**REGISTERED CHARITY NUMBER: 1134236** 

## **Report of the Trustees and** 

## **Financial Statements for the Year Ended 31 August 2022** 

## **for** 

## **CARDIFF METHODIST CIRCUIT** 

Martin Waterworth Limited Statutory Auditor Bronwylfa Llangunnor Road Carmarthen SA31 2PB 



**CARDIFF METHODIST CIRCUIT** 

**Contents of the Financial Statements for the year ended 31 August 2022** 

|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|9|
|**Report of the Independent Auditor**|10|to|12|
|**Statement of Financial Activities**||13||
|**Statement of Financial Position**|14|to|15|
|**Statement of Cash Flows**||16||
|**Notes to the Statement of Cash Flows**||17||
|**Notes to the Financial Statements**|18|to|29|
|**Detailed Statement of Financial Activities**|30|to|31|





**CARDIFF METHODIST CIRCUIT** 

## **Report of the Trustees for the year ended 31 August 2022** 

The trustees present their report with the financial statements of the charity for the year ended 31 August 2022. 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). 

The Cardiff Methodist Circuit is the primary unit in which the local Methodist churches within Cardiff and Caerphilly express and experience their interconnection in the Body of Christ, for purposes of mission, mutual encouragement and help. It is in the Circuit that the ministers are stationed and local preachers are trained, admitted and exercise their calling. The purposes of the Circuit include the effective deployment of the resources of ministry, which include people, property and finance, as they relate to the Methodist churches in Cardiff & Caerphilly to churches of other denominations and to participation in the life of the communities served by the Circuit, including local schools and colleges and in ecumenical work in the area. 

## **OBJECTIVES AND ACTIVITIES** 

## **Objectives and aims** 

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

a) The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church; b) Any charitable purpose for the time being of any Connexional, District, Synod, Circuit, local or other organisation of The Methodist Church; 

c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church; d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church. 

## **Significant activities** 

(i) The Circuit produces a quarterly preaching plan to ensure regular Acts of Worship take place at each of the Methodist Churches and Local Ecumenical Partnerships in its geographical area. These are open to all people without charge. Worship is also provided for Young People at Youth Space. 

(ii) The Circuit aims to maintain Student Work based at Cathays (which is our nearest church to the majority of the University's faculties and also an area where many students live). The Circuit aims to encourage the nurture of and witness to families through the local churches and also to young people through Youth Space. 

The Children & Family Work offers an opportunity to nurture the witness of families and young people. 

(iii) To deliver worship to every church in the circuit each week. We deliver worship by appointing Ministers and training Local Preachers. There is also a regular meeting of all preachers to encourage in-service development. 

(iv) The Children's and Youth work is achieved through the employment of a Lay Worker who works alongside volunteers across the circuit delivering accessible worship and other youth work. This is currently funded by the Circuit with an annual grant from the Wales Synod and appropriate training is offered. 

## **Public benefit** 

The trustees of the Methodist Church had due regard to the public benefit guidance published by the Charity Commission in compliance with its duties under section 17 of the Charities Act 2011.  This guidance sets out 2 key principles: 

1. The organisation must have an identifiable benefit 

2. The benefit must be to the public or a section of the public. 

The church exists, inter alia to: 

1.  Increase awareness of God's presence and to celebrate God's love; 

2. Help people to learn and grow as Christians, through mutual support and care; and 

3. Be a good neighbour to people in need and challenge injustice. 

The trustees consider that for these reasons the charity meets these public benefit requirements. 

Page 1 



**CARDIFF METHODIST CIRCUIT** 

## **Report of the Trustees** 

## **for the year ended 31 August 2022** 

## **OBJECTIVES AND ACTIVITIES** 

## **Grantmaking** 

An agreed amount is set aside in the budget towards Mission Projects, including pioneering work, and assistance is given when approved for young people to be able to attend Synod and Connexional youth events. 

## **Volunteers** 

Many of the jobs in the circuit/circuit churches are done by volunteers, and although formal records are not kept as to the number of hours contributed, it must be said that work relies to a great extent on the contribution of volunteers (to whom the trustees express their thanks and gratitude). 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Charitable activities** 

(a) The Trustees had previously decided to return to the model of a Superintendent minister with pastoral charge of at least one church. When the time for stationing came, one of the ministers already in the circuit was invited to take on the Superintendent's role and continue with pastoral charge of her already held churches. During the year under review, after careful consideration of the circuit's finances and the ability of its constituent churches to contribute, the Trustees agreed not to seek replacement of both ministers who were moving on in August 2022. Consequently, the circuit will begin the 2022-23 Church Year with five ministers. 

Further consideration will be given to staffing levels and how they can be resourced in the coming year. 

(b) The Trinity Centre "Sanctuary for All" project has been developed over the year under review and recognition has dawned that the effect of the pandemic on building materials and costs has caused the project costs to mushroom to an estimated £2.4 million. Following deep reflection and discussion the Executive Committee proposed to the Trustees that we proceed with the project which is so in tune with our charitable purposes and desperately needed in the area in which it is located. Following the recent decision of the Methodist Church at the connexional level to stop funding capital projects via grants, the circuit Trustees were approached to consider allocating 10% of the total cost of the project - something required by many grant awarding bodies. This was debated and agreed in June 2022 and the circuit has earmarked £230,000 from the sale of property to the project. 

[c] The Church of the Resurrection continued to be overseen by the work of a Baptist minister, while Pontprennau was overseen by a Methodist circuit minister who was given pastoral charge. As he was leaving the circuit in August 2022, and given that the circuit was reducing ministers further, it was agreed that the United Reformed Church would offer ministry in Pontprennau. The Methodists will still remain involved as one fifth of the ecumenical partnership and owners of the Pontprennau Church building. 

(d) Since September 2019 the circuit ministerial staff has included one minister who is 50% circuit and 50% pioneer. Her pioneering role was initially focussed on a fast-developing new housing estate named Plasdwr in the Radyr area of Cardiff. This work was significantly affected by the covid pandemic but has thrived nonetheless. Other pioneering work has developed as offshoots of the work on the housing estate and has reached many people who would not easily engage with "traditional" or "established" church. 

Page 2 



**CARDIFF METHODIST CIRCUIT** 

## **Report of the Trustees** 

## **for the year ended 31 August 2022** 

## **FINANCIAL REVIEW** 

## **Principal funding sources** 

70% of the Circuit's unrestricted income was provided by the local churches. Other sources of unrestricted income are from rental income and grants from the Methodist Church or Wales Synod. 

Other than a small amount of interest all of the restricted income relates to the Trinity Centre which has been expended on its various projects and cannot be used for general Circuit matters. Inclusion of the Trinity Centre's results in the Circuit's accounts has been directed by the Methodist Church. 

