Charity registration number 113424S RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT LEGAL AND ADMINISTRATIVE INFORMATION Trustses For full list of Trustees, see note 27 Clrcult Superlntendent Reverend G Farrar Charity number 1134245 Principal addresy 13 Enmore Road London Middlesex United Kingdom SW15 6LL Audltor Azels Audit Setvices Trinity Court 34 West Street Sutton Surrey United Kingdom SM1 1SH Bankers HSBC Bank PLC 8 Victoria Street London United Kingdom SW1H ONJ Central Finance Board of the Methodist Church ICFBI 9 Bonhill Street London United Kingdom EC2A4PE CAF Bank Limited ICharitiesAid Foundation Bank) 25 Kings Hill Avenue West Malling Kent United Kingdom ME19 4JQ Investment advlsors The Trustees for Melhodisl Church Purposes Central Buildings Oldham Street Manchester M1 1JQ United Kingdom
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT CONTENTS Page Trustees, report Stslemenl of trustees. responsibilities Independent auditorfs report 10-12 Statement of financial activities 13-14 Balance sheet Stslemenl of cash flows 16 Notes lo the financial statements 17-32
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT TRUSTEES, REPORT FOR THE YEAR ENDED 31 AUGUST 2022 The trustees present their annual report and financial statements for the year ended 31 August 2022. The accounts have been prepared in accordan with the accounting Policies sel out in note 1 to the accounts and comply with the charity's governing document, the Charities Act 2011 and the Charities Slalement of Recommended Practice applicable lo charities preparing their accounts In accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021, effective from l January 2019. Objectives and activities The Richmond and Hounslow Circuit operates as part of the Methodist Church of Great Britain, whose mission Is '10 respond lo the gospel of God's love in Christ and to live out ils discipleship in worship and mission,. The Circuit's specific calling is lo faeililale and support the seven10¢81 Methodist Churches in ils area as they respond to that call, through rèsponsible stewardship and effectivè oversight of ils resources physical and material. il seeks to enable those local congregations lo increase the awareness of God's presence and celebrate God's love helping them lo grow and leam through mutual support and care, enabling them lo be a good neighbour to people in need and lo Challenge injustice. During this year the arcuit has made a new Circuit Mission Plan. The circuit supports the provision of high-quality worship in all churches on Sundays antl al other limes continuing lo support preachers in the circuit facililaling Continuing development opportunities and actively encouraging all ¢hur¢h membèrs lo pursue their vocations. 11 has continued with a bi-monthly n$letter keeping people throughout the circuit in touch. The circuf( has ensured that the highest standards of Safeguarding for children and vulnerable adults have been maintained across the circuit facililaling ntinuIng development opportunities and actively encouraging all church members to pursue their vocations. The Reverend Claudia Lupi decided not to extend her term which is due to finish in July 2022. The Reverend stephen Leris from the URC has been appointed as minister at Raleigh Road United Church. A Lay Pastor has been appointed at Chiswick. Deacon Kathy Johnson wll be extending her stay for another live years. The objective of the circuit is to provide administration services, pastoral and spiritual leadership including supporting outreach work within their local communities, and every attempt was made to help churches restart this when the covid restrictions finished. Outreach work is an important part of church life. Two churches were part of ecumenical projects working with the homeless over the winter, but this unfortunately had to be pul on hold due lo Covid restrictions. However, a new venture Café Together has been started providing a free hot meal and a safe place one evening a week. 11 was successfully trailed al Bell Road last summer and the modal is being rolled out lo other churches. One of our churches was able lo continue providing practical and spiritual help to the homeless on the streets in Richmond. Other community projects when allowed lo start included a Toddlers group offering support lo children and families. an open coffee morning in 2 of our churches. and when the buildings were allowed lo re-open the Meditation Group attracted new members. A mickweek fellowship group and a prayer group continues to meet online, and most churches participate in Advent and Lent groups. There was an exciting commLJnity project planned lo reach out to the elderly, and those with dementia which had to be pul on hold because of covid but plans are now moving ahead to re-start these. The work wth vulnerable young people was able lo continue either online or now fa lo fa or both. Several of the churches, in addition lo face-to-face services have, since lockdown also continued lo provide online services via zoom or YouTube for those who are unable lo allend church or who wish to review the service. Bell Road Continues lo provide music in worship monthly. recording songs lo be used on-line.
