2021-08-31-accounts

METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

Registered Charity Number 1134248

Beds, Essex & Herts District - Circuit Number 34/10

FINANCIAL STATEMENTS AND TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Southend and Leigh Methodist Circuit Office

Sutherland Boulevard Leigh-on-Sea Essex SS9 3PT

METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

CONTENTS

	Page
Index	1
Trustees’ report	2 - 8
Auditor’s report	9
Financial statements	10 - 23
Appendix I– Circuit Meeting membership and glossary of terms	24 - 25

1

METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Introduction

This report has been prepared in accordance with the requirements of the SORP applicable to charities. In order to have a better understanding of the nature and activities of the Circuit and the constituent churches readers are advised to go to the appropriate web sites.

Our Mission

Through prayer and worship, the reading and study of the Bible; mutual support and fellowship; we seek God’s empowering through the Holy Spirit to be his missionary people.

We seek in Christian love and service, to reach out to communities in which we are planted, and live the Good News of Jesus Christ.

‘Through our lives and by our prayers – Your Kingdom come.’

Aims and organisation

The Charity’s objective is to act as a Resource provider within the areas around the Boroughs of Castle Point and Southend-on-Sea and the Urban District of Rochford for the Methodist Church:

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

• (a) the Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church;

• (b) any charitable purpose for the time being of any Connexional, District, Circuit, local or other organisation of The Methodist Church;

• (c) any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church;

• (d) any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church.

In practice the organisation and resourcing of:

• ❖ public acts of worship open to members of the church and non-members alike.

• ❖ teaching of Christianity through sermons, courses and small groups.

• ❖ pastoral work including visiting the sick and bereaved.

• ❖ religious assemblies in local schools.

• ❖ provision of Christianity through the staging of events and services.

• ❖ provision of chaplaincy services to the Adventure Island Theme Park.

Review of the year

The year under review has as ever been one of both progress and pressure. 2020/21 will be most remembered for the continuing impact of the global Coronavirus pandemic - resulting in the required

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021 continued

Review of the year (contd)

closure of churches for worship and all other activities and a movement to provision of activities via a variety of technological approaches, followed by the re-opening of Churches for worship and other activities when lockdown restrictions were eased, but with appropriate precautions in place as recommended by The Methodist Church.

The Circuit has continued to work to implement elements of its ever-developing vision.

1. Seeking to develop a fully detailed delivery plan.

2. Focussing on:-

3. how we could encourage/create spiritual hunger in our people.

4. how to ensure we encourage our people to grow in depth spiritually and

5. how we grow disciples.

6. how we share and work with the straplines - “Belong, Become, Behave” and “Win, Build, Send”.

Work continues to ensure the vision is updated in the light of the new “normal” created by the pandemic.

Progress came from the continuing development of the Town Centre Ministry – the work is now in three strands – a Retail strand run with ecumenical partners from Love Southend, a Chaplaincy strand based at the Adventure Island theme park and a Chaplaincy strand working with HARP, a local charity for the homeless. The Circuit was fortunate to secure the appointment of a Deacon to take up the lead role – she started on 1[st] Sept 2020. Progress came for various local churches in developments of various initiatives – several churches initiating café style services; community activities and property refurbishments.

The Night Shelter work could not continue. The Worship Academy continued on Zoom and flourished with strong representation across the circuit both in terms of people and financial support. This activity has very strong ecumenical and social links. The Healing and Well Being services were not able to continue during Lockdown but resumed in June 2021. Other Worship Services were continued either by Zoom or on YouTube. The “Meet the Minister Sessions” continued by Zoom – an opportunity for all to meet and interrogate (gently!) the Circuit staff. Plans to begin multicultural circuit services and trips to some Methodist Historic sites did not come to fruition due to lockdown restrictions. The Circuit participated in “Bible Month”, studying the Book of Ruth. Small study groups have been started studying “The Methodist Way of Life” using material provided by the Methodist Church.

The Circuit continues to support the Experience Project. The Project is based on the Bournes Green estate in Southend, the most deprived and socially challenged area of the Borough. It is working to build relationships with the community via the provision of food and technologically advanced youth work. The Project has strong ecumenical links. It quickly secured provision of food from Ocado on a weekly basis and has also secured some grant funding to support it. Indications continue to be very encouraging, although the work of the Project has been hampered by the lockdowns and the necessity to put in place measures to limit the spread of the Coronavirus. The work is based at the Whittingham Avenue site, within the estate, and has been formally recognised as a Mission Centre within the Circuit. Through the Stationing process we did secure the appointment of a deacon – Sarah McDowall . The Circuit was also successful in stationing for 2021. Rev Chris Sandy has moved on and we have been delighted to welcome Rev Zena Smith, who has pastoral charge of Benfleet,

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021 continued

Review of the year (contd)

Canvey Island and Thundersley Churches. The Pastor employed by the circuit has continued to be a really valuable asset. He has now begun training for the Presbyterial Ministry. The plans to employ a further Pastor/Preacher to bring the staff team to the complement identified within the Vision were placed on hold but have now been revived. It is hoped that we will shortly have two part time administrators, which will give administrative cover five days a week.

Financial issues remain – exacerbated, for the local churches, by the lockdown restrictions depriving them of much of their income derived from lettings. To assist the local churches the Circuit agreed to forego part of the assessment income due from Churches to the Circuit and this has led to a substantial drop in income and subsequent loss as shown in the financial accounts. Post lockdown certain grant making bodies have revised their plans and approaches resulting in some grants being withdrawn or reduced as charities seek to meet greater perceived needs.