The charity's principal source of funds is the Annual Covenant Offer from each local church in the Circuit (no separate public fundraising outside churches) and these funds are used to pay stipends to ministers and salaries to lay workers (part-time administrator, and Children and Youth Worker), the upkeep of manses and other Circuit property, and to support the work of the wider Methodist Church (Synod and Connexion) and small grants for Mission Projects. 

Surplus funds are placed in an interest bearing account with the Central Finance Board of the Methodist Church. 

Page 3 



**CARDIFF METHODIST CIRCUIT** 

## **Report of the Trustees** 

## **for the year ended 31 August 2022** 

## **FINANCIAL REVIEW** 

## **Reserves policy** 

In outline, the Circuit Model Trust and Charles Trust had a combined balance of £144,140 in TMCP accounts at 31st August 2022. These funds, which derive from the sales of chapels and manses, are restricted by Conference. This restriction is an internal regulation though the funds can be used for a variety of purposes. In addition, monies of £54,743 are held by the Trinity Centre which are treated as restricted funds in these accounts. 

In general, the Reserves Policy for the Circuit is to hold a minimum sum equivalent to between three and six months’ average expenditure in reserve. This should be sufficient to meet any unforeseen item of major expenditure on manses and / or to be able to continue, in the short term, funding planned activities in the event of any inability to raise the full Circuit Assessment from churches. 

In detail, the Circuit Stewards have drawn up a reserves policy which has been accepted by the Circuit Meeting in May 2014 and updated to include actual expenditure & balances as at 31st August 2022 and staffing changes. 

This document includes all funds held by the Circuit Meeting as charity trustees. Our reserves policy relates to our general (un-restricted) funds which are freely available to be used for any or all of the purposes of the Circuit. Other funds are also included for the sake of clarity and openness and to show that the Circuit has policy for the management of all its money and not simply those which are defined as reserves. 

## Our aim is threefold: 

(1) To secure and sustain the Circuit's viability  and future. 

(2) To develop the Church's work in  the Cardiff area and Caerphilly. 

(3) To give reassurance to the general public that the Circuit, which is a charity, intends to use all of the money coming into its care for the  purposes of the charity. 

## 3 Step Process: 

## (1) Mission Policy 

The Circuit's Mission Policy is based on a  document approved on 9/6/2005. Essentially it provides for:- 

(a)  The ministerial oversight and pastoral care of the local churches in the Circuit and the Trinity project 

(b)  The support of a paid ministry team , a lay administrator and a children's and families' worker. 

c)  The maintenance of Circuit manses. 

## (2) Development Aims 

The Cardiff Circuit has identified four areas of development on which to concentrate its efforts: 

2.1) Youth work: an appointed minister will have oversight of youth work in the Circuit 

2.2) Local communities: outreach work by local churches is encouraged and supported 

2.3) University students: ministry to the students in Cardiff is currently undertaken by the University Chaplain, which is a Synod appointment. We seek to enable an integrated approach to student work with Chaplaincy and Circuit working closely together. 

2.4) The Trinity Project: work with asylum seekers, refugees and the culturally diverse community 

## (3) Financial Plans 

The Circuit Assessment is reviewed annually and covers the cost of 1(a) and (b) above and is based on offers from each church towards a share in the total cost. 

We make provision for our property maintenance programme by designating £21,500 per annum. 

As at 31 August 2022 funds readily available for unrestricted purposes are £135,199 (discounting a bridging loan of £150,000 only repayable when properties currently on the market are sold) and include in the main monies held in CFB and bank accounts. Restricted funds total a further £198,883. Under Standing Orders the Circuit must meet its financial obligations in relation to the support of its ministers and the maintenance of the manses. The total costs for the last financial year amounted to £488,416. 

Page 4 



**CARDIFF METHODIST CIRCUIT** 

## **Report of the Trustees** 

## **for the year ended 31 August 2022** 

## **FINANCIAL REVIEW** 

## **Funds in deficit** 

There are none. 

## **FUTURE PLANS** 

The effect of the coronavirus pandemic across the circuit has been significant and much of the year under review has involved adjusting to working in new ways due to various restrictions. This meant that certain plans were unable to come to fruition, but others were taken up in their place: 

[a] Churches gradually reopened from September 2020 but a return to normal levels of attendance and income has been slow and, in some cases, has still not stabilised. 

[b] Many circuit activities such as worship, bible studies, business meetings and youth work, remained mainly online during the year as the covid situation remained uncertain. This has proved both challenging and gratifying for those involved in delivering and participating in such online gatherings. Care has been taken to ensure those persons who do not have access to technology have not been too disadvantaged, and we have made use of the Methodist Church's materials for "Worship at Home" among other things to reach out by post. 

[c] The work of the Pioneer Minister on the Plas Dwr housing estate has continued to develop, even with covid restrictions. Within the local guidelines packages have been delivered to new homes on the estate for Harvest, Christmas and Easter and people invited to join in online services. The local established church at Radyr has been fully involved in supporting this work. 

[d] The Circuit Leadership Team and the Circuit Meeting continues to consider the circuit's future. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document** 

Type of governing document: Deed of Union (1932) and Methodist Church Act (1976) How constituted: as an unincorporated charity under an Act of Parliament 

## **Recruitment and appointment of new trustees** 

Trustee selection methods: Appointed by local churches & existing trustees.  Ministers are automatically trustees. 

## **Organizational structure** 

1. Overall control rests with the Methodist Conference. 

2. The Connexional Office implements decisions made by Conference and is also responsible for the stationing of Ministers in individual Circuits. 

3. Connexional decisions are passed to the Chair of the District (for Wales read Synod) and the appropriate Officers of the District  for regional implementation 

4. The Districts pass the control down to Circuit Level for local implementation by the Superintendent Minister, Ministerial Staff and Circuit Stewards and authority is delegated to the Circuit Meeting for certain matters. 

5. The Circuit Meeting passes control down to Church Councils for local implementation by the Minister, the Church Stewards and other officers and authority is delegated to Church Councils acting as Managing Trustees. 

6. The Circuit Superintendent chairs meetings of the Circuit Leadership Team (Staff and Stewards all of whom are expected to attend) and the Circuit Meeting, which trustees are expected to attend. Policy decisions are taken at the Circuit Meeting. 

7. The Connexional Year runs from the 1 September to 31st August 

## **Induction and training of new trustees** 

Range of guidance produced by the Methodist Connexion Leaflet "The Role of a Trustee in The Methodist Church" given to each trustee. 

Page 5 



**CARDIFF METHODIST CIRCUIT** 

**for the year ended 31 August 2022** 

## **Report of the Trustees** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Risk management** 

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. 

A review of the Risk profile has identified the following four key areas: 

## Property 

Major risks have been considered by the Circuit Stewards. Security and safety of our churches is largely for those churches to determine. However, during the year the Welsh Government had in place specific legislation and advice for places of worship taking into account the risk from coronavirus. Churches were supported in their implementation of these regulations and the production of risk assessments specific to each building and its use at different times. 