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Two of our churches put on events to raise money for Ukraine Emergency Appeal. One church put on a concert and the other h05ted a lunch. Both events were very successful and raised a considerable amount of money. During the year a new Men's Breakfast group was stsrted at Bell Road and the have been various mid-week activities for children and young people, The ryrcuil has monitored the provision of safeguarding across the circuit and members are regularly contacted by their pastoral group. The circuf( is also responsible with helping the wder community at home and abroad which il does through a variety of donations to various charities and good causes. During the year Pulney Melhodisl Church installed new exterior and interior lighting and sound system in order to enhance ils impact in the local communty. Outside attractive land low energyl floodlights have made the building an even more prominent local landmark, and drawn attention lo the colourful banners which publicise ¢hurch activities. Inside the improved lighting and sound have la¢ilitsled a series of ¢oncerts. exhibitions and other public events. which both educate and inform local people and raise money for charities such as Christian Aid. A particular focus in the year was the celebration in October of the 150th anniversary of the opening of the first building on the site (this opened in 1870, but the celebrations were delayed because of the pandemic) A historical exhibition in the church generated major public interest and the exhibition has since been re-mounted several times in the local library. The deacon living and working on the Alton Estate. where there is considerable poverty and deprivation, has continued lo foster relationships rith the local community through face-Io-fa¢e inleraclion and via virtual means, as working practices have adapted Sin covid. At Christmas this year covid restrictions relaxed enough to allow carol-singing, and the churches of Putney and Roehamplon provided carols at the Christmas Fair cenlred on Roeharnplon church and the neighbouring shops, accompanied by the MP on her flute. The church is now used much more than il was before lock-down, as networking via the internet look off during covid restrictions and our profile is now much more visible. The 60+ café operating weekly out of the church, is very well attended. The deacon and the Anglican pioneer curate attend as often as possible lo offer support, listen and encourage. The deacon is still an on-going, active member of the goveming board of the local Church of England primary school, providing faith support, and is governor for SEND and maths and spends one afternoon a week when possible, listening lo the year 2 children read. Many of these children have been greatly affected by the isolation of lock-down last year, both educationally and emotionally. The deacon also leads the school in collective worship twice a temi. The deacon is an active member on various community groups, being vice-chair of the Roehamplon Partnership, which gives a Vol for local people in the light of the poor transport provision in this area and the ever-presenl threat of re-development. She is a minute taker and assistant chair of the Safer Neighbourhood meetings with police and other council departments to highlight local fears on safety when the police staffing shortages on the Estate have been an issue, whilst more violent crimes have risen since the ending of lock-down.
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 The deacon is also a member of the steering committee ofthe Roehampton Community Week which continues to organise and fund a variety of projects throughout the year that enhance the environment in Roehamplon, renovate public spatss, encourage the arts and work with people of a variety of ages and cultural backgrounds to improve their physical and mental health. As part of this the deacon regulady attends a zoom Roehampton neOrk group and a women's network that brings people together lo share ideas. identify needs and campaigns for the safely of women and girls in the area. The deacon is co-lead of the Trussell Trust fc)odbank that operates out of the church every Friday afternoon, with support from their warehouse, meaning that the church building itself is not required to store vast quantities of provisions. The food bank offers not just food, bul signposting lo other help, and also prayer and a listening ear. There has been an upturn in the number of guests since ils opening in September 2021. The church Congregation now meets not on Sunday bul on a Tuesday morning each week. Our numbers have gone up from 6 to 11 people who allend regularly. They a from a variety of denominational backgrounds and at least one has me back lo ¢hurch after many years away. Our worship is alternative and informal, with numerous different Christian speakers invited to lead our spiritual reflection and discussion on different topics. In partnership with herAnglican colleague, the deacon Supports a monthly worship time in one of the local nursing homes, bringing a time of song, reflection and prayer to those who are no longer able lo attend church. All inilialives are joined from a Christian viewpoint that believes that all are made in God's image and God's will is that all creation should flourish. The networking this year has now lead lo three new initiativès discussed later. Cedars Youth and Children's projects continues lo thrive with the lead worker visiting a local primary school. and Cedars now receives referrals from the s¢hool for children struggling socially and the school actively encourages them to attend. Plans are moving ahead for a monthly dementia café and a monthly stroke club with support from the Alzheimer's Society and the Stroke Association and their local representatives. Funding for the posts come from Circuit grants, the Dislri¢tAdvance Fund of the Methodist Church, plus a grant from Miles Trust, we are very grateful lo these organisalions. AII CEDARS groups are also supported by other volunteers for whom we are indebted. Manses were continued lo be monitored throughout the year and all necessary repairs undertaken. Circuit Property News The circuit pioperty was maintained, and it was en$Ud that the buildings were kept up lo dale with the most recent guidelines from the Melhodisl Church and the Government. The completion and regular VIeW 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. Whitton Vvhitton church and site was put up for sale following its dosure in July 2021. An offer has been accepted and contracts of sale are being Iinalised. Brentford There has been no significant progress in negotiations with Centrepoint over the year and options for the sile are still being considered.
