OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-08-31-accounts

Registered Charity Number: 1134234

Aire and Calder Methodist Circuit

Trustees’ Annual Report and Financial Statements For the Year Ended 31 August 2021

Aire and Calder Methodist Circuit

Contents

Page Charity information ........................................................................................... 1 Report of the Trustees ....................................................................................... 3 Independent Auditor’s Report ............................................................................. 8 Statement of Financial Activities ....................................................................... 11 Balance Sheet ................................................................................................ 12 Statement of Cash Flows ................................................................................. 13 Notes to the Financial Statements ..................................................................... 14

Aire and Calder Methodist Circuit

Charity information

Charity Registration Number :

1134234

Circuit Number:

27/17

The Circuit comprises 30 churches:

Ackworth, Airedale, Altofts, Central, Crigglestone, Featherstone, Horbury, Kippax, Lindale, Lofthouse, Methley, Micklegate, Newmillerdam, Normanton, Parkside, Ropewalk, Rothwell, Sandal, Stanley, Streethouse, The King’s Way, Trinity Castleford, Trinity Netherton, Trinity South Elmsall, Trinity Wakefield, Upton, Walton, West Wakefield, Woodlesford and Wrenthorpe.

Superintendent Minister :

Revd, Barry Owen 17 Clarkson Court Normanton WF6 1NH

Circuit Office:

The Methodist Church 253 Barnsley Road Wakefield WF1 5NU

Circuit Treasurer:

Mr JM Roberts

Trustees:

All members of the Circuit Meeting are Trustees and are listed in Note 15.

Circuit Ministers (full time):

Revd. A Checkley Revd. N Bishop Revd. RE Gilson-Webb Deacon S Dilley Revd. R Drost Revd. MD Jones Revd. J Kaiga Revd. AP Longshaw Revd. B Owen Revd. K Williams

Circuit Ministers (part time):

Revd. N Kaiga

Other appointments:

MA Burland - Children and Families Worker L Evans – Children and Families Worker P Ridley – Pastoral Support HA Turner – Circuit Administrator

1

Aire and Calder Methodist Circuit

Charity information (Continued)

Circuit stewards: Mrs V Brook Mr P Finneran Mrs J Kershaw Mr D Lane Mr I Pattison Mr JM Roberts Mrs D Storey Bankers: Yorkshire Bank 6-10 Northgate Wakefield WF1 1TA Investment Managers: Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JD Auditors: Azets Audit Services Limited 33 Park Place Leeds LS1 2RY

2

Aire and Calder Methodist Circuit

Trustees’ Annual Report for the Year Ended 31 August 2021

The Trustees present their annual report with the financial statements of the charity for the year ended 31 August 2021.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the financial statements and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland.

Reference and Administrative Details

The Charity Information on page 1 forms part of this report.

Structure, Governance and Management

The Governing Document: Deed Of Union (1932) and Methodist Church Act (1976) Constituted: Act of Parliament Selection of Trustees: Appointed by local churches and existing Trustees Ministers are automatically Trustees Structure: Part of the Yorkshire West District of the Methodist Church Accountable to the Methodist Conference Risks: Considered by the Leadership Team Take professional advice when required Adopted Safeguarding Policy

All the affairs of the circuit conform to the standing orders set out in The Constitutional Practice and Discipline of the Methodist Church (CPD).

Circuit Meeting : In the Aire and Calder Circuit we call this the Circuit Assembly. It meets three times a year and its constitution is set out in CPD (SO 510). In 202021, 139 people served at sometime during the year as Trustees. Circuit This is the circuit’s Leadership Team. It deals with matters delegated to it by Executive: the assembly, offers guidance to the circuit and constantly reviews the personnel, property and financial resources of the circuit. Circuit Seven circuit stewards have been appointed with the following areas of Stewards: responsibility: Human Resources (Ministers and Deacons), Human Resources (Lay Appointments), Children and Young People, Church Life, Finance, Missions, Property and Circuit Assembly Secretary.

Pay Policy for Ministers

Stipends and allowances for Presbyters and Deacons (collectively Ministers) are set annually by the Methodist Conference, and the Circuit is responsible for meeting those costs for all Ministers stationed by the Conference in the Circuit.

Risk Management

The Trustees have carried out ongoing assessments of the charity’s activities setting out the major opportunities available to the charity and the risks to which it is exposed. These risks are identified by the Circuit Executive and are risk assessed.

3

Aire and Calder Methodist Circuit

Trustees’ Annual Report for the Year Ended 31 August 2021 (continued)

Structure, Governance and Management (continued)

The principal risks and uncertainties faced by the charity at the time of writing are as follows:

The Trustees have considered their responsibilities under legislation including health and safety, employment law and safeguarding. Systems and procedures have been implemented to manage specific risks that have been identified, including training for all appropriate persons as necessary.

Volunteers

Aire and Calder Methodist Circuit is supported by a team of active volunteers. The charity is grateful to all volunteers for the skills and support they so willingly bring to the charity.