All the churches continued to be able to worship and work throughout lockdown using a variety of methods from Zoom, to streaming sessions via WhatsApp, YouTube and Facebook to paper transcripts and services recorded to DVD /CD and distributed for worship. Zoom or other video conferencing tools have been used for Bible studies, prayer meetings, Worship Academy, Meet the Minister, as well as coffee mornings and business meetings. Despite the pressure and loss of the old “normal” it has been a good year with positive developments to build on for the new normal which is to come.

Income trends

Circuit income is predominantly from the assessments paid by the circuit churches. Grants were also received for the Experience Project at Whittingham Mission.

Expenditure trends

Stipend expenditure increases each financial year in line with conference approved increases. As agreed by the Circuit Meeting there was a catch up on maintenance to a number of the manses. Other costs were well controlled and in line with budget.

Over 20% of expenditure is the Circuit contribution to the District and Connexion, of which some 81% is used to fund the work of the wider Methodist Church. Other expenditure includes the provision of manses and the payment of stipends and salaries for ministers and lay staff as well as the Circuit administration and office costs.

Fund balances

As at 31 August 2021 the net current assets of the Circuit available for general purposes amounted to £130,351 since the greater part of the accumulated funds are invested in the properties. The majority of the Circuit Model Trust Fund has been moved to Designated Funds as the leadership have decided this should be spent on mission initiatives. In August 2021 the Circuit agreed to make Grants to three Churches to further the Mission of those Churches. The Grants total £55,000, but were paid after the year end and will be shown in next year’s accounts.

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021 continued

Plans for 2021/22

Circuit financial plans for the coming year had been prepared on the basis that the current staffing be maintained plus an additional pastor/preacher. However, in the light of the financial positions of the churches in the Circuit resulting from the loss of income from both offerings and lettings, this will not be implemented imminently.

Greater efforts will be made to secure grants for the Experience Project at Whittingham Mission in addition to the Grants already received from Connexion and District.

Reserves Policy

The Reserves Policy for the Circuit is to hold a minimum of five months average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and/or to be able to continue, in the short term, funding planned activities in the event of any inability to raise the full Circuit Assessment from churches. However, the financial results for the past three years means that this has not been maintained. Individual churches used to pay their assessment one quarter in advance which amount was included in the creditors on the Balance Sheet, but most Churches now pay monthly.

Basis of preparation and legal framework

The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) 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 2015) – (Charities SORP (FRS 102)).

. Full name of charity Methodist Church Southend and Leigh Circuit Registration Charity Number 1134248 Date of registration 10 February 2010 Main communication address Circuit Office Sutherland Boulevard Leigh-on-Sea Essex SS9 3PT

The members of the Southend and Leigh Circuit meeting are the Charity Trustees, membership being made up of circuit office holders and representatives appointed by the local churches.

The full membership is shown on pages 24 and 25

Circuit Ministers and officers

Active Circuit Ministers Rev Peter Moorhouse (Superintendent) Rev Margaret Deans Pastor Stephen Mayo Deacon Sarah McDowall Rev Dr Calvin Samuel Rev Chris Sandy (retired 31 August 2021)

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021 continued

Active Circuit Ministers (Cont’d.) Rev Zena Smith (appointed 1 September 2021) Pastor Colin Turner (retired 31 August 2021) Circuit Stewards Miss Kathy Burrell Mr Ian Lowe Mrs Pamela Smith Mrs Anne Briant Mr Mike Spaull** (appointed 14 Sept 2021)

The Circuit Treasurers were Mr Adrian Nunn and Mr Patrick Smith and they acted as the principal officers overseeing the day to day financial management and accounting for the circuit during the year.

Independent Examiner Keith Flaxman FCCA CPFA Keith Flaxman Associates 8 Silvermere Langdon Hills Basildon Essex SS16 6R Investment Bankers Central Finance Board of the Methodist Church Trustees for Methodist Church Purposes

Public Benefit

We confirm the trustees have had regard to the Charity Commission’s guidance on public benefit.

Structure, Governance and Management

The governing document for the circuit is the Deed of Union (1932) and the Methodist Church Act (1976).

Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD)

Day to day management of the circuit is undertaken by the Circuit leadership team.

Trustee Training

A range of guidance produced by the Methodist Connexion to support effective running of the circuit, especially the leaflet ‘The Role of a Trustee in The Methodist Church’ is given to all Circuit meeting members as induction to their role as trustees.

Related parties

The Circuit is part of the Beds, Essex & Herts District and is also accountable to the Methodist Conference. The following Methodist Churches are members of the circuit – Belfairs, Benfleet, Canvey, The Fishermen’s Chapel, Hadleigh, Highlands, Hockley, Rayleigh, Rochford, Thorpe Bay, Thundersley, Trinity, United Methodist Church, Wesley and the Whittingham Mission. There is also a link with Westerly Christian Care Home.

6

METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021 continued

Risk Management

The major risks have been identified and recorded by the Circuit Administration and the Circuit Treasurer with professional advice taken as required. There is a regular annual review process undertaken and recorded.

Income and expenditure is being monitored in total and is compared with the approved annual budget on a monthly basis to detect trends as part of the risk management process.

Safeguarding

Every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. Christians see this potential as fulfilled by God’s re-creation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protect them from harm.

