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2021-08-31-accounts

Charity Registration No. 1134245

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees For full list of Trustees, see note 27 Circuit Superintendent Reverend G Farrar Charity number 1134245 Principal address 13 Enmore Road London Middlesex United Kingdom SW15 6LL Auditor Azets Audit Services Trinity Court 34 West Street Sutton Surrey United Kingdom SM1 1SH Bankers HSBC Bank PLC 8 Victoria Street London United Kingdom SW1H 0NJ Central Finance Board of the Methodist Church (CFB) 9 Bonhill Street London United Kingdom EC2A 4PE CAF Bank Limited (Charities Aid Foundation Bank) 25 Kings Hill Avenue West Malling Kent United Kingdom ME19 4JQ Investment advisors The Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ United Kingdom

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

CONTENTS

Page
Trustees' report 1 - 8
Independent auditor's report 9 - 12
Statement of financial activities 13 - 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 33

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

The trustees present their report and financial statements for the year ended 31 August 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Charities Act 2011 and the 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 from 1 January 2019.

Objectives and activities

The Richmond and Hounslow Circuit operates as part of the Methodist Church of Great Britain, whose mission is ‘to respond to the gospel of God’s love in Christ and to live out its discipleship in worship and mission'. The Circuit’s specific calling is to facilitate and support the eight local Methodist Churches in its area as they respond to that call, through responsible stewardship and effective oversight of its resources physical and material, it seeks to enable those local congregations to increase the awareness of God’s presence and celebrate God's love helping them to grow and learn through mutual support and care, enabling them to be a good neighbour to people in need and to challenge injustice.

The circuit supports the provision of high quality worship in all churches on Sundays and at other times continuing to support preachers in the circuit facilitating continuing development opportunities and actively encouraging all church members to pursue their vocations.

The circuit has ensured that the highest standards of Safeguarding for children and vulnerable adults have been maintained across the circuit. The circuit has monitored the provision of pastoral care across the Circuit.

The Reverend Geoffrey Farrer applied to extend his term with the circuit for another five years. This was accepted and ratified at the July circuit meeting. The Reverend Claudia Lupi decided not to extend her term which is due to finish in July 2022. The Children’s and Youth Leader resigned and left in May 2021.

Again, the year has been challenging due to covid restrictions and lockdown in December. The circuit has supported discipleship work in our churches encouraging fellowship groups and other teaching. It has been able to maintain a high standard of worship during the months we were able to reopen and nearly all our churches were able to open within the Covid guidelines. Help was given to meet the changing government guidelines in order to do this. Support, services and teaching online and via email and telephone contact were also provided, A monthly Circuit magazine was produced to help us all remain connected and those members who do not have internet access were written to once a fortnight. There was in addition weekly Sunday worship on zoom and later YouTube. On Sunday evenings a zoom Bible study met and once a month the ecumenical group now rebranded ‘Theology in the Pub’ met. A weekly coffee morning also met on zoom plus a weekly Bible Fellowship throughout September until July.

When physical worship was banned, ministers and stewards organised online ministry which reached large numbers, including overseas and opportunity was undertaken by some churches to carry out repairs and maintenance on the buildings. While singing was banned in doors some churches began a new witness of hymn singing in the outside grounds of the church. In these ways and in others we have endeavoured to keep connected as a circuit during the pandemic.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

The objective of the circuit is to provide administration services, pastoral and spiritual leadership including supporting their outreach work within their local communities and every attempt was made to continue this appropriately during covid restrictions. Outreach work is an important part of church life. Two churches are part of ecumenical projects working with the homeless over the winter, but this unfortunately had to be put on hold due to Covid restrictions. One of our churches was able to continue providing practical and spiritual help to the homeless on the streets in Richmond.

Other community projects when allowed to start included a Toddlers group offering support to children and families, an open coffee morning online, when the buildings were allowed to re-open the Meditation Group attracted new members. There was an exciting community project planned to reach out to the elderly, and those with dementia which had to be put on hold because of covid however the work with vulnerable young people was able to continue either online or when permitted face to face. The circuit has monitored the provision of safeguarding across the circuit and members were regularly contacted by their pastoral group.

The circuit is also responsible with helping the wider community at home and abroad which it does through a variety of donations to various charities and good causes. We were requested to consider helping financially other circuits within the Methodist circuits who were struggling financially. A grant was given to Harlesden of £10,000 and a donation of £2,000 to Roehampton University’s Hardship Fund for students.

Whitton Church after much prayer and deliberation closed. The congregation had faced many difficulties and struggled for various reasons and after resulting local discussions the hard decision was made to close. There was a service of thanksgiving in July and the members transferred to another church and were given pastoral support throughout. Roehampton Church had also been struggling for several years and the proposal was made that the church would form a Class with Putney giving it the extra support that was required.

