year ended 31 August 2025 with the exception of the District Chair, whose salary is paid from central Methodist funds and the Treasurer who received remuneration in respect of his role of treasurer. The District Secretary was employed by the District from May 2025. ## **Management** The District Policy Committee meets four times a year. The responsibilities of the District Policy Committee, as laid down in Methodist Standing Orders, are as follows. - To formulate 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, property and finance and to assist local churches and circuits having exceptional problems. - To encourage inter-circuit and ecumenical co-operation. - To act in an executive capacity remitted to the Council by the Synod. - To keep within its purview all district concerns not dealt with elsewhere. - To contribute and respond, as the case may be, to the development of connexional policies as reflected in the work of the Conference and the Methodist Council and to carry out its other responsibilities with any such development in mind. The District Policy Committee oversees the work of the Resourcing Mission Committee, stationing, safeguarding, authorisations to preside at communion, extensions to local preacher training and other matters as necessary. Page 5 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Risk management** Major risks are reviewed regularly by the District Policy Committee which, along with the Audit Committee, establishes systems and procedures to manage those risks. ## **Fundraising** The majority of the District's income is derived from circuit contribution, Connexional and other grants, Circuit Model Trust Fund levies and Connexional Priority Fund distributions. The District does not engage in public fundraising and does not use professional fundraisers or commercial participators. ## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 1134167 **Principal address** c/o The Queens Foundation Somerset Road Birmingham B15 2QH |**Trustees**||| |---|---|---| |Rev N Headley|Chair, Co-Chair from 1 September 2025|| |Rev R Deigh|Co-Chair from 1 September 2025|Appointed on 1 September 2025| |Rev P Warrey|Deputy Chair to 13 September 2025|| |Rev S Willey|Deputy Chair|Resigned on 31 August 2025| |Rev D Blintiff|Deputy Chair|Appointed on 13 September 2025| |S Smith|District Council Secretary and|Resigned on 1 September 2025| ||Methodist Council Representative|Resigned on 13 September 2025| |H Woodall|Synod Secretary|Resigned on 13 September 2025| |Rev N Bishop|Treasurer|Resigned 31 December 2025| |G Weller|Lay Stationing Representative|Resigned on 13 September 2025| |C Osborn|Property Secretary|| |Rev D Koffie-Williams|EDI Officer|Resigned on 13 September 2025| |Rev I Ballard|Representative|| |Rev S Levett|Representative|Resigned on 13 September 2025| |Rev C Sibanda|Representative|Resigned on 13 September 2025| |Deacon M Slowe|Representative|Resigned on 13 September 2025| |Rev J Thornton|Representative|Resigned on 13 September 2025| |J Tolley|Representative|Resigned on 13 September 2025| |H Watton|Representative|Resigned on 13 September 2025| |A Allport|Representative|Resigned on 13 September 2025| |Rev C Hague|Representative|Resigned on 13 September 2025| |T Pethick|Representative|Resigned on 13 September 2025| |Rev G Heinz|Presbyteral Synod Secretary|Appointed on 13 September 2025| |B Oakley|Representative|Appointed on 13 September 2025| |N C Evans|Representative|Appointed on 13 September 2025| |Rev F Mapamula|Representative|Appointed on 13 September 2025| |D M Reynolds|Representative|Appointed on 13 September 2025| |K Walton|Representative|Appointed on 13 September 2025| |R Obeng|Synod Secretary|Appointed on 13 September 2025| |Rev R Fry|Representative|Appointed on 25 April 2026| |Rev S Hagerman|Secretary|Appointed on 25 April 2026| Page 6 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025** **REFERENCE AND ADMINISTRATIVE DETAILS Auditors** J W Hinks LLP Chartered Accountants and Statutory Auditors 19 Highfield Road Edgbaston Birmingham B15 3BH **Bankers** Trustees for Methodist Church Purposes Oldham Street Manchester M1 1JQ Central Finance Board of the Methodist Church Methodist Church House 25 Tavistock Place London WC1H 9SF Co-operative Bank PO Box 250 Skelmersdale WN8 6WT ## **EVENTS SINCE THE END OF THE YEAR** Information relating to events since the end of the year is given in the notes to the financial statements. ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Charity law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011 and The Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 7 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025** Approved by order of the board of trustees on 18 June 2026 and signed on its behalf by: Rev N Headley – Co-Chair & Trustee Rev Dr R Deigh – Co-Chair & Trustee Page 8 **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **Opinion** We have audited the financial statements of West Midlands Methodist District (formerly Birmingham District of the Methodist Church) (the 'charity') for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). - In our opinion the financial statements: - give a true and fair view of the state of the charity's affairs as at 31 August 2025 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: - the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Page 9 **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **Our responsibilities for the audit of the financial statements** We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - enquiring with management and others to gain an understanding of the organisation itself including operations, financial reporting and known fraud or error; - evaluating and understanding the internal control system; - performing analytical procedures as expected or unexpected variances in account balances or classes of transactions appear; - testing documentation supporting account balances or classes of transactions; and - confirming accounts receivable and other accounts with a third party. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. ## **Use of our report** This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. J W Hinks LLP Chartered Accountants and Statutory Auditors 19 Highfield Road Edgbaston Birmingham B15 3BH Date: 22 June 2026 Page 10 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2025** |Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