Objectives and Activities

The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of:

When reviewing the aims and objectives of the charity, and in planning future activities, the Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission.

Mission statement

The Aire and Calder Circuit is committed to:

Resourcing mission

The Circuit will use resources for creative, imaginative, mission based projects. These may be paid by the charity in the form of grants to external parties. Whilst committed to ensuring that every church receives suitable pastoral care it will endeavour to give appropriate support to churches that demonstrate they are outward looking, mission focused, not averse to risk taking and where possible and appropriate seeking to work in partnership with others.

4

Aire and Calder Methodist Circuit

Trustees’ Annual Report for the Year Ended 31 August 2021 (continued)

Achievements and Performance

The year has been a difficult one for all our Churches due to Covid, with many finding it very difficult to open when allowed to do so and it was only in the Summer of 2021 that the majority felt able to do so with safety. During this period all our Churches suffered financially, most having to rely on balances brought forward from earlier years. Methods of giving changed, many individuals using Standing Orders. Cash was pushed through the letter boxes of Church Treasurers. The result was that weekly offerings held up very well. It was in the area of lettings and fund raising activities that Churches suffered the worst financially. However things are now improving financially and getting back to normal.

Many services, bible study and fellowship groups were held on Zoom, together with Church Council Meetings, Circuit Committee meetings and the Assembly. It has been good that in the late summer we were able to meet once again in person. Zoom has meant folks who are housebound, in hospital, Care Homes, have moved away or unable to attend in-person worship (when churches re-opened) have been catered for and we do not want to lose this option. Whilst it is good to be able to join together with 'in-person worship' in church buildings, we continue to offer zoom / hybrid worship, on the Plan, for those unable to attend a physical building.

The Church Life and Mission Forum continued to meet with an evening on Dementia as did the Children and Youth Network to plan the activities for 2021/22.

Led by our Superintendent Minister, Rev. Barry Owen our ministers have been very busy undertaking their oversight in many different ways due to the pandemic including “Zoom” services, the use of “You Tube” and printed services. Keeping in contact with members and adherents by telephone, e-mail, “WhatsApp”, Facebook and other social media.

The year started with the arrival of a new Minister, Rev Rob Cotton, who took oversight of Crigglestone, Newmillerdam, Sandal and Walton. This was a difficult time for him with most Churches closed for worship. However, he soon settled in. He was responsible for three successful “Drive in Carol Services” in Wakefield Trinity’s Rugby League car park.

During the year a group was set up under Colin Ride, supported by Rev Rob Cotton, to develop Lakeside (Newmillerdam Methodist Church) into a Creative Arts Centre. An Arts Festival was held in late 2021 with further development work being planned.

At the end of last year we said goodbye to Vicky Welsh, one of our Children and Families Workers as she began her training for the Diaconate Order. She was replaced by Lyndsey Evans who soon settled in due to her experience as a member of one of the Churches in the Circuit.

Our Church at Methley came to the conclusion that their premises needed so much work doing to bring it up to a reasonable state of repair that they would be better becoming a “Church without a Chapel” and work continues in order to make this happen.

Last year St John’s Ossett closed and was eventually sold during 2020/21. The Manse at Willow Gardens, Wakefield, which had been let for several year was sold to the sitting tenants.

The Circuit was left with the responsibility for the Graveyard at St John’s and this has been maintained during the year.

We engaged consultants to help us with possible development works at:

5

Aire and Calder Methodist Circuit

Trustees’ Annual Report for the Year Ended 31 August 2021 (continued)

We have continued to:

At the end of the year we said our farewells to Rev Andrew Longshaw and Deacon Sharon Dilley as they moved on to other appointments.

Financial Review

The Statement of Financial Activities shows net expenditure for the year, before net gains / losses on investments, of £57,931 (2020 net expenditure of £41,771) and the total reserves at 31 August 2021 stand at £3,537,525 (2020: £3,532,647). The Trustees consider the financial position to be satisfactory.

Principal funding sources for the year to 31 August 2021 are the assessments received from the churches within the Circuit, district grants and rents from lettings. The principal items of expenditure are Ministers’ stipends, staff salaries, the district levy, and manse repairs and improvements.

The Trustees have a Reserves Policy whereby unrestricted Funds are held in the current account at Virgin Money, formerly the Yorkshire Bank; the Deposit Account at Methodist Chapel Aid; the Deposit Fund of the Central Finance Board; and in the Circuit’s Model Trust Fund with TMCP.

The Circuit has considered the advice from the Charity Commission with regard to the level of reserves it should hold under the relevant SORP. It aims ideally to hold in reserve sufficient money in its unrestricted Funds to cover three month’s general expenditure i.e. about. £200,000. The reasons for this are:

At 31 August 2021 the free reserves amounted to £516,989 which is above the minimum level.