During this year the Deacon living and working on the Alton Estate continued to foster relationships with the local community through face-to-face interaction and via virtual means as covid restrictions have allowed. At Christmas because of covid, group carol singing was prevented however, the deacon and a member of the congregation were able to sing carols in a group of two around the estate.

Work has continued since lockdown to ensure the church is more frequently used. The church remained closed for much of this period, but the congregation were ministered to via telephone and in-person and walks to the park, thus continuing the spiritual and emotional support to those isolated by the lack of internet access. The 60+ café opened in July and operates weekly out of the church. The deacon attends as often as possible to offer support and encourage those isolated to regain their confidence in social situations.

The deacon is an active member of the governing board of the local Church of England primary school providing faith support. She also led the school in collective worship and is the SEND governor.

The deacon remained an active member on various community groups, being vice-chairman of the Roehampton Partnership which campaigns on behalf of the people of Roehampton to ensure their interest are taken into consideration.

She attended Safer Neighbourhood meetings with the police and other council departments. There have also been meetings bringing together various community groups as there is a desire to improve the sense of community on the estate. The Deacon is fully involved in these discussions and was a member of the steering committee of the Roehampton Community week which organised and funded a variety of projects throughout the year that enhance the environment, renovate public spaces, encouraging the arts, working with people of all ages and cultural backgrounds to improve their physical and mental health. There was a regular zoom group and women’s network. The deacon organised events such as litter picking, crafting, self-defence and environmental awareness.

The Men’s shed has expanded out of the garage and become the Roehampton Shed. All the initiatives are from a Christian point of view that believes all are made in God’s image and that all creation should flourish.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

The Children and Youth Leader was employed by the circuit in July 2017 to promote youth work within the Circuit with specific duties working as Coordinator at CEDARS Circuit Youth Project and Hounslow Methodist Church.

At Cedars most of the year was in lockdown, however virtual stand-ins for youth clubs with activities and challenges each week was put in place. There was a brief period when the youth club was able to re-open. When the youth club re-opened there was a higher demand than before and sadly because of government guidelines not all were able to be accommodated but those that could not will be reconnected later. Around 80% of the young people at Chiswick were welcomed back with club nights on Mondays and Wednesdays running through half-term. In February 2021 a new initiative was started called ‘Fun in 40’ which were 40 minutes of Cedars zoom sessions, the uptake for this was positive. All the work has complied with the government guidelines. The youth club at Roehampton struggled to re-open but contact was made with the young people.

Funding for the posts come from Circuit funds, grant funding, the District Advance Fund of the Methodist Church, plus a grant from The Putney United Gospel Temperance Society, we are very grateful to these organisations. All CEDARS groups are also supported by other volunteers for whom we are indebted.

THE CEDARS group closed as a Circuit project at the end of the year and the funds were transferred to the two churches who will now operate the project.

Manses were continued to be monitored throughout the year and all necessary repairs undertaken.

Circuit Property was maintained, and it was ensured that the buildings were Covid safe and were kept up to date with the most recent guidelines from the Methodist Church and the Government. The completion and regular review of risk assessments were carried out and individual churches appointed a representative to ensure this work was carried out with the trustees in each church ultimately responsible. Support was given to the churches and there were several zoom meetings.

A Lay Circuit Administrator continues to be employed to provide administrative services and support to the ministers and the circuit, in the development of planned projects, to aid ministry within the churches of the Circuit and to support the work of the Methodist Church as a whole, including keeping the Circuit informed of Connexional matters. She played a large role during lockdown, helping to sort out online worship and setting up a system for communication with those who did not have computer access. She also contributed to putting in place advice for safe worshipping.

We were very fortunate that the circuit had two people who were expert in online technology, and we are very grateful to them for their expertise and the time they put in to make online worship and communication so successful.

The Circuit has a small, dedicated number of Local Preachers including one in training. They meet regularly for fellowship, mutual support and study.

The Richmond and Hounslow Methodist Circuit relies on a large amount of time and effort from volunteers, who offer a variety of services which are unpaid. The charity would like to place on record its thanks to these volunteers without whose support it could not operate. It is impossible to estimate the value of these donated services.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake for public benefit.

Achievements and performance

We have continued to provide quality leadership in worship on Sundays both in the churches which were able to open, and online both during lockdown and throughout for those who were unable to attend in person. This has been very successful and reached out to many people including some who are overseas.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

The Deacon has continued successful relationships with many who had multiple problems on an individual basis. It is difficult to make any objective measurement of the impact she had, but her input in this is very valued. The contact with local schools has continued as did the links with Holy Trinity and the combined joint projects for the Churches, and work with the elderly and youth. She continued to maintain contact and support during lockdown including successful involvement in community projects.

