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2024-08-31-accounts

THE METHODIST CHURCH - PURLEY CIRCUIT TRUSTEES' ANNUAL REPORT FOR THE PERIOD 01/09/2023 TO 31/08/2024

Charity Name

The Purley Circuit of the Methodist Church

Registered Charity Number 1134261

Introduction

The Purley Circuit of the Methodist Church (Purley Methodist Circuit) is largely a suburban circuit on the southern outer edge of the Greater London area, lying mainly in the London Borough of Croydon and Tandridge District in Surrey. The Circuit is mostly built up, extending from South Croydon with urban characteristics, through outer London suburbia to Surrey commuter territory, but including also areas of greenbelt. The area covered is largely affluent, though there are significant pockets of deprivation.

The calling of the Purley Methodist Circuit is to respond to the gospel of God’s love in Christ and to live out its discipleship in worship and mission. It does this through worship, learning and caring, service and evangelism.

Mission Policy

The Purley Methodist Circuit exists to:

These purposes will be met by:

At present the Circuit will:

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Objectives and activities

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

The Purley Methodist Circuit had two Methodist ministers: Revd Graham Claydon-Knights, the Superintendent Minister, and Revd Sang Wook Han. Revd Martin Knight is a United Reformed Church (URC) minister, who gave 25% of his time to the South Croydon United Church, a Local Ecumenical Partnership (LEP) with the URC, and the remaining time devoted to another local URC congregation. Revd Martin, however, left for a new appointment in the spring of 2024. The Circuit’s activities are supported by a part-time Administrator, Mrs Linda Lucking.

There were three supernumerary ministers in the Circuit: Revd Ermal Kirby, Revd Jenni Kirby and Revd Stephen Mares. Revd Ermal was appointed to assist with South Croydon United Church from 1 June 2024 until 31 August 2025, to allow time to find a new minister for that appointment.

The Revd Graham Claydon-Knights was appointed the Superintendent of the Purley Methodist Circuit for five years from 1 September 2023.

The Purley Methodist Circuit comprised 189 members in six churches, including the LEP: The churches are located as follows:

Caterham Methodist Church: Coulsdon Road, Caterham, CR3 5NJ Coulsdon Methodist Church: 83, Brighton Road, Coulsdon, CR5 2BE Sanderstead Methodist Church: Limpsfield Road, Sanderstead, CR2 9EF South Croydon United Church: Aberdeen Road, Croydon, CR0 1EQ Warlingham Methodist Church: Limpsfield Road, Warlingham, CR6 9LE Whitethorn Avenue Methodist Church: Whitethorn Avenue, Coulsdon, CR5 2PP

The sale of Hurst Green Methodist Church completed on 16[th] July 2024. Prior to the exchange of contracts on 11th June 2024, to ensure good care of this Circuit asset, weekly meetings were held in the building and monthly services were included in the preaching plan.

The main activities of the Circuit in relation to its objectives are:

The Purley Methodist Circuit gives leadership, encouragement and support to its churches as they offer a Christian witness in their locality and develop their individual callings. The staff aim to work as a team and will give significant attention to enabling the mission of the Circuit – primarily through local church initiatives, recognising the gifts of laity, developing and supporting them,

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appreciating that ultimately laity will do much of the reaching out. We have a number of Local Preachers and Worship Leaders. The Circuit offers shared activities to supplement what each church is able to offer, such as shared evening worship, groups studying theology etc. It encourages the spiritual life of local churches and urges them to engage with the local communities in service and evangelism. Ordained and lay staff are valued and one Circuit Steward has special responsibility for their pastoral care.

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

Achievements and performance

Representatives from each of the circuit churches were invited to attend Whitethorn Avenue Methodist Church on Saturday, the 3rd of February 2024. Using the report to the circuit meeting written by the Revd. Ermal Kirby, “Proposals for re-shaping our ministry and mission”, we worked in our church groups to seek out the “diamonds”, the best points, from that report, and from the churches’ responses to that report. From this activity, a number of themes emerged:

These practices are present in the circuit but more help can be made available, or activity encouraged, across the congregations.