Plans for the Future

  1. To agree a new Vision Statement and produce a five year plan.

  2. To support major redevelopment schemes as funds become available.

  3. To continue to support the development of the mission of the churches.

  4. To continue to support Trinity Mission.

  5. To continue developing the scheme at Newmillerdam by creating a Creative Arts Centre mission

6

Aire and Calder Methodist Circuit

Trustees’ Annual Report for the Year Ended 31 August 2021 (continued)

Funds held as custodian on behalf of others

The Charity acts as custodian Trustee for the funds listed in note 18. These funds are eliminated during the financial statements preparation. The safe custody and segregation of this income was achieved by creating separate projects in the charity’s book-keeping system so that all income and expenditure can be clearly accounted for and audited.

Trustees’ Responsibilities

The charity Trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Circuit Assembly to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the net income or net expenditure of the Charity for that period. In preparing those financial statements, the Circuit Assembly has:

The Circuit Assembly is responsible for keeping 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 applicable Charities (Accounts and Reports) Regulations.

It is also responsible for safeguarding the assets of the charity and hence for taking steps for the prevention and detection of fraud and other irregularities.

Statement of Disclosure of Information to Auditors

The Trustees of the charity who held office at the date of approval of this annual report confirm that:

Approved on 10 March 2022 and signed on behalf of the Circuit by:

Revd. B. Owen

Superintendent Minister and Chair of the Circuit Assembly

7

Aire and Calder Methodist Circuit

Independent Auditor’s Report to the Trustees of Aire and Calder Methodist Circuit for the Year Ended 31 August 2021

Opinion

We have audited the financial statements of Aire and Calder Methodist Circuit for the year ended 31 August 2021 which comprise Statement of Financial Activities, the Balance Sheet, Cash Flow Statements 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor’s 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 Trustee’s Report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

8

Aire and Calder Methodist Circuit

Independent Auditor’s Report to the Trustees of Aire and Calder Methodist Circuit for the Year Ended 31 August 2021 (continued)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of the Trustees

As explained more fully in the Trustees Responsibility Statement, the Trustees are responsible for the preparation of 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.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 an auditor’s report 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.

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 auditor’s report.

Extent to which the audit was capable of identifying irregularities, including fraud

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the trustees, and from inspection of the charity’s regulatory and legal correspondence. We discussed with the trustees the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance during the audit.

The charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including charities legislation), pensions legislation, taxation legislation and further laws and regulations that could indirectly affect the financial statements, comprising environmental, health and safety and employment legislation, and, in the current climate, Covid regulations. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and inspection of regulatory and legal correspondence, if any. These procedures did not identify any potentially material actual or suspected non-compliance.

9

Aire and Calder Methodist Circuit

Independent Auditor’s Report to the Trustees of Aire and Calder Methodist Circuit for the Year Ended 31 August 2021 (continued)

To identify risks of material misstatement due to fraud we considered the opportunities and incentives and pressures that may exist within the charity to commit fraud. Our risk assessment procedures included: enquiry of the trustees to understand the high level policies and procedures in place to prevent and detect fraud, reading board minutes and considering performance measure in place. We communicated identified fraud risks throughout our team and remained alert to any indications of fraud during the audit.

As a result of these procedures we identified the greatest potential for fraud in the following areas:

These risks arise due to a potential desire to present the results in a differing light to suit management objectives. As required by auditing standards we also identified and addressed the risk of management override of controls.

As required by auditing standards we also identified and addressed the risk of management override of controls.

We performed the following procedures to address the risks of fraud identified:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect noncompliance with all laws and regulations.

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 Trustee those matters we are required to state to them in an auditor’s 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.

Jessica Lawrence Azets Audit Services Limited Chartered Accountants and Registered Auditors 33 Park Place Leeds LS1 2RY

Date:

10

Aire and Calder Methodist Circuit

Statement of Financial Activities for the Year Ended 31 August 2021

Unrestricted Restricted Endowment Total Total
Note funds Funds Funds 2021 2020
£ £ £ £
Income and endowments from:
Donations – assessment or share 627,980 200 - 628,180 603,962
Government grants - - - - 10,640
Charitable activities 3 199,255 16,500 - 215,755 138,367
Other trading activities 11,450 - - 11,450 19,391
Investments 1,418 20 3,917 5,355 7,371
Other income 3,947 - - 3,947 855
Total income and endowments 844,050 16,720 3,917 864,687 780,586
Expenditure on:
Charitable Activities 4 903,360 16,505 2,753 922,618 822,357
Total expenditure 903,360 16,505 2,753 922,618 822,357
Net income / (expenditure) before
other recognised gains		 (59,310) 215 1,164 (57,931) (41,771)
Gains on disposal of fixed assets 23,656 - - 23,656 -
Realised and unrealised (losses) / gains on
investments 9 - 163 38,990 39,153 (3,830)
Transfers between funds 1,179 (15) (1,164) - -
Net movement in funds (34,475) 363 38,990 4,878 (45,601)
Reconciliation of funds:
Funds brought forward 13,14 3,317,763 2,484 212,400 3,532,647 3,578,248
Funds carried forward 13,14 3,283,288 2,847 251,390 3,537,525 3,532,647

A fully detailed Statement of Financial Activities for the year ending 31 August 2020 is shown in note 21 to the financial statements.

