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2023-08-31-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 2023

Southend and Leigh Methodist Circuit Office

Sutherland Boulevard Leigh-on-Sea Essex SS9 3PT

METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

CONTENTS
Page
Index 1
Trustees’ report 2 - 7
Independent Examiner’s report 8
Financial statements 9 - 22
Appendix I– Circuit Meeting membership and glossary of terms 23 - 25

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

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:

In practice the organisation and resourcing of:

Review of the year

For the second year in a row the year this has been one of both progress and pressure. Progress in recovering from the aftermath of global pandemic and returning to a normal patten of church life whist living in a national cost of living crisis. Pressure to correctly fund the work we wish to partake in.

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Review of the year (con’t)

We embarked at the beginning of year to review our status, ministry and mission of the circuit. Simply put what we are doing and is this the best way to do it. The trustees confirmed that the make up of the circuit being 15 churches and a mission centre were doing the right things in right location. This shouldn’t stop us from finding new ways of taking our core message to the local communities around our churches. We ended the year with many churches not sure how they would cope with greatly increased energy bills, but with a continued faith that God has a plan and will show us the way forward.

The Circuit has continued to work to implement elements of its ever-developing vision. The Circuit has held two Mission Planning Days, mindful of the calling of the Methodist Church to respond to the gospel of God’s love in Christ and to live out its discipleship in worship and mission. The Church exists to:

● increase the awareness of God’s presence and celebrate God’s love (Worship)

● help people to grow and learn as Christians, through mutual support and care (Learning and Caring)

● be a good neighbour to people in need and to challenge injustice (Service)

We are determined to ensure the vision is updated in the light of the challenges created by the energy crisis.

Progress came from the continuing development of the Town Centre Ministry. As Southend became city so did the ministry now known as City Chaplains, this acknowledged the work is now in two strands – a Retail chaplaincy strand run with ecumenical partners from Love Southend and a Chaplaincy strand based at the Adventure Island theme park and seafront of Southend. The Deacon appointed to take up the lead role, who started on 1[st] Sept 2020, has continued to work in the two strands. Progress came for various local churches in developments of various initiatives – several churches initiating community activities and property refurbishments, and others seeking to employ Mission Enablers, assisted by funding from the Circuit.

We have not been able to re-start the Night Shelter work (providing a meal, showering facilities, and overnight accommodation for the homeless in the winter months). The Worship Academy continued Zoom and in person 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 resumed in June 2021 and have continued. Other Worship Services were continued, and a few have had Zoom links for those unable to meet in person. The Circuit participated in “Bible Month”, studying the Book of Revelations.

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. 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 were advised that a Probationer Minister would be stationed in the Circuit. Preparations for her arrival began in March and on the 1[st] September 2023 we were delighted to welcome Rev Heather Simmons who has pastoral charge of Fisherman’s Chapel and Highlands church.

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Review of the year (con’t)

The Pastor employed by the circuit has continued to be a really valuable asset. He has now completed the second year of training for Presbyterial Ministry. The plans to employ a further Pastor/Preacher

were placed on hold and will not be revived due to funding. We now have two part time administrators, which gives administrative cover five days a week. Alongside four full time Methodist Presbytes completing the staff picture.

Financial issues remain. Many of the local churches were deprived of much of their income derived from lettings during the lockdown period. As a precaution against Covid some churches no longer take offerings during public worship but thankfully most regular attenders have move to standing orders. The Circuit assisted local churches with substantial grants to enable them to employ Mission Enablers and smaller grants were also made to a number of churches to assist with Mission based projects. Expenses were also incurred in preparing the manses to be fit for purpose. The subsequent losses are shown in the financial accounts.

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 and this will continue into the next year. Other costs were well controlled and in line with budget, except Manse Maintenance which with the agreement of the Circuit Meeting was overspent.

Over 20% of expenditure is the Circuit contribution to the District and Connexion. 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 2023 the net assets of the Circuit available for general purposes amounted to £162,192 (2021: 155,000) since the greater part of the accumulated funds are invested in the properties. Grants totalling £75,000 were paid to churches from the Designated Funds, and a further £90,000 transferred to General Fund for extra expenditure on the upgrading of Manses.

Plans for 2024/25

Circuit financial plans for the coming year had been prepared on the basis that the current staffing will be reduced by one. This will ease some financial burden upon churches, some of whom may be struggling as a result of a drop in their reserves arising from the loss of income from both offerings and lettings experienced during and after lockdown and the recent rise in energy prices.