All manses and churches are the subject of quinquennial inspections and the reports on the manses are reviewed by the Superintendent and the Circuit Stewards and the church reports are reviewed by their respective trustees. A monitoring system is in place to ensure actions for Manses are complied with. A similar system is encouraged for Churches. 

## Safeguarding 

The Circuit follows the Connexional policy on safeguarding as detailed in Creating Safer Space. A Circuit Safeguarding Officer is appointed and each Church in the Circuit has a local safeguarding officer. Safeguarding is an agenda item at the Circuit Meeting and Church Council meetings. Safeguarding Training is rolled out across the Circuit. The Circuit Meeting and Church Council meetings review their Safeguarding Policy on an annual basis and carry out an audit to check training and DBS checks are up to date. Training will remain ongoing for new people undertaking roles and for others as their current training becomes four years old. This year we commenced Advanced Safeguarding Training for over sixty people and a residual group of eight people will be trained next year. A limited group of people are now required to complete an Advanced Safeguarding Course and everyone identified as requiring the training has completed it. This training will need to be refreshed every four years. 

## Financial 

The majority of the Circuit income comes from the individual churches in the Circuit and when churches consider their covenant offer to the Circuit they are asked to confirm their offer for the coming Connexional year and in order that we can plan staffing levels they are also asked to indicate what their offer will be in a year's time and to consider any risk that might prevent them from making their payments. The year under review has been a challenging one due to the coronavirus pandemic and, in particular, the reduction of use of church buildings generating a rental income. The circuit responded to this by having quarterly meetings with all the church treasurers to look at how finances were holding and being prepared, if necessary, to offer churches relief on their quarterly assessments. At the end of the year we agreed that the circuit would use reserves to pay for the equivalent of one minister in the next (2021-22) church year in order to give the churches some relief and an opportunity to replenish their reserves. 

## Human Resources 

The circuit has reduced from seven to six ministers and will be considering the viability of this staffing complement over the next year. 

## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 

1134236 

## **Principal address** 

Cyncoed Methodist Church Westminster Crescent Cardiff CF23 6SE 

Page 6 



**CARDIFF METHODIST CIRCUIT** 

## **Report of the Trustees** 

## **for the year ended 31 August 2022** 

## **Trustees** 

Mrs W Barwise Revd C Gale 

The trustees during the year were: 

Rev Catherine Gale Rev Kofi Amissah Rev Judith Holliman Rev Alana Lawrence to 31 August 2022 Rev Alexis Mahoney Rev Paul Martin to 31 August 2022 Rev Irfan John Mrs Wendy Barwise Mrs Bethany Jane Barry Mrs Marie Edwards Mrs Muriel Fisher Mr Steve McElveen Mrs Janet Rees Mr Paul Demery Mr Martin Ronald Hunt Mr Stuart Cane Mrs Susan Morris Mr John Powell Mrs Heather Cox Mr Derek Perkins Mr Martin Rees to 01 November 2021 Mrs Carol Elizabeth Plumridge Mr John Plumridge Mr Terry Wing Mr Roger Palmer Mrs Debbie Paul Mr Gareth John Hill Mrs Sandra Palmer Mrs Alison Valerie Hill Mrs Janice Perris Mr John Vivian Elias Mrs Pearl Criddle to 01 June 2022 Mr Peter David George Richards Mr Neil Lyle Mrs Liz Crispie Mrs Diane Lesley Richards Mrs Susan Elizabeth Beavis Mrs Christina Margaret Crow Dr Catherine Taylor Mrs Sylvia Catherine Hewett Ms Barbara Ward Mr Christopher Markall Mrs Lisa Medina Mrs Helen Tyler Mr Jim James Mrs Roslyn Mary Forster Mr Peter Smith Mrs Karen Smith 

Minister/Chair Minister Minister Minister Minister Minister Synod Enabler Steward/ Treasurer Circuit Steward Circuit Steward Circuit Steward Circuit Steward Circuit Steward Safeguarding Officer 

Page 7 



## **CARDIFF METHODIST CIRCUIT** 

## **Report of the Trustees** 

## **for the year ended 31 August 2022** 

|Mrs Irene Welsby|||
|---|---|---|
|Mr Sidney Chandler|||
|Mrs Ann Elizabeth Bracey|to 08 November 2022||
|Mrs Ann Thomas|||
|Mr Paul Raymond Knight|||
|Mr Graham Hosgood|||
|Mr Andrew Cross|||
|Mrs Ann Cross|||
|Mr Murray James Taylor|||
|Mr Clive Carpenter|||
|Mrs Allison Patricia Hill|||
|Ms Gauri Taylor-Nayar||Local Preachers Secretary|
|Mr Anthony Paul Thomas||Local Preachers Rep|
|Dr Maurice Arthur Wentworth||Local Preachers Rep|
|Ms Catherine Dodd||Circuit Meeting Secretary|
|Dr Matthew Angilley|||
|Christine Stanley|||
|Hannah Armah Ofoe|||
|Elizabeth Clare Blacklidge|to 31 August 2022||
|Ann Thomas|||
|Gillian Griffiths|||
|Monica Symonds|||
|Carol Pym|||
|Peggy Lau|||
|Rev Evelyn Bhajan|from 01September 2022|Minister|
|Mrs Debbie Witts|from 01 June 2022||
|Mrs Vera Ruddock|from 01 June 2022||
|Mrs Wendy Doble|||
|Mr Alan Doble|||



## **Auditor** 

Martin Waterworth Limited Statutory Auditor Bronwylfa Llangunnor Road Carmarthen SA31 2PB 

## **Solicitors** 

Merrilsede, Herbert Terrace, Penarth CF64 2AH 

## **Advisers** 

Bankers - Lloyds Bank plc, PO Box 1000 BX1 1LT Central Finance Board of the Methodist Church, 9 Bonhill Street, London EC2A 4PE Trustees for Methodist Church Purposes, Central Buildings, Oldham Street, Manchester M1 1JQ 

Legal, Financial, Property - TMCP, Trustees for Methodist Church Purposes 

Connexional Matters, Governance, Safeguarding - The Methodist Church, 25 Marylebone Rd, London, NW1 5JR 

Governance, Stationing, Safeguarding - The Methodist Church in Wales, Wales Synod at Cyncoed Methodist Church, Westminister Crescent, Cyncoed, Cardiff CF23 6SE 

Page 8 



**CARDIFF METHODIST CIRCUIT** 

## **Report of the Trustees** 

## **for the year ended 31 August 2022** 

## **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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". 

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees 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 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 Charity 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, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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. 

Approved by order of the board of trustees on 20 December 2022 and signed on its behalf by: 

Revd C Gale - Trustee 

Page 9 



**Report of the Independent Auditor to the Trustees of Cardiff Methodist Circuit** 

## **Opinion** 

I have audited the financial statements of Cardiff Methodist Circuit (the 'charity') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 

- In my opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 31 August 2022 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. My responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of my report. I am independent of the charity in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK, including the FRC's Ethical Standard and its Provisions Available for Audits of Small Entities, whereby in common with many other entities of this size I have been used to assist with the preparation of the financial statements, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, I 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 I have performed, I 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. 