3
**Charitable activities**
5
District oversight
Grant funding
Investment income
4
**Total**
**EXPENDITURE ON**
**Charitable activities**
6
Grants, contributions and donations
Contributions to Methodist Church Fund
Ministry and Mission
District oversight
District merger
Support and governance costs
**Total**
**NET INCOME/(EXPENDITURE)**
**Net gains/(losses) on revaluation of fixed assets**
**Transfers between funds**
18
**Net movement in funds**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
**90,561**
**700,367**
**570,112**
**76,223**
**1,437,263**
**278,408**
**589,699**
**203,142**
**97,906**
**88,537**
**86,120**
**1,343,812**
**93,451**
**(585,000)**
**(36,519)**
**(528,068)**
**5,044,132**
**4,516,064**|Restricted
funds
£
**26,654**
**-**
**-**
**25,163**
**51,817**
**25,237**
**-**
**7,169**
**72,929**
**-**
**25,873**
**131,208**
**(79,391)**
**37,078**
**36,519**
**(5,794)**
**1,056,419**
**1,050,625**|**2025**
**Total**
**funds**
**£**
**117,215**
**700,367**
**570,112**
**101,386**
**1,489,080**
**303,645**
**589,699**
**210,311**
**170,835**
**88,537**
**111,993**
**1,475,020**
**14,060**
**(547,922)**
**-**
**(533,862)**
**6,100,551**
**5,566,689**|2024
Total
funds
£
144,062
672,653
411,412
100,979| |---|---|---|---|---| |||||1,329,106| |||||209,147
554,750
175,538
121,925
1,018
113,739| |||||1,176,117| |||||152,989
-
-| |||||152,989
5,947,562| |||||6,100,551| The notes form part of these financial statements Page 11 ## **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **BALANCE SHEET 31 AUGUST 2025** |Notes
**FIXED ASSETS**
Tangible assets
12
**CURRENT ASSETS**
Debtors
13
Cash at bank
14
**CREDITORS**
Amounts falling due within one year
15
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**NET ASSETS**
**FUNDS**
18
Unrestricted funds:
General Fund
Fixed Asset Property Fund
Manse Major Repair Fund
Exchange Visits Fund
District Inclusive Gathering Fund
Finance Management Fund
Joint District Fund
Rural Fund
Training Fund
District Advance Fund
Mission and Youth Fund
Safeguarding Fund
Benevolent Fund
Restricted funds:
Inclusive Gathering Birmingham Fund
Street Ecclesial Community Fund
City Centre Fund
**TOTAL FUNDS**|**2025**
**£**
**4,151,739**
**13,969**
**1,768,194**
**1,782,163**
**(367,213)**
**1,414,950**
**5,566,689**
**5,566,689**
**77,317**
**3,661,739**
**25,195**
**-**
**955**
**-**
**-**
**284**
**-**
**732,832**
**-**
**14,088**
**3,654**
**4,516,064**
**2,724**
**31,408**
**1,016,493**
**1,050,625**
**5,566,689**|2024
£
4,202,922
13,861
1,900,746| |---|---|---| |||1,914,607
(16,978)| |||1,897,629| |||6,100,551| |||6,100,551| |||65,445
3,750,000
20,208
1,595
408
17,716
3,150
6
343
1,107,676
56,779
19,657
1,149| |||5,044,132| |||16,090
24,257
1,016,072| |||1,056,419| |||| |||6,100,551| The financial statements were approved by the Board of Trustees and authorised for issue on 18 June 2026 and were signed on its behalf by: Rev N Headley – Co-Chair & Trustee Rev Dr R Deigh – Co-Chair & Trustee The notes form part of these financial statements Page 12 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2025** |Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash (used in)/provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Interest received
Net cash (used in)/provided by investing activities
**Cash flows from financing activities**
New loans in year
Net cash provided by financing activities
**Change in cash and cash equivalents in the reporting**
**period**
**Cash and cash equivalents at the beginning of the**
**reporting period**
**Cash and cash equivalents at the end of the reporting**
**period**|**2025**
**£**
**(87,199)**
**(87,199)**
**(496,739)**
**101,386**
**(395,353)**
**350,000**
**350,000**
**(132,552)**
**1,900,746**
**1,768,194**|2024
£
60,383| |---|---|---| |||60,383| |||-
100,979| |||100,979| |||-| |||-| |||| |||161,362
1,739,384| |||1,900,746| The notes form part of these financial statements Page 13 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2025** |**1.**
**RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
**Net (expenditure)/income for the reporting period (as per the Statement of Financial**
**Activities)**
**Adjustments for:**
Interest received
Revaluation losses
(Increase)/decrease in debtors
Increase in creditors
**Net cash (used in)/provided by operations**
**2.**
**ANALYSIS OF CHANGES IN NET FUNDS**
At 1.9.24
£
**Net cash**
Cash at bank
**1,900,746**
**1,900,746**
**Debt**
Debts falling due within 1 year
**-**
**-**
**Total**
**1,900,746**|**2025**
**£**
**(533,862)**
**(101,386)**
**547,922**
**(108)**
**235**
**(87,199)**
Cash flow
£
**(132,552)**
**(132,552)**
**(350,000)**
**(350,000)**
**(482,552)**|2024
£
152,989
(100,979)
-
146
8,227
60,383