The CEDARS Circuit Youth Project based at Chiswick Methodist Church continues to provide activities and support for vulnerable young people (7-18 years old) in the provision of a junior Youth Club. The youth club here has thrived both when they were able to meet in person and with on-line activities. Good links have continued with Holy Trinity School and the Children & Youth Leader regularly attends school events

The Circuit Administrator has continued in her work including taking on the eventual selling of Whitton Church. She has continued to be involved with the development of Brentford Methodist Church with Centrepoint which is a project to provide residence for 33 young people, occupancy being linked to full employment or apprenticeship and support given to them throughout. Meetings via zoom have taken place and considerable progress has been made. The circuit Administrator has supported the circuit leaders and the Treasurer, contributing to online worship, and setting up communication with those who did not have computer access. We are very grateful for all the work she has done.

Overall, the circuit has achieved its objectives for this year and is satisfied with the performance within the circuit.

Financial review

Overall, the Balance Sheet of the Richmond and Hounslow Methodist Circuit is in a good position as a result of the sale of Twickenham Church and acquisition of the Brentford and Whitton Churches.

Current assets still exceed current liabilities of the Circuit. There is approximately £286,480 (2020: £221,886) in liquid assets and this consists of cash held in current and deposit accounts.

The assets of the Methodist Circuit are spread between bank balances and investment funds held by the Central Finance Board. The assets held by the Central Finance Board are invested in line with the general principles of the Methodist Church of Great Britain.

Grants are made from time to time to member churches in the Richmond and Hounslow Methodist Circuit for essential and usually unexpected repairs or for special renovations.

Grants of £20,000 were made to three churches, and £10,000 to one church to enable projects to provide for the mission of the churches. A grant of £20,000 was made to one church to help with the replacement of their roof. Also, a grant of £10,000 was given to Harlesden Circuit to assist with manse repairs. To enable churches to have special reopening’s after Covid a grant of £500 was given to each of the six churches within the Circuit.

The decrease in the value of investments during the year of £316,327 (2020: increase of £1,112,594) is a combination of grants paid , transfers out for Urban Mission purposes, support of personnel serving the circuit and replenishment of the General Fund and manse refurbishment.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Risk Management

The Leadership Meeting regularly reviews the potential risks for the Richmond and Hounslow Methodist Circuit and has identified the following key issues:

Reserves policy

The policy covers all funds held by the Circuit Meeting as charity trustees. Our reserves policy relates to our general funds which are available to be used for any or all of the purposes of the Richmond and Hounslow Methodist Circuit. The Circuit Model Trust Fund is also included for sake of clarity and openness and to show that the Circuit has a policy for the management of all its money and not just those which are defined as reserves.

The reserves policy for this fund is to hold at least six months expenditure in reserves; an amount of approximately £269,418 (which excludes the extensive refurbishment costs of the manses and churches). The General Fund, Circuit Surplus Fund and Designated fund combined total £193,365 (2020: £164,300). The balance in the Circuit Model Trust Fund is £828,119 (2020: £1,189,197). This fund is derived from the sales of churches and manses (less any levy on the proceeds) and used to be restricted by the Conference. The restriction is an internal regulation though the fund can be used for a variety of purposes.

It is intended (with Conference approval) to continue to use this fund to:

It is therefore important that the fund is retained at approximately its current level to:

Aims

The aim is twofold:

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

  2. To give reassurance to the general public that the Circuit intends to use all the money coming into its care for the purposes of the charity.

  3. 5 -

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Mission Policy

Essentially the Circuit mission is to provide:

  1. The ministerial oversight and pastoral care of the churches in the Circuit;

  2. Support ecumenical initiatives where appropriate;

  3. Support the ministerial team including lay workers where appropriate;

  4. Maintain the Circuit manses

  5. Deal with administrative matters covering the Circuit as a whole.

  6. Support community projects and outreach initiatives when appropriate.

Financial Plans

A budget is prepared annually and draft assessments prepared to provide balanced income and expenditure for the year. This is discussed at a meeting of Church Treasurers and the final budget presented for approval to the Circuit Meeting.

A designated fund of £44,251 is held to enable urgent and planned major repairs and refurbishment to be carried out immediately by the Manses Committee, in agreement with the Leadership Team. To provide for costs relating to the management of Brentford Church, training and related grants to churches. This is reviewed annually. We hope to maintain the manses in a suitable condition as per Methodist Church guidelines. Major expenditure is covered from interest or capital from the Circuit Model Trust Fund if approval is received from the Central Finance Board of the Methodist Church.