Methodist Connexional practice outlines commitment to the following principles:

• The care and nurture of, and respectful pastoral ministry with all children, young people and adults

• The safeguarding and protection of all children, young people and adults when they are vulnerable

• The establishing of safe, caring communities which provide a loving environment where there is informed vigilance as to the dangers of abuse

• We will carefully select and train all those with any responsibility within the Church, in line with Safer Recruitment principles, including the use of criminal records disclosure and registration with the relevant vetting and barring schemes

• We will respond without delay to every complaint made which suggests that an adult, child or young person may have been harmed, co-operating with the police and local authority in any investigation

• We will seek to work with anyone who has suffered abuse, developing with them an appropriate ministry of informed pastoral care

• We will seek to challenge any abuse of power, especially by anyone in a position of trust

• We will seek to offer pastoral care and support, including supervision and referral to the proper authorities, to any member of our church community known to have offended against a child, young person or vulnerable adult

• In all these principles we will follow legislation, guidance and recognised good practice

• The Southend and Leigh Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy, government legislation, guidance and safe practice in the circuit and in the churches. The Southend and Leigh Circuit commits itself to the provision of support, advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable.

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021 continued

Trustees’ responsibilities

The trustees are required to prepare financial statements each financial year which give a true and fair view of the Circuit’s financial activities during the year and of its financial position at the end of the year. In preparing these financial statements, the trustees have:

• Selected suitable accounting policies and applied them consistently;

• Made judgements and estimates that are reasonable and prudent;

• Followed applicable accounting standards;

• Prepared the financial statements on the going concern basis.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Circuit and enable them to ensure that the financial statements comply with the law. They are also responsible for safeguarding the assets of the Circuit and hence for taking steps for the prevention and detection of fraud and other irregularities.

So far as each of the trustees is aware there is no relevant information that has not been disclosed to the auditors and each of the trustees believes that all steps have been taken that ought to have been taken to make them aware of any relevant audit information and to establish that the auditors have been made aware of that information.

----- Start of picture text -----
Signed on behalf of the Circuit Trustees
Rev Peter Moorhouse
Superintendent Minister
Adrian Nunn
Patrick Smith
Principal finance officers
Date:
----- End of picture text -----

8

METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT CHARITY COMMISSION REFERENCE NUMBER 1134248 I report on the accounts of the Methodist Church Southend and Leigh Circuit Charitable Trust for the year ended 31[st] August 2021 Responsibilities and basis of report As the trustee of the charity, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable directions given by the Charity Commission under section 145(5)(b) of the Act. Independent examiner’s statement I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination and I believe that: • Accounting records were kept in respect of the Trust as required by section 130 of the Act. • The accounts accord with those records. • The accounts comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Keith Flaxman FCCA CPFA 8 Silvermere Langdon Hills Basildon Essex SS16 6RA

9

METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

Financial statements for the year ended 31 August 2021

Index:	Page
Statement of financial activities (SOFA) for the year ended 31 August 2021	11
Statement of financial activities (SOFA) for the year ended 31 August 2020	12
Balance sheet as at 31 August 2021	13
Notes to the accounts for the year ended 31 August 2021	14 – 23
Appendix – Names of the Trustees (members of the Circuit Meeting)	24 - 25
Glossary of terms	25 - 26

10

METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

Financial statements for the year ended 31 August 2021

Statement of Financial Activities (SOFA) for the year ended 31 August 2021

		Notes to	General Fund	Circuit Model Trust	Designated Funds	Restricted Funds	Total 2020-21
		the	(Unrestricted)	(Unrestricted)	(Unrestricted
		accounts
			£	£	£	£	£
	Income
1	Donations and legacies		0	0	0	0	0
2	Income from monetary investments		212	884	95	0	1,191
3	Income from investment properties		16.740	0	0	0	16,740
4	Assessments on Churches	20/1	335,326	0	0	0	335,326
5	Capital Receipts		0	0	0	0	0
6	Grants Received	20/2	0	0	0	46,894	46,894
7	Other charitable income		0	0	0	4,985	4,985
8	Total income		352,278	884	95	51,879	405,136
	Expenditure
9	Grants and donations		0	1,399	0	0	1,399
10	Salaries and associated costs	20/3	189,789	0	0	35,577	225,366
11	Property maintenance		49,165	0	0	0	49,165
12	Connexional assessment & model trust levy		55,984	0	0	0	55,984
13	District Assessment & Levy		15,788	12,875	0	0	28,663
14	Depreciation		1,125	0	0	0	1,125
15	Office expenses	20/4	6,586	577	0	0	7,163
16	Other outgoings	20/5	31,115	0	0	22,383	53,498
17	Total expenditure		349,552	14,851	0	57,960	422,363
18	Gains/(losses) on monetary investments						0
19	Gains/(losses) on investment properties						0
20	Net Income/(expenditure)		2,726	(13,967)	95	(6,081)	(17,227)
21	Transfers between funds		47,500	(268,100)	220,600	0	0
22	Other gains/(losses)		0	0	0	0	0
23	Net movement in funds		50,226	(282,067)	220,695	(6,081)	(17,227)
24	Total funds brought forward		2,325,017	288,331	68,155	36,421	2,717,924
25	Total funds carried forward	20/12	2,375,243	6,264	288,850	30,340	2,700,697