**At 31.8.25**
**£**
**1,768,194**
**1,768,194**
**(350,000)**
**(350,000)**
**1,418,194**| |---|---|---| The notes form part of these financial statements Page 14 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025** ## **1. ACCOUNTING POLICIES** ## **GENERAL INFORMATION AND BASIS OF PREPARING THE FINANCIAL STATEMENTS** ## **General information** Birmingham District of the Methodist Church is an unincorporated charity registered in England and Wales. The District's principal address and place of activity is 36 Amesbury Road, Moseley, Birmingham, B13 8LE. ## **Accounting convention** The financial statements of the District, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) "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 United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019)", Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities Act 2011. The financial statements have been prepared using the historic cost convention, as modified by the revaluation of certain assets, and are presented in sterling which is the functional currency of the District, rounded to the nearest £1. ## **GOING CONCERN** The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the District to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of authorisation for issue of the financial statements and have concluded that the District has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties about the District's ability to continue as a going concern. As a result the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **CONSOLIDATION** Birmingham Methodist District oversees the work of ministers and lay workers in churches and circuits within the District but does not have financial control over those circuits or churches. For this reason the financial statements of the churches and circuits within the District are not consolidated into these financial statements. ## **INCOME** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Contributions from circuit model trust funds are levied on 1 September each year, calculated according to the balances included in these funds at this date, which are outside of the control of the District. They are recognised as income when levied and are treated as charitable activity income. Distributions from Connexional advance and property funds are received based on the balances and transactions within those funds, which are outside of the control of the District. Income is recognised when distributions are formally confirmed by Connexional officers and is treated as charitable activity income. Assessments on circuits are charged based on based on amounts agreed in advance with circuits as a contribution towards the running costs of the District. Assessments are recognised as income in the period to which the funding relates and is treated as charitable activity income. Connexional and other grants, where they are not conditional, are included in the Statement of Financial Activities on a received basis. Donations are recognised when received. Gift aid on eligible donations is recognised on an accruals basis at the same point as the original donation. Whilst time given to the District by many volunteers is essential to its work, this donation of time is not recognised in these financial statements since its value cannot be measured reliably for accounting purposes. Investment income is earned through holding assets such as cash on deposit. It includes interest receivable. Interest income is recognised using the effective interest rate method and is recognised as the District's right to receive payment is established. The District acts as agent in the following matters: - collections taken at Synod for various charities, which are paid over to the respective charities shortly afterwards; and continued... Page 15 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **1. ACCOUNTING POLICIES - continued** ## **INCOME** - payments received from the Methodist Church Fund to reimburse the District for the expenses of District; and - representatives attending the Methodist Conference. The receipts and payments for the above matters are not income or expenditure of the District and are therefore not reflected in the Statement of Financial Activities. ## **EXPENDITURE** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Grants are recognised annually as and when the performance conditions attaching to the award are met, even when the award is for a recurrent grant over more than one year. All grants awarded for payment in future financial years are conditional on the Resourcing Mission Committee being satisfied, on the basis of progress reports from the grantee, that the project's achievements to date justify the payment of further instalments of the grant and are therefore not recognised as a commitment at the balance sheet date. Future grant pledges from the District Advance Fund are shown in the notes to the accounts. Support costs are those that assist with the work of the District but do not directly represent charitable activities and include office costs, governance costs and other administrative costs. Governance costs are those costs associated with the general running of the charity and its strategic management rather than the costs of its charitable activities and day-to-day management. ## **ALLOCATION AND APPORTIONMENT OF COSTS** All costs are allocated between the expenditure categories of the Statement of Financial Activities on the basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis e.g. floor areas, per capita or estimated usage. ## **REDUNDANCY AND PAYMENT IN LIEU OF NOTICE** Any staff that