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 A Lay Circuit Adminislralor continues to be ernployed to provide adminislralive services and support lo the ministers and the Circuit, in the developmènt of planned projècts, to aid ministry within the churches of the Circuit and to support the work of the Melhodisl Church as a whole, including keeping the Circuit informed of Connexional matters. She played a large role during lockdown and continues lo help provide online worship which since lockdown ceased has continued to play an important role in recording church ServIS for those who are unable to attend or for those who wsh to listen again, she also organises a circuit newsletter which keeps the thurches in touch with each other. We We very fortunate that the circuit had two people who were expert in online technology, and we are very grateful lo them for their expertise and the time they put in lo make online worship and communication so successful. We are also grateful to the person al Raleigh Road who puts their services on YouTube. The Circuit has a small, dedicated number of Local Preachers induding one in training. They meet regularfy for fellowship, mutual support and study. The Richmond and Hounslow Methodist Circuit relies on a large amount of time and effort frorn volunteers, who offer a variety of services which are unpaid. The charity would like lo place on record ils thanks lo these volunteers wthoul whose support It could not operate. 11 is impossible lo estimate the value of these donated services. The trustees have paid due regard lo guidan issued by the Charity Commission in deciding what activities the charity should undertake for public benefit. Achlevements and perfom)ance We have continued lo provide quality leadership in worship on Sundays, and online services have continued since lock-down ended in several churches for those who were unable to attend in person or who wish to listen to the service again. This has been very su¢¢essful and reached out lo many people in¢luding some who are overseas. The Deacon has maintained Sussful relationships with many who had multiple problems on an individual basis. 11 is difficult lo make any objective measurement of the impact she had here bul her input in this is very valued. She has maintained the contact wlh the local Church of England primary school, community groups such as the Safer Neighbourhood Meetings, the Roehampton Partnership, the police and local council among others and continues the links with Holy Trinity. A new initiative has been the establishment of the Trussell Trust in the church providing not just food bul support, Signposting and prayer. Since lockdown she has continued the zoom Roehampton network group and a women's neOrk identifying needs and campaigns for the safety of women and girls. She maintains contact and support and involvement with many local organisations which aim lo help the needs of people on this deprived estate. The CEDARS Circuit Youth Projed based at Chiswick Methodist Church continues to provide activities and support for vulnerable young people17-18 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 Adminislralor has continued in her work including tsking on the eventual selling of W)itton Church. She has continued lo be involved with the development of BntfOrd Melhodisl Church with Centrepoinl. The circuit Administrator has supported the Circuit leaders. ministers and the Treasurer, contributing lo online worship. and setting up wmmunicalion 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.
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Financial review Overall, the Balance Sheet of the Richmond and Hounslow Melhodisl Circuit is in a good position as a result of the sale ofTwckenham Church and acquisition of the Brentford and Whitton Churches. Current assets skn.ll exceed current liabilities of the Circuit. There is approximately £250,116 {2021". £286,480) in liquid assets and this Consists of cash held in current and deposit accounts. The assets of the Methodist Circuit are spread beeen 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 lime to lime lo member churches in the Richmond and Hounslow Melhodisl Circuit for essential and usually unexpected repairs or for special renovations. A grant of £20,000 was made lo Raleigh Road United Church and four smaller grants of £1,000 each were made to Churches to facilitate projects lo support the mission. The decrease in the value of investments during the year of £170,344 12021 £316,327) is a combination of grants paid transfers out for Urban Mission purposes, support of personnel serving the circuit and rnanse refurbishment. Risk Management The Leadership Meeting regularly reviews the potential risks for the Richmond and Hounslow Methodist Circuit and has identified the following key issues.. Dedining membership leaving some churches with only a small number of ageing members. Dedining membership means declining Income., Dedining Interest of the CMTF due lo decreased funds and market conditions., The possibility of equalisalion of CMTF across Melhodisl congregations nationally., The possibility of a fall in the value of CMTF inveslmenls., Major damage lo a manse not fully covered by insurance. This is not considered likely," Legal action. This is not considered likely.
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Reserves policy The policy covers all funds held by the Circuit Meeting as charity trustees. Our reserves policy relates lo our general funds whid) 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 lo show that the Circuit has a policy for the management of all ils 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 £211,463 Iwhich excludes the extensive refurbishment costs of the manses and churches). The General Fund, Circuit Sutplus Fund and Dèsignated fund combined lolal £197,622 12021." £193,365). The balance in the Circuit Model Trust Fund is £659,806 12021". £828,119). This fund is derived from the sales of churches and manses Iless any levy on the proedS) and used lo be reslrided by the Conferen. The restriction is an internal regulation though the fund can be used for a variety of purposes. 11 is intended Iwth Conference approval) lo continue to use this fund to.. support missions within the Richmond and Hounslow Melhodisl Circuit Icurrenlly approximately £26,700 per yearl. However, for the year £52,700 is being sel aside for the Urban Mission fund. £40,000 has also been sel aside for grants lo the churchès for mission projects. Support for Cedars and Children and family worker approximately £48,250. A grant of £47,333 to the churches towards the assessments for 2022123. support significant manse refurbishment of aproximately £600.000 in 2022123. support Church communities for significant expenditure which they are unable to fund from within their own resources. It is therefore important that the fund is retained at approximately ils current level to.. provide enough interest lo support mission projects, including lay workers., provide enough interest lo support major manse maintenance provide capital lo enable non-recutring grants lo be made lo church communities provide capital lo enable non-recurring grants lo be made lo relevant activities associated with mission", provide a contribution to the District Advance Fund Alm$ The aim is 0fOld.. 1. To secure and sustain the Circuit's viability and future", 2. To give reassurance lo the general public that the Circuit Intends lo use all the money coming into ils care for thè putposès of the charity. Mission Policy Essentially the Circuit mission is lo provide.. The ministerial oversight and pastoral care of the churches in the Circuit. 2. Support ecumenical initiatives where appropriate. 3. Support the minislerial team induding lay workers where appropriate. 4. Maintain the Circuit manses. Deal with administrative matters covering the circuit. 6. Support community projects and outreach inilialives when appropriate.
