CHARrrY REGISTRATION NUMBER: 1134236 Cardiff Methodist Circuit Financial Statements 31 August 2023 GORDON DOWN & PARTNERS Accountants & statutory auditor 144 Walter Road Swansea SA1 5RW Cardlff Mathodist Circuit Financial Statements Year ended 31 August 2023 Page Trustees, annual report Independent auditorfs report to the members Statement of financial activities Statement of financial positi'on Statement of cash flows 10 15 16 17 Notes to the financial statements 18 The followlng pages do not fomi part of the financial statements Detailed statement of financial activities 28 Cardiff Methodist Circuit Trustees, Annual Report Year ended 31 August 2023 Introductlon The trustees present their report wrth the financial statements of thg charity for the year ended 31 August 2023. The truste8s have adopted the provisions ofAccounting and Reporting by Charities: Slatement of Recommended Practice applicable to charities preparing their accounts in accordan￿ with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). The Cardiff Methodist Circutt is the primary unit in which the local Methodisl 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 CirGuit that the ministers are stationed and local preachers are trained, admitted and exercise their calling. The purposes of the Circuit indude the effective deployment of the resources of ministry, which include people. property and finan￿. as they relate to the Methodist churthes in Cardiff & Caerphilly lo churches of other denominations and to participation in the life of the communities served by the Circuit, including lo(￿1 schools and colleges and in ecumenical work in the area. Aims and Organisation The purposes of the Methodist Church are the adVan￿rnent ofr a) The Christian faith in accordance with the doclrinal standards and discipline of The Methodist Church., b) Any charitable purpose for the time being of any cOnne￿onal, DistricL Synod. Circuit. local or other organisation of The Methodist Church" c) Any Gharitable purpose for the time being of any sooety or institution subsidiary or ancillary to The Meth¢)dist Church., d) Any purpose for the time being of any charity being a d)arity subsidiary or ancillary to The Methodist Church. Cardiff Methodist Circuit Trustees, Annual Report (conun Year ended 31 August 2023 Slgnificant Activities The Circuit produces a quarterly preaching plan to ensure regular Acts of Worship take place at each of the Methodist Churches and Local EcumeniGal Partnerships in ils geographical area. These are open to all people without charge. Worship is also provided for Young People at Youth Spa￿. The Circuit aims to encourage the nurture of and witness to families through the local churGhes and also to young people through Youth Spa￿. The Children's and Youth work is achieved through the emplo￿nent of a Lay Worker who works alongside volunteers across the circuit delivering ac￿Ssible 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. 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 encourdge In-servi￿ developm8nt. (iv) The Circuit is involved in a wide range of outreach activities. in acmrdance with rts charitable purposes, mainly through the work of individual churches. There is Circuit-wide project in the Trinity Centre which provrdes services for refugees and asylum seekers residing in Cardiff. More will be said about the Trinity Centre below. The Cirwit is involved in the work of the Church of the Resurrection and Pontprennau Community Church through work with ecumenical partners who are part of the Covenanted Churches in Wales group. Both these churches are way ocumenical partnerships in which the Methodist Church is one participating denomination. The M8th¢)dist Church owns the Pontprennau building. (v) Public Benefrt The trustees of the Methodist Church had due regard to the public ben&fit guidan published by the Charity Commission in Complian￿ with its duties under section 17 of the Charities Act 2011. This guidance sets oul 2 key principles- 1. The organisation must have an identifiable benefit 2. The benefit must be to the public or a seclion of the public. The church exists, inter alia to: 1. Increase awareness of God's presen￿ and to celebrate G¢)d's love.. 2. Help people to leam and grow as Christians, through mutual support