There were no recognised gains and losses for 2021 and 2020 other than those included in the Statement of Financial Activities.

All income and expenditure derive from continuing activities.

11

Aire and Calder Methodist Circuit

Balance Sheet as at 31 August 2021

Unrestricted Restricted
Endowment		 Total Total
Note funds funds funds 2021 2020
£ £ £ £ £
Fixed Assets
Tangible assets 8 2,753,299 - - 2,753,299 2,953,299
Investments 9 - - 251,390 251,390 212,400
Longterm Loan 10 5,000 - - 5,000 5,000
2,758,299 - 251,390 3,009,689 3,170,699
Current Assets
Debtors 11 34,041 - - 34,041 31,108
Short term cash investments 582,447 2,847 - 585,294 403,817
Cash at Bank 18,153 - - 18,153 22,134
634,641 2,847 - 637,488 457,059
Creditors – Due within one
year		 12 (109,652) - - (109,652) (95,111)
Net Current Assets 524,989 2,847 - 527,836 361,948
Total Net Assets 13,14 3,283,288 2,847 251,390 3,537,525 3,532,647
Funds of the Circuit:
Unrestricted funds 13, 14 3,283,288 - - 3,283,288 3,317,763
Restricted funds 13, 14 - 2,847 - 2,847 2,484
Endowment funds 13, 14 - - 251,390 251,390 212,400
Total Funds 13, 14 3,283,288 2,847 251,390 3,537,525 3,532,647

These financial statements were approved by the Circuit Assembly on 10[th] March 2022. and signed on its behalf by:

The notes on pages 14 to 25 form part of these financial statements.

Revd. B. Owen

Superintendent Minister and Chair of the Circuit Assembly

12

Aire and Calder Methodist Circuit

Statement of Cash Flows for the Year Ended 31 August 2021

Note 2021 2020
£ £
Cash flows from operating activities:
Net cashprovided byoperatingactivities 19 (51,515) 43,683
Cash flows from investing activities:
Investment income received 5,355 7,371
Proceeds from sale of fixed assets 223,656 -
Net cashprovided by investing activities 229,011 7,371
Change in cash and cash equivalents in the year 177,496 51,054
Cash and cash equivalents at the beginningof theyear 425,951 374,897
Cash and cash equivalents at the end of theyear 603,447 425,951
Cash and cash equivalents include:
Short term cash investments 585,294 403,817
Cash at bank 18,153 22,134
Total 603,447 425,951

13

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Charity information

Aire and Calder Methodist Circuit is a charitable trust registered with the Charity Commission in England and Wales under the registered number 1134234. The principal address is 17 Clarkson Court, Normanton, WF6 1NH.

Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements are prepared in sterling which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.

Aire and Calder Methodist Circuit meets the definition of a public benefit entity under FRS102.

Going concern

The Trustees have prepared financial projections, taking into consideration the current economic climate and its potential impact on the sources of income and planned expenditure. They have a reasonable expectation that adequate financial resources are available to enable the charity to continue in operational existence for the foreseeable future and have adequate contingency plans in the event that income streams are reduced. Whilst the global economy has been significantly impacted by the COVID-19 virus, the charity still has reserves sufficient to meet its immediate requirements. Consequently the financial statements have therefore been prepared on the basis that the charity is a going concern.

Income

Income represents all amounts which become available to the charity but excludes gains on investments. Donations are recognisable when the charity becomes entitled to receive the funds, when it is probable that the funds will be received and that they can be measured with sufficient accuracy. Investment income is recognised on an accruals basis and comprises of interest receivable during the accounting period and gains in market value of investments held during the period. Sale proceeds from the sale of assets not previously capitalised are shown net of the property levy where there is no replacement scheme for those assets. The value of services provided by volunteers is not included.

Grants are recognised in full in the statement of financial activities in the period in which they are receivable.

Expenditure

Expenditure is recognised in the period in which it is incurred and includes attributable VAT which cannot be recovered. Charitable expenditure comprises those costs incurred by the charity in the deliverance of its activities and services for its beneficiaries. It includes both costs that can be directly allocated to such activities and those costs of an indirect nature necessary to support them.

Support costs include those costs incurred in supporting the work of the charity.

14

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

1. Accounting Policies (continued)

Custodian Funds

Funds held by the charity as a custodian trustee are excluded from the income and expenditure of the charity and the balance held recognised as a liability within the financial statements.

Fund accounting

The funds held constitute:

Unrestricted general funds held for any purpose of the Circuit which are unrestricted. The Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as Unrestricted.

Unrestricted designated funds are held for specific purposes as determined by the Trustees.

Restricted funds represent grants, donations and legacies received which are allocated by the donor for a particular project or activity.

Endowment funds which represent gifts, the capital normally being unavailable for spending, and the income from which is either restricted or unrestricted. Details of each material fund are disclosed in note 13 to these financial statements.

Tangible fixed assets for use by the Circuit

A tangible fixed asset is capitalised if its expected useful life exceeds one year, and costs £1,000 or more. The Circuit Assembly may provide a reasonable estimate of the buildings’ current value to the circuit. Properties have been included at the Trustees’ valuation. Tangible fixed assets are stated at cost less depreciation. Freehold land is not depreciated.