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Financial Plans A budget is prepared annually and draft assessments ppad lo provide balanced income and expenditu for the year. This is discussed al a meeting of Church Treasurers and the final budget presented for approval lo the Circuit Meeting. A designated fund of £59,069 is held lo 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 Brenfford and Whitton Church, training and related grants to churches. This is reviewed annually. We hope lo maintain the manses in a suitsble condition as per Melhodi5t Church guidelines. Major expenditure is covered from interest 01 capital from the Circuit Model Trust Fund if approval is received from the Central Finance Board of the Melhodisl Church. The Circuit musl ensure that il has sufficient resources to meet ils financial obligations lo support ministers, administer the Circuit and maintain manses. The total expenses (restricted and unrestrictedl for 2021-22 amounted lo approximately £422,926 12021.. £538,835). Most of this is supported from the contributs'on of churches within the Circuit, investment income including rental income, grants and donations. Wth the sale of Whitton Church almost completed, the Circuit intends lo carry out major refurbishment for two of the manses. The trustees have assessed the major risks lo which the charity is exposed, and are satisfied that systems are in place to mitigate exposure lo the major risks. structure. governance and management The charity was estsblished by a charitable trust deed on 10th FebrLJary 2010. The charity's governing documents are the Deed of Union119321 and the Methodist Church Act {19761. The trust Is consliluled under the standing orders of the Methodist Church nos. 500-575. The standing orders sel out the way in which Iruslee5 are appointed. The trustees who served the charity during the year are listed in the notes lo these accounts. The managing trustees al 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, minislersl and representatives from each of the churches. As such, the trustees receive no formal training, bul 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 lo serve the circuit. The Superintendent Minister is responsible for the worf( of all the churches in the circuit. Plans for the future With the departure of the Reverend Claudia Lupi from Richmond and Barnes , Richmond according to the LEP regulation has appointed the Reverend Steven Lewis as minister to Raleigh Road United Church .He will start his ministry al Raleigh Road in September 2022. Deacon Kathy Johnson will be extending her stsy for another five years. 11 has been proposed that the circuit enters the slalioning seeking an appointment of a full-lime deacon who wll undertake a dual role of pastoral care at Barnes and Richmond churches and spend 500/0 of his time in a pioneering capacity. 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 pul to good use particularly in developing mission and outreach services. The deacon al Roehampton has proposed a regular prayer walk in the community and start a weekly Mother and Toddlei group. She plans the inslillalion of a labyrinth for the community to use.
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Stat8mont of Iw$tees' rosp)nsibilltles Tho trustOPB reEponeib for prcparing the Tw3teeg' Fleptyrt and Ihtr finartial •tenli(s iii witli applicablÈ law United ngdorn AccountirvJ Standards (Unrted Kingdom Generally knepted AcUntng Practic81. The law appiicabie io ehanlles In tngjand an¢ Wdles requires the trustÈ8s to prepa finan¢Fal stslements for each finanaal year which give a tnje and fair of the state of affairs o the tharity and ol the incomi resources and application ol resour ofthe ehanty for Ihatyear. In preparing these financaal statetn8nts. the trustees are rew.red to.. - select suitabk accounting pokues and thon apply them emsistently," - observe the tneth(Mls and principles in Ihe Charibes SORP,. - make judgemenis and estimates that are re850naUe and prudert state whelher 2ppls¢able accounting standards havè bpp.n tnIk)1 gubjoct to any material d•partur•g disdose(l and exp12ined in tl finarrial statements". and ppare the financial statements on the 9¢n9 conrn basis unless it is irwpropriate to presunE that the rity %MH wntinue in operabcm. The ttustee5 are responsible for keepjng suffiaent accoun)ng reoyds that disejose with reasonai4e accuracy at any ts.me the financial p0SOn ofthe charity and enable them to ensure that the finanal statemerts mpty with the Charities A%X 2011, the Charty IAccounts and Resx)rtsl Regulation$ 2008 and the provisions of the tntst deed. Thev a a150 resDonsil)te for safeguarding the at$ ofthè ehxrity antl fortskng tès0h•b gt for the prevention and detection of fraud and other trregula17t5es. Auditor In accA)rdance with the tharty's artide$, a ie501ubon propo&ng thatAzetsAudit Sèffvic8s be reapwnted as 8udtior ofthe tharity will bè put at8 General M&e"ng. Disclosure of Énfomiation to auditor Ea¢h of the trustees has confimied that therè ¥s no information of whth they are aware whith is relevani to the aLrt, but of which Ihe auditor is unaware. They have further confirmed that they have tsken &pprowiate stw to hlertify suth Fe18vant informah.on and to estthish that Ihe auditor is awa of suth mformation. The trLEStees' reportW88 approved by the Board ofTrustee5. Mrsm Trustee Oaiea". an G Fanar Trustee Dated.. ! 110612023
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2022 The Iruslees are responsible for preparing the Trustees, Report and the financial statements in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Pradicel. The law applicable lo charities in England and Wales requires the Iruslees to prepare financial slalemenls for each financial year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resoLJr¢es of the charity for that year. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently", observe the methods and principles in the Charities SORP", make judgements and eslimales that are reasonable and prudent., slate whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in the financial statements,. and prepare the financial slalements on the going concern basis unless il is inappropriate lo presume that the charity will continue in operation. The trustees are responsible for keeping sufficient ac¢ounling records that disclose with reasonable accuracy at any time the fi'nancial position of the ¢harity and enable them to ensure that the financial slalements comply Mrith the Charities Act 2011, the Charity IAccounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hen for tsking reasonable steps for the prevention and detection of fraud and other irregularities.