Lastly, each group were asked to name the first steps forward for each church, and to name also any help that might be needed from grants or expertise in making those happen. In summary, the activities included use of technology in communication with their communities, restarting bible studies and house groups, carrying out Mission audits, improving hospitality, facilities and abilities, including more intentional, prayer, times and spaces, and increasing participative worship that included families. Requested help was for use of technology, leading biblical teaching, helping with families work, helping with hospitality facilities, and staffing, and funding accessible toilet facilities in some places.

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We met again 22/6/24. Churches shared “One Good Thing” from the time since the last meeting. We heard about miraculous healing, new members, new staff and new engagements with a group that meets at a church. We also discussed what things made our hearts sink, such as paperwork, the loss of a valued minister, struggles with a friend’s secular funeral, the sadness of creating several children’s events that seemed to have no visible results. We also heard a lament on the lack of engagement with men in worship and mission. We asked what would make the difference for the churches, to enable them to overcome some of the difficult things and the struggles. We had also asked churches to think about the possibility of a five-year Deacon role in the circuit. This led to a discussion on a number of themes:

Focussing on the calling of the Methodist Church on Worship and Mission, we discussed our challenges of running 78 Sunday morning services every quarter. We noted that there is currently zoomed service available every Sunday from Warlingham methodist church, and that the access code can be made available to anyone wishing to join. Other circuit churches are considering installing facilities for this. There are also many good Local Arrangement teams in operation. Using recent suggestions from the Revd Ermal Kirby, we thought that a circuit Worship Development Team would be helpful in coordination and innovation, especially as we need to work out how worship could be “more attractive and informative” for the “transitory lives” mentioned earlier. Revd Ermal had also suggested that the circuit might appoint a “Mission Enabler” or “Church Related Community Worker”, looking at each church location in turn. Skills in technology were again mentioned.

We agreed that the next step was to meet with Methodist Diaconal Order, recognising that this meeting may lead to our application for Diaconal role.

Our next Way Forward meeting was planned for Saturday 16th November 2024.

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Plans for the future

Financial review

The Circuit’s annual report and accounts for the year ended 31 August 2024 have been prepared in accordance with the Charities Act 2011 and the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS102 (and taking account of the Update Bulletin issued in 2016).

Financial position at the end of the reporting period

As at 31 August 2024, the net current assets of the Circuit were £938,294 (2023: £496,978) of which £132,892 (2023: £34,368) was held as a General Fund reserve, £13,212 (2023: £6,695) was held as a designated Manse Maintenance Fund reserve, £400 (2023: £450) was held as a designated Benevolence Fund, £791,790 (2023: £455,465) was held in a Circuit Model Trust Fund and nil (2023: £ nil) was held in a Restricted Fund. Of this, £4,848 (2023: £4,634) was held in a Central Finance Board Managed Model Trust Fund. The amounts for 2022/23 include (on an accruals basis) the net proceeds of £446,331 for the sale of the Selcroft Road manse for which contracts of sale had been exchanged in 2022/23 (with completion in September 2023). The amounts for 2023/24 include the net proceeds of £436,460 from the sale of the Hurst Green Methodist Church.

The Circuit Model Trust Fund derives its income from sales of chapels and manses, and the application of the fund is restricted by the Methodist Conference. However, this restriction is an internal regulation, and the fund can be used for a variety of purposes, subject to approval from the Trustees for Methodist Church Purposes.

In the year ended 31 August 2024, a transfer of £126,000 was made from the Circuit Model Trust Fund (2023: £nil) in accordance with a resolution of the Circuit Trustees in March 2024. The amount approved comprised £14,000 to cover the projected General Fund deficit for 2023/24, £72,000 to ensure that the revised reserves policy would be met at 31[st] August 2024 and £40,000 to fund ad hoc funding requests from Circuit Churches. An amount of £5,000 (plus interest) was received from the Methodist Pensions Reserve Fund, being a refund of the contribution made by the Circuit to that fund in 2021/22.