It continues to be the Circuit’s policy not to provide depreciation on freehold property as, in the opinion of the Trustees, its estimated residual value at the end of its economic life is expected to be at least carrying value so that any depreciation charge would be immaterial. The Trustees will arrange periodic impairment reviews.

Transfer of church buildings into the circuit

Where a church building that is no longer under the stewardship of the church but where responsibility for stewardship has been transferred to the circuit following the closure of the church, the following accounting policy will be adopted. The property will be included as a current asset net of any levy and included in income where an acceptable offer(s) has/have been made for the building during the accounting period and the sale has crystalised after the year end.

Creditors, loans, provisions and grants payable

Creditors, loans and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement value after allowing for any discounts which may be due.

Grants to local churches for property schemes and other purposes are accounted for as liabilities when they receive formal approval by the Circuit Assembly. Grants awarded to other charitable bodies are accounted for as liabilities in the period in which the award is made.

Financial liabilities are only derecognised when, and only when, the charity’s obligations are discharged, cancelled or they expire.

Amounts recognised as provisions are best estimates of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

15

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

1. Accounting Policies (continued)

Investments

Investments are revalued at each period end to fair value as determined by reference to quoted market prices. Investment income is included in the financial statements when receivable and any gains or losses on revaluation at the year end are shown in the SOFA.

Debtors and prepayments

Debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid net of any discounts due.

Endowment funds

Where the Circuit holds money which cannot be spent but must be retained (as capital) to generate an income the money or assets to be retained are known as an endowment funds. The capital is included in the appropriate column in the Balance Sheet. The income generated is restricted or unrestricted depending upon the terms of the endowment.

Pensions and staff costs

The charity makes payments to the Methodist Ministers’ Pension Scheme (MMPS) which is a defined benefit scheme operated by The Methodist Church. The defined benefit obligation in respect of this scheme is that of The Methodist Church and not that of the circuit. Accordingly contributions paid are recognised as an expense in the year to which they relate.

The charity also makes payments to the Pensions Trust’s Defined Contribution Flexible Retirement Plan for those of its lay staff who wish to join the scheme.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Taxation

Aire and Calder Methodist Circuit is a registered charity and as such is a charity within the meaning of schedule 6 of the Finance Act 2010. Accordingly, the Charity is potentially entitled to tax exemption under part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 in respect of income and gains arising.

2. Critical Accounting Estimates and Judgements

In the application of the charity’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 associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following accounting policies represent a critical accounting estimate:

It continues to be the Circuit’s policy not to provide depreciation on freehold property as, in the opinion of the Trustees, its estimated residual value at the end of its economic life is expected to be at least carrying value so that any depreciation charge would be immaterial. The Trustees will arrange periodic impairment reviews.

16

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

3. Income from Charitable Activities

3.
Income from Charitable Activities
2021 2020
Total Total
£ £
Transfer from Circuit Churches 199,255 120,562
TMCP grant - 3,805
Districtgrants 16,500 14,000
215,755 138,367
4.
Total Expenditure
2021 2020
Total Total
£ £
Costs directly allocated to charitable activities:
Stipends, salaries, National Insurance and pension costs 434,209 433,709
District levy 138,084 133,416
Connexional priority fund levy 129,092 18,930
District TMCP levy 10,988 7,130
Insurance, utilities etc 36,339 36,049
Maintenance on manses 37,468 18,301
Major work on manses - 47,246
Expenditure on other circuit property 20,917 7,869
Administration 2,604 4,467
Mission support 15,034 9,063
Other 7,011 5,608
Staff expenses 20,284 33,953
Grants payable (Note 17) 65,170 61,456
917,200 817,197
Support costs:
Audit and accountancy 5,418 5,160
Total expenditure on charitable activity 922,618 822,357
5.
Minister and Lay Staff Information
The average number of clergy and lay staff, analysed by function was:
2021 2020
Clergy 11 11
Lay staff 4 4
15 15

17

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

5. Minister and Lay Staff Information (Continued)

Minister and lay staff costs during the year were as follows:

Clergy Lay staff Total Clergy Lay staff Total
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Wages and salaries 276,640 52,144 328,784 269,390 61,177 330,567
Social security costs 73,236 3,051 76,287 71,309 3,152 74,461
Pension costs 26,323 2,815 29,138 25,235 3,446 28,681
376,199 58,010 434,209 365,934 67,775 433,709

There were no unpaid pension liabilities as at 31 August 2021 (2020 – none).

No employees earned £60,000 or more during the year (2020 – no employees).

The charity considers its key management personnel to be the Circuit Ministers and the Circuit Stewards. None of the Circuit Stewards received remuneration from the charity (2020 - none). The remuneration of the Circuit Ministers is set out above (clergy) with further details set out in note 16.