arKI care., and 3. Be a good neighbour to people in need and challenge injustice. The Irustees consider that for these reasons the charity meets these wbliG benefft requirements. Cardiff Methodist Circuit Trustees. Annual Report l¢oftJnu8d) Year ended 31 August 2023 Charitable activities a. The Trinity Centre 'Sanctuary for All. project is now fully funded with o)nstruction having commenced in January 2024 and estimated completion by January 2025. The Circuit has earmarked £230,000 from the sale of property for the project. The refurbished building will be used as a base for mission in the local area particularfy with refugees and asylum seekers. b. Since September 2019 the circuit ministerial staff has included one minister who is 500k 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 significanuy 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. Financlal Revlew of the Year The Circuit had an overall deficrt for the year. before transfers. of £87.270. This was a planned deficit giving churches time to rebuild their reserves after the struggles of Covid followed by quite high levels of inflation. The overall fInan￿S of the Circuit include the Trinity Project- a Centre in Adamsdown serving the local community where a high level of refugees and asylum seekers reside. This building currently has a large refurbishment project which will be ongoing through 202&5. The figures for the Trinty Centre are included as restricted funds. Income Trends CirGuit income is primarfly dravm from the assessment paid by the Circuit churches which amounted to £280.900 in 2022-3. Funds are also received through the rental of six properties that were previously manses. Expenditure Trends Stipend expendff(ure has increased each financial year in line with conference approved increases - rdte of increase for 2022-3 was 7.83 % . 15.50/0 of expenditure is the Circuit contribution to the District and Connexion. Of which a significant part is used to fund the work of the wider Methodist Church. Other significant expenditure related to maintenance of property in the Circuit. Cardiff Methodist Circuit Trustees. Annual Report (conllnu8dJ Year ended 31 August 2023 Fund Balances As at 31 st August 2023 the net current assetslliabilities were as follows." Circuit Circuit Model Trust Fund Trinity Centre Total (1,134) 239,414 49.810 288.090 Reserves Policy The Reserves Policy for the Circuit is to hold a minimum sum equivalent to 4 months, average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and l orto be able to continue, in the short temi, funding planned activities in the event of any inabilrty to raise the ftjll Circuit Assessment from churches. As noted above the subsequent sale of one of our manses ensures reserves are in line with this policy. Plans for 20234 Circuit financial plans for the coming year have been prepared on the basis that there remains 5.16 full-time ordained staff with anticipated cr)st of living stipend increases combined with an increase in the assessment paid to the district such that and average 100/0 assessment increase has been requested frotn the Circuit churches. However, with the closure of two of the Circutt churches and the loss of related assessment income it is expected the Circuit will also experience a small deficit in 20234. Basls of Preparation and Legal Framework The Charity's annual reFK)rt and accounts for the year ended 31 St August 2023 have been prepared in accordance with the Charities Act 2011 and the Charities: Statement of Recommended Practi￿ 2015 as applicable to the Financial Reporting Standard (FRS) 102 Cardiff Methodist Circuit Trustees, Annual Report f¢onUn Year ended 31 August 2023 Tha Trust&es' annual rep)rtwa5 apwovgy C￿...... oftrnstees ty". .. and siyned behatroftho b08rd R6vC Trustée Cardiff Methodist Circuit Trustees, Annual Report (cortin Year ended 31 August 2023 Charity Reference and adminlstrative detalls Registered charity name: Cardiff Methodist Clrcuit Charity No. 1134236 Reglstered 10th February 2010 Correspondence Address: Cardiff Methodist Circuit office. Cyncoed Methodist Church. Westminster Crescent, Cardiff CF23 6SE Full List of Trustees is shown as Appendix A to this report Actlve Circuit Minlsters Rev. Catherine Gale Rev. Judith Holliman Rev. Alexis Mahoney