The Circuit must ensure that it has sufficient resources to meet its financial obligations to support ministers, administer the Circuit and maintain manses. The total expenses (restricted and unrestricted) for 2020-21 amounted to approximately £538,835 (2020: £343,830). Most of this is supported from the contribution of churches within the Circuit, investment income including rental income, grants and donations.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity was established by a charitable trust deed on 10th February 2010. The charity's governing documents are the Deed of Union (1932) and the Methodist Church Act (1976).

The trust is constituted under the standing orders of the Methodist Church nos. 500-575. The standing orders set out the way in which trustees are appointed.

The trustees who served the charity during the year are listed in the notes to these accounts.

The managing trustees at the date of this report are the members of the Circuit Meeting of the Richmond and Hounslow Methodist Circuit. These comprise all Circuit Officers (stewards, treasurer, secretaries, superintendent minister, ministers) and representatives from each of the churches. As such, the trustees receive no formal training, but decision making is not vested in a small number of people.

The Richmond and Hounslow Methodist Circuit is an association of churches grouped together in a geographical area. Ordained Ministers and Presbyters are appointed to serve the circuit. The Superintendent Minister is responsible for the work of all the churches in the circuit.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Plans for the future

With the departure of the Reverend Claudia Lupi from Richmond and Barnes , Richmond according to the LEP regulation will now seek to have a United Reformed Church minister. It has been proposed that the circuit enters the stationing process seeking an appointment of a full-time presbyter with pastoral oversight at Richmond and Barnes plus a pioneering role in both these neighbourhoods.

With the resignation of the Youth worker in May it is proposed to employ a Youth and Family worker at Putney and Roehampton in a new role.

It is also proposed to appoint a Lay Pastor at Chiswick to undertake and develop work there.

With the sale of Whitton, the circuit continues its plans in developing a vision whereby the financial gain when the church is sold, can be put to good use particularly in developing mission and outreach services.

We intend to continue our work with Centre Point to develop the Brentford Methodist Church. A circuit vision day has been planned for next year to consider and consolidate our plans.

The Trustees intend to operate the Richmond and Hounslow Methodist Circuit in a similar manner for the foreseeable future.

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the 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 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 of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and 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.

Auditor

In accordance with the charity's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the charity will be put at a General Meeting.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Dlsclosure of information to audltor Eat*k of the trustees has confirmed that there is no informalton of which they are awa￿ which is retevant lo the audit: bul of which th8 auditor is unaware. They have furthor confirmed Ihat they have taken approprk steps to identify such relevant ififcmliDn and to esiablstt that the auditor is aware of such informab"on. The twstees. repK>rt was apsxoved by the Board of Trustee& Irs M Logan Trustee Reverend G Farrar Trustée Dat8d'.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

Opinion

We have audited the financial statements of Richmond & Hounslow Methodist Church Circuit (the ‘charity’) for the year ended 31 August 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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).

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 other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts 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.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

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 Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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 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 the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Other matters

Your attention is drawn to the fact that the charity has prepared accounts in accordance with "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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. This has been done in order for the accounts to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

This report is made solely to the charity’s trustees, as a body, in accordance with part section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Sam Thomas (Senior Statutory Auditor) Azets Audit Services 24/06/22 Chartered Accountants Trinity Court, 34 West Street Statutory Auditor Sutton, Surrey, SM1 1SH

Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2021		 Unrestricted Designated
Restricted
Total Unrestricted
Designated
Restricted
Total
funds
funds
funds
funds
funds
funds
2021
2021
2021
2021
2020
2020
2020
2020
Notes
£
£
£
£
£
£
£
£
Income and endowments from:
Donations
3
25
-
2,133
2,158
32
-
2,086
2,118
Charitable activities
4
195,890
-
37,600
233,490
156,599
-
41,400
197,999
Investments
5
17,005
-
29,887
46,892
18,477
-
34,785
53,262
Other income
6
20,466
-
1,000,203
1,020,669
43,375
-
1,611,588
1,654,963
Total income
233,386
-
1,069,823
1,303,209
218,483
-
1,689,859
1,908,342
Expenditure on:
Raising funds
7
-
-
2,390
2,390
-
-
165
165
Charitable activities
8
256,787
-
279,658
536,445
257,318
-
86,347
343,665
Total resources expended
256,787
-
282,048
538,835
257,318
-
86,512
343,830
Net gains/(losses) on investments
13
-
-
250,503
250,503
-
-
118,178
118,178
Net (outgoing)/incoming resources before
transfers
(23,401)
-
1,038,278
1,014,877
(38,835)
-
1,721,525
1,682,690