6. Trustees’ Remuneration and Trustees’ Expenses

There were no expenses paid to Trustees during the year other than those referred to in Note 16. All ministers’ expenses were incurred in carrying out their roles as Ministers. Information on remuneration paid to Trustees is included in note 16.

7. Net Income/(Expenditure)

This is stated after charging: 2021 2020
£ £
Auditor’s remuneration:
Audit 2,835 2,700
Accountancy 1,680 1,600
8.
Tangible Fixed Assets
Freehold
Land Property Total
£ £ £
Cost or valuation:
At 1 September 2020 40,000 2,913,299 2,953,299
Additions - - -
Disposals - (200,000) (200,000)
At 31 August 2021 40,000 2,713,299 2,753,299
Depreciation:
At 1 September 2020 and 31 August 2021 - - -
Net book value at 31 August 2021 40,000 2,713,299 2,753,299
Net book value at 31 August 2020 40,000 2,913,299 2,953,299

Freehold property constitutes the Manses, including the land on which they are built, and their internal contents.

18

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

9. Investments

£
Market value at 31 August 2020 212,400
Realised and unrealised gains 38,990
Market Value at 31 August 2021 251,390

Investments include unitised funds held in the Managed Mixed Fund administered by the Central Finance Board of the Methodist Church.

The historical cost of investments held at market value was £151,112 (2020 - £151,112).

10. Long Term Loan

In July 2020 the Circuit Assembly made a loan of £5,000 to The Methodist Church, Yorkshire West District, to further the work of the Leeds City Methodist Mission until the Wesley Hotel Development has been completed. The loan will be repaid, without interest, between 2025 and 2030.

11. Debtors

11. Debtors
2021 2020
£ £
Prepayments and other debtors 34,041 31,108
34,041 31,108
12. Creditors: Amounts Falling Due Within One Year
2021 2020
£ £
Assessments in advance 85,945 74,445
Creditors and accruals 23,707 20,666
109,652 95,111

19

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

13. Movement in Funds

For the year ended 31 August 2021:

Balance Other Balance
1 September Income Expenditure gains / Transfers
31 August
2020 (losses) 2021
£ £ £ £ £
£
Unrestricted funds:
General funds 3,288,763 844,050 (903,360) 23,656 22,179 3,275,228
Designated funds:
Ministryand Mission 29,000 - - - (21,000) 8,000
Total 3,317,763 844,050 (903,360) 23,656 1,179 3,283,228
Restricted funds:
District grants - 12,500 (12,500) - - -
Carol Service 4,000 (4,000) - - -
Wakefield Methodist
Junior and Infant School
314		 200 - - - 514
Various bequests:
Thomas Holmes 504 2 (1) - - 505
Henry Gundhill gift 880 16 (2) 163 (14) 1,043
J.W.Wilson Esq 786 2 (2) - (1) 785
Total restricted funds
2,484		 16,720 (16,505) 163 (15) 2,847
Permanent endowment:
Harold Speight
Memorial fund 212,400 3,917 (2,753) 38,990 (1,164) 251,390
Total funds 3,532,647 864,687 (922,618) 62,809 - 3,537,525

Transfers: The transfer between restricted and unrestricted funds represents the balance of funds transferred from the restricted and endowment funds after the deduction of administrative fees. In the case of the Harold Speight Memorial fund payments are made from general funds in accordance with the terms of the endowment as outlined below.

Purpose of Designated Funds:

Mission and Ministry Fund – The Mission and Ministry Fund was set up from a transfer from the Model Trust Fund in 2018/19 to partly fund increase in ministry in the form of a Probationary Presbyter in the years that follow.

Purpose of Restricted Funds:

District Grant – This is a grant towards the salaries of the Children and Families Workers.

Carol Service – This is a District grant towards to cost of a Drive in Carol Service

Wakefield Methodist Junior and Infant School – This is a fund to support disadvantaged children at the school.

Purpose of Endowment Funds:

Harold Speight Memorial fund - This fund represents the income received from the permanent endowment. This income is spent on running the annual Joseph Winter Lecture. Any excess of income is then evenly distributed between the Circuit, Crigglestone Methodist Church and Flanshaw United Reformed Church.

20

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

13. Movement in Funds (continued)

For the year ended 31 August 2020:

Balance Other Balance
1 September Income Expenditure gains / Transfers
31 August
2019 (losses) 2020
£ £ £ £ £
£
Unrestricted funds:
General funds 3,359,751 758,062 (801,352) - (27,698) 3,288,763
Designated funds:
Ministryand Mission - - - - 29,000
29,000
Total 3,359,751 758,062 (801,352) - 1,302 3,317,763
Restricted funds:
District grant - 14,000 (14,000) - - -
TMCP grant - 3,805 (3,805) - - -
Wakefield Methodist
Junior and Infant
School 100 414 (200) - - 314
Various bequests:
Thomas Holmes 501 4 (1) 504
Henry Gundhill gift 896 18 (2) (16) (16) 880
J.W.Wilson Esq 786 7 (2) - (5) 786
Total restricted funds
2,283		 18,248 (18,010) (16) (21) 2,484
Permanent endowment:
Harold Speight
Memorial fund 216,214 4,276 (2,995) (3,814) (1,281) 212,400
Total funds 3,578,248 780,586 (822,357) (3,830) - 3,532,647