Rev. Evelyn Bhajan Deacon Laura Evans Clrcuit Lay Workers Mr Gareth Knowles Circuit Stewards Mrs Janet Rees Mrs Marie Edwards Mr Stephen McElveen Mrs Beth Barry Mrs Wendy Bamise Admlnistrator Mrs Lisa Medina Cardiff Methodist Circuit Trustees. Annual Report (condw Year ended 31 August 2023 Circuit Treasurer Mrs Wendy Barwise Auditor Gordon Down & Partners Investment bankers Central Finance Board of the Methodist Church Trustees for Methodist Church Putposes Lloyds Bank Reference and administratlve details Cardiff Methodist Circuit Trustees. Annual Report (cooknwd) Year ended 31 August 2023 The trustees Cathy Gale- Minister Evelyn Bhajan - Minister Judith Holliman - Minister Alexis Mahoney- Minister Irfan John- Minister Laura Evans Minister (from 1° September 2022 Bethany Barry- Circuit Steward Wendy Barwise - Circuit Steward Marie Edwards - Circuit Steward Steve McElveen - Circuit Steward Janet Rees- Circuit Steward Catherine Dodd - Circuit Meeting Secretary Gauri Taylor-Nayar- Local Preacher Rep AnthonyThomas- Local Preacher Rep Maurice Wentworth - Local Preacher Rep Paul Demery- Safeguarding Rep Matthew Angilley- Cathays Stuart Cane- Cathays Martin Hunt- Cathay5 Susan Morris- Cathays Heather Cox- Conway Road Derek Perkins- Conway Road John Powell - Conway Road Peggy Lau - Cyncoed Carol Plumridge- Cyncoed John Plumridge- Cyncoed Terry Wing- Cyncoed Janice Perris- Llandaff North John Elias- Llandaff North Peter Richards- Uandaff North Deborah Witts- Uandaff North Liz Crispie- Llanishen Neil Lyle - Uanishen Hannah Ofoe- Uanishen Vera Ruddock- Llanishen Ann Thomas- Llanishen Diane Richards- Pontprennau Cardiff Methodist Circuit Trustees. Annual Report (cly￿rn￿ Year ended 31 August 2023 Susan Beavis - Radyr Christina Crow- Radyr Sylvia (Catherine) Hewett- Radyr Cath Taylor- Radyr Christopher Markall- St. Andrew's Lisa Medina- St. Andrew's Helen Tyler- St. Andrev¥s Karen smith - Taffs Well Peter Smith- Taffs Well Irene Welsby-Taffs Well SidneyChandler-WesleyCaerphilly Gillian Griffiths - Wesley Caerphilly Carol Pym- Wesley Caerphilly Ann Thomas- Wesley Caerphilly AndrewCross- Wesleycanton Ann Cross- Wesley Canton Graham Hosgood- Wesley Canton Paul Knight- Wesleycanton Murray Taylor- Wesley Canton Clive Carpenter- Whitchurch Allison Hill- Whitchurch Christine Stanley- Whitchurch Monica Symonds- Whitchurch The followinguntil 27July 2023. Muriel Fisher- Circuitsteward: Alison Hill- Ely Gareth Hill- Ely Roger Palmer- Ely Sandra Palmer- Ely Debbie Paul- Ely Alan Doble- Rumney Wendy Doble- Rumney Barbara Ward- Rumney Roslyn Forster- Taffs Well Cardiff Methodist Circuit Trustees. Annual Report (Cotsllnued) Year ended 31 August 2023 10 Cardiff Methodist Circuit Independent Auditor's Report to the Members of Cardiff Methodlst C1￿ult Year ended 31 August 2023 Oplnion We have audited the financkal statements of Cardrff Methodist Circuit {the 'charity') for the year ended 31 August 2023 which comprise the stalefflenl of financial activities. statement of financial position. slalemenl of cash flows and the related notes. induding a summary of signrficant accounting policies. The financial reporting framework that has tEen applied in their preparation is applicable law and United Kingdom Accounting Standards. induding FRS 102 The Financial Reporting Standard applicable in the UK and Republic of IrelarKJ {Unileil Kingdom Generally Accepted Accx)unts'rKJ PraC￿e). In our opinion the finawal statements= give a true and fair view of the stale of the charity's affairs as at 31 August 2023 and of its incoming resources and application of reS￿rCes, induding its income arKI expenditure. for the year then ended., have been prop6tly prepared in acu)rdance wrth United lQllgJom Generally Acc*pted Accounting practi￿,. have been prepared in accordan￿ ￿th the requirements of the Charilth Act 2011. Basls for opinlon We conducted our audit in aol0rdar￿ with Inlemalional Standards on Auditing IUKI (ISAS (UK)) and applicable law. Our reswnsibilities under those Star￿ardS are further described in the auditor's respon5ibilllies for the audrt of the financial statements section of ryJr reF¥Jrt. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial stalemenls in the UK, including the FRC'S Ethical StaTMlard. and we have fu￿illed our other ethical responsibilities in accordance wtth these requirements. We believe that the audil evidence we have obtained is sufficient and appropriate to wovhle a basis for (wjr opinK)n. Concluslons r•lating to going concem In aLtditing the financial statements. we have conduded that the trustees, use ofthe golng concem ba51S of accounting in the preparat￿n of the finan￿21 statements is approwiate. Based on the work we have performed. we have not 1dentffj￿d any material un￿rtaint10S relating lo events or conditions that. individually or ojlectively. may (ast sIgnff￿anI doubl ow7 the charivs abilty to continue as a going concem for a period of at least tsvelve months from when the financial statements are 8Uthorised for issue. Our responsibilities and Ihe responsibilities of the trustees respoct to going corKEm are descrlbed in the relevant sections of this report. 11 Cardiff Methodist Circuit Independent Auditorfs Report to the Members of Cardiff Methodist Circuit I￿￿11￿ueQj Y•ar ended 31 August 2023 Other infonnation The other information comprises the information included in the annual reporL other than the financial statements and our auditorfs rewt Ihereon. The trustees are ￿spOnSible for the other information. Our opinion on the financial statements does not ￿Ver the other information and. except to the exlenl otherwise expliciUy stated in report. we do not express any fomi of assurance conclusion thereon. In connection with our audit of the financial staternents. our reswnsibilty is lo read the other information an¢Y. in doing so, consider whether the other ir)formation is materially inconsisteJ71 with the financial statements or our krK)wledge obtained in the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies (Y apparent material fflisstalements, we are required lo determine whether there is a material misstalement in the financial statements or a material misstatement of the other information.11. base(1 on the work we have performed. we conclude that there is a material misstatement of this other infomiation. we are required lo report that fact. We have nothing to report in this regard. Matters on which we are requirgd to report by exception In the light of the knowledge and understsnding of the chanty and its environment obtalned in the course of the audit, we have not identified material misslatements in the trustees. report. We have nothing lo resxjrt in res* of the ft)Ilowing matter5 in relation to which the Charities Act 2011 requires us to rem to you rf, in our opinion: Ihe information given in the Irustees. report is inconsrstent in any material respect with the financial staternenls.- or adequate accounting records have not been kept or the financial statements are not in 8greeft￿nt wlth the actounting records and retums" or we have not received all the infonnatk)n and explanations we require for our audit. Responslbilities of tru8tws As explained more fully in the trustees. responsibilities slatement. the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and for such intem81 control as the trustees deterniine 15 necessary to enable the preparatron of financial statements that are free from material misstalemenL whether due to fraud or errcy. In preparing the financial staternenls. the twstees are responsible for assessing the charity's ability to continue as a going cA)ncern. disclosing. as applicable. matters related to going concern and using the going concern basis of accounting unles5 the trustees either intend lo liquidate the charity or lo cease op6rations. or have no realistic altemalive but lo do so. 12 Cardiff Methodist Circuit Independent Auditorfs Report to the Members of Cardiff Methodist Circuit (coniTnu8 Year anded 31 August 2023 Auditor's ￿POnsIbl11t108 for the audh of the financlal statgmonts Our objectives are lo obtain reasonable assurance aljout whether the financial statements as a whole are free from material misstatement. whether due lo fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. bul is not a guarantee that an audit conducled in accordance wilh ISAS {UK) will afvffiys delect a material misslatemenl when it exists. Misslatemenls can arise from fraud or error and are ￿nsidered material rf, individually or in the aggregate, they ￿Uld reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non