1,682,690 - 1,682,690 225,000 1,907,690 7,238,681 9,146,371
1,721,525 (166,280) 1,555,245 225,000 1,780,245 7,205,070 8,985,315
- 32,050 32,050 - 32,050 26,600 58,650
(38,835) 134,230 95,395 - 95,395 7,011 102,406
1,014,877 - 1,014,877 257,000 1,271,877 9,146,371 10,418,248
1,038,278 (52,175) 986,103 257,000 1,243,103 8,985,315 10,228,418
- (14,399) (14,399) - (14,399) 58,650 44,251
(23,401) 66,574 43,173 - 43,173 102,406 145,579
Net (outgoing)/incoming resources before transfers Gross transfers between funds Net incoming resources Other recognised gains and losses Revaluation of tangible fixed assets Net movement in funds Fund balances at 1 September 2020 Fund balances at 31 August 2021

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT BALANCE SHEET ASAT31 AUGUST2021 2021 2020 Notes Fixed assets Tangible assets Inveslment properties Investments 14 16 15 4,232.000 4.964,000 878.560 3,975.000 3,735.000 1.194.887 10.074,560 8.904,887 Current assets Debtors Cash at bBnk and in hand 17 171,472 286.480 91,881 221,886 457.952 313.767 Creditors: amounts falllng due withln one year 18 1114.2641 172,283} Net current assets 343.688 241.484 Total assets less current liabilFtI8s 10.418,248 9,146.371 Income funds General restricted funds Revaluation reserve 5.996.418 4.232,000 5,010,315 3,975,000 21 10.228,418 44,251 145.579 8.985,315 58,650 102,406 Desigllated funds Unrestn"cte(I funds 10,418,248 9,146,371 21106122 The financial statements were approved by the TTuslees on ........... bArs I Tnrstee ogan rend G Farrar Trustee

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Cash flows from operating activities
Cash absorbed by operations
25
Investing activities
Proceeds on disposal of investment
property
Purchase of other investments
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
2020
£
£
£
£
(320,127)
(100,063)
-
1,323,166
-
(1,323,166)
384,721
250,189
384,721
250,189
-
-
64,594
150,126
221,886
71,760
286,480
221,886

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Charity information

Richmond & Hounslow Methodist Church Circuit is an association of Churches grouped together in a geographical area. The charity provides administration services and support for each of the Churches within the circuit. In addition, the charity is also responsible for helping the wider community, which it does through a variety of donations to various charities and good causes. The governing documents are the Deed of Union (1932) and the Methodist Church Act (1976).

1.1 Accounting convention

The financial statements have been prepared in accordance 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 accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income from member church assessments is deferred when paid in advance by the member churches, as these assessments relate to specific time periods of services provided.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following headings:

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

At the present time, three properties are used as Manses. All properties are owned by the Trustees for Methodist Church Purposes as Custodian Trustees but since the Charity has control of them, they are included in these financial statements.

The properties are stated at a valuation by the Managing Trustees, in accordance with the Charities SORP (FRS 102). The valuation is reflected in the properties revaluation fund since none of the properties has a known original cost. Revaluations occur at three year intervals, unless there is evidence of a material change in the value of the item. A revaluation of the properties was carried out by Antony Roberts Estate Agents Limited on 31st August 2019. However, these values have been adjusted to reflect their values at 31 August 2021. The next revaluation is due to take place in 2022.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date.

Revaluations occur at three year intervals, unless there is evidence of a material change in the value of the item. A revaluation of the properties was carried out by Antony Roberts Estate Agents Limited on 31st August 2019. However, these values have been adjusted to reflect their values at 31 August 2021. The next revaluation is due to take place in 2022.

The Church building acquired during the year is included in the Balance Sheet at its insured value as determined by Methodist Insurance PLC.

The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the Statement of Financial Activities.

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 key estimates in the year include the valuation of the investment properties at the year end and therefore the revaluation amount.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

In the directors’ opinion there are no critical judgements, apart from those involving estimates (as detailed below), that they have made in applying the accounting policies and that have had significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

Valuation of properties and investment properties

Properties are professionally valued every three years. In the two years between, the Trustees use statistics from the UK land registry office to identify how the value of similar properties in the local area have changed over the past year. The brought forward values are then adjusted to reflect the change as either a gain or an impairment. Uncertainties relate to changes in the condition of the properties since the previous professional valuation and that the average percentage change of property values in local boroughs is used.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

3 Donations

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Donations and gifts 25 2,133 2,158 32 2,086 2,118

4 Charitable activities

Assessments
Performance related grants
Analysis by fund
Unrestricted funds
Restricted funds		 2021
£
195,890
37,600
233,490
195,890
37,600
233,490		 2020
£
156,599
41,400
197,999
156,599
41,400
197,999

5 Investments

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Rental income
16,723
24,455
Income from unlisted
investments
-
1,908
Interest receivable
282
3,524
17,005
29,887		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
41,178
18,120
24,480
1,908
-
1,897
3,806
357
8,408
46,892
18,477
34,785		 Total
2020
£
42,600
1,897
8,765
53,262