are made redundant are compensated by the Charity making payment for redundancy. The redundancy payment is calculated in accordance with statutory redundancy guidelines published by the HM Government. Where staff are not required to work out their full notice the Charity will make a payment in lieu of notice based on their daily salary for the period not worked. ## **TANGIBLE FIXED ASSETS** Tangible fixed assets are capitalised if they can be used for more than one year and individually cost more than £1,000. They are valued at historical cost, with the exception of freehold properties, which are stated at fair value. Freehold properties are included in tangible fixed assets and are initially recorded at cost then revalued periodically based on professional valuations, as adjusted by the trustees in the intervening periods by the appropriate Land Registry index. Unrealised gains on revaluation would usually be taken to a revaluation reserve in accordance with the SORP (FRS102). However, it is not possible to ascertain the original cost of some of the properties held by the District. The fair value has therefore been transferred to the Property Assets Fund (designated). Freehold properties are not depreciated as the trustees consider that the current residual fair value to be not less than its current value. Any depreciation would not be material. The properties have been reviewed for impairment. Where a property is in the process of being sold at the year end, the property is reclassified as a current asset. ## **TAXATION** The District is exempt from tax on its charitable activities. ## **FINANCIAL INSTRUMENTS** Financial assets and financial liabilities are recognised when the District becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs). Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. continued... Page 16 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **1. ACCOUNTING POLICIES - continued** ## **TAXATION** ## **CASH AND CASH EQUIVALENTS** Cash and cash equivalents include deposits held at call with banks. ## **FUND ACCOUNTING** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Designated funds are unrestricted funds earmarked by the trustees for particular purposes. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS** The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. Most ordained presbyters 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, the terms 'employer' and 'employee' are used as they would be in an employing body. The scheme is a multi-employer scheme as described in Section 28 of FRS 102 as it is not possible to attribute the scheme's assets and liabilities to specific employers. This means that contributions are accounted for as if the scheme were a defined contribution scheme. Lay employees are contractually employees and have the option of joining a multi-employer defined contribution scheme operated by TPT Retirement (formerly The Pensions Trust). The Connexion accounts for both pension schemes and shows the figures in the annual Methodist Church in Great Britain accounts. The MMPS latest actuarial valuation at 1 September 2023 shows a surplus. ## **DEBTORS AND CREDITORS RECEIVABLE/PAYABLE WITHIN 1 YEAR** Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. ## **LIABILITIES AND PROVISIONS** Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement and the amount can be measured reliably. The Resourcing Committee considers that future grant payments of multi-year grants over one year are conditional on reports from the grantee and project achievements to date to justify the payment of further instalments. The policy is therefore not to accrue for grant commitments over one year but record them as contingent liabilities. ## **VAT** Since the District is not VAT registered all input VAT is charged with the expenses to which it refers. ## **FUND ACCOUNTING** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the District. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. continued... Page 17 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY** In the application of the District's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period or in the period of the revision and future periods where the revision affects both current and future periods. The following judgements (apart from those involving estimates) have been made in the process of applying the accounting policies that have had the most significant effect on amounts recognised in the financial statements: ## - Freehold property shown at fair value. The key assumptions concerning the future, and other key sources of estimation uncertainty, at the reporting date that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year include: - Property valuation provided by the surveyor at 2 March 2026 is reasonable and there has been negligible movement in Land Registry indices between the year end and the date of valuation. ## **3. DONATIONS AND LEGACIES** ## **4.** |**DONATIONS AND LEGACIES**||| |---|---|---| |Donations
Connexional and other grants
Other income
Grants received, included in the above, are as follows:
Connexional and other grants
**INVESTMENT INCOME**
Deposit account interest|**2025**
**£**
**4,254**
**53,990**
**58,971**|2024
£
33,715
61,517
48,830| ||**117,215**|144,062| ||**2025**
**£**
**53,990**
**2025**
**£**
**101,386**|2024
£
61,517
2024
£
100,979| Grants received, included in the above, are as follows: continued... Page 18 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **5. INCOME FROM CHARITABLE ACTIVITIES** |Activity
Circuit contributions
District oversight