During the course of the year an ever careful eye will have to be made with regards to the Experience Project at Whittingham Mission as it is totally reliant on Grant Funding.

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

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 mean 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 23 and 24.

Circuit Ministers and Officers

Active Circuit Ministers Rev Peter Moorhouse (Superintendent) Rev Margaret Deans Rev Norman Hooks Pastor Stephen Mayo Deacon Sarah McDowall Rev Agnes Sam Rev Dr Calvin Samuel Rev Heather Simmons (appointed 1 September 2023) Rev Zena Smith Circuit Stewards Mr Ian Lowe Mrs Anne Briant Mr Mike Spaull

The Circuit Treasurer was Mr Adrian Nunn and he acted as the principal officer 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

Public Benefit

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

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

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, Chalkwell Park, The Fishermen’s Chapel, Hadleigh, Highlands, Hockley and Hawkwell, Rayleigh, Rochford, Thorpe Bay, Thundersley, Trinity, United Methodist Church, Wesley and the Whittingham Mission. There is also a link with Westerly Christian Care Home.

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:

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Safeguarding (Cont’d)

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:

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.

Signed on behalf of the Circuit Trustees

Rev Peter Moorhouse _______ Superintendent Minister

Mr Keith Norman __ ___ Trustee (Circuit Meeting Secretary)

Date _____ 10/04/2024 ___

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

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 2023.

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:

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

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Financial statements for the year ended 31 August 2023

Index: Page
Statement of financial activities (SOFA) for the year ended 31 August 2023 10
Statement of financial activities (SOFA) for the year ended 31 August 2022 11
Balance sheet as at 31 August 2023 12
Notes to the accounts for the year ended 31 August 2023 13 - 22
Appendix – Names of the Trustees (members of the Circuit Meeting) 23 - 24
Glossary of terms 25

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Statement of Financial Activities (SOFA) for the year ended 31 August 2023

Notes to General Fund Circuit Model Trust Designated Funds Restricted Funds Total 2022-23
the (Unrestricted) (Unrestricted) (Unrestricted
accounts
£ £ £ £ £
Income
1 Donations and legacies 0 0 0 0 0
2 Income from monetary investments 6,464 123 2,382 0 8,969
3 Income from investment properties 0 0 0 0 0
4 Assessments on Churches 20/1 392,580 0 0 0 392,580
5 Capital Receipts 0 0 0 0 0
6 Grants Received 20/2 39,097 0 0 66,550 105,647
7 Other charitable income 0 0 0 0 0
8 Total income 438,141 123 2,382 66,550 507,196
Expenditure
9 Grants and donations 0 0 7,910 0 7,910
10 Salaries and associated costs 20/3 259,465 0 0 36,185 295,650
11 Property maintenance 73,655 0 0 0 73,655
12 Connexional assessment & model trust levy 50,500 0 0 0 50,500
13 District Assessment & Levy 12,692 153 0 0 12,845
14 Depreciation 1,125 0 0 0 1,125
15 Office expenses 20/4 6,898 17 0 0 6,915
16 Other outgoings 20/5 33,891 0 0 31,877 65,768
17 Total expenditure 438,226 170 7,910 68,062 514,368
18 Gains/(losses) on monetary investments
19 Gains/(losses) on investment properties
20 Net Income/(expenditure) (85) (47) (5,528) (1,512) (7,172)
123 Transfers between funds 0 0 0 0 0
22 Other gains/(losses) 0 0 0 0 0
23 Net movement in funds (85) (47) (5,528) (1,512) (7,172)
24 Total funds brought forward 2,398,698 6,126 124,135 30,341 2,559,300
25 Total funds carried forward 20/12 2,398,613 6,079 118,607 28,829 2,552,128

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Statement of Financial Activities (SOFA) for the year ended 31 August 2022