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

6 Other income

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Other income
17,061
203
Twickenham Church
-
-
Brentford Church
3,405
-
Whitton Church
-
1,000,000
20,466
1,000,203		 Total Unrestricted
funds
2021
2020
£
£
17,264
9,303
-
5,817
3,405
28,255
1,000,000
-
1,020,669
43,375		 Restricted
funds
2020
£
1,582
-
1,610,006
-
1,611,588		 Total
2020
£
10,885
5,817
1,638,261
-
1,654,963

7 Raising funds

Restricted
funds
2021
£
Investment management
2,390
2,390		 Restricted
funds
2020
£
165
165

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

8 Charitable activities

Staff costs
Ministers - other costs
District and connexional
Cedars and Urban Mission
Manses
Circuit, preaching, training and mission
Lettings expenditure
Closed church expenses
3Generate expenses
Church grants
Sundry expenses
Grant funding of activities (see note 9)
Share of support costs (see note 10)
Share of governance costs (see note 10)
Analysis by fund
Unrestricted funds
Restricted funds
9
Grants payable
Grants to institutions:
Other		 Circuit
Support

2021
£
203,230
22,913
113,864
14,699
42,904
5,951
9,323
12,732
-
100,000
120
525,736
-
3,009
7,700
536,445
256,787
279,658
536,445		 Circuit
Support
2020
£
197,119
24,301
35,374
1,257
51,419
4,084
7,351
11,479
1,440
-
261
334,085
286
2,294
7,000
343,665
257,318
86,347
343,665
Circuit
Support
2020
£
286

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

10 Support costs

Postage and stationery
Sundry expenses
Bank charges
Audit fees
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
1,551
-
1,450
-
8
-
-
7,700
3,009
7,700
3,009
7,700		 2021
£
1,551
1,450
8
7,700
10,709
10,709		 Support
costs
Governance
costs
£
£
1,288
-
1,006
-
-
-
-
7,000
2,294
7,000
2,294
7,000		 2020
£
1,288
1,006
-
7,000
9,294
9,294

Governance costs includes payments to the auditors of £7,500 (2020: £7,014).

11 Trustees

During the year, Adam Nyawo received stipends and allowances of £26,093 (2020: £26,018), Katherine Johnson of £25,693 (2020: £25,204), Claudia Lupi of £26,093 (2020: £25,417), Geoffrey Farrar of £28,476 (2020: £27,281).

Margaret Logan was paid £11,067 (2020: 11,483) for services rendered as Circuit Administrator. Carol Powers was paid £6,350 (2020: £3,422) as the Cedars Youth Leader and Cedars coordinator, and also received £3,528 (2020: £7,181) from Chiswick Methodist Church . Megan Thomas was paid £20,911 (2020: £27,809) as a youth leader. Andrew Logan was paid £nil (2020: £2,614) for services rendered as a Cedars Youth Leader and Cedars coordinator.

None of the other Trustees, or persons connected with them, received any remuneration or other benefits from the Circuit or any connected organisation as a result of their office during the year ended 31st August 2021. The circuit minutes secretary and the Treasurer were paid expenses (validated against receipts) for amounts spent as a result of them fulfilling their duties, as well as ministers.

12 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
8
2021
£
160,373
12,855
30,002		 2020
Number
7
2020
£
154,326
13,577
29,216

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

12
Employees
No employee received emoluments in excess of £60,000 p.a.
13
Net gains/(losses) on investments
Revaluation of investments
Revaluation of investment properties
14
Tangible fixed assets
Cost or valuation
At 1 September 2020
Revaluation
At 31 August 2021
Carrying amount
At 31 August 2021
At 31 August 2020		 (Continued)
203,230
197,119
Restricted
Restricted
funds
funds
2021
2020
£
£
21,503
(6,822)
229,000
125,000
250,503
118,178
Land and buildings
£
3,975,000
257,000
4,232,000
4,232,000
3,975,000

Land and buildings with a carrying amount of £3,975,000 were revalued at 31 August 2019 by Antony Roberts Estate Agents Limited, independent valuers not connected with the charity on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The fair value has been updated as at 31st August 2021 based on property valuation trends in the local area.

The revaluation this year has given a rise in value of £257,000 (2020 - £225,000) with a total revaluation reserve of £4,232,000 as the historical cost value has been unknown.