Contribution to Chair's stipend cost District oversight
CMTF levies
Grant funding
CPF distribution
Grant funding|**2025**
**£**
**650,112**
**50,255**
**336,949**
**233,163**
**1,270,479**|2024
£
626,196
46,457
340,733
70,679| |---|---|---| |||1,084,065| ## **6. CHARITABLE ACTIVITIES COSTS** |Grants, contributions and donations
Contributions to Methodist Church Fund
Ministry and Mission
District oversight
District merger
Support and governance costs|Direct
Costs
£
**-**
**589,699**
**210,311**
**170,835**
**88,537**
**-**
**1,059,382**|Grant
funding of
activities
(see note
7)
£
**303,645**
**-**
**-**
**-**
**-**
**-**
**303,645**|Support
costs (see
note 8)
£
**-**
**-**
**-**
**-**
**-**
**111,993**
**111,993**|Totals
£
**303,645**
**589,699**
**210,311**
**170,835**
**88,537**
**111,993**| |---|---|---|---|---| |||||**1,475,020**| The Methodist Conference levies an annual assessment on the Circuits through the several Districts to finance the Methodist Church Fund ("MCF"). The assessment is payable by the Districts who then collect Circuit assessments to cover the MCF assessment plus a contribution to District expenses and training. The allocation of the MCF assessment between Districts is based on staffing numbers at Circuit and District level. The allocation of the Circuit assessment between the Circuits is provisionally agreed between the District Treasurer and the Circuit Treasurers, subject to the approval of the District Policy Committee, and is based on a number of factors, including staffing levels and membership statistics. The Circuit Treasurers believe this produces a fairer way of allocating the costs between Circuits. Accordingly, the District cannot be said to act merely as agent for the collection of the MCF assessment and the full Circuit assessments are therefore shown as income of the District and the MCF assessment paid to the Connexion is shown as expenditure. ## **7. GRANTS PAYABLE** |**GRANTS PAYABLE**||| |---|---|---| ||**2025**|2024| ||**£**|£| |Grants, contributions and donations|**303,645**|209,147| Grants payable to institutions, included in the above, are as follows: ||**Unrestricted**|**Restricted**||| |---|---|---|---|---| ||**funds**|**funds**|**2025**|2024| ||**£**|**£**|**£**|£| |Alcester Methodist Church|**10,288**|**-**|**10,288**|-| |Birmingham Methodist Circuit|**27,417**|**-**|**27,417**|61,165| |Bromsgrove & Redditch Methodist Circuit|**1,800**|**-**|**1,800**|25,132| |Coventry & Nuneaton Methodist Circuit|**6,653**|**-**|**6,653**|27,300| |Coventry Central Hall|**53,060**|**-**|**53,060**|22,800| |Kenilworth Methodist Church|**-**|**-**|**-**|5,000| |Lozells Methodist Church|**23,611**|**-**|**23,611**|23,362| |Short Cross Methodist Church|**12,100**|**-**|**12,100**|-| continued... Page 19 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** |**7.**
**GRANTS PAYABLE - continued**
**Unrestricted**
**funds**
**£**
South Warwickshire Methodist Circuit
**59,919**
St Andrew's Methodist Church
**30,125**
The Church at Carrs Lane
**-**
The Peckwood Centre
**7,360**
Warwick / Coventry Free Church Chaplaincy
**14,000**
Wolverhampton & Shrewsbury District
**-**
Other grants less than £5,000
**30,109**
Total grants to institutions
**276,442**
Grants payable to individuals, included in the above, are as follows:
**Unrestricted**
**funds**
**£**
Grants less than £5,000
**1,966**
Total grants to individuals
**1,966**
**8.**
**SUPPORT COSTS**
Support and governance costs
Support costs, included in the above, are as follows:
**MANAGEMENT**
Wages
Social security
Pensions
Other employment costs
Training and supervision
Trustees' expenses
Administrative costs
Subscriptions
Professional fees
Other expenses
Book-keeping|**Restricted**
**funds**
**£**
**-**
**-**
**25,237**
**-**
**-**
**-**
**-**
**25,237**
**Restricted**
**funds**
**£**
**-**
**-**
Management
£
**105,393**|**2025**
**£**
**59,919**
**30,125**
**25,237**
**7,360**
**14,000**
**-**
**30,109**
**301,679**
**2025**
**£**
**1,966**
**1,966**
Governance
costs
£
**6,600**
**2025**
Support
and
governance
costs
**£**
**34,842**
**2,716**
**3,053**
**8,496**
**8,202**
**963**
**12,982**
**1,269**
**1,697**
**1,060**
**30,113**
**105,393**||2024
£
3,912
-
9,200
-
20,457
12,500
(4,680)
206,148
2024
£
2,999
2,999
Totals
£
**111,993**
2024
Total
activities
£
**41,620**
**2,457**
**2,949**
**8,772**
**14,205**
**827**
**13,600**
**2,070**
**12,069**
**6,890**
**1,980**
**107,439**| |---|---|---|---|---| |||||| |||||| |||||| |||||| continued... Page 20 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **8. SUPPORT COSTS - continued GOVERNANCE COSTS** |**SUPPORT COSTS - continued**
**GOVERNANCE COSTS**||| |---|---|---| ||**2025**|2024| ||Support|| ||and|| ||governance|Total| ||costs|activities| ||**£**|£| |Auditors' remuneration|**5,000**|**4,800**| |Auditors' remuneration for non-audit work|**1,600**|**1,500**| ||**6,600**|**6,300**| ## **9. TRUSTEES' REMUNERATION AND BENEFITS** 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, employers' NIC and employers' pension contributions of the Chair of the District are paid by the Methodist Connexion. The Chair's other costs are met mostly by the District (see note 10). Breakdown of Chair costs (remuneration and expenses): |Stipend of Chair of District
Employer's National Insurance Contributions
Employer's Pension Contributions
District Chair Allowance
Computers In Ministry Allowance
**Cash cost paid by the Connexion (see SOFA)**
Chair's expenses
**Total cost**|**2025**
**£**
**31,020**
**5,065**
**6,204**
**7,755**
**211**
**50,255**
**4,192**
**54,447**|2024
£