My 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 my Report of the Independent Auditor thereon. 

My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. 

In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.  I have nothing to report in this regard. 

Page 10 



**Report of the Independent Auditor to the Trustees of Cardiff Methodist Circuit** 

## **Matters on which I am required to report by exception** 

I have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires me to report to you if, in my 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 

- I have not received all the information and explanations I require for my 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. 

## **My responsibilities for the audit of the financial statements** 

I have been appointed as auditor under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

My 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 Auditor that includes my 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 my procedures are capable of detecting irregularities, including fraud is detailed below: 

The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the trustees. However, we will plan our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations, but our examination should not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. 

A further description of my 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 my Report of the Independent Auditor. 

Page 11 



**Report of the Independent Auditor to the Trustees of Cardiff Methodist Circuit** 

## **Use of my 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. My audit work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my audit work, for this report, or for the opinions I have formed. 

Martin Waterworth Limited Statutory Auditor Bronwylfa Llangunnor Road Carmarthen SA31 2PB 

20 December 2022 

Page 12 



**CARDIFF METHODIST CIRCUIT** 

## **Statement of Financial Activities** 

## **for the year ended 31 August 2022** 

|Notes<br>**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>2<br>**Charitable activities**<br>4<br>Christian Ministry<br>Trinity Centre<br>Investment income<br>3<br>Other income<br>**Total**<br>**EXPENDITURE ON**<br>**Charitable activities**<br>5<br>Christian Ministry<br>Costs relating to rental income<br>Trinity Centre<br>**Total**<br>Net gains on investments<br>**NET INCOME**<br>**Transfers between funds**<br>17<br>**Other recognised gains/(losses)**<br>Gains on revaluation of fixed assets<br>**Net movement in funds**<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>**TOTAL FUNDS CARRIED FORWARD**|Unrestricted<br>funds<br>£<br>-<br>272,630<br>-<br>57,195<br>-<br>329,825<br>371,946<br>21,323<br>-<br>393,269<br>130,000<br>66,556<br>101<br>275,000<br>341,657<br>5,283,542<br>5,625,199|Restricted<br>funds<br>£<br>29,487<br>-<br>60,067<br>29,461<br>1,719<br>120,734<br>2,773<br>-<br>92,374<br>95,147<br>-<br>25,587<br>(101)<br>-<br>25,486<br>173,397<br>198,883|31.8.22<br>Total<br>funds<br>£<br>29,487<br>272,630<br>60,067<br>86,656<br>1,719<br>450,559<br>374,719<br>21,323<br>92,374<br>488,416<br>130,000<br>92,143<br>-<br>275,000<br>367,143<br>5,456,939<br>5,824,082|31.8.21<br>Total<br>funds<br>£<br>43,071<br>318,322<br>71,541<br>73,787<br>3,289|
|---|---|---|---|---|
|||||510,010|
|||||340,958<br>9,389<br>180,979|
|||||531,326|
|||||40,000|
|||||18,684<br>-<br>245,000|
|||||263,684<br>5,193,255|
|||||5,456,939|



The notes form part of these financial statements 

Page 13 



## **CARDIFF METHODIST CIRCUIT** 

## **Statement of Financial Position** 

## **31 August 2022** 

|Notes<br>**FIXED ASSETS**<br>Tangible assets<br>12<br>Investment property<br>13<br>**CURRENT ASSETS**<br>Debtors<br>14<br>Cash at bank<br>**CREDITORS**<br>Amounts falling due within one year<br>15<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**NET ASSETS**|Unrestricted<br>funds<br>£<br>4,225,000<br>1,415,000<br>5,640,000<br>34,693<br>168,618<br>203,311<br>(218,112)<br>(14,801)<br>5,625,199<br>5,625,199|Restricted<br>funds<br>£<br>-<br>-<br>-<br>1,740<br>219,789<br>221,529<br>(22,646)<br>198,883<br>198,883<br>198,883|31.8.22<br>Total<br>funds<br>£<br>4,225,000<br>1,415,000<br>5,640,000<br>36,433<br>388,407<br>424,840<br>(240,758)<br>184,082<br>5,824,082<br>5,824,082|31.8.21<br>Total<br>funds<br>£<br>4,195,000<br>810,000<br>5,005,000<br>24,518<br>522,234<br>546,752<br>(94,813)<br>451,939<br>5,456,939<br>5,456,939|
|---|---|---|---|---|



The notes form part of these financial statements 

continued... 

Page 14 



**CARDIFF METHODIST CIRCUIT** 

## **Statement of Financial Position - continued** 

## **31 August 2022** 

|**FUNDS**<br>17<br>Unrestricted funds:<br>General fund<br>Manses & Churches fair value fund<br>Investment Property fair value fund<br>Restricted funds<br>**TOTAL FUNDS**|763,619<br>3,476,944<br>1,384,636<br>5,625,199<br>198,883<br>5,824,082|826,962<br>3,676,944<br>779,636|
|---|---|---|
|||5,283,542|
|||173,397|
|||5,456,939|



The financial statements were approved by the Board of Trustees and authorised for issue on 20 December 2022 and were signed on its behalf by: 

W Barwise - Trustee 

C Gale - Trustee 

The notes form part of these financial statements 

Page 15 



**CARDIFF METHODIST CIRCUIT** 

## **Statement of Cash Flows** 

|**for the year ended 31 August 2022**<br>Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>1<br>Interest paid<br>Net cash provided by/(used in) operating activities<br>**Cash flows from investing activities**<br>Purchase of tangible fixed assets<br>Sale of investment property<br>Interest received<br>Net cash (used in)/provided by investing activities<br>**Change in cash and cash equivalents in the**<br>**reporting period**<br>**Cash and cash equivalents at the beginning**<br>**of the reporting period**<br>**Cash and cash equivalents at the end of the**<br>**reporting period**|31.8.22<br>£<br>94,965<br>-<br>94,965<br>(230,000)<br>-<br>1,208<br>(228,792)<br>(133,827)<br>522,234<br>388,407|31.8.21<br>£<br>(354,873)<br>(6,524)<br>(361,397)<br>-<br>545,000<br>499<br>545,499<br>184,102<br>338,132<br>522,234|
|---|---|---|