11

METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

Financial statements for the year ended 31 August 2021

Statement of Financial Activities (SOFA) for the year ended 31 August 2020

		Notes to	General Fund	Circuit Model Trust	Designated Funds	Restricted Funds	Total 2020-21
		the	(Unrestricted)	(Unrestricted)	(Unrestricted
		accounts
			£	£	£	£	£
	Income
1	Donations and legacies		0	0	0	0	0
2	Income from monetary investments		757	2,862	453	1	4,073
3	Income from investment properties		16.740	0	0	0	16,740
4	Assessments on Churches	20/1	380,593	0	0	0	380,593
5	Capital Receipts		0	0	0	0	0
6	Grants Received	20/2	7,500	0	0	36,000	43,500
7	Other charitable income		444	0	0	10	454
8	Total income		406,034	2,862	453	36,011	445,360
	Expenditure
9	Grants and donations		3,000	0	0	0	3,000
10	Salaries and associated costs	20/3	204,450	0	0	14,090	218,540
11	Property maintenance		40,724	0	0	0	40,724
12	Connexional assessment & model trust levy		62,352	0	0	0	62,352
13	District Assessment & Levy		14,000	18,001	0	0	32,001
14	Depreciation		1,125	0	0	0	1,125
15	Office expenses	20/4	5,587	714	0	0	6,301
16	Other outgoings	20/5	48,783	0	0	8,052	56,835
17	Total expenditure		380,021	18,715	0	22,142	420,878
18	Gains/(losses) on monetary investments						0
19	Gains/(losses) on investment properties						0
20	Net Income/(expenditure)		26,013	(15,853)	453	13,869	24,482
21	Transfers between funds		30,000	(52,500)	0	22,500	0
22	Other gains/(losses)		0	0	0	0	0
23	Net movement in funds		56,013	(68,353)	453	36,369	24,482
24	Total funds brought forward		2,269,004	356,684	67,702	52	2,693,442
25	Total funds carried forward		2,325,017	288,331	68,155	36,421	2,717,924

12

METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

Financial statements for the year ended 31 August 2021

Balance Sheet as at 31 August 2021

	Notes to	General Fund	Circuit Model Trust	Designated Funds	Restricted Funds	Total 2020/21	Total 2019/20
	the	(Unrestricted)	(Unrestricted)	(Unrestricted
	accounts
		£	£	£	£		£
Fixed Assets
Circuit Manses & Equipment	20/7&8	1,934,750	0	0	0	1,934,750	1,935,875
Investment properties	20/7&8	310,000	0	0	0	310,000	310,000
Investments		0	0	0	0	0	0
Total Fixed Assets		2,244,750	0	0	0	2,244,750	2,245,875
Current Assets
Debtors	20/9	17,871	0	0	0	17,871	14,949
Loans by the circuit		0	0	0	0	0	0
Investment with TMCP	20/11	0	6,264	0	53	6,317	288,38 4
Central Finance Board Deposits	20/11	80,063	0	288,850	0	368,913	267,432
Cash at bank and in hand	20/11	95,341	0	0	30,287	125,628	3,452
Total Current Assets		193,275	6,264	288,850	30,340	518,729	574,217
Current Liabilities
Creditors (due in under 1 year)	20/10	62,924	0	0	0	62,924	102,168
Grants payable within 2022-23		0	0	0	0	0	0
Total Current Liabilities		62,924	0	0	0	62,924	102,168
Net current assets/(liabilities)		130,351	6,264	288,850	30,340	455,805	472,049
Total assets less current liabilities		2,375,101	6,264	288,850	30,340	2,700,555	2,717,924
Long term liabilities (due after more	than one	year)
Grants payable after 2022-23		0	0	0	0	0	0
Loans to the circuit		0	0	0	0	0	0
Net Assets		2,375,101	6,264	288,850	30,340	2700,555	2,717,924
Funds of the Circuit
General Fund (Unrestricted)		2,375,243	0	0	0	2,375,243	2,325,017
Circuit /Model Trust Fund (unrestricted)		0	6,264	0	0	6,264	288,331
Designated funds (unrestricted)		0	0	288,850	0	288,850	68,155
Total Unrestricted Funds		2,375,243	6,264	288,850	0	2,670,357	2,681,503
Restricted Funds		0	0	0	30,340	30,340	36,421
Total Funds		2,375,243	6,264	288,850	30,340	2,700,697	2,717,924

13

Notes to the accounts for the year ended 31 August 2021

METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

____________

1. Basis of accounting and accounting policies

i Accounting standard

The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) 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 2015) – (Charities SORP (FRS 102)).

ii Public benefit entity

The Methodist Church Southend and Leigh Circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) below.

iii Basis

These accounts have been prepared on the basis of historical cost except that investments (including properties) are shown at their market value at the end of the year. The accruals basis has been used and trustees present accounts that show a true and fair view of the Circuit’s financial position and activities.

iv Content

The financial information presented is relevant, reliable, comparable and complete. Where estimates are used these are based on experience, research and judgement. The accounts are expressed in £ sterling, rounded to the nearest pound.

v FRS 102 SORP 2015

The accounts have been prepared in accordance with applicable charity law in England, this being the Charities Act 2011 and SI 2008/629 (Charities accounting and Reporting Regulations) and, pending the making of replacement Regulations specific to SORP 2015 in accordance with Reg.8(4)(d) of SI 2008/629, the charity trustees have departed from the requirement of Reg.8(5) by following SORP (FRS 102) instead of SORP 2005 to the extent necessary to give a true and fair view in the circumstances.

vi Going concern

Based on the monetary assets and human resources available at 31 August 2021, the trustees believe that the Circuit is a going concern.

vii Consolidation

The Circuit has denominational regulatory oversight in respect of work of the Churches within the Circuit but has no legal or operational control of those Churches and their governing bodies except in extreme circumstances. For this reason, the financial statements of Churches within the Circuit are not consolidated into these financial statements.

viii Income recognition

Income is brought into account when there is entitlement, and the amount is reliably measurable once it is more likely than not that the economic benefit of the income will be forthcoming.

14

Individual amounts categorised as Other income in the SOFA will be shown separately if they are considered material.

The Circuit acts as agent in three matters:

• The collection from Churches and payment over of their contributions to various Funds controlled and administered by the Methodist Church – “Connexional Funds”:

• The administration (application, collection, and disbursement) of grants requested by Churches within the Circuit from, but not limited to, the District and Connexion

• Co-ordinating the payment of salaries to employees of churches within the Circuit.