Statement of the Circuit’s Policy on Reserves

The Circuit holds reserves in order to secure the viability of its future mission. The Reserves Policy takes into account the Circuit’s mission policy, and likely levels of future income and

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expenditure, based on planned activity. The Reserves Policy is reviewed annually by the Circuit Meeting.

The Reserves Policy of the Purley Circuit was revised at the Circuit Meeting in March 2024 to ensure that at the end of each financial year the General Fund should cover six months projected expenditure from that fund, excluding expenditure on manses, and in addition a Manse Maintenance Fund reserve to allow for the fluctuation in manse expenditure from year to year.

The General Fund reserve was more than sufficient to meet the policy as at 31 August 2024 at 149% of six months realised expenditure.

The Manse Maintenance Fund at the end of the financial year was £13,212 (on annual expenditure of £7,483). Expenditure in 2024/25 is expected to increase substantially as the Circuit carries out repairs to its Woodhatch Spinney manse as required by the Quinquennial Inspection carried out on that manse in April 2024.

The Benevolence Fund is applied at the discretion of the Superintendent Minister and the Circuit Leadership Team and is designated for the relief of poverty and distress. A contribution of £50 was made in support of a fund-raising event organised by Sanderstead Methodist Church in support of the registered charity “Their Voice”.

The Circuit presently has no Restricted Funds.

Details of any funds materially in deficit

As at 31 August 2024, no funds were in deficit.

Information on income and expenditure

In the year ended 31 August 2023, 79% (£124,609) of the Circuit’s income (other than capital receipts) was derived from assessments paid by each of the individual churches in the Circuit, and 13% (£21,105) was rental income from the letting of one manse. Total income was £157,329 (not including capital receipts and net income on the Circuit’s Model Trust Fund. (The corresponding figures for the year ending 31 August 2023 were 85% (£113,286) and 13% (£17,544) and £132,677 respectively.)

As anticipated in the previous year’s accounts, the Circuit sold the Hurst Green Methodist Church to Tandridge District Council for £700,000. After the sale expenses of £12,569 and the payment of a Connexional Levy of £250,973 (37% of net proceeds) to the Trustees for Methodist Church Purposes, the Circuit received a net amount of £436,460 into its Model Trust Funds.

In the year ended 31 August 2024, Charitable Expenditure (excluding the cost of selling Selcroft Road) was £147,989 of which 54% (£96,001) of expenditure was on pay and related costs, 4% (£7,553) was on the maintenance of property, 7% (£11,772) was on other property costs, and 13% (£23,472) was the Circuit’s contribution to the District and Connexion to fund the work of the wider Methodist Church, including a levy on the Circuit Model Trust Fund. (The corresponding figures for 2023 were Charitable Expenditure of £147,756 of which 35% (£52,051) on pay and related costs, 17% (£25,806) on the maintenance of property, 9% (£14,048) on other property costs, and 18% (£26,021) contribution to the District and Connexion.)

Grants totalling £21,340 were made to Coulsdon Methodist Church (£13,430) and Warlingham Methodist Church (£7,910) towards the replacement of their hall floors under the ad hoc funding request policy approved at the March 2024 Circuit Meeting.

In 2023/24 the Circuit’s effective operating deficit was £21,237 (2022/23 £ 15,312) and an operating deficit is projected for 2024/25 also. The Circuit is expected to remain solvent for

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2024/25 and 2025/26. It continues to be the case that the Circuit Trustees will need to agree a plan to eliminate the deficit in the longer term. A Deacon has been appointed to the Circuit, from 1[st] September 2025, and part of her role will be to assist the Circuit in working towards the renewal and rationalisation of the Circuit.