The value of £4,232,000 (2020: £3,975,000) is split between Land values of £3,047,040 and building values of £1,184,960.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

15 Fixed asset investments

Unlisted
investments
£
Cost or valuation
At 1 September 2020 1,194,887
Valuation changes 21,502
Income 45,716
Charges and Transfers (383,545)
At 31 August 2021 878,560
Carrying amount
At 31 August 2021 878,560
At 31 August 2020 1,194,887

16 Investment property

Fair value
At 1 September 2020
Additions through external acquisition
Net gains or losses through fair value adjustments
At 31 August 2021		 2021
£
3,735,000
1,000,000
229,000
4,964,000

Investment property has been valued at £4,964,000, being the circuit manses held at the year end which are not being used for the purposes of the circuit, the Brentford Church and the acquisition of the Whitton Church during the year. The fair value of the manses has been arrived at on the basis of a valuation carried out at 31 August 2019 by Antony Roberts Estate Agents Limited, who are not connected with the charity and then updated to reflect property valuation trends in the local area.

The carrying value of land included in investment properties comprises:

2021 2020
£ £
Freehold 3,574,080 2,689,200

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

17 Debtors

Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 2021
£
85,915
85,556
171,471		 2020
£
46,798
45,082
91,880

18 Creditors: amounts falling due within one year

Notes
Deferred income
19
Other creditors
Accruals and deferred income
Deferred income
Arising from assessments and grants		 2021
£
105,252
1,000
8,012
114,264
2021
£
105,252		 2020
£
63,053
-
9,230
72,283
2020
£
63,053

19 Deferred income

Deferred income is included in the financial statements as follows:

Urban mission grant deferred 26,900
Miles Trust 1,000
Barnes rent in advance 1,258
Church assessments paid by Circuit 41,352
Church assessments deferred 34,742
Total deferred income as at 31st August 2021 105,252

20 Retirement benefit schemes

Defined contribution schemes

The charity contributions to superannuation pensions was £27,418 (2020: £26,741). This is 26.9% of the basic stipend, and is a percentage which is agreed annually at the Methodist conference. The pension is a connexional scheme and these contributions are the only obligation of the Richmond and Hounslow Methodist Church Circuit.

The Circuit provides a money purchase pension arrangement with The Peoples Pension for lay workers, the Circuit contributes 6% of basic salary to the scheme. This year £2,584 (2020: £2,475) was contributed.

The charge to the statement of financial activities in respect of defined contribution schemes was £30,002 (2020: £29,216).

Restricted funds The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: Movement in funds
Movement in funds		 Balance at
Incoming
Outgoing
Transfers (to)/
Gains and
Balance at
Incoming
Outgoing
Transfers (to)/
Gains and
Balance at		 1 September
resources
resources
from
losses
1 September
resources
resources
from
losses
31 August		 2019
unrestricted
2020
unrestricted
2021		 funds
funds		 £
£
£
£
£
£
£
£
£
£
£		 Circuit Model Trust Fund
71,617
10,192
(1,934)
1,116,105
(6,783)
1,189,197
5,183
(182,818)
(200,402)
16,959
828,119		 F Alfred Lass Bequest
2,198
43
(4)
(39)
(39)
2,159
40
(5)
(35)
396
2,555		 Circuit Surplus Fund
8,477
70
(17)
(5,000)
-
3,530
12
(7)
-
-
3,535		 Investment Properties Revaluation Fund
2,040,000
-
-
-
125,000
2,165,000
1,000,000
-
1,570,000
229,000
4,964,000		 Fixed Asset Revaluation Fund
3,750,000
-
-
-
225,000
3,975,000
-
-
-
257,000
4,232,000		 Urban Mission
6,124
40,800
(56,687)
12,500
-
2,737
33,550
(57,349)
23,600
-
2,538		 Cedars Project
3,410
27,252
(26,144)
-
-
4,518
30,841
(41,869)
6,510
-
-		 3Generate
78
1,210
(1,440)
220
-
68
-
-
-
-
68		 Loan to Chiswick Church
-
-
-
3,000
-
3,000
-
-
-
-
3,000		 Twickenham Church
1,323,166
-
-
(1,323,166)
-
-
-
-
-
-
-		 Brentford Church TMCP funds
-
40,006
-
-
-
40,006
197
-
-
4,148
44,351		 Brentford Church
-
1,570,000
-
-
-
1,570,000
-
-
(1,570,000)
-
-		 Amounts received on behalf of other charities
-
286
(286)
-
-
-
-
-
-
-
-		 2020-21 grants for Urban Mission and Cedars Project
-
-
-
30,100
-
30,100
-
-
(30,100)
-
-
21
Restricted funds
(Continued)		 2021-22 grants for Urban Mission
-
-
-
-
-
-
-
-
26,900
-
26,900		 Loan to Barnes Church
-
-
-
-
-
-
-
-
80,000
-
80,000		 Contibution towards church assessments for 2021-22
-
-
-
-
-
-
-
-
41,352
-
41,352		 7,205,070
1,689,859
(86,512)
(166,280)
343,178
8,985,315
1,069,823
(282,048)
(52,175)
507,503
10,228,418		 The Circuit Model Trust Fund is to be used for any Methodist purposes, but transfers of funds, typically for essential repairs to properties or for Urban Mission purposes, have to be agreed at Circuit level and by the District. During the year, £26,900 was paid out for the Urban Mission (2020: £33,000) of which £26,900 (2020: £23,600) was an advance for 2021/22. £100,000 for grants to Churches for a variety of reasons, £80,000 loaned to Barnes Methodist Church for the roof repair, £45,000 (2020: £75,000) to replenish the general funds, £nil (2020: £24,356) to replenish the designated funds for manse refurbishment and £41,352 (2020: £47,268) for one quarters assessments for which the churches will not have to pay in the year 2021/22. The F Alfred Lass Bequest is held for income only to be provided to the Superintendent to be applied by Circuit Stewards for the supplement of ministers' stipends. The Urban Mission fund of £2,538 (2020: £2,737) consists of unspent grant monies received for the provision of a Minister for the wider community at the Alton Estates. The Cedars Youth Project Fund of £nil (2020: £4,518) consists of unspent grant monies for the provision of a youth worker and general expenses. The project is now managed by Churches within the circuit and therefore the funds have been passed to them during the year.
21