In all these matters the transactions are not reflected in the SOFA because they are the income of either the Connexion or Churches as appropriate. Instead, the transactions are disclosed in the Notes to the Accounts as required by SORP (FRS102), module 19.12.

In accordance with the Charities SORP (FRS102), the time of volunteers is not recognised. Further information on this matter is provided in the Trustees’ Annual Report. If goods are donated, a value will be shown in the SOFA or Notes where the value is considered material.

ix Expenditure

This is recognised when a liability is incurred, or a constructive obligation arises, where the amount is reliably measurable, and it is considered more likely than not that there will be an outflow of economic benefit.

x Grants

Grants made by the Circuit from its own funds are recognised in full at the time of agreement to make the grant without performance conditions or as and when the Circuit accepts that there is a legal or operational obligation to make the payment if it is subject to performance conditions. When the grant to be accrued is recurrent over more than one year the balance payable in future years, discounted to net present value where the difference is material, is treated as a provision being released in future years in accordance with the originally agreed terms. In cases where the grant has been charged to one fund but for ease of payment has been transferred to another fund any future payment provision is applied to the fund from which the grant will ultimately be paid.

xi VAT

Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.

xii Tangible fixed assets

These are capitalised if they can be used for more than one year, and individually cost at least £1,000

The freehold residential properties are shown in the accounts at deemed historical cost representing each property’s gross carrying value as at 1 September 2015, being the properties’ market value resulting from a professional valuation undertaken by RONA in 2015 and subsequently adjusted up to and including 31 August 2020 or, if acquired after that date, at the costs at the date of acquisition. No depreciation is being provided because the trustees consider the current residual value of the properties in their present condition to be not less than the historical cost and, in the absence of any impairment, any depreciation provision for the buildings component of the properties would be immaterial. The Circuit has made use of the deemed cost option on transitioning to FRS102 as outlined above.

15

xiii Investment Property

From time to time the Circuit may hold residential property (formerly manses) which is surplus to its normal staffing requirements. Where this is the case and it is anticipated that the property is unlikely to be used as a manse within a period of two years, the property is classified as Investment Property (whether let out or not) and any lets are at market rates unless there is a compelling reason not to do so in furtherance of the Circuit’s charitable objectives.

xiv Receivables and Payables; Bank and Cash (Basic Financial Instruments)

Debtors are stated at the amounts owed to the Circuit or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or the amount advanced to the Circuit. Subsequently creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit fund balances are shown at their realisable values.

xv Methodist Connexional Funds

The Methodist Church Connexion raises assessments against each Circuits and these are paid quarterly to their Districts. The Circuits raise assessments against Church in the Circuit. The District remits quarterly to the Methodist Church Fund most of the sum it receives from Circuits. A small sum is retained by the District to meet its own costs. The Circuit may act as agent for ad hoc collections for various funds controlled and administered by the Methodist Church.

xvi Funds

The trustees have adopted a policy for all unrestricted reserves which is attached as a separate document.

xvii Ministers’ manse costs

The Circuit is required to provide accommodation for each minister and pastor in the Circuit and their families and this is seen as a benefit to the Church. Ministers and pastors are expected to occupy the manse provided for them. The Circuit bears the cost of repairs, maintenance, buildings insurance, Council Tax, and water charges. These figures are not separately disclosed as benefits-in-kind for ministers or pastors as HMRC does not seek to tax these receipts in the hand of them.

Notes to the Accounts

1. Income from Investment Property

During the year rental income of gross £16,740 (net £14,903) was received on the property that was subject to a letting arrangement (2019/20 – gross £16,740 net £12,757) .

2. Assessments on Churches

The Circuit comprises 15 churches and each is assessed for a contribution to meet the overall net costs of the Circuit. The Assessment on Churches is determined annually and is based as to half on the membership of each Church and half on the income from offerings, Gift Aid and investment income. The Assessment is paid on a quarterly basis in advance and is treated as a creditor in the balance sheet.

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3. Pensions

All presbyters are members of the Methodist Ministers’ Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist Ministers (which term includes presbyters) are not employees of the Church. For simplicity, however, when dealing with National Insurance Contributions and pension contributions, the terms ‘employer’ and ‘employee’ are used as they would be in an employing body.

The Connexion accounts for this pension scheme and shows the figures in the annual Methodist Church in Great Britain accounts.

Lay employees are contractually employees are automatically entered into a pension scheme which the Circuit has arranged with the Pensions Trust unless they exercise their right to opt out. This is a defined benefit scheme and the Circuit contributes as employer to this scheme.

4. Cost of Superintendent, Presbyters and Trustees

The Superintendent of the Circuit, the Presbyters and the remaining members of the CLT are considered as Key Management Personnel. The Superintendent chairs meeting of the CLT and Circuit Meetings. The members of the Circuit Meeting are the trustees of the Circuit. The stipends, employer’s NIC and employer’s pension contributions and other expenses of the Presbyters of the Circuit are paid by the Circuit.

The manses are provided by the Circuit and the Circuit maintains the property. The value of the Council Tax and water charges paid by the Circuit is not disclosed here as HMRC does not regard this as a benefit in kind in the hands of the minister.

5. Payments to trustees

The Circuit policy is to reimburse members of the CLT and other trustees for expenditure properly incurred in carrying out their duties, including where appropriate travelling expenses, or where they have been requested to undertake certain activities for the Circuit. The Superintendent Minister and other presbyters undertake the primary executive roles within the Circuit. Apart from in their capacity as Superintendent Minister and other presbyters, no other trustee is an employee of the Circuit nor was in receipt of any payment for work undertaken on behalf of the Circuit, other than reimbursement of appropriate expenses. During the year the sum of £862 was reimbursed in this regard to trustees (2020 - £1,359).