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 Ilhe 'charily'l for the year ended 31 August 2022 which comprise the slalement of financial aclivilies, the balance sheet, the slalement 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 Iland (United Kingdom GenerallyAccepted Accounting Practi1. In our opinion, the financial slatemenls.. give a true and fair view of the stste of the charity's affairs as a131 August 2022 and of ils incoming resources and application of SourCes, for the year then ended", have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Stsndards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are ftjrther described in the Audilorts SponsIbl1rfAes for the audit of the finanoi81 statements sedion of our report. We are independent of the charity in accordance with the ethi¢al 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 ¥Mth these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial stalemenls, we have concluded that the Iruslees, 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 casl significant doubt on Ihe charity's ability to continue as a going concern for a period of at least Melve rnonlhs from ¥Nhen the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees wth respect lo going concern are described in the relevant sections of this report. other inforniation The other information comprises the infomialion included in the annual report, other than the accounts and our auditor's report Ihereon. The Iruslees 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 assuran conclusion Ihereon. In Connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other inforrnalion is materially inconsistent wth the accounts or our knOedge obtained in the audit or otherwise appears to be materially misstsled. If we identify such material inconsistencies or apparent material misst8lemenls, we are required lo determine whether there 15 a material mi5Stalemenl in the accounts or a material misslatemenl of the other information. If, based on the work we have performed, we conclude that there is material misslalemenl of this other infomiation, we are qUired lo port that fact. We have nothing lo report in this regard. Matters on whlch are requlred to report by exceptlon We have nothing to report in respect of the follo¥Mng matters in relation to which the Charities Ad 2011 requires us to report to you if, in our opinion.. the information given in the financial slalements is inconsislenl in any material respect with the Iruslees, report., or sufficient accounting records have not been kept., or the financial slalements are not in agreement with the accounting records", or we have not received all the information and explanations we require for our audit. 10-
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT Re5ponsibilitie5 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 ¢onlrol as the directors determine is necessary lo enable the preparation of accounts that are free from material misslalement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the charity's ability lo continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the Iruslees either intend lo cease operations, or have no re81isli¢ allèrnalive but lo do so. Auditorfs 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 ¥Mth the Act and relevant regulations made or having effect Ihereunder. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https.'Il www.frc.org.uklaudilorsresponsibilities. This description forms part of our auditor's report. Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, induding fraud, are instances of non-compliance with laws and regulations. We design prOdureS in line wth our responsibilities, outlined above and on the Financial Reporting Council's website, lo delect material misslalements In respect of irregularities, including fraud. We obtain and update our understsnding of the entity, ils activities, ils control environment, and likely future developments, including in relation lo the legal and regulatory framework applicable and how the enlily 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 lo 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 induded". Enquiry of management and those charged with govemance around actual and potential litigation and claims as well as actual, suspected and alleged fraud., Reviewing minutes of meetings of those charged with governan.. Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection., Reviewng financial statement disdosures and testing lo supporting documentation lo assess compliance with applicable laws and regulations", Performing audit work over the risk of management bias and override of controls, including lesling of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant Iransa¢tions outside the normal course of business and reviewing accounting eslimales for indicators of potential bias. Because of the inherent limitations of an audit, there is a risk that we wll not detect all irregularities, including those leading to a material misstatement in the financial slalements 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 slalements, as we will be less likely lo become awarè of instances of non-compliance. The risk of not detecting a material misslalemenl resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery. intentional omissions, misrepresenlalions, or the override of internal control.
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT
Other matters
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) for and on behalf of Azets Audit Services
14/06/2023
Chartered Accountants Statutory Auditor
Trinity Court 34 West Street Sutton Surrey United Kingdom 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 section 1212 of the Companies Act 2006.