Notes to General Fund Circuit Model Trust Designated Funds Restricted Funds Total 2021-22
the (Unrestricted) (Unrestricted) (Unrestricted
accounts
£ £ £ £ £
Income
1 Donations and legacies 0 0 0 0 0
2 Income from monetary investments 1,147 36 285 1 1,469
3 Income from investment properties 8,370 0 0 0 8,370
4 Assessments on Churches 20/1 325,623 0 0 0 325,623
5 Capital Receipts 0 0 0 0 0
6 Grants Received 20/2 0 0 0 57,475 57,475
7 Other charitable income 0 0 0 0 0
8 Total income 335,140 36 285 57,476 392,937
Expenditure
9 Grants and donations 0 0 75,000 0 75,000
10 Salaries and associated costs 20/3 201,922 0 0 34,610 236,532
11 Property maintenance 90,508 0 0 0 90,508
12 Connexional assessment & model trust levy 52,280 0 0 0 52,280
13 District Assessment & Levy 13,288 156 0 0 13,444
14 Depreciation 1,125 0 0 0 1,125
15 Office expenses 20/4 9,117 18 0 0 9,135
16 Other outgoings 20/5 33,444 0 0 22,867 56,311
17 Total expenditure 401,684 174 75,000 57,477 534,335
18 Gains/(losses) on monetary investments
19 Gains/(losses) on investment properties
20 Net Income/(expenditure) (66,544) (138) (74,715) (1) (141,398)
21 Transfers between funds 90,000 (90,000) 0 0
22 Other gains/(losses) 0 0 0 0 0
23 Net movement in funds 23,456 (138) (164,715) (1) (141,398)
24 Total funds brought forward 2,375,243 6,264 288,850 30,340 2,700,697
25 Total funds carried forward 20/12 2,398,699 6,126 124,135 30,339 2,559,299

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Balance Sheet as at 31 August 2023

Notes to General Fund Circuit Model Trust Designated Funds Restricted Funds Total 2022/23 Total 2021/22
the (Unrestricted) (Unrestricted) (Unrestricted
accounts
£ £ £ £ £
Fixed Assets
Circuit Manses & Equipment 20/7&8 2,242,500 0 0 0 2,242,500 2,243,625
Investment properties 0 0 0 0 0 0
Investments 0 0 0 0 0 0
Total Fixed Assets 2,242,500 0 0 0 2,242,500 2,243,625
Current Assets
Debtors 20/9 31,722 0 0 0 31,722 23,584
Loans by the circuit 0 0 7,544 0 7,544 8,063
Investment with TMCP 20/11 0 6,079 0 54 6,133 6,179
Central Finance Board Deposits 20/11 158,308 0 111.063 0 269,371 323,946
Cash at bank and in hand 20/11 22,243 0 0 28,775 51,018 6,926
Total Current Assets 212,273 6,079 118,607 28,829 365,788 368,698
Current Liabilities
Creditors (due in under 1 year) 20/10 56,160 0 0 0 56,160 53,024
Grants payable within 2023-24 0 0 0 0 0 0
Total Current Liabilities 56,160 0 0 0 56,160 53,024
Net current assets/(liabilities) 156,113 6,079 118,607 28,829 309,628 315,674
Total assets less current liabilities 2,398,613 6,079 118,607 28,829 2,552,128 2,559,299
Long term liabilities (due after more than one year)
Grants payable after 2023-24 0 0 0 0 0 0
Loans to the circuit 0 0 0 0 0 0
Net Assets 2,398,613 6,079 118,607 28,829 2,552,128 2,559,299
Funds of the Circuit
General Fund (Unrestricted) 2,398,613 0 0 0 2,398,613 2,398,699
Circuit /Model Trust Fund (unrestricted) 0 6,079 0 0 6,079 6,126
Designated funds (unrestricted) 0 0 118,607 0 118,607 124,135
Total Unrestricted Funds 2,398,613 6,079 118,607 0 2,523,299 2,528,960
Restricted Funds 0 0 0 28,829 28,829 30,339
Total Funds 2,398,613 6,079 118,607 28,829 2,552,128 2,559,299

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Notes to the accounts for the year ended 31 August 2023

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 2023, 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. Individual amounts categorised as Other income in the SOFA will be shown separately if they are considered material.

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The Circuit acts as agent in three matters:

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 2023 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.

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

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. There are no such properties at 31 August 2023

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 £0 (net £0) was received on the property that was subject to a letting arrangement (2021/22 – gross £8,370 net £6,038) .

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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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

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 £1,497 was reimbursed in this regard to trustees (2022 - £862).

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 £17 (2022 £18)

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

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 2023 will be paid during the year to 31 August 2024.

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 2023.

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.

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 (Unrestricted)

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

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

2 Elm Road Fund – proceeds from Elm Road church sale which are for use in missional work around the circuit.

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

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 should 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 (2022 – nil)

19. Independent Examiner

There are no fees associated with the independent examination as the work is being conducted on a voluntary basis. (2022 Audit - £0).