6. Connexional assessment and levy

The Connexional Assessment is calculated relative to the proportion of church members, and staffing (Presbyters and Mission staff only) of all Circuits in the Beds, Essex & Herts District. 50% of the overall cost is calculated using relative membership proportions and 50% using relative staffing proportions.

7. District Assessment and Levy

The District Assessment is calculated relative to the proportion of church members, and staffing (Presbyters and Mission staff only) of all Circuits in the Beds, Essex & Herts District. 50% of the overall cost is calculated using relative membership proportions and 50% using relative staffing proportions. The levy is calculated on a sliding scale percentage of the Circuit’s CMTF Account balance as at 31 August the previous accounting period.

8. Investment Management

During the year the Circuit paid TMCP, the custodians of the Circuit’s investments (Circuit Model Trust Fund management charges based on 0.2% of the value of the individual funds at the beginning of the year. The amount was £577 (2020 £714)

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9. Investment Assets (and Trustees for Methodist Church Purposes)

TMCP is the legal owner and custodian trustee of all Methodist model trust property, including legacies, endowments and accumulated funds. Trust property is held for and on behalf of local managing agents who are responsible for the day to day management of trust property. TMCP ensures that, through providing guidance and acting under their direction, the managing trustees comply with charity law and Methodist law and policy as determined by the Methodist Conference.

10. Loans to Churches

Loans to churches within the Circuit may be granted by the trustees for a variety of purposes, principally in connection with the maintenance of property. All such loans are made from the York Road Fund, are interest-free, limited to 10% of the project cost or £10,000 whichever is the lower and repayable over a four year period.

11. Central Finance Board and Bank Balances

Monetary balances held at the Central Finance Board of the Methodist Church and at HSBC Bank plc are all available on demand without loss of interest. Deposits with the CFB are specifically designated to the appropriate funds.

12. Creditors, Accruals and Income in Advance

It is expected that all sums accrued at 31 August 2021 will be paid during the year to 31 August 2022.

13. Commitments

Grants committed and approved by the trustees but not paid are provided for at the year end. There were no such commitments at 31 August 2020.

14. Unrestricted Funds

General Fund

The purpose of this fund is for use at the discretion of the trustees in the furtherance of the general objectives of the Circuit and which have not been designated for other purposes. Some 95% of this fund is held as freehold properties, being manses for ministers and one former manse, now an investment property.

Circuit Model Trust Fund

The purpose of the fund is for use at the discretion of the trustees in furtherance of the general objectives of the Circuit. Its main source of income is legacies and formulaically determined contributions from the sale of manses and church buildings in the Circuit. Although this is technically an Unrestricted Fund under the control of the Circuit Meeting, prior approval is still required from the District to utilise these funds. Methodist Standing Orders 930, 931 and 917(2) are applicable.

Designated Funds

These are funds to serve specific purposes but are not restricted by any document or deed to that purpose alone.

York Road Fund - to provide interest-free loans to churches within the Circuit to fund maintenance work. Loans are repayable over four years.

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15. Restricted Funds

There is a restricted fund for the Whittingham Mission where donations and grants can be used only for the Whittingham Mission Experience project.

There is a very small fund of £53 associated with the Rayleigh Church which will be closed during this current year.

16. Related Parties

None of the Circuit trustees made donations direct to the Circuit during the year or in the preceding year. All of the Circuit trustees are members of one or another Church within the Circuit and may be trustees of their Churches.

Related parties include the Methodist Conference, the BE&H District and Churches within the Circuit, other Methodist Districts in Great Britain, CFB and TMCP.

17. Volunteer Contribution

Every entity (Connexion, District, Circuit and Church) within the Methodist Church in GB is heavily reliant on volunteers who contribute their skills, time and money in the furtherance of the work of the Church. In the Circuit the principal contribution is by serving on committees of the Circuit that deal with the mission, manses, finance, policy, grants, training and safeguarding. We are grateful to all of them for their help and commitment. No attempt has been made by this Circuit to value the non-monetary contributions to the Circuit in monetary terms.

18. Capital commitments and contingent liabilities

There were no capital commitments or contingent liabilities at the year-end (2020 – nil)

19. Independent Examiner

There are no fees associated with the independent examination as the work is being conducted on a voluntary basis. (2020 Audit - £4,000).

The auditor/independent examiner has provided no additional services during the year.