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RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT BALANCE SHEET ASAT31AUGUST2022 2021 2021 Fiyod •# Tanyible assets Invèsbnent PTLyert Investments 14 16 IS 6.465.000 3.200,094 708.218 4,232,000 4,964.000 878,580 10.373,310 10,074,560 Curnent awts Debtors C¥£Ji at bank and in nd 17 184,005 2aO,110 171,472 266,480 434.121 457,952 Credttors: xmniJ•ts fAlling due within one yèar 18 184,8641 1114,2641 Net current assets 349.257 Total EEete ksBS C¥ertt liabilld•o 10.722,507 19.418,248 Income funds General restrided Revaluation reser¥e 4,C63.487 8.465,000 5.996.418 4,232,1)00 10.528,487 59.069 135.011 70.228.478 44.251 144,fj79 Destgnated funds Unrestricae(I funds 10.722.567 10.418,248 The)knancial statements approved by the Truste¢s on.IIIQfjJZQ23........ MrsML everend G Farrar Trus*e 15_
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022 2022 2021 Notes Cash flows from operatlng actlvltles Cash absorbed by operalions 25 1232,4201 1320,127} Invgstlng actlvltl&s Investment income reiVed 196,056 384,721 Net cash generated from investing activities 198,058 384,721 Net cash usod in financing activitlgs Net Idecreasevlncrease In cash and cash equivalonts 136,3641 64.594 Cash and cash equivalents at beginning of year 286,480 221.886 Cash and cash equivalents at end of year 250,116 286,480 16-
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Accounting policies Charity inforniation Richmond & Hounslow Melhodisl 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 ¢ircuf(. In addition. the charity is also responsible for helping the wider Community, which il does through a variety of donations to various charities and good causes. The governing documents are the Deed of Union {19321 and the Methodist Church Act119761. 1.1 A¢¢ounllng ¢onvgntlon The financial statements have been prepared in accordance with the charity's goveming document, the Charities Act 2011 and 'Accounling and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance wth the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 leffective 1 January 20191 The charity Is 8 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 stslemenls are rounded lo the nearest £. The financial slalements have been prepared under the historical cost convention, Imodified to include the revaluation of freehold properties and lo include investment properties and certain financial instruments al fair valuel. The principal accounting policies adopted are sel out below. 1.2 Going concern At the lime of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate reSoUrS to continue in operational existen for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charltable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Reslricled funds are subject lo specrfic conditions by donors as lo how they may be used. The purposes and uses of the restricted funds are sel out in the notes to the financial slatemenls. Endowment ftjnds are subject lo speryfic conditions by donors that the capital musl be maintsined by the charity. 1.4 Incoming resources Income is recognised when the charity is legally entitled lo il after any performance conditions have been met, the amounts can be measured reliably. and il 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 performan conditions require deferral of the amount. Income lax recoverable in relation to donations received under GiftAid or deeds of covenant Is recognised at the lime 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 ntingent asset. Incorne from member church assessments is deferred when paid in advance by the member churches, as these assessments relate to specific ts.me periods of services provided. 17-
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 Accountlng pollcles Icontlnuedl 1.5 Resources expended Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by aclivily. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each aclivily. DI¢1 costs allributable lo a single activity are allocated dire¢lly lo that activity. Shared costs which contribute lo more than one a¢livily and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. Expenditure is recognised once there is a legal or constructive obligation lo make a payment to a third party, il is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following hèadings". Costs of raising funds ¢omprise the wsts from investments. Expenditure on charitable activities is all categorised within Circuit Support as this is deemed to be the only activity of the charity. Support and governance costs have been split on the proportion of direct costs incurred. Other expenditure. 1.6 Tanglble flxed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impaimient losses. Al the present lime, 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 slated al a valuation by the Managing Trustees, in accordan with the Charities SORP IFRS 1021. The valuation is reflected in the properties revaluation fund since none of the properties has a known original cost. Revaluations occur al 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 31 sl August 2019. However, these values have been adjusted to reflect their values al 31 August 2022. The gain or loss arising on the disposal of an asset is detemiined as the difference between the sale proceeds and the Carrying value of the asset. and is recognised in the slalemenl of financial a¢tivib'es. 1.7 Investment properties Investment property, which is property held lo earn rentsls andlor for capital appreciation, is initially recognised al cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured al fair value al 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 31 sl August 2019. However, these values have been adjusted to reflect their values at 31 August 2022. The Church building acquired during the year is included in the Balance Sheet al ils insured value as determined by Melhodisl Insurance PLC. The surplus or deficit on revaluation is recognised in profil or loss. 18-