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

20. Financial Analysis

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

20/1 Circuit assessments

Church General Model Trust Designated Restricted Total 2023 Total 2022
Fund funds Funds
Belfairs 33,720 33,720 28,440
Benfleet 44,400 44,400 37,428
Canvey 20,040 20,040 17,127
Chalkwell Park 24,120 24,120 21,000
Fishermans 5,100 5,100 4,564
Hadleigh 17,280 17,280 13,376
Highlands 24,540 24,540 20,508
Hockley 18,540 18,540 20,000
Rayleigh 47,700 47,700 35,456
Rochford 19,560 19,560 14,500
Thorpe Bay 21,840 21,840 17,576
Thundersley 18,000 18,000 15,388
Trinity 21,480 21,480 20,800
Wesley 42,900 42,900 31,608
UMC 33,360 33,360 27,852
Total 392,580 0 0 0 392,580 325,623
20/2 Grants received
Description General Model Trust Designated Restricted Total 2022 Total 2022
Fund funds Funds
Experience Project 66,550 66,550 57,475
Maintain Manse 39,097 39,097 0
Total 39,097 0 0 66,550 106,647 57,475
20/3 Salaries and associated costs
Description General Model Trust Designated Restricted Total 2023 Total 2022
Fund funds Funds
Stipends 133,697 133,697 106,562
Ministerial Support 53,165 53,165 38,198
Stipends NI 13,110 13,110 10,067
Ministerial Sup NI 3,346 3,346 2,456
Stipends Pension 36,218 36,218 27,787
Ministerial Sup Pen 1,616 1,616 1,550
Project salaries 0 32,738 32,738 31,396
Project NI 0 3,447 3,447 3,214
Admin Salary 16,411 16,411 14,055
Apprenticeship levy 1,302 1,302 1,072
Preachers Fees 600 600 175
Total 259,465 0 0 36,185 295,650 236,532

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

20/4 Office expenses
Description General Model Trust Designated Restricted Total 2023 Total 2022
Fund funds Funds
PPS 1,846 1,846 2,679
Bank Charges 65 65 54
Equipment 0 0 629
Imaging Day 0 0 768
Church Road Elec 0 0 235
Sundry 437 17 454 545
Office rent 4,550 4,550 4,225
Total 6,898 17 0 0 6,915 9,135
20/5 Other Outgoings
Description General Model Trust Designated Restricted Total 2023 Total 2022
Fund funds Funds
Ministers’ travel 5,503 5,503 5,190
Ministers’ expenses 659 659 1,497
Manse phones 3,582 3,582 3,150
Manse rates 16,982 16,982 14,626
Training 264 264 366
Quinquennials 3,510 3,510 2,950
Removals 0 0 540
Letting fees and exp 0 0 2,332
Payroll charge 374 374 322
Manse insurance 3,017 3,017 2,471
Project expenses 0 31,877 31,877 22,867
Total 33,891 0 0 31,877 65,768 56,311
20/6 Expenditure on properties
Description General Model Trust Designated Restricted Total 2023 Total 2022
Fund funds Funds
Council tax 13,988 13,988 11,515
Water supply 2,993 2,993 3,111
Maintenance 73,655 73,655 90,508
Insurance 3,017 3,017 2,471
Total 93,653 0 0 0 93,653 107,605
20/7 Fixed Assets
Description Manses Equipment Total
Cost or Valuation
Balance as at 1 September 2022 2,242,500 4,500
2,247,000
Balance as at 31 August 2023 2,242,500 4,500
2,247,000
Depreciation
Balance as at 1 September 2022 0 3,375 3,375
Charge for the year 0 1,125 1,125
Balance as at 31 August 2022 0 4,500 3,450
Net book value as at 31 August 2023
2,242,500		 0
2,242,500

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Net book value as at 31 August 2022 2,242,500 1,125 2,243,625