20. Financial Analysis

• 1 Circuit assessments 2 Grants received

• 3 Salaries and associated costs

• 4 Office expenses

• 5 Other outgoings

• 6 Expenditure on properties

• 7 Fixed assets

• 8 Schedule of manses and investment property 9 Debtors and prepayments

• 10 Creditors accruals and income in advance

• 11 Central finance board and bank balances

• 12 Summary of fund movements

• 13 Analysis of next assets between funds

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20/1 Circuit assessments

Church	General	Model Trust	Designated	Restricted	Total 2021	Total 2020
	Fund		funds	Funds
Belfairs	29,417				29,417	32,697
Benfleet	38,993				38,993	43,066
Canvey	17,848				17,848	19,425
Chalkwell Park	19,342				19,342	23,369
Fishermans	4,753				4,753	4,932
Hadleigh	13,933				13,933	16,762
Highlands	21,366				21,366	23,773
Hockley	17,004				17,004	17,952
Rayleigh	39,846				39,846	46,273
Rochford	16,678				16,678	18,971
Thorpe Bay	18,311				18,311	21,175
Thundersley	16,028				16,028	17,389
Trinity	18,200				18,200	20,800
Wesley	34,596				34,596	32,388
UMC	29,011				29,011	41,621
Total	335,326	0	0	0	335,326	380,593
20/2 Grants received
Description	General	Model Trust	Designated	Restricted	Total 2021	Total 2020
	Fund		funds	Funds
BEH Mission enabler					0	7,500
Experience Project				42,484	42,484	36,000
Refrigerated Van				4,410	4,410	0
Total	0	0	0	46,894	46,894	43,500
20/3 Salaries and associated costs
Description	General	Model Trust	Designated	Restricted	Total 2021	Total 2020
	Fund		funds	Funds
Stipends	105,325				105,325	101,893
Ministerial Support	32,905				32,905	31,065
Stipends NI	9,675				9,675	9,361
Ministerial Sup NI	2,513				2,513	2,230
Stipends Pension	27,463				27,463	26,741
Ministerial Sup Pen	1,632				1,632	1,491
Ex-gratia payment					0	6,000
Mission enabler					0	11,542
Town centre salary	463				463	5,314
Project salaries				32,460	32,460	12,825
Project NI				3,117	3,117	1,265
Admin Salary	8,892				8,892	8,320
Apprenticeship levy	921				921	493
Total	189,789	0	0	35,577	225,366	218,540

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20/4 Office expenses	20/4 Office expenses
Description	General Fund	Model Trust	Designated funds	Restricted Funds	Total 2021		Total 2020
PPS	1,707				1,707		812
Telephone					0		198
Equipment	960				960		0
Planand directory	1,035				1,035		569
Materials					0		1,524
Insurance					0		543
Sundry	284	577			861		1,139
Office rent	2,600				2,600		1,516
Total	6,586	577	0	0	7,163		6,301

20/5 Other Outgoings
Description	General	Model Trust	Designated	Restricted	Total 2021	Total 2020
	Fund		funds	Funds
Town Centre						1,215
Ministers’ travel	2,987				2,987	9,152
Ministers’ expenses	1,116				1,116	1,606
Manse phones	3,016				3,016	5,250
Manse rates	13,756				13,756	14,064
Computers						660
Preachers’ fees						2,226
Training	313				313	430
Quinquennials	2,180				2,180
Legal and prof						4,000
Removals	4,248				4,248	4,262
Letting fees and exp	1,837				1,837	3,983
Payroll charge	302				302	576
Manse insurance	1,360				1,360	1,359
Project expenses				22,383	22,383	8,052
Total	31,115	0	0	22,383	53,498	56,835
20/6 Expenditure on properties
Description	General	Model Trust	Designated	Restricted	Total 2021	Total 2020
	Fund		funds	Funds
Council tax	11,140				11,140	10,804
Water supply	2,616				2,616	3,260
Maintenance	49,165				49,165	40,724
Insurance	1,360				1,360	1,359
Total	64,281	0	0	0	64,281	56,147

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20/7 Fixed Assets
Description	Manses	Equipment	Investment	Total
			Properties
Cost or Valuation
Balance as at 1 September 2020	1,932,500	4,500	310,000	2,247,000
Balance as at 31 August 2021	1,932,500	4,500	310,000	2,247,000
Depreciation
Balance as at 1 September 2020	0	1,125	0	1,125
Charge for the year	0	1,125	0	1,125
Balance as at 31 August 2021	0	2,250	0	2,250
Net book value as at 31 August 2021	1,932,500	2,250	310,000	2,244,750
Net book value as at 31 August 2020	1,932,500	3,375	310,000	2,245,875

20/8 Schedule of Manses and Investment Property
	Type	Valuation
633, High Road, Benfleet	Manse	350,000
1, Oakview Close, Leigh-On-Sea	Manse	390,000
259, Rayleigh Road, Rayleigh	Manse	350,000
33, Church Road, Shoeburyness	Investment	310,000
146, Gainsborough Drive, Westcliff-On-Sea	Manse	395,000
37, Ormonde Gardens, Leigh-On-Sea	Manse	430,000
Wesley Grange	Manse	17,500
Total		2,242,500

20/9 Debtors and Prepayments

Description	General	Model	Designated	Restricted	Total 2021	Total
	Fund	Trust	funds	Funds		2020
Debtors
Loans to employees	2,500				2,500	2,500
Due from Churches	2,691				2,691	641
	5,191	0	0	0	5,191	3,141
Prepayments
Stipend paid in advance	11,950				11,950	11,808
Insurance paid in advance	730				730	0
	12,680	0	0	0	12,680	11,808
Total	17,871	0	0	0	17,871	14,949

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20/10 Creditors, Accruals and Income in Advance

Description	General	Model	Designated	Restricte		Total 2021	Total 2020
	Fund	Trust	funds	d Funds
Income in Advance
Assessment paid in advance	46,588					46,588	90,000
Creditors and Accruals
Ministers’ and Staff Expenses	924					924	549
Maintenance	7,973					7,973	79
Audit Fee	0					0	4,000
Local Projects	763					763	1,040
Other	6,676					6,676	6,500
Total	16,336					16,336	12,168
Total	62,924	0	0	0		62,924	102,168
20/11 Central Finance Board	and Bank Balances
Account	General	Model	Designated	Restricted	Total 2021		Total 2020
	Fund	Trust	funds	Funds
Central Finance Board	80,063		288,850			368,913	267,432
TMCP Trustee Account		6,264		53		6,317	288,193
HSBC	95,341			30,287		125,628	3,452
Total	175,404	6,264	288,850	30,340		500,858	559,077
20/12 Summary of Fund Movements
Fund	Balance	Income	Expenditure	Transfers		Balance
	01.09.20					31.08.21
General Fund	2,325,017	352,278	349,552	47,500		2,375,243
Model Trust Fund	288,331	884	14,851	(268,100)		6,264
Elm Road Fund				220,600		220,600
York Road Fund	68,155	95				68,250
Total Unrestricted Funds	2,681,503	353,257	364,403		0	2,670,357
Experience Project	36,368	51,879	57,960			30,287
Rayleigh Road	53	0				53
Total Restricted	36,421	51,879	57,960		0	30,340
Total Funds	2,717,924	405,136	422,363		0	2,700,697