14. Analysis of Net Assets by Fund

As at 31 August 2021 Unrestricted Restricted Endowment
funds funds funds Total funds
£ £ £ £
Fixed assets 2,753,299 - 251,390 3,004,689
Long term debtors 5,000 - - 5,000
Net current assets 524,989 2,847 - 527,836
3,283,288 2,847 251,390 3,537,525
As at 31 August 2020 Unrestricted Restricted Endowment
funds funds funds Total funds
£ £ £ £
Fixed assets 2,953,299 - 212,400 3,165,699
Long term debtors 5,000 - - 5,000
Net current assets 359,464 2,484 - 361,948
3,317,763 2,484 212,400 3,532,647

21

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

15. Trustees

The following Trustees have held office since 1 September 2020:

Mrs Doreen Abson Mrs Rosalyn Ash Mrs Janet Barden Mrs Joan Beevers Mrs Carole Blanshard Mrs Val Brook Mrs Esme Bulmer Revd Andrew Checkley Mrs Mary Chippendale (resigned 3 March 21) Mr John Claybrough Revd Robert Cotton (joined 1 Sept 20) Mrs Kathleen Dawson (4 March 21 – 31 Aug 21) Mr Mike Dixon Mrs Lorna Dobson Revd Robert Drost Mrs Bethan Dyson Miss Heather Emms (4 March 21-31 Aug 21) Mrs Lesley Farrand (joined 1 Sept 20) Mr Peter Finneran Mrs Ann Freer Revd Ruth Gilson-Webb Mrs Rita Grice Revd David Hall (Deceased 2 March 21) Mrs Helen Harding Revd James Heap Mr David Hebden Mrs Betty Hindle Mr Andrew Howard Mr Robert Ince Mr Barry Johnson Mr Keith Jones (Joined 1 March 21) Revd Michael Jones Revd Jacob Kaiga Mr Nigel Kell Mrs Judith Kershaw Mr David Lane Mrs Laura Lunn (Resigned 10 Sept 20) Mr Keith Madeley Mrs Janet Marsh Mrs June McBurney Revd Hugh McKee Mr Francis Mwaba Mr John Netherwood Revd Barry Owen Mrs Marilyn Owens Mr Ian Pattison Mrs Sally Price (joined 1 Dec 20) Mrs Barbara Raper (resigned 3 March 21) Mr Colin Ride Mr Derrick Richmond (resigned 31 Aug 21) Mrs Margaret Roberts

Mrs Christine Ackinclose Mr Tim Baker (resigned 7 Sept 20) Mrs Elaine Baxter (resigned 7 Sept 20) Mrs Margaret Bendle Mrs Christine Bradley (resigned 7 Sept 20) Mrs Lorraine Brown Mrs Pam Burgess (joined 1 Sept 20) Mr Ian Chippendale Mrs Hazel Chivers (joined 1 Sept 20) Mrs Julie Copley (joined 1 Dec 20) Mrs Maureen Dawson Deacon Sharon Dilley (resigned 31 Aug 21) Mr Kevin Dobson Miss Margaret Dodd Mrs Marian Dunford Mr Peter Ellis Mrs Lyndsey Evans Mrs Rosalyn Field (joined 1 Sept 20) Mr Andrew Freer Miss Mollie Garbett Revd Trevor Grewcock Mrs Christine Grundy Mrs Joan Hall (resigned 7 Sept 20) Mr Richard Hayes Revd Sandra Heap Dr Brian Hill (1 Sept 20- 31 Aug 21) Mr Steven Hindle (joined 1 March 21) Deacon Margaret Hughes (Deceased 9 April 21) Mrs Mollie Jefferson Mr Peter Johnson Mrs Margaret Jones Revd Naomi Kaiga Mr Gordon Kay Mrs Susan Keogh Mrs Linda Knapper Revd Andrew Longshaw (resigned 31 Aug 21) Mr Jonathan Madeley Mr David Manning (joined 1 March 21) Mrs Gillian Marley Mrs Dorothy Metcalfe Ms Jenny Murdoch (resigned 7 Sept 20) Mrs Katerina Nelson (resigned 3 March 21) Mrs Jean Newton (resigned 7 Sept 20) Revd Rex Owen Mrs Christine Pattison Mrs Lynne Precious Mr Sean Quinn Mr Colin Redman Mrs Sandra Ride Mr Ian Riley (resigned 3 March 21) Mr Michael Roberts

22

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

15. Trustees (continued)

Mrs Doreen Rowley Mr Antony Sadler (joined 1 March 21) Mr Malcolm Sharp Mr Alan Shires Mrs Molly Simpson (resigned 7 Sept 20) Mr Richard Smith Mr Mark Stainburn Mrs Deb Storey Mr John Sudworth Mr Jeffery Swales Mrs Carol Sykes Mr Chris Tinker (joined 1 Sept 20) Mrs Meg Towle Mrs Pam Turner Mrs Elaine Wall Mrs Lisa Wells Mr Roger Whitworth Revd Kim Williams Mr Donald Woolley Mr Rodney Young