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 Manse 310,000
146, Gainsborough Drive, Westcliff-On-Sea Manse 395,000
37, Ormonde Gardens, Leigh-On-Sea Manse 430,000
Wesley Garage Manse 17,500
Total 2,242,500
20/9 Debtors and Prepayments
Description General Model Designated Restricted Total 2023 Total
Fund Trust funds Funds 2022
Debtors
Loans to Ex-employees 2,500 2,500 2,500
Due from Churches 9,410 9,410 4,600
11.910 0 0 0 11,910 7,100
Prepayments
Stipend paid in advance 18,942 18,942 15,614
Insurance paid in advance 870 870 870
19,812 0 0 0 19,812 16,484
Total 31,722 0 0 0 31,722 23,584
20/10 Creditors, Accruals and Income in Advance
Description General Model
Designated
Restricte		 Total 2023 Total 2022
Fund Trust
funds
d Funds
Income in Advance
Assessment paid in advance 48,738 48,738 40,790
Creditors and Accruals
Ministers’ and Staff Expenses 0 0 173
Maintenance 0 0 5,050
Rent & Utilities 0 0 290
Due to Churches 701 701 0
Local Projects 221 221 221
Other 6,500 6,500 6,500
Total 56,160 0 0
0
56,160		 53,024
20/11 Central Finance Board and Bank Balances
Account General Model Designated Restricted Total 2023 Total 2022
Fund Trust funds Funds
Central Finance Board 6,079 54 6,133 323,946
TMCP Trustee Account 158,308 111,063 269,371 6,179
HSBC 22,243 28,775 51,018 6,926
Total 180,551 6,079 111,063 28,829 326,522 337,051

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

20/12 Summary of Fund Movements

Fund Balance Income Expenditure Transfers Transfers
Balance
01.09.22 31.08.23
General Fund 2,398,698 438,141 438,226 0
2,398,613
Designated unrestricted: 6,126 123 170 0
6,079
1 Model Trust Fund
2 Elm Road Fund 55,600 0 0 0
55,600
York Road Fund 68,535 2,382 7,910 0
63,007
Total Unrestricted Funds 2,528,959 440,646 446,306 0
2,523,299
Experience Project 30,287 66,550 68,062 0
28,775
Rayleigh Road 54 0 0 0
54
Total Restricted 30,341 66,550 68,062 0
28.829
Total Funds 2,559,300 507,196 514,368 0
2,552,128
20/13 Analysis of Net Assets between Funds
Account General Model Designated Restricted Total 2023 Total 2022
Fund Trust funds Funds
Tangible fixed assets 2,242,500 0 0 0 2,242,500 2,243,625
Current assets 212,273 6,079 118,607 28,829 365,788 368,698
Current liabilities (56,160) 0 0 0 (56,160) (53,024)
Total 2,398,613 6,079 118,607 28,829 2,552,128 2,559,299

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

APPENDIX

Current Circuit Meeting Membership as at the date of this report

Ministers Rev Peter Moorhouse (Superintendent)
Rev Margaret Deans (Supernumerary with pastoral oversight)
Pastor Stephen Mayo
Deacon Sarah McDowall
Rev Agnes Sam
Rev Dr Calvin Samuel
Rev Heather Simmons (appointed 1 September 2023)
Rev Zena Smith **
Circuit Stewards Mrs Anne Briant
Mr Ian Lowe**
Mr Mike Spaull**
Circuit Treasurer Mr Alistair Jenkins
Other Circuit Officers Mrs Val Dobbin (Action for Children)
Mr Robert Gray** (Safeguarding Officer))
Miss Anne Lane** (Connexional Funds Treasurer)
Mr Mike Spaull** (Worship Leader Rep)
Mrs Jane Fulford (Local Preachers’ Secretary)
Mr Keith Norman** (Circuit Meeting Secretary)
Church Representatives Belfairs Mr Mike Spaull**
Mrs Tina Gowers**
Mrs Neeltje Charles
Benfleet Mrs Daisy Humphreys
Mr Richard Reeves**
Vacancy
Canvey Island Mrs Cathy Turner
Mr Steve Kemp
Mrs Eva Hayes
Chalkwell Park Mrs Rita Scott
Mr Laurie Ward
Mrs Sue Allum
Hadleigh Ms Claire Gunn
Ms Judee Peterson
Vacancy
Highlands Mr Donald Mayes
Mr Steve Watson
Mr Frank Edmonds

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Hockley Mrs Muriel Pregnall
Mr Patrick Smith
Mrs Anne Sains
Fishermen’s Chapel Vacancy
Mr Roger Smith**
Mr Paul Wornell
Rayleigh Miss Susie King**
Mr Andy Cameron
Mr Keith Norman**
Rochford Mrs Carole Glendening
Mrs Heather Sims
Mr Bruce Glendenning
Thorpe Bay Mrs Angela Merenda
Mrs Omowunmi Olarinre
Miss Margaret Poulter**
Thundersley Mrs Shirley Beadle
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**

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METHODIST CHURCH SOUTHEND AND LEIGH CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

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
Treasurers
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
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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