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 Accountlng pollcles Icontlnuedl 1.8 Impalrment of flxed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to detemiine whether there is any indication that those assets have suffered an impaimienl loss. If any such indication exists, the recoverable amount of the asset is eslimaled in order lo detemiine the extent of the impaimienl loss lif any). Recoverable amount is the higher of fair value less costs lo sell and value in use. In assessing value in use, the eslimaled future cash flows are diswunled lo their present value using a pre-tax dis¢ounl rale that reflects current market assessments of the time value of money and the risks specific lo the asset for which the eslimales of future cash flows have not been adjusted. If the recoverable amount of an asset is estimated to be less than its carrying arnount, the carrying amount of the asset Is reduced lo ils recoverable amount. An impaimenl loss is recognised immediately in incomel lexpendilure for the year, unless the relevant asset is earned al 8 revalued amount, in which case the impaimient loss is Irealed as a revaluation decrease. Recognised impairment losses are reversed if, and only if, the reasons for the impaimient loss have ceased lo apply. Where an impaimient loss subsequently reverses, the carrying amoLJnt 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 detemiined 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 al a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation incrèase. 1.9 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held al call wth banks. other short-lerm liquid investments with original malurilies of three months or less, and bank overdrafts. Bank overdrafts are shown thin borrowings in current liabilities. 1.10 Flnanclal 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 ils finanaal instruments. Financial instruments are recognised in the charity's balance sheet when the charity becornes party lo the conlraclual provisions of the inslrumenl. Financial assets and liabilities are offset. wf(h the net amounts presented in the financial slatemenls, when there is a legally enforable right to set off the recognised amounts and there is an intention to sellle on a nel basis or to realise the asset and see the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured al transaction price Including transaction costs and are subsequently carried al amorb.sed cost using the effective interest method unless the arrangement conslilules a financing Iransaclion, where the transaction is measured at the present value of the future receipts discounted al a market rale of interest. Financial assets classified as receivable within one year are not amortised. 19-
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 Accountlng pollcles Icontlnuedl Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constilules a financing transaction, where the debt instrument is measured al the present value of the future payments discounted at a market rate of Interest. Financial Iiabililies dassilied as payable thin one year are not amortised. Debt instruments are subsequently carried al amortised cost, using the effective interest rale 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 dassified as CLJrrent 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 subsequenuy measured al amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derècognised when the charity's eonlractual oblig8tions expire or are discharged or cancelled. 1.11 Employee benefits The cost of any unused holiday enliuement is recognised in the period in which the employee's services are received. Temiination benefits are recognised immediately as an expense when the charity is demonstrably committed lo lerminale 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 lo the Statement of Financial Activities. Critical accounting estimates and judgements In the application of the charity's accounting ty)licies, the Iruslees are required to make iudgemenls. estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The eslimales and associated assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may differ from these eslimales. The key eslimales 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 eslimales 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 eslimales las 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. -20-
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 Crltlcal accountlng estlmates and Judgements Icontlnuedl Key sources of estlmatlon uncertalnty Valuation of properties and inv&stmenl prOpertS Properties are professionally valued every three years. In the years between. the Trustees use stab'stics 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 lo reflect the change as either a gain or an impaimient. Uncertainties relate lo 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. Donations Unrestricted Unrestricted funds funds Restricted funds Total 2022 2021 2021 2021 Donations and gnls 898 25 2,133 2,158 Charltsble a1VItIS 2022 2021 Assessments Performance related grants 136,452 20,000 195,890 37,600 156,452 233,490 Analysis by fund Unrestricted funds Restricted funds 136,452 20,000 195,890 37,600 156,452 233,490 21
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 Investments Unrestricted Restricted funds funds Total Unrestricted funds Restricted funds Total 2022 2022 2022 2021 2021 2021 Rentsl income Income from unlisted investments Interest receivable 23,836 12,000 35,836 16,723 24,455 41,178 6,637 2,419 6,637 3,254 1,908 3,524 1,908 3,806 835 282 24,671 21,056 45,727 17,005 29,887 46,892 Other income Unrestrieted Restricted funds funds Total Unrestiicted funds Rèstricted ftjnds Total 2022 2022 2022 2021 2021 2021 Other income Grants reiVed on behaw of churches Closed churches 46,299 46,299 17,061 1,000,203 1,017,264 18,800 18,800 9,990 9,990 3,405 3,405 56,289 18,800 75,089 20,466 1,000,203 1,020,669 Ralslng funds Restrlcted Restricted funds funds 2022 2021 Investment mana emenl 2,503 2,390 2,503 2,390 -22-
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 Charitable activitie5 Circuit Support 2022 Circuit Support 2021 Stsff costs Ministers- other costs District and connexional Cedars and Urban Mission Manses Circuit, preaching. training and mission Lettings expenditure Closed church expenses Church grants Sundry expenses 203,180 23,582 86,783 203,230 22,913 113,864 14,699 42,904 5,951 9,323 12,732 100,000 120 26,933 8,303 7,060 13,009 20,000 609 389,459 525,736 Share of support costs (see note 91 Share of governance costs (see note 91 1,852 10,512 3,009 7,700 401,623 536,445 Analysis by fund Unrestricted funds Restricted funds 271,529 130,094 256,787 279,658 401,623 536,445 Support costs Support Governance costs costs 2022Support costs Govemance costs 2021 Postage and ststionery Sundry expenses Bank charges 689 848 115 689 848 115 1,551 1,450 1,551 1,450 Audit fees Legal and professional 7,492 3,020 7,492 3,020 7,700 7,700 1,652 10,512 12,164 3.009 7,700 10,709 Analysed between Charitable activib'es 1,652 10,512 12,164 3,009 7,700 10,709 Governan costs includes payments to the audf(ors of £8,01012021'. £6,700). -23-