20/13 Analysis of Net Assets between Funds

Account	General	Model	Designated	Restricted	Total 2021	Total 2020
	Fund	Trust	funds	Funds
Tangible fixed assets	1,934,750				1,934,750	1,935,875
Fixed asset investment	310,000				310,000	310,000
Current assets	193,275	6,264	288,850	30,340	518,729	574,217
Current liabilities	(62,924)				(62,924)	(102,168)
Total	2,375,101	6,264	288,850	30,340	2,700,555	2,717,924

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APPENDIX AND GLOSSARY OF TERMS

Current Circuit Meeting Membership as at the date of this report

Ministers	Rev Peter Moorhouse	(Superintendent)
	Rev Margaret Deans	(Supernumerary with pastoral oversight)
	Rev Dr Calvin Samuel
	Rev Christopher Sandy	(retired 31 August 2021)
	Deacon Sarah McDowall
	Pastor Stephen Mayo
	Rev Zena Smith	(appointed 1 September 2021)
	Pastor Colin Turner	(retired 31 August 2021)
Supernumerary Ministers	Rev Norman Hooks
	Rev Clifford Newman
	Rev Peter Perowne
	Rev Theresa Rutterford
Circuit Stewards	Miss Kathy Burrell**
	Mrs Anne Briant
	Mr Ian Lowe
	Mrs Pamela Smith**
	Mr Mike Spaull**	(appointed 14 Sept 2021)
Circuit Treasurer	Mr Richard Reeves	(retired 15 September 2020)
	Mr Adrian Nunn**	(appointed 15 September 2020)
	Mr Patrick Smith	(appointed 15 September 2020)
Other Circuit Officers	Mrs Val Dobbin	(Action for Children)
	Mr Robert Gray	(Safeguarding Officer))
	Miss Anne Lane**	(Connexional Funds Treasurer)
	Mrs Pamela Smith**	(Property and Manses Co-ordinator)
	Mr Mike Spaull**	(Worship Leader rep)
	Ms Sanya Strachan	(Local Preachers’Secretary) (appointed 14
		September 2021)
Church Representatives	Belfairs	Mr Mike Spaull**
		Mrs Tina Gowers**
		Mrs Neeltje Charles
	Benfleet	Mr John Stokes
		Mr Richard Reeves
		Mrs Daisy Humphreys
	Canvey Island	Mrs Cathy Turner
		Mr Adrian Nunn**
		Mrs Eva Hayes
	Chalkwell Park	Mrs Linda Agor
		Mr Laurie Ward
		Mrs Kristin Kilgour
	Hadleigh	Mrs Jill Lawrence
		Mrs Judee Peterson
		Ms Susan Mthimkulu
	Highlands	Vacancy
		Mr David Watson
		Mr Frank Edmonds
	Hockley	Mrs Muriel Pregnall
		Mr Stan Rae
		Mrs Ros Hayman
	Fishermen’s Chapel	Kelly Andrews
		Mr Roger Smith
		Mr Paul Wornell

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Rayleigh Mrs Margaret Lorrimore Mrs Pat Harrison Mr Keith Norman Rochford Mrs Carole Glendening Mrs Heather Sims Mr Bruce Glendenning Thorpe Bay Mrs Angela Merenda Mr Bernard Kerr (deceased Oct 2021) Miss Margaret Poulter Thundersley Miss Kathy Burrell Miss Anne Lane Mrs Linda King Trinity Mrs Viv Robson Mrs Jacky Walton Vacancy United MC Mr Alan Sambridge Mrs Wendy Coombes Mr Bob Briant Wesley Mrs Gaye Greenway Mrs Tina Gowers** Mrs Judy Taylor

Glossary of terms

**

Indicates a Trustee serving in more than one capacity

CFB: Central Finance Board of the Methodist Church manages a Common Deposit Fund and a series of pooled investment funds for the Methodist Church in Great Britain and provides investment advice to those entities. Church: a group of members from fewer than 10 to more than 90 Circuit: a group of Methodist Churches near each other, typically between 10 and 20 Circuit Meeting : The trustees of the Circuit, most of whom are appointed by their local Churches and others by virtue of a role they undertake for the Circuit and/or their local Churches.

CLT Circuit Leadership Team which comprises the Presbyters (Ministers) and pastors stationed within the Circuit, the Circuit Stewards and the Circuit Treasurer

CMTF: Circuit Model Trust Fund Connexion: The Methodist Church in Great Britain which includes the Head Office at Methodist Church House, all Methodist Districts, Circuits and Churches in Great Britain.

Connexional Funds: The designated and/or Restricted Funds held and administered by the Connexion in furtherance of its charitable and mission objectives. District: a group of contiguous Circuits, usually between 15 and 30 DAF: District Advance Fund FRS: Financial reporting Standard HMRC: Her Majesty’s Revenue and Customs Lay Employees: Personnel employed by the Circuit on generally accepted commercial employment terms. MMPS: Methodist Ministers’ Pension Scheme PASLEMC: Pensions and Assurance Scheme for Lay Employees of the Methodist Church Pensions Trust: The Pensions Trust, the organisation though which the Circuit arranges a pension scheme for its Lay Employees Presbyters Probationer or Ordained Methodist Ministers (including the Superintendent) who have pastoral and administrative responsibility for the Churches within the Circuit SOFA: Statement of Financial Activities SORP: Statement of Recommended Practice

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TMCP:

Trustees for Methodist Church Purposes, the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds

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