The notes form part of these financial statements 

Page 16 



**CARDIFF METHODIST CIRCUIT** 

## **Notes to the Statement of Cash Flows** 

## **for the year ended 31 August 2022** 

## **1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** 

|||||31.8.22|31.8.21|
|---|---|---|---|---|---|
|||||£|£|
||**Net income for the reporting period (as per the Statement of Financial**|||||
||**Activities)**|||92,143|18,684|
||**Adjustments for:**|||||
||Gain on investments|||(130,000)|(40,000)|
||Interest received|||(1,208)|(499)|
||Interest paid|||-|6,524|
||Chapel Aid Bridging Loan|||150,000|(340,000)|
||(Increase)/decrease in debtors|||(11,915)|6,327|
||Decrease in creditors|||(4,055)|(5,909)|
||**Net cash provided by/(used in) operations**|||94,965|(354,873)|
|**2.**|**ANALYSIS OF CHANGES IN NET FUNDS**|||||
|||At 1.9.21||Cash flow|At 31.8.22|
||||£|£|£|
||**Net cash**|||||
||Cash at bank|522,234||(133,827)|388,407|
|||522,234||(133,827)|388,407|
||**Debt**|||||
||Debts falling due within 1 year||-|(150,000)|(150,000)|
||||-|(150,000)|(150,000)|
||**Total**|522,234||(283,827)|238,407|



The notes form part of these financial statements 

Page 17 



**CARDIFF METHODIST CIRCUIT** 

## **Notes to the Financial Statements** 

**for the year ended 31 August 2022** 

## **1. ACCOUNTING POLICIES** 

## **Basis of preparing the financial statements** 

The financial statements of the charity, 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 UK 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 under the historical cost convention, as modified by the revaluation of certain assets. 

## **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. 

## **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. 

## **Tangible fixed assets** 

Manses and churches are shown at fair value using the Revaluation Model. It is the policy to carry out a professional valuation of these properties every five years. The trustees carry out a fair value and impairment review for each reporting period (alongside any professional valuations). Where this results in a carrying value which differs materially from that at the beginning of the period, adjustment is made to the carrying value and corresponding entry in the revaluation reserve. 

It is considered that the residual values of the properties at the end of their useful lives will be at a similar level as their current fair values. Costs of disposal are estimated at 5% of value. The land element is estimated at one-third of total value. The life of the buildings is estimated at 100 years. Given these factors, it is considered that any resulting depreciation would be immaterial on an annual basis. 

Further justification for adopting this policy is that it gives a more meaningful result than charging an immaterial amount of depreciation on the buildings element of the properties, only to value the properties back to fair value each year informally, and every five years when professionally revalued. It is also the policy to maintain all buildings in good condition, a basis for asserting no loss in residual values. 

## **Investment property** 

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities. 

## **Taxation** 

The charity is exempt from tax on its charitable activities. 

## **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 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. 

continued... 

Page 18 



**CARDIFF METHODIST CIRCUIT** 

**Notes to the Financial Statements - continued for the year ended 31 August 2022** 

## **1. ACCOUNTING POLICIES - continued** 

## **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. 

## **Going concern** 

After reviewing the Circuit's future plans, the trustees have a reasonable expectation that the Circuit has adequate resources to continue in operational existence for the foreseeable future. The Circuit therefore continues to adopt the going concern basis in preparing its financial statements. 

## **2. DONATIONS AND LEGACIES** 

|**2.**|**DONATIONS AND LEGACIES**|||||
|---|---|---|---|---|---|
|||||31.8.22|31.8.21|
|||Unrestricted|Restricted|Total|Total|
|||funds|funds|funds|funds|
|||£|£|£|£|
||Donations - Trinity Centre|-|29,487|29,487|43,071|
|**3.**|**INVESTMENT INCOME**|||||
|||||31.8.22|31.8.21|
|||Unrestricted|Restricted|Total|Total|
|||funds|funds|funds|funds|
|||£|£|£|£|
||Rents received|56,820|28,628|85,448|73,288|
||Deposit account interest|375|833|1,208|499|
|||57,195|29,461|86,656|73,787|



Of the restricted rental income of £28,628 all of it, and of the restricted deposit account income £157 belongs to the Trinity Centre fund. The balance of deposit account income of £676 belongs to the various TMCP accounts held by the Circuit. 

## **4. INCOME FROM CHARITABLE ACTIVITIES** 

|Assessment from Churches<br>District share from Assessment<br>Synod fund from Assessment<br>Grants<br>Synod contribution to rates<br>Synod contribution to Youth Circuit<br>Synod contribution to Assistant Chair<br>Pontprennau Community contribution<br>Contribution Pioneer Ministry|Christian<br>Ministry<br>£<br>282,759<br>(64,454)<br>(8,773)<br>44,650<br>2,601<br>1,550<br>8,797<br>5,000<br>500<br>272,630|Trinity<br>Centre<br>£<br>-<br>-<br>-<br>60,067<br>-<br>-<br>-<br>-<br>-<br>60,067|31.8.22<br>Total<br>activities<br>£<br>282,759<br>(64,454)<br>(8,773)<br>104,717<br>2,601<br>1,550<br>8,797<br>5,000<br>500<br>332,697|31.8.21<br>Total<br>activities<br>£<br>328,880<br>(61,746)<br>(2,549)<br>109,041<br>2,539<br>-<br>8,698<br>5,000<br>-|
|---|---|---|---|---|
|||||389,863|



continued... 

Page 19 



**CARDIFF METHODIST CIRCUIT** 

**Notes to the Financial Statements - continued for the year ended 31 August 2022** 

## **4. INCOME FROM CHARITABLE ACTIVITIES - continued** 

The Assessment from churches is shown as part of the income from the charitable activity of Christian Ministry on the Statement of Financial Activities net of amounts paid to the Methodist District Fund and Synod Fund totalling £64,454 and £8,773 respectively. These amounts come out of monies collected from the churches to pay out their share to the District Fund and Synod. The resultant income is the "gross" income which belongs outright to the Circuit. 

Grants received, included in the above, are as follows: 

|Grants received, included in the above, are as follows:|||
|---|---|---|
|Circuit - Methodist/ Synod grants<br>Trinity Centre - General (including Methodist grants)<br>Trinity Centre - National/ Big Lottery for Global Gardens<br>Trinity Centre - National Lottery Property Development grant|31.8.22<br>£<br>44,650<br>23,280<br>16,836<br>19,951<br>104,717|31.8.21<br>£<br>37,500<br>29,918<br>14,308<br>27,315|
|||109,041|



Circuit grants 

Ongoing grants included £5,000 (£16,000 last year) for the PlasDwr Project (of which £5,000 was used in the year and a further £10,000 was used from carry forward last year); £10,000 (£10,000 last year) for the Children & Youth Worker; £7,650 (£7,500 last year) for the Synod Mission Enabler and Wales Synod grant of £6,000 (of which none was used in the year, with £6,000 for carry forward at 31 August 2022) 

Wales Synod grants of £12,000 were receivable and used in the year (£14,000 last year). 

## Trinity Centre grants (extract) 

A grant of £20,000 from the Methodist Church Welsh Synod was paid to the Trinity Project in 2020, and was fully used last year. 

A grant of £12,500 from Methodist Mission Grant was paid to the Trinity Project in 2020, but is still as yet unspent at 31 August 2022.  As such no income has been recognised, having been treated as a deferred grant. 