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 10 Other Restricted funds Total 2022 2021 Grants paid lo churches which were reiVed on their behalf 18,800 18,800 11 Tru$leg$ During the year, Adam Nyawo received stipends and allowances of £25,995 12021.. £26,093), Katherine Johnson of £25,995 12021.. £25,693), Claudia Lupi of £26,395 12021.. £26,093), Geoffrey Farrar of £28,977 12021.. £28.4761. Margaret Logan was paid £11,138 12021.. 11,0671 for services rendered as Circuit Adminislralor. Carol Powers was paid £18,230 12021.. £6,350) as the Cedars Youth Leader and Cedars coordinator, and also re1Ve £nil12021.' £3,528) from Chiswick Melhodisl Church . Megan Thomas was paid £nil12021.' £20,911) as a youth leader. None of the other Trustees, or persons connected with them, received any remuneration or other benefits from the Circuit or any wnnected organisalion as a result of their office during the year ended 31 st August 2022. The circuit minutes secretary and the Treasurer were paid expenses Ivalidaled against receiplsl for amounts spent as a result of them fulfilling their duties. as well as ministers. 12 Employee$ The average monthly number of employees during the year was.. 2022 Number 2021 Number Employment costs 2022 2021 Vvages and salaries Social security costs Other pension costs 160.707 13,051 29,422 160.373 12,855 30,002 203,180 203,230 No employee received emoluments in excess of £60,000 p.a. There were no employees whose annual rèmuneration was more than £60,000. -24-
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 13 Net gainslllossesl on investments Restricted funds Restricted funds 2022 2021 Revaluation of investments Revaluation of investment properties 120,0151 136,094 21,503 229,000 116,079 250,503 14 Tangible fixed assets Land and bulldlng8 Cost or valuation Al 1 September 2021 Revaluation Transfer from investment property 4,232,000 333,000 1,900,000 Al 31 August 2022 6,465,000 Carrying amount Al 31 August 2022 6,465,000 At 31 August 2021 4,232,000 Land and buildings wth a carrying amount of £6,465,000 were revalued al 31 August 2019 by Antony Roberts Eslale Agents Limited, independent valueis not connected with the charity on the basis of market value. The valuation conforms lo 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 al 31 st August 2022 based on property valuation trends in the local area. The Valuation this year has given a rise in value of £333,000 12021 £257,000) with a lotsl revaluation reserve of £6,465,000 as the historical cost value has been unknown. The value of £6,465,00012021.' £4,232,000) is split befvleen Land values of £4,654,800 and building values of £1,810,200. -25-
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 15 Fixed asset investments Unllsted Investments Cost or valuation At 1 September 2021 Valuation changes 878,560 118,3361 At 31 August 2022 860,224 Carrylng amount Al 31 August 2022 860,224 At 31 August 2021 878,560 16 Investment property 2022 Fair value Al 1 September 2021 Transfers lo tangible fixed assets Nel gains or losses through fair value adjuslmenls 4,964,000 {1,900,0001 136,094 Al 31 August 2022 3,200,094 Investment property has been valued at £3.200,094. being the circuit manses held al the year end which are not being used for the purposes of the circuit, the Brentford Church and Whillon Church. The fair value of the manses has been arrived at on the basis of a valuation carried out al 31 August 2019 by Antony Roberts Eslale Agents Limited, who are not connected with the charity and then updated lo reflect property valuation trends in the local area. The carrying value of land included in investment properties comprises.. 2022 2021 Freehold 2,304,068 3,574,080 17 Debtors 2022 2021 Amounts falling due within one year: Other debtors Prepayments and accrued income 82.083 101,921 85.916 85,555 184,004 171,471 -26-
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 18 Creditors: amounts falling due within one year 2022 2021 Notes Deferred income Other creditors Accruals and deferred income 19 75,220 105,252 1,000 8,012 9,644 84,864 114,264 19 Deferred Income 2022 2021 Arising from assessments and grants 75.220 105,252 Deferred income is included in the financial statements as follows.. Urban mission grant deferred Church assessments paid by Circuit Church assessments deferred 26,700 43,733 Total deferred income as at 31st August 2022 75,220 20 Retirement benefit schemes Defined Contribution schemes The charity contributions to superannuation pensions was £27.78612021'. £27,418). This is 26.90h of the basic stipend, and is a perntage which is agreed annually at the Methodist conferen. 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 60A of basic salary lo the scheme. This year £1,63612021.. £2,584) was conlribuled. The charge lo the stslemenl of financial activities in respect of defined contribution schemes was £29,422 12021. £30,002). 21 Designated funds The income funds of the charity indude the following designated funds which have been set aside out of unrestricted funds by the Iruslees 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 wth the Leadership Team. This figure is reviewed annually and increased in the year by £14,818 12021 increased by £32,050) providing a total designated fund as al 31st August 2022 of £59,069 12021 £44,251). A lolal of £18,210 was transferred lo the fund for manse repairs and ltton Church support costs in the year. £12,569 was transferred out for repairs lo the Barnes manse and support costs for Brentford Church. £9,177 has been set aside for manse reftjrbishment ¢osl$. -27-
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RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 Related party transactions There were no disclosable related paty transactions during the year12021 - none). 25 Cash gon8rat8d from operations 2022 2021 Surplus for the year 128,6811 1,014,877 Adjustments for.. Investment income recognised in statement of financial aclivf(ies Acquisition of church from witihin the Circuit Fair value gains and losses on investment properties Fair value gains and losses on investments 145,7271 146,8921 {1,000.0001 1229,0001 121,5031 1136,0941 20,015 Movements in working capital". (Increasel in debtors Increaselldecreasel in creditors IDecreasellincrease in deferred income 112,5331 632 130,0321 179,5911 12181 42,199 Cash absorbed by operations 1232,4201 1320,1281 26 Analysis of changes in net funds The charity had no debt during the year. 31
RICHMOND & HOUNSLOW METHODIST CHURCH CIRCUIT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 27 List of Trustees Mrs Jean Flann Mrs Lyneth Friday Mr lan Haddow Mrs Jean Butcher Miss Valerie Heam Mrs Dinnie Heroe MrAlan Housden Mrs Vivien Isaac MrAndrew Logan Mr John Logan Mrs Margaret Logan Mr Stephen Ludlow Rev Barbara Mclnlivey Mrs Jane Mcmahon Mrs Frances Moorhouse Dr Margaret Moore Rev Nicola Morrison Mrs Rajini Mulhukumar Dr Clive Norris Rev Adam Nyawo Mrs Mary Patterson Miss Carol Powers Mr Charles Rajkumar Mrs Gill Sparkes Miss Winifred Thompson Mr Brendan Wasmuth Mr Geoffrey Vvaterhouse Mrs Janel Wlson Rev Geoffrey Farrar Rev Claudia Lupi Mr Chartes Oppong-Akuoko Mr Moses Tandayi Deacon Kathy Johnson Mr Bismarck Laryea Mrs Sarah Weeks Resigned 31 August 2022 Appointed 11 September 2022 32-