29,040
4,155
5,808
7,260
194| |---|---|---| |||46,457| |||1,648| |||48,105| With the exception of the District Chair, there was 1 trustee who received employment remuneration for their role as Treasurer totalling £9,649. continued... Page 21 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **9. TRUSTEES' REMUNERATION AND BENEFITS - continued** ## **TRUSTEES' EXPENSES** 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. There were trustees' expenses of £963 paid during the year ended 31 August 2025 (2024: £827). ## **10. PEOPLE COSTS** |Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Average|**2025**
**£**
**236,100**
**24,606**
**18,223**
**278,929**
**2025**
**8**|2024
£
198,537
16,060
17,139| |---|---|---| |||231,736| |||2024
7| No employees received emoluments in excess of £60,000. In addition to the costs above, stipend related costs of the Chair of £50,044 (2024: £46,263) are borne by the Methodist Connexion. These costs appear in both the income of the District and expenditure of the District. During the year, the charity made redundancy payments totalling £35,290 to 2 employees due to a restructuring of services ahead of the merger. This comprised enhanced payments of three weeks for each week of service. Further costs of £38,351 (2024: £nil) were incurred for merger project management and consultancy services. Additionally, £7,107 (2024: £nil) was recharged to the District for the services of safeguarding. ## **Key management personnel** The key management personnel of the charity include the Trustees (including the District Chair) and the District Secretary, who was employed from May 2025 to oversee the work of the merged districts. Key management personnel remuneration for the year (including the District Chair) totalled £79,883 (2024: £53,159). ## **11. PENSION COMMITMENTS** The pension contributions of the Chair of the District are paid by the Methodist Connexion to the Methodist Ministers Pension Scheme (MMPS), a defined benefit scheme. The pension contributions of Methodist ministers are paid to the MMPS. The District contributes to the individual pension plans of certain employees. The assets of these schemes are held separately from those of the District in independently administered funds. Lay employees are contractually employees of the District and belong to the multi-employer defined contribution scheme operated by TPT Retirement (formerly The Pension Trust). The total contributions for the year amounted to £18,223 (2024: £16,050) and outstanding contributions as at 31 August 2025 amounted to £nil (2024: £nil). continued... Page 22 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **12. TANGIBLE FIXED ASSETS** |**COST OR VALUATION**
At 1 September 2024
Additions
Revaluations
At 31 August 2025
**NET BOOK VALUE**
At 31 August 2025
At 31 August 2024|Freehold
property
£
**4,202,922**
**496,739**
**(547,922)**
**4,151,739**
**4,151,739**
4,202,922| |---|---| Manses and properties were subject to professional valuation at 2 March 2026. The methods and significant assumptions used to ascertain the fair value of £4,151,739, a net impairment of £547,922, are as follows: - Professional valuation at 2 March 2026 by Centrick Valuation & Professional Services. - Professional valuations indexed back using appropriate Land Registry indices. There was negligible movement in the indices between the year end and 2 March 2026. - One property was purchased during the year and was not revalued. - It is not possible to ascertain the original cost of some of the properties held by the District. The fair value of all properties has therefore been transferred to the Property Assets Fund (designated). The freehold properties comprise Amesbury Road, valued at £875,000 (2024: £750,000), Wesley International House, valued at £2,290,000 (2024: £3,000,000) and Grove Avenue valued at £490,000 (2024: £452,922). Whilst Wesley International House is owned by the Trustees for Methodist Church Purposes on trust for West Midlands Methodist District, the property is managed by Birmingham International Student Homes, a separate charity (registered charity number 1095730). West Midlands Methodist District authorises Birmingham International Student Homes to be responsible for all aspects of the upkeep and maintenance of Wesley International House except final ownership. continued... Page 23 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Prepayments and accrued income
**14.**
**CASH AT BANK**
Breakdown of cash at bank and in hand:
TMCP accounts
CFB accounts
Other accounts
**15.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other loans (see note 16)
Accruals and deferred income
**16.**
**LOANS**
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Loans from other districts||**2025**
**£**
**13,969**
**2025**
**£**
**1,226,274**
**527,479**
**14,441**
**1,768,194**|||2024
£
13,861
2024
£
1,311,703
546,273
42,770| |---|---|---|---|---|---| ||||||| |||||1,900,746|| |||**2025**
**£**
**350,000**
**17,213**
**367,213**
**2025**
**£**
**350,000**||2024
£
-
16,978
16,978
2024
£
-|| A loan of £350,000 has been received from Wolverhampton and Shrewsbury Methodist District to facilitate the purchase of a manse for the incoming Chair of the merged District. The loan is interest free and will be cancelled on the merging of the respective districts as at 1 September 2025. ## **17. ANALYSIS OF NET ASSETS BETWEEN FUNDS** |Fixed assets
Current assets
Current liabilities|Unrestricted
funds
£
**3,661,739**
**1,221,538**
**(367,213)**
**4,516,064**|Restricted
funds
£
**490,000**
**560,625**
**-**
**1,050,625**|**2025**
Total