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

22 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

A Designated Manse Fund of £20,000 was created in 2013 to enable urgent major repairs and refurbishment to be carried out immediately by the Manses Committee in agreement with the Leadership Team. This figure is reviewed annually and decreased in the year by £14,399 (2020 - increased by £32,050) providing a total designated fund as at 31st August 2021 of £44,251 (2020 - £58,650). A total of £11,700 was transferred to the fund due to underspends on the manses budget and the training budget in the year. £6,279 was transferred out for works to the Brentford Church and £19,820 for works to the manses.

Total 2020 as restated £ 3,975,000 3,735,000 1,194,887 241,484 9,146,371
Restricted Funds 2020 as restated £ 3,975,000 3,735,000 1,194,887 80,428 8,985,315
Designated Funds 2020 £ - - - 58,650 58,650
Total Unrestricted Funds 2021
2020		 £
£		 4,232,000
-		 4,964,000
-		 878,560
-		 343,688
102,406		 10,418,248
102,406
Restricted Funds 2021 £ 4,232,000 4,964,000 878,560 153,858 10,228,418
Designated Funds 2021 £ - - - 44,251 44,251
Unrestricted Funds 2021 £ - - - 145,579 145,579
Analysis of net assets between funds Fund balances at 31 August 2021 are represented by: Tangible assets Investment properties Investments Current assets/(liabilities)
23

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

24 Related party transactions

There were no disclosable related party transactions during the year (2020 - none).

25 Cash generated from operations 2021 2020
£ £
Surplus for the year 1,014,877 1,682,690
Adjustments for:
Investment income recognised in statement of financial activities (46,892) (53,262)
Acquisition of church from witihin the circuit (1,000,000) (1,570,000)
Fair value gains and losses on investment properties (229,000) (118,178)
Fair value gains and losses on investments (21,503) 6,822
Movements in working capital:
(Increase) in debtors (79,591) (70,686)
(Decrease) in creditors (218) (1,377)
Increase in deferred income 42,199 23,928
Cash absorbed by operations (320,128) (100,063)

26 Analysis of changes in net funds The charity had no debt during the year.

RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

27 List of Trustees

Mrs Jean Flann Mrs Lyneth Friday Mr Robin Gammon Mr Ian Haddow Mrs Jean Butcher Miss Valerie Hearn Mrs Dinnie Heroe Mr Alan Housden Mrs Vivien Isaac Mr Andrew Logan Mr John Logan Mrs Margaret Logan Mr Stephen Ludlow Rev Barbara McIntivey Mrs Jane McMahon Mrs Frances Moorhouse Dr Margaret Moore Rev Nicola Morrison Mrs Rajini Muthukumar Mr Clive Norris Rev Adam Nyawo Mrs Mary Patterson Miss Carol Powers Mr Charles Rajkumar Ms Imogen Rush Mrs Gill Sparkes Mr Anthony Squires Mrs Rosaria Tandayi Miss Winifred Thompson Mr Brendan Wasmuth Mr Ben Waterhouse Mr Geoffrey Waterhouse Mrs Janet Wilson Mrs Marilyn Woodroffe Rev Michaela Youngson Rev Geoffrey Farrar Rev Claudia Lupi Mr Charles Oppong-Akuoko Mr Moses Tandayi Miss Megan Thomas Deacon Kathy Johnson Mr Bismarck Laryea Mrs Susan Penney

Resigned 1 August 2021

Resigned 27 November 2020

Resigned 25 February 2021 Resigned 27 November 2020

Resigned 1 February 2022

Resigned 1 February 2022 Resigned 31 August 2021

Resigned 25 February 2021

Appointed 1 October 2021