Mrs Val Rushton Mrs Bernice Sharp Mrs Carole Shaw (joined 1 Sept 20) Mrs Lorna Simpson Mrs Janet Smith Mr Wilfred Smith Mrs Pat Stead Mr Nigel Storey Mrs Vera Sudworth Mrs Kathy Swales (joined 1 March 21) Mrs Margaret Thompson Mr David Todd (joined 1 Sept 20) Revd Laurence Turner Mr Stephen Turner Mrs Ruth Walton Mr Michael Wheatley Mr Alexander Whyte Mrs Susan Wood Mr Roy Wormald

16. Related Party Transactions

Ministers

Stipends and allowances for Presbyters and Deacons (collectively Ministers) are set annually by the Methodist Conference, and the Circuit is responsible for meeting those costs for all Ministers stationed by the Conference in the Circuit.

The following Ministers received the basic stipend of £25,524 (2020 - £24,852):

Revd A Longshaw Revd N Bishop Revd A Checkley Deacon S Dilley Revd MD Jones Revd J Kaiga Revd B Owen Revd RJ Drost Revd K Williams Revd RE Gilson-Webb

Revd N Kaiga received two third stipend as she works part-time.

All were provided with living accommodation as required by the church’s standing orders.

In addition to the basic stipend the following Connexionally agreed additional allowances were paid:

Revd A Longshaw: Superintendent Minister’s allowance £nil (2020 - £2,485). Revd B Owen Superintendent Minister’s allowance £2,552 (2020 - £nil).

Local preachers

The 16 Local Preachers who are also members of the Circuit Assembly were paid preaching fees amounting to £1,125 in total (2020 – 20 preachers were paid £1,300).

Supernumeraries

The 4 Supernumeraries who are also members of the Circuit Assembly were paid fees and travelling expenses amounting to £650 (2020 – 5 Supernumeraries were paid £2,300).

23

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

16. Related Party Transactions (continued)

Other payments

During the year three Trustees claimed travel expenses amounting to £366 (2020 – 2 Trustees claimed £373).

17. Grants Paid

During the year the charity awarded grants to the following:

During the year the charity awarded grants to the following:
2021 2020
£ £
Grants to institutions:
Airedale Methodist Church 3,000 6,000
Ropewalk - 456
Cross Project (taking the Christian Gospel into secondary schools) 2,000 2,000
Foodbank - Wrenthorpe 5,000 -
Lakeside Project 6,500 -
South Emsall Parish Nurse 8,000 -
South Emsall Asbestos Removal 8,370 -
South Emsall Trinity - 40,000
Methley Church 16,000 -
Horbury Churches Together Youth Project (in support of youth work) 2,000 2,000
Trinity Mission 13,300 10,000
Wakefield Methodist Junior & Infants School (support the School’s
Christian ethos)		 1,000 1,000
65,170 61,456

18. Funds held as custodian

The Charity acts as custodian Trustee for the following funds:

Methodist Women in Britain Benevolent fund MAYC Fund Woddlesford Methodist Church

Movement in these funds are eliminated during the accounts preparation and any year end balances held are recognised both in cash and as a liability. The total amount held in these funds at the year end was £8,067 (2020 - £8,771).

19. Net Cash provided by Operating Activities

2021 2020
£ £
Net movement in funds 4,878 (45,601)
(Gains) on fixed assets (23,656) -
(Gains) / Losses on fixed asset investments (38,990) 3,814
Income from investments (5,355) (7,371)
(Increase) / Decrease in debtors (2,933) 114,118
Increase /(Decrease)in creditors 14,541 (21,277)
(51,515) 43,683

24

Aire and Calder Methodist Circuit

Notes to the Financial Statements for the Year Ended 31 August 2021

21. Comparative Statement of Financial Activities for the Year Ended 31 August 2020

Unrestricted Restricted Endowment Total
funds Funds Funds 2020
£ £ £
Income and endowments from:
Donations – assessment or share 603,548 414 - 603,962
Government grants 10,640 - - 10,640
Charitable activities 120,562 17,805 - 138,367
Other trading activities 19,391 - - 19,391
Investments 3,066 29 4,276 7,371
Other income 855 - - 855
Total income and endowments 758,062 18,248 4,276 780,586
Expenditure on:
Charitable Activities 801,352 18,010 2,995 822,357
Total expenditure 801,352 18,010 2,995 822,357
Net income / (expenditure) before
other recognised gains		 (43,290) 238 1,281 (41,771)
Realised and unrealised (losses) / gains on
investments - (16) (3,814) (3,830)
Transfers between funds 1,302 (21) (1,281) -
Net movement in funds (41,988) 201 (3,814) (45,601)
Reconciliation of funds:
Funds brought forward 3,359,751 2,283 216,214 3,578,248
Funds carried forward 3,317,763 2,484 212,400 3,532,647

25