funds
**£**
**4,151,739**
**1,782,163**
**(367,213)**
**5,566,689**|2024
Total
funds
£
4,202,922
1,914,607
(16,978| |---|---|---|---|---| |||||6,100,551| continued... Page 24 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **18. MOVEMENT IN FUNDS** |**Unrestricted funds**
General Fund
Fixed Asset Property Fund
Manse Major Repair Fund
Exchange Visits Fund
District Inclusive Gathering Fund
Finance Management Fund
Joint District Fund
Rural Fund
Training Fund
District Advance Fund
Mission and Youth Fund
Safeguarding Fund
Benevolent Fund
**Restricted funds**
Inclusive Gathering Birmingham Fund
Street Ecclesial Community Fund
City Centre Fund
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General Fund
Fixed Asset Property Fund
Manse Major Repair Fund
District Inclusive Gathering Fund
Finance Management Fund
Joint District Fund
Rural Fund
Training Fund
District Advance Fund
Mission and Youth Fund
Safeguarding Fund
Benevolent Fund
**Restricted funds**
Inclusive Gathering Birmingham Fund
Street Ecclesial Community Fund
City Centre Fund
**TOTAL FUNDS**|At 1.9.24
£
**65,445**
**3,750,000**
**20,208**
**1,595**
**408**
**17,716**
**3,150**
**6**
**343**
**1,107,676**
**56,779**
**19,657**
**1,149**
**5,044,132**
**16,090**
**24,257**
**1,016,072**
**1,056,419**
**6,100,551**

Incoming
resources
£
**731,821**
**-**
**987**
**-**
**-**
**-**
**-**
**2,150**
**653,080**
**11,657**
**37,568**
**-**
**1,437,263**
**3,435**
**23,219**
**25,163**
**51,817**
**1,489,080**|Net
movement
in funds
£
**11,057**
**(585,000)**
**987**
**-**
**(5,752)**
**(45,131)**
**(99,896)**
**(4,273)**
**(14,879)**
**380,364**
**(90,966)**
**(37,565)**
**(495)**
**(491,549)**
**(48,313)**
**(29,174)**
**35,174**
**(42,313)**
**(533,862)**
Resources
expended
£
**(720,764)**
**-**
**-**
**(5,752)**
**(45,131)**
**(99,896)**
**(4,273)**
**(17,029)**
**(272,716)**
**(102,623)**
**(75,133)**
**(495)**
**(1,343,812)**
**(51,748)**
**(52,393)**
**(27,067)**
**(131,208)**
**(1,475,020)**|Transfers
between
funds
£
**815**
**496,739**
**4,000**
**(1,595)**
**6,299**
**27,415**
**96,746**
**4,551**
**14,536**
**(755,208)**
**34,187**
**31,996**
**3,000**
**(36,519)**
**34,947**
**36,325**
**(34,753)**
**36,519**
**-**
Gains and
losses
£
**-**
**(585,000)**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**(585,000)**
**-**
**-**
**37,078**
**37,078**
**(547,922)**|At
31.8.25
£
**77,317**
**3,661,739**
**25,195**
**-**
**955**
**-**
**-**
**284**
**-**
**732,832**
**-**
**14,088**
**3,654**
**4,516,064**
**2,724**
**31,408**
**1,016,493**
**1,050,625**
**5,566,689**
Movement
in funds
£
**11,057**
**(585,000)**
**987**
**(5,752)**
**(45,131)**
**(99,896)**
**(4,273)**
**(14,879)**
**380,364**
**(90,966)**
**(37,565)**
**(495)**
**(491,549)**
**(48,313)**
**(29,174)**
**35,174**
**(42,313)**
**(533,862)**| |---|---|---|---|---| continued... Page 25 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **18. MOVEMENT IN FUNDS - continued** ## **Comparatives for movement in funds** |**Unrestricted funds**
General Fund
Fixed Asset Property Fund
Manse Major Repair Fund
Exchange Visits Fund
District Inclusive Gathering Fund
Finance Management Fund
Joint District Fund
Rural Fund
Training Fund
District Advance Fund
Mission and Youth Fund
Safeguarding Fund
Benevolent Fund
**Restricted funds**
District Advance Fund
Chaplaincy Fund
Mission and Youth Fund
Safeguarding Fund
Benevolent Fund
Inclusive Gathering Birmingham Fund
Street Ecclesial Community Fund
City Centre Fund
**TOTAL FUNDS**|At 1.9.23
£
49,840
3,750,000
15,270
-
-
-
-
-
-
-
-
-
-|Net
movement
in funds
£
26,605
-
938
(2,505)
(3,091)
(31,284)
(1,350)
(3,294)
(14,657)
-
-
-
-|Transfers
between
funds
£
(11,000)
-
4,000
4,100
3,499
49,000
4,500
3,300
15,000
1,107,676
56,779
19,657
1,149|At
31.8.24
£
65,445
3,750,000
20,208
1,595
408
17,716
3,150
6
343
1,107,676
56,779
19,657
1,149
5,044,132
-
-
-
-
-
16,090
24,257
1,016,072
1,056,419
6,100,551| |---|---|---|---|---| ||3,815,110
943,139
8,873
72,279
20,549
4,148
12,562
16,676
1,054,226|(28,638)
335,818
-
(58,000)
(31,642)
(2,999)
(36,472)
(21,598)
(3,480)|1,257,660
(1,278,957)
(8,873)
(14,279)
11,093
(1,149)
40,000
29,179
(34,674)|| ||2,132,452
5,947,562|181,627
152,989|(1,257,660)
-|| continued... Page 26 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **18. MOVEMENT IN FUNDS - continued** Comparative net movement in funds, included in the above are as follows: |**Unrestricted funds**
General Fund
Manse Major Repair Fund
Exchange Visits Fund
District Inclusive Gathering Fund
Finance Management Fund
Joint District Fund
Rural Fund
Training Fund
**Restricted funds**
District Advance Fund
Mission and Youth Fund
Safeguarding Fund
Benevolent Fund
Inclusive Gathering Birmingham Fund
Street Ecclesial Community Fund
City Centre Fund
**TOTAL FUNDS**|Incoming
resources
£
640,325
938
-
-
-
-
-
2,172
643,435
554,550
12,443
29,970
-
29,836
28,299
30,573
685,671
1,329,106|Resources
expended
£
(613,720)
-
(2,505)
(3,091)
(31,284)
(1,350)
(3,294)
(16,829)
(672,073)
(218,732)
(70,443)
(61,612)
(2,999)
(66,308)
(49,897)
(34,053)
(504,044)
(1,176,117)|Movement
in funds
£
26,605
938
(2,505)
(3,091)
(31,284)
(1,350)
(3,294)
(14,657)
(28,638)
335,818
(58,000)
(31,642)
(2,999)
(36,472)
(21,598)
(3,480)
181,627