The National Lottery Community Fund granted £10,000 in the year (£24,976 last year) for the Global Gardens Project, of which £16,836 was used this year (£14,308 last year) and £3,832 was unspent at 31 August 2022. 

A Heritage National Lottery Grant of £31,973 was received in the year, out of which £19,951 was spent and £12,022 was unspent at 31 August 2022. A grant of £27,315 from the National Lottery for the Development Project was received and fully used last year. 

continued... 

Page 20 



**CARDIFF METHODIST CIRCUIT** 

## **Notes to the Financial Statements - continued for the year ended 31 August 2022** 

|**5.**<br>**CHARITABLE ACTIVITIES COSTS**<br>Direct<br>Costs<br>£<br>Christian Ministry<br>371,919<br>Costs relating to rental income<br>21,323<br>Trinity Centre<br>92,374<br>485,616<br>**6.**<br>**SUPPORT COSTS**<br>Christian Ministry<br>Support costs, included in the above, are as follows:<br>Auditors' remuneration<br>Auditors' remuneration for non audit work<br>**7.**<br>**AUDITORS' REMUNERATION**<br>Fees payable to the charity's auditor for the audit of the charity's financial<br>statements<br>Auditors' remuneration for non audit work<br>Assistance with accounts preparation<br>Total non-audit fees<br>Total fees payable|Support<br>costs (see<br>note 6)<br>Totals<br>£<br>£<br>2,800<br>374,719<br>-<br>21,323<br>-<br>92,374<br>2,800<br>488,416<br>Governance<br>costs<br>£<br>2,800<br>31.8.22<br>31.8.21<br>Christian<br>Total<br>Ministry<br>activities<br>£<br>£<br>2,500<br>2,500<br>300<br>300<br>2,800<br>2,800<br>31.8.22<br>31.8.21<br>£<br>£<br>2,500<br>2,500<br>300<br>-<br>-<br>300<br>300<br>300<br>2,800<br>2,800|
|---|---|



continued... 

Page 21 



**CARDIFF METHODIST CIRCUIT** 

**Notes to the Financial Statements - continued for the year ended 31 August 2022** 

## **8. TRUSTEES' REMUNERATION AND BENEFITS** 

Each of the ministers of the Circuit received a stipend for their services. The Circuit Administrator also received a salary for her services.  Please refer to the related party note. 

## **Trustees' expenses** 

Each of the ministers, the Administrator and two others, a total of nine trustees, have incurred expenses on behalf of the Circuit for travel/ office costs and ministry in the main. The total amount of expenses reimbursed to trustees in this way was £18,707 (2021: £13,733) 

## **9. STAFF COSTS** 

|**STAFF COSTS**|||
|---|---|---|
|Wages and salaries<br>Social security costs<br>Other pension costs|31.8.22<br>£<br>203,691<br>14,917<br>41,680<br>260,288|31.8.21<br>£<br>203,001<br>14,667<br>41,196|
|||258,864|



The average monthly number of employees during the year was as follows: 

||31.8.22|31.8.21|
|---|---|---|
|Ministers|6|6|
|Administrator|1|1|
|Children, Families & Youth Worker|1|1|
|Trinity Centre workers|2|2|
||10|10|



No employees received emoluments in excess of £60,000. 

Of the above costs £158,552 relate to stipends paid to the minsters, £41,680 for their pension costs and £14,917 social security. 

A further £17,314 relates to staff costs for the Trinity Centre paid out of its funds. 

## **10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES** 

|**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>**Charitable activities**<br>Christian Ministry<br>Trinity Centre<br>Investment income<br>Other income<br>**Total**|Unrestricted<br>funds<br>£<br>-<br>318,322<br>-<br>60,236<br>-<br>378,558|Restricted<br>funds<br>£<br>43,071<br>-<br>71,541<br>13,551<br>3,289<br>131,452|Total<br>funds<br>£<br>43,071<br>318,322<br>71,541<br>73,787<br>3,289|
|---|---|---|---|
||||510,010|



continued... 

Page 22 



**CARDIFF METHODIST CIRCUIT** 

## **Notes to the Financial Statements - continued for the year ended 31 August 2022** 

## **10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued** 

|**EXPENDITURE ON**<br>**Charitable activities**<br>Christian Ministry<br>Costs relating to rental income<br>Trinity Centre<br>**Total**<br>Net gains on investments<br>**NET INCOME/(EXPENDITURE)**<br>**Transfers between funds**<br>**Other recognised gains/(losses)**<br>Gains on revaluation of fixed assets<br>**Net movement in funds**<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>**TOTAL FUNDS CARRIED FORWARD**|Unrestricted<br>funds<br>£<br>340,788<br>9,389<br>-<br>350,177<br>40,000<br>68,381<br>(116,734)<br>245,000<br>196,647<br>5,086,895<br>5,283,542|Restricted<br>funds<br>£<br>170<br>-<br>180,979<br>181,149<br>-<br>(49,697)<br>116,734<br>-<br>67,037<br>106,360<br>173,397|Total<br>funds<br>£|
|---|---|---|---|
||||340,958<br>9,389<br>180,979|
||||531,326|
||||40,000|
||||18,684<br>-<br>245,000|
||||263,684<br>5,193,255|
||||5,456,939|



## **11. RESTRICTED FUNDS** 

The restricted funds are split into two main categories, those held by the Circuit directly and the Trinity Centre. 

The Trinity Centre is treated as a restricted fund in its own right, since it runs its own operations known as the Trinity Centre Project. It derives its own income and controls its own bank accounts and other net assets or liabilities, all of which must only be used with regard to expenditure relating to the Trinity Centre Project. 

The restricted funds of the Circuit are held centrally in "Trustees for Methodist Church Purposes" accounts. There is generally little activity within these funds. 

In the normal course of its operations the Circuit maintains manses and other properties and rents out any properties surplus to those used as manses. The properties are generally available for use by the charity in this way, and for this reason have been treated as fixed assets/ investments within unrestricted reserves (together with the fair value reserves for the same). 

However, when a property is sold, any proceeds have to be transferred to the CMT restricted fund, out of which only another property can be purchased. 

continued... 

Page 23 



**CARDIFF METHODIST CIRCUIT** 

## **Notes to the Financial Statements - continued for the year ended 31 August 2022** 

## **12. TANGIBLE FIXED ASSETS** 

|**COST OR VALUATION**<br>At 1 September 2021<br>Additions<br>Revaluations<br>Reclassification<br>At 31 August 2022<br>**DEPRECIATION**<br>At 1 September 2021 and 31 August 2022<br>**NET BOOK VALUE**<br>At 31 August 2022<br>At 31 August 2021<br>Cost or valuation at 31 August 2022 is represented by:<br>Valuation in 2022|Freehold<br>property<br>£<br>4,195,000<br>230,000<br>275,000<br>(475,000)<br>4,225,000<br>-<br>4,225,000<br>4,195,000<br>Freehold<br>property<br>£<br>4,225,000|Fixtures<br>and<br>fittings<br>£<br>4,361<br>-<br>-<br>-<br>4,361<br>4,361<br>-<br>-<br>Fixtures<br>and<br>fittings<br>£<br>4,361|Totals<br>£<br>4,199,361<br>230,000<br>275,000<br>(475,000)<br>4,229,361<br>4,361<br>4,225,000<br>4,195,000<br>Totals<br>£<br>4,229,361|
|---|---|---|---|



Land and buildings comprise Manses and two churches which have ceased to meet. 

(a) For Manse properties which existed prior to 1 September 2000 their historical cost has not been ascertained. Subsequent cost of purchases and improvements amounts to £748,056 (2021: £518,056) 

The Manses were last professionally valued at open market value by Croft Davies & Co NAEA in October/ November 2020.  In their considered opinion this valuation is £3,725,000 at 31 August 2022. 

(b) Trinity and Splott Churches in Cardiff, which have ceased to meet, were last professionally valued by Bruton Knowles RICS on 19 May 2021at a total value of £500,000.  Their historical cost has not been ascertained. 

It is the considered opinion of the trustees that for both types of property these professional valuations represent a fair value at 31/08/22. 

The properties are not owned outright by Cardiff Methodist Circuit but by the Trustees for Methodist Church Purposes (TMCP), but it is a requirement of the Methodist Church that the properties are included in the accounts of the Circuit. 

continued... 

Page 24 



**CARDIFF METHODIST CIRCUIT** 

**Notes to the Financial Statements - continued for the year ended 31 August 2022** 

## **13. INVESTMENT PROPERTY** 

|**INVESTMENT PROPERTY**||
|---|---|
|**FAIR VALUE**<br>At 1 September 2021<br>Revaluation<br>Reclassification<br>At 31 August 2022<br>**NET BOOK VALUE**<br>At 31 August 2022<br>At 31 August 2021<br>Fair value at 31 August 2022 is represented by:<br>Valuation in 2022|£<br>810,000<br>130,000<br>475,000|
||1,415,000|
||1,415,000|
||810,000|
||£<br>1,415,000|



For investment properties which existed prior to 1 September 2000 their historical cost has not been ascertained. Subsequent cost of purchases and improvements amounts to £30,364 (2021: £30,364). 

The investment properties were last professionally valued at open market value by Croft Davies & Co NAEA in October/ November 2020 and reconsidered at 31 August 2022. It is the considered opinion of the trustees that the carrying values represent a fair value at 31/08/22. 

The properties are not owned outright by Cardiff Methodist Circuit but by the Trustees for Methodist Church Purposes (TMCP), but it is a requirement of the Methodist Church that the properties are included in the accounts of the Circuit. 

## **14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

||31.8.22|31.8.21|
|---|---|---|
||£|£|
|Other debtors|14,091|1,625|
|Prepayments|22,342|22,893|
||36,433|24,518|



Debtors include £17,146 for stipends paid in advance (2021: £17,801) 

Page 25 

continued... 



**CARDIFF METHODIST CIRCUIT** 

## **Notes to the Financial Statements - continued** 

## **for the year ended 31 August 2022** 

## **15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Other loans (see note 16)<br>Accruals and deferred income<br>Accrued expenses<br>Grants paid in advance|31.8.22<br>£<br>150,000<br>55,925<br>6,187<br>28,646<br>240,758|31.8.21<br>£<br>-<br>53,638<br>4,675<br>36,500|
|---|---|---|
|||94,813|



Creditors includes £55,925 Assessment income received in advance (2021: £53,638). 

## **16. LOANS** 

An analysis of the maturity of loans is given below: 

|Amounts falling due within one year on demand:<br>Other loans<br>**MOVEMENT IN FUNDS**<br>**Unrestricted funds**<br>General fund<br>Manses & Churches fair value fund<br>Investment Property fair value fund<br>**Restricted funds**<br>Charles Street Trust<br>Circuit Model Trust<br>Trinity Centre<br>**TOTAL FUNDS**|At 1.9.21<br>£<br>826,962<br>3,676,944<br>779,636<br>5,283,542<br>50,844<br>94,375<br>28,178<br>173,397<br>5,456,939|Net<br>movement<br>in funds<br>£<br>(63,444)<br>275,000<br>130,000<br>341,556<br>94<br>(1,072)<br>26,565<br>25,587<br>367,143||31.8.22<br>£<br>150,000<br>Transfers<br>between<br>funds<br>£<br>101<br>(475,000)<br>475,000<br>101<br>(101)<br>-<br>-<br>(101)<br>-|31.8.21<br>£<br>-<br>At<br>31.8.22<br>£<br>763,619<br>3,476,944<br>1,384,636|31.8.21<br>£<br>-|
|---|---|---|---|---|---|---|
||||||5,625,199<br>50,837<br>93,303<br>54,743||
||||||198,883||
||||||5,824,082||



## **17. MOVEMENT IN FUNDS** 

Page 26 

continued... 



**CARDIFF METHODIST CIRCUIT** 

## **Notes to the Financial Statements - continued for the year ended 31 August 2022** 

## **17. MOVEMENT IN FUNDS - continued** 

Net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>Manses & Churches fair value fund<br>Investment Property fair value fund<br>**Restricted funds**<br>Charles Street Trust<br>Circuit Model Trust<br>Trinity Centre<br>**TOTAL FUNDS**<br>**Comparatives for movement in funds**<br>**Unrestricted funds**<br>General fund<br>Manses & Churches fair value fund<br>Investment Property fair value fund<br>**Restricted funds**<br>Charles Street Trust<br>Circuit Model Trust<br>Trinity Centre<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>329,825<br>-<br>-<br>329,825<br>239<br>1,556<br>118,939<br>120,734<br>450,559<br>At 1.9.20<br>£<br>788,075<br>3,431,944<br>866,876<br>5,086,895<br>50,837<br>2,529<br>52,994<br>106,360<br>5,193,255||Resources<br>expended<br>£<br>(393,269)<br>-<br>-<br>(393,269)<br>(145)<br>(2,628)<br>(92,374)<br>(95,147)<br>(488,416)<br>Net<br>movement<br>in funds<br>£<br>28,381<br>245,000<br>40,000<br>313,381<br>70<br>49<br>(49,816)<br>(49,697)<br>263,684||Gains and<br>losses<br>£<br>-<br>275,000<br>130,000<br>405,000<br>-<br>-<br>-<br>-<br>405,000<br>Transfers<br>between<br>funds<br>£<br>10,506<br>-<br>(127,240)<br>(116,734)<br>(63)<br>91,797<br>25,000<br>116,734<br>-|Movement<br>in funds<br>£<br>(63,444)<br>275,000<br>130,000<br>341,556<br>94<br>(1,072)<br>26,565<br>25,587<br>367,143<br>At<br>31.8.21<br>£<br>826,962<br>3,676,944<br>779,636<br>5,283,542<br>50,844<br>94,375<br>28,178<br>173,397<br>5,456,939|
|---|---|---|---|---|---|---|
||||||||
||||||||
||||||||



continued... 