Investment policy and objectives

Through 2023/24 the Investment Policy of the Circuit has been, firstly, to maintain in aggregate cash balances at the Circuit’s current account with HSBC and at the Central Finance Board Deposit Account an amount sufficient to maintain the Reserve Policy. The Circuit’s investments in the Model Trust Funds have been maintained to meet unexpected costs. Property assets are held either to generate income to support the ongoing expenses of the Circuit (Bromford Close) or to provide manses for the Circuit’s ministers.

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year.

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

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Purley Methodist 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 reasonable steps for the prevention and detection of fraud and other irregularities.

Trustee training

A range of guidance is produced by the Methodist Connexion to support the effective running of the Circuit. In particular, the leaflet “The Role of a Trustee in The Methodist Church” is given to each trustee and trustees are asked to read the information provided online by The Methodist Church for Managing Trustees.

Risk Management

Major risks are considered by the Circuit Leadership Team with professional advice taken as required. A regular review process is carried out by the Leadership Team to ensure that the Charity is fulfilling its objectives.

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Safeguarding Statement of Safeguarding Principles

It is the Methodist Church’s intention to value every human being as part of God’s creation and the whole people of God. At the heart of the Methodist community is a deep sense of the place of welcome, hospitality and openness, which demonstrates the nature of God’s grace and love for all.

Our church communities are called to be places where the transformational love of God is embodied and life in all its fullness is a gift, which is offered to all people.

Principles

Safeguarding is about the action the Church takes to promote a safer culture. This means we will:

We are committed to:

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 checks through the Disclosure and Barring Service (DBS).

We will respond without delay to every safeguarding concern, which suggests that a child, young person or adult may have been harmed, working in partnership with the police and social services 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.

Working with the Circuit Safeguarding Officer, we will support risk assessment of those who present a safeguarding risk within a church environment. We will ensure appropriate pastoral care is offered and measures are taken to address identified risks including referral to statutory agencies, suspension and the use of safeguarding contracts.

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

The Purley Circuit commits itself to:

  1. RESPOND without delay to any allegation or cause for concern that a child or vulnerable adult may have been harmed, whether in the Church or in another context. It commits itself to challenge the abuse of power of anyone in a position of trust. It commits itself to providing informed pastoral care to those in need, including the supervision of those who have committed criminal offences.

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  1. IMPLEMENT the Methodist Church Safeguarding Policy, Procedures and Guidance, government legislation and guidance to achieve safe practice in the Circuit and in the churches.

  2. 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.

  3. AFFIRM and give thanks for the work of those who are workers with children and vulnerable adults and acknowledge the shared responsibility of us all for safeguarding children, young people and vulnerable adults on our premises.

Reference and administrative details

Charity Name The Purley Circuit of the Methodist Church Registered Charity Number 1134261 Charity’s Principal Address Sanderstead Methodist Church, Limpsfield Road, Sanderstead, South Croydon, CR2 9EF Charity’s bankers HSBC UK Independent Examiner Mr R J E Bamford

The Charity Trustees are the members of the Purley Circuit Meeting. This comprised during the year of this report:

Trustee name Office (if any) Dates
acted if
not for
whole
year		 Name of person (or body)
entitled to appoint trustee (if
any)
Revd. Graham Claydon
Knights *		 Chair and
Superintendent
Minister		 Methodist Conference
Revd. Sang Wook Han* Methodist Conference
Revd. Martin Knight *† Methodist Conference/Southern
Synod of the United Reformed
Church
Revd. Stephen Mares Methodist Conference
Revd. Ermal Kirby* Methodist Conference
Revd. Nigel Cowgill Methodist Conference
Dr. Robert Baston * Circuit Treasurer
and Circuit
Steward		 Trustees of the Purley Circuit
Meeting
Mr Brian Brooks Secretary of
Local Preachers’
Meeting		 Local Preachers’ Meeting
Mrs Elaine Burrows Coulsdon Methodist Church
Council