152,989| |---|---|---|---| ## **Purpose of Unrestricted Funds** ## General Fund This fund represents funds for use at the discretion of the trustees in furtherance of the general objectives of the District for day-to-day running costs. ## **Designated Funds** ## District Advance Fund This fund provides grants to churches and circuits within the District. These grants, along with amounts transferred from DAF into other district funds for work at district level, are authorised by the District Resourcing Mission Committee. ## Fixed Asset Property Fund (previously Capital Revaluation Fund) This fund represents the balance sheet value of tangible fixed assets as revalued at £3,661,739. It has not been possible to distinguish between the original cost and the revaluation element for all properties as some have been held for many years. ## Manse Major Repair Fund Amounts are transferred annually from the General Fund towards future major repairs on the district manse. ## District Inclusive Gathering Fund This fund supports the work of District IGB, a LGBTQIA+ affirming, justice-seeking church for all. ## Finance Management Fund This fund supports the financial management of the District. ## Joint District Fund This fund supports costs incurred concerning the merger due to take effect between the Birmingham District of the Methodist Church and the Wolverhampton & Shrewsbury District of the Methodist Church. continued... Page 27 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **18. MOVEMENT IN FUNDS - continued** ## Rural Fund This fund is a project whose aim is to support mission in rural communities. ## Training Fund This fund supports training costs incurred by the District. ## Mission and Youth Fund This fund supports the work of the mission adviser and the youth engagement officer. ## Safeguarding Fund This fund supports the work of two safeguarding officers whose combined costs are shared with Wolverhampton and Shrewsbury Methodist District. ## Benevolent Fund This fund is for use at the Chair's discretion to reimburse costs incurred in cases of hardship and need. ## **Restricted Funds** ## Inclusive Gathering Birmingham Fund This fund supports the work of IGB, a LGBTQIA+ affirming, justice-seeking church for all. ## Street Ecclesial Community Fund This fund is for the work of Street Banquet, engaging the homelessness sector, providing outreach and chaplaincy. ## City Centre Fund This fund supports God's work in Birmingham City Centre, including grants to Inclusive Gathering Birmingham and Street Ecclesial Community. The fund, managed by Birmingham Methodist Circuit until 1 September 2022 and transferred to the District on that date, represents the remaining proceeds from the sale of the head lease of Birmingham City Mission in 2014-15, plus 47 Grove Avenue, the manse occupied by Rev Neil Johnson, the pastor of Street Ecclesial Community. ## **TRANSFERS BETWEEN FUNDS** Transfers between funds as at 31 August 2024 and 31 August 2025 represent movements between the District's General Fund and the District's designated funds and movements between restricted funds. ## **19. FUTURE GRANT COMMITMENTS AND OTHER CONTINGENT LIABILITIES** In accordance with the accounting policy, the District does not recognise decisions to pay grants as a commitment. ## **District Advance Fund** Future grant pledges from the District Advance Fund are shown below. As at 31 August 2025 future grant pledges from the District Advance Fund were as follows: |**Year to**
31 August 2026
31 August 2027
31 August 2028|**£**
448,508
96,943
53,952| |---|---| ||**599,403**| continued... Page 28 **WEST MIDLANDS METHODIST DISTRICT (FORMERLY BIRMINGHAM DISTRICT OF THE METHODIST CHURCH)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025** ## **19. FUTURE GRANT COMMITMENTS AND OTHER CONTINGENT LIABILITIES - continued** ## **City Centre Fund** Future grant pledges from the City Centre Fund are shown below. As at 31 August 2025 future grant pledges from the City Centre Fund were as follows: |**Year to**
31 August 2026
31 August 2027
31 August 2028|**£**
44,504
35,123
7,500| |---|---| ||**87,127**| All such future payments are conditional upon the Resourcing Mission Committee being satisfied, on the basis of progress reports from the grantee, that the project's achievements to date justify the payment of further instalments of the grant. ## **Other** Estimated employer debt on withdrawal of former employee pensions under the Growth Plan 3 scheme is £2,191 at the latest valuation date, being 30 September 2023. ## **20. RELATED PARTY DISCLOSURES** All of the District trustees are members of one or another church and circuit within the District and may be trustees at their churches and/or circuits. Connected organisations include the Methodist Connexion, circuits and churches within the District, other Methodist Districts in Great Britain, CFB and TMCP. All of these entities have their own trustees or directors and autonomous administration such that the West Midlands Methodist District has no significant influence over any of them, nor they over the District. They are therefore not considered related parties. There were no related party transactions for the year ended 31 August 2025 (2024: no transactions). None of the District trustees made donations directly to the District during the year or preceding year. ## **21. POST BALANCE SHEET EVENTS** ## **Merger between the Birmingham District of the Methodist Church** ## **and the Wolverhampton & Shrewsbury District of the Methodist Church** The proposed merger between the Birmingham District of the Methodist Church and the Wolverhampton & Shrewsbury District of the Methodist Church was approved by the two District Synods in April 2024. It was recommended and approved at the Methodist Conference in June 2024 that the two Districts will become one combined West Midlands District with effect from September 2025. Page 29