Page 27 



**CARDIFF METHODIST CIRCUIT** 

**Notes to the Financial Statements - continued for the year ended 31 August 2022** 

## **17. MOVEMENT IN FUNDS - continued** 

Comparative net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>Manses & Churches fair value fund<br>Investment Property fair value fund<br>**Restricted funds**<br>Charles Street Trust<br>Circuit Model Trust<br>Trinity Centre<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>378,558<br>-<br>-<br>378,558<br>172<br>117<br>131,163<br>131,452<br>510,010|Resources<br>expended<br>£<br>(350,177)<br>-<br>-<br>(350,177)<br>(102)<br>(68)<br>(180,979)<br>(181,149)<br>(531,326)|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>-<br>28,381<br>245,000<br>245,000<br>40,000<br>40,000<br>285,000<br>313,381<br>-<br>70<br>-<br>49<br>-<br>(49,816)<br>-<br>(49,697)<br>285,000<br>263,684|
|---|---|---|---|



## **18. RELATED PARTY DISCLOSURES** 

The main costs of the Circuit are the payment of stipends to the ministers and for the provision of Manses for them, the very modus operandi of the organisation. The six ministers are named as the first six on the list of trustees in  the Trustees' Report. 

During the year stipends totalling £129,975 were paid equally to five of the ministers at £25,995 each and £28,577 for the Superintendent Minister, C Gale. Pension contributions totalling £41,680 were also paid on their behalf, paid equally at £6,947 each. 

The utility costs of all the manses totalled £32,956 and maintenance £29,923, most of which relates to those provided for the ministers. It would serve no purpose to divide these individually between the ministers. 

The Administrator, L Medina (Trustee) was paid a salary of £9,886 and pension contributions of £593 were paid on her behalf. 

continued... 

Page 28 



**CARDIFF METHODIST CIRCUIT** 

## **Notes to the Financial Statements - continued** 

## **for the year ended 31 August 2022** 

## **19. OTHER FUNDS NOT INCLUDED IN ACCOUNTS** 

During the year funds totalling £5,486 were collected and paid over to the Methodist Church Connexional Funds as follows: 

|The Mission in Britain Fund|£1,556|
|---|---|
|Fund for the Support of Presbyters & Deacons|£810|
|The Property Fund|£1,150|
|The World Mission Fund|£1,970|



In addition £443 was paid out of the Benevolent Fund to the Methodist Church in South Africa. 

Page 29 



## **CARDIFF METHODIST CIRCUIT** 

## **Detailed Statement of Financial Activities for the year ended 31 August 2022** 

|**Detailed Statement of Financial Activities**<br>**for the year ended 31 August 2022**|||||
|---|---|---|---|---|
||||31.8.22|31.8.21|
||Unrestricted|Restricted|Total|Total|
||funds|funds|funds|funds|
||£|£|£|£|
|**INCOME AND ENDOWMENTS**|||||
|**Donations and legacies**|||||
|Donations - Trinity Centre|-|29,487|29,487|43,071|
|**Investment income**|||||
|Rents received|56,820|28,628|85,448|73,288|
|Deposit account interest|375|833|1,208|499|
||57,195|29,461|86,656|73,787|
|**Charitable activities**|||||
|Assessment from Churches|282,759|-|282,759|328,880|
|District share from Assessment|(64,454)|-|(64,454)|(61,746)|
|Synod fund from Assessment|(8,773)|-|(8,773)|(2,549)|
|Grants|44,650|60,067|104,717|109,041|
|Synod contribution to rates|2,601|-|2,601|2,539|
|Synod contribution to Youth Circuit|1,550|-|1,550|-|
|Synod contribution to Assistant Chair|8,797|-|8,797|8,698|
|Pontprennau Community contribution|5,000|-|5,000|5,000|
|Contribution Pioneer Ministry|500|-|500|-|
||272,630|60,067|332,697|389,863|
|**Other income**|||||
|Sundry income|-|1,719|1,719|3,289|
|**Total incoming resources**|329,825|120,734|450,559|510,010|
|**EXPENDITURE**|||||
|**Charitable activities**|||||
|Stipends & salaries|186,377|17,314|203,691|203,001|
|Social security|14,917|-|14,917|14,667|
|Pensions|41,680|-|41,680|41,196|
|Manse utilities|32,956|-|32,956|33,982|
|Manse repairs/furnishings|29,923|-|29,923|19,920|
|Manses rented out repairs|17,578|-|17,578|5,099|
|Staff travel|8,114|-|8,114|3,005|
|Telephone & internet|5,488|-|5,488|5,974|
|Circuit office costs|1,521|-|1,521|1,064|
|Removal expenses|4,346|-|4,346|-|
|Carried forward|342,900|17,314|360,214|327,908|



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Page 30 



## **CARDIFF METHODIST CIRCUIT** 

## **Detailed Statement of Financial Activities** 

## **for the year ended 31 August 2022** 

|**Detailed Statement of Financial Activities**<br>**for the year ended 31 August 2022**|||||
|---|---|---|---|---|
||||31.8.22|31.8.21|
||Unrestricted|Restricted|Total|Total|
||funds|funds|funds|funds|
||£|£|£|£|
|**Charitable activities**|||||
|Brought forward|342,900|17,314|360,214|327,908|
|Staff & LP training & development|530|-|530|518|
|Pulpit supplies|922|-|922|659|
|Printing, stationery, postages|3,026|-|3,026|2,983|
|Property quinquennials|9,840|-|9,840|6,414|
|Sundries|1,564|-|1,564|354|
|St Paul's Loudon Square expenses|238|-|238|326|
|Splott costs|512|-|512|392|
|Agent costs deducted from rent|3,745|-|3,745|4,290|
|Mission and Outreach|6,310|-|6,310|1,002|
|Legal and professional costs|10,989|-|10,989|7,026|
|Synod Mission Enabler|9,893|-|9,893|7,186|
|District levies|-|2,359|2,359|63|
|TMCP charges|-|414|414|107|
|Accommodation costs Trinity Centre|-|27,965|27,965|22,816|
|Administrative & project costs Trinity Centre|-|47,095|47,095|139,958|
|Loan interest|-|-|-|6,524|
||390,469|95,147|485,616|528,526|
|**Support costs**|||||
|**Governance costs**|||||
|Auditors' remuneration|2,500|-|2,500|2,500|
|Auditors' remuneration for non audit work|300|-|300|300|
||2,800|-|2,800|2,800|
|Total resources expended|393,269|95,147|488,416|531,326|
|**Net (expenditure)/income**|(63,444)|25,587|(37,857)|(21,316)|



This page does not form part of the statutory financial statements 

Page 31