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Mrs Maureen Cebreiro Coulsdon Methodist Church
Council
Mrs Eleanor Day Methodist Homes
for the Aged
Circuit Officer
Church
representative		 Trustees of the Purley Circuit
Meeting
South Croydon United Church
Meeting
Mrs Marjorie Dear Sanderstead Methodist Church
Council
Mrs Christina Dench Warlingham Methodist Church
Council
Mr Peter Gammie Warlingham Methodist Church
Council
Mrs Jill Gradon Warlingham Methodist Church
Council
Mrs Gwenda Hand Hurst Green
Methodist
Church
representative		 Trustees of the Purley Circuit
Meeting
Mrs M Isted-Osborn South Croydon United Church
Meeting
Mr Curtis Juman Local Preacher
representative		 Trustees of the Purley Circuit
Meeting
Mrs Heather Juman Warlingham Methodist Church
Council
Miss Doris Nicholls Caterham Methodist Church
Council
Mr Enock Nyongesa Whitethorn Avenue Methodist
Church Council
Mrs Pamela Osborne Coulsdon Methodist Church
Council
Mr David Poore Caterham Methodist Church
Council
Mrs Helen Rankin Secretary of the
Circuit Meeting		 Trustees of the Purley Circuit
Meeting
Mrs Jeanne Revnell Methodist
Women in Britain
Circuit
representative		 Purley Circuit Methodist Women
in Britain Meeting
Miss Susan Stevens Whitethorn Avenue Methodist
Church
Mr Eddie Taylor Sanderstead Methodist Church
Council
Mrs Ann Wagstaff * Circuit Steward
Circuit
Safeguarding
Officer
Church
representative		 Trustees of the Purley Circuit
Meeting
Trustees of the Purley Circuit
Meeting
South Croydon United Church
Meeting
Mr A B Wallbank Sanderstead Methodist Church
Council

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Mrs T E Wallbank * Circuit Steward
Synod
Representative		 Trustees of the Purley Circuit
Meeting
Trustees of the Purley Circuit
Meeting
Mrs Doreen Wright South Croydon United Church
Meeting

Changes to Trustee appointments from 1 September 2024

Trustee name Office (if any) Name of person (or body)
entitled to appoint trustee (if
any)
Anne Downey Church
representative		 Whitethorn Avenue Church
Council

Custodian trustees

The Trustees for Methodist Church Purposes Manchester are custodian trustees holding title to property belonging to the Circuit.

Funds held as custodian trustees on behalf of others

No funds are held by the Circuit as custodian trustees on behalf of others.

Declarations

The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity’s trustees

Signature(s)

Full name(s) Revd. Graham Claydon-Knights

Mrs Helen Rankin

Position Chair Superintendent Minister

Secretary

Date

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Purley Circuit of the Methodist Church Circuit No. 35/40

Statement of Financial Activities (SOFA) for the year ended 31 August 2024

Notes to the
accounts
Income
Donations and legacies
13.1
Income from monetaryinvestments
Income from investmentproperties
Assessments on churches		 Notes to the
accounts
Income
Donations and legacies
13.1
Income from monetaryinvestments
Income from investmentproperties
Assessments on churches
General Funds
(Unrestricted)		 Circuit Model
Trust Funds
(Unrestricted)		 Restricted
Funds		 Total
2023-24
£
£
£
£
Donations and legacies 1,000 - - 1,000
Income from monetaryinvestments 3,557 20,745 - 24,302
Income from investmentproperties - - - -
Assessments on churches 124,609 - - 124,609
Capital receipts - - - -
Grants received 13.2, 13.3
7
12.3.1
12.5
12
12.3		 - - - -
Rental income 21,105 - - 21,105
Other charitable income 7,058 5,000 - 12,058
Transfer from Hurst Green accounts - - - -
Total income 157,329 25,745 - 183,074
Expenditure
Grants and donations 21,340 - - 21,340
Salaries and associated costs 96,001 - - 96,001
Ministers' expenses 3,428 - - 3,428
Insurance, utilities etc 11,772 - - 11,772
Propertymaintenance 7,553 - - 7,553
Connex'l assessment & model trust levy 23,246 228 - 23,475
District assessment & connexional levy 3,318 250,973 - 254,291
Depreciation - - - -
Office expenses 1,505 - - 1,505
Other outgoings 10,177 12,567 - 22,743
Total charitable expenditure 178,338 263,768 - 442,107
Gains/(losses)on monetaryinvestments - 348 348
Gains/(losses)on investmentproperties - - -
Net income/(expenditure) (21,009) (237,675) - (258,684)
Transfers between funds (574,000) 574,000 -
Othergains/(losses) -
Net movement in funds (595,009) 336,325 - (258,684)
Total funds brought forward 1,971,513 455,465 - 2,426,978
Total funds carried forward 1,376,503.98 791,790 - 2,168,294

F-1

Balance Sheet as at 31 August 2024

Notes to
the
accounts
Fixed Assets
Circuit manses & equipment
12.1, 12.2
Investmentproperties
12.1
Investments
14
Total fixed assets
Current Assets
Debtors andprepayments
8
Loans bythe Circuit
Investments with TMCP
14
Central Finance Board deposits
Other deposits
Cash at bank and in hand
Total current assets
Current liabilities
Creditors(due in under oneyear)
9
Grantspayable within oneyear
Total current liabilities
Net current assets/liabilities
Total assets less current liabilities
Long term liabilities (due
after more than oneyear)
Grantspayable after oneyear
Other long-term liabilities
Total long-term liabilities
Net assets
Funds of the Circuit
General Funds(Unrestricted)
Circuit Model Trust Funds(Unrestricted)
Total Unrestricted Funds
Restricted Funds
Total Funds		 General Funds
(Unrestricted)		 Circuit Model
Trust Funds
(Unrestricted)		 Restricted
Funds		 Totals at
31 August
2024]
£ £ £ £
1,230,000 1,230,000
0 0
4,848 4,848
1,230,000 4,848 0 1,234,848
16,910 16,910
0
786,942 786,942
127,971 127,971
0
14,418 14,418
159,299 786,942 0 946,241
12,795 12,795
0
12,795 0 0 12,795
146,504 786,942 0 933,446
1,376,504 791,790 0 2,168,294
0
0
0 0 0 0
0
1,376,504 791,790 0 2,168,294
General Funds(Unrestricted) 1,376,504 1,376,504
Circuit Model Trust Funds(Unrestricted) 791,790 791,790
Total Unrestricted Funds 2,168,294
Restricted Funds 0 0
Total Funds 1,376,503.84 791,790 0 2,168,294

Signed by

Dr R J Baston Circuit Treasurer Date

Rev[d] Graham Claydon-Knights Chair of Circuit Meeting Date

F-2

Notes to the Accounts

1 Basis of accounting

The financial statements have been prepared under the Charities Act 2011 in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and the Charities Act 2011.

2 Funds

The funds held constitute: a General Expenditure Fund held for any purpose of the Circuit and a number of Designated Funds held for specific purposes determined by the Circuit, all of which are Unrestricted; the Circuit Model Trust Fund which has wide purposes defined in Standing Orders and is categorised as Unrestricted. The Circuit has no Endowment Funds and no Restricted Funds (held for narrower purposes). Details of each material fund are disclosed in the final note to these accounts. Any funds may be represented by more than just cash.

3 Accounting policies

Basis

These accounts have been prepared on the basis of historical cost except that investments are shown at their market value at the end of the year, on the accruals basis to show a true and fair view of the Circuit’s financial position and activities.

Incoming resources

Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources, and the monetary value can be measured with sufficient reliability.

Resources expended

This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources.

Grants

Grants made by the Circuit from its own funds are recognised in full at the time of agreement or when the Circuit accepts that there is a legal or operational obligation to make the payment.

VAT

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

Tangible fixed assets for use by the Circuit

Tangible fixed assets are capitalised if they can be used for more than one year, and cost at least £1,000. The freehold property is shown in the accounts at 2015 deemed values. No depreciation is provided on the buildings because the trustees consider the current residual fair value of the manse buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. Any depreciation would not be material. The properties are reviewed quinquennially and appropriate repairs effected so no impairments are recognised.

Investment properties

Hurst Green Methodist Church which was held for sale as an investment property as at the end of the last financial year has been sold to Tandridge District Council. Contracts for the sale of the Selcroft Road manse were exchanged in August 2023 (and the sale accounted for in the last financial year); completion occurred as expected in September 2023.

Investments

Investments are valued in the balance sheet at market value at the year end. Investment income is included in the accounts when receivable and any gains or losses on revaluation at the year-end are shown in the SOFA.

Debtors and prepayments

Debtors and prepayments include the payment of the September stipend in August and other sundry debtors and prepayments.

Creditors

Creditors include assessments received in August for the following month, rental income received in advance and sundry accrued expenses.

F-3

4 Comparative figures for the previous year

4.1 Statement of Financial Activities for the year ended 31 August 2023

Notes to
the
accounts
Income
Donations and legacies
Income from monetaryinvestments
Income from investmentproperties
Assessments on churches
Capital receipts
Grants received
Rental income
Other charitable income
Transfer from Hurst Green accounts
Total income
Expenditure
Grants and donations
Salaries and associated costs
7
Ministers' expenses
Insurance,utilities etc
Propertymaintenance
Connex'l assessment & model trust levy
District assessment & connectional levy
12
Depreciation
Office expenses
Other outgoings
12
Total charitable expenditure
Gains/(losses)on monetaryinvestments
Gains/(losses)on investmentproperties
12
Net income/(expenditure)
Transfers between funds
12
Othergains/(losses)
Net movement in funds
Total funds brought forward
Total funds carried forward		 General Funds
(Unrestricted)		 Circuit Model
Trust Funds
(Unrestricted)		 Restricted
Funds		 Total
2022-23
Donations and legacies - - - -
Income from monetaryinvestments 1,865 255 - 2,119
Income from investmentproperties - - - -
Assessments on churches 113,268 - - 113,268
Capital receipts - - - -
Grants received - - - -
Rental income 17,544 - - 17,544
Other charitable income - - - -
Transfer from Hurst Green accounts - - - -
Total income 132,677 255 - 132,931
Expenditure
Grants and donations - - - -
Salaries and associated costs 52,051 - - 52,051
Ministers' expenses 2,880 - - 2,880
Insurance,utilities etc 14,048 - - 14,048
Propertymaintenance 25,806 - - 25,806
Connex'l assessment & model trust levy 22,567 233 - 22,800
District assessment & connectional levy 3,221 257,554 - 260,775
Depreciation - - - -
Office expenses 2,169 - - 2,169
Other outgoings 25,015 16,115 - 41,131
Total charitable expenditure 147,756 273,902 - 421,658
Gains/(losses)on monetaryinvestments (200) (200)
Gains/(losses)on investmentproperties (30,000) (30,000)
Net income/(expenditure) (45,079) (273,847) - (318,926)
Transfers between funds (720,000) 720,000 -
Othergains/(losses) -
Net movement in funds (765,079) 446,153 - (318,926)
Total funds brought forward 2,736,592 9,312 - 2,745,904
Total funds carried forward 1,971,513 455,465 - 2,426,978

F-4

4.2 Balance sheet as at 31 August 2023

Notes to
the
accounts
Fixed Assets
Circuit manses & equipment
12
Investmentproperties
12
Investments
13
Total fixed assets
Current Assets
Debtors andprepayments
8
Loans bythe Circuit
Investments with TMCP
13
Central Finance Board deposits
Other deposits
Cash at bank and in hand
Total current assets
Current liabilities
Creditors(due in under oneyear)
9
Grantspayable within oneyear
Total current liabilities
Net current assets/liabilities
Total assets less current liabilities
Long term liabilities (due
after more than oneyear)
Grantspayable after oneyear
Other long-term liabilities
Total long-term liabilities
Net assets
Funds of the Circuit
General Funds(Unrestricted)
Circuit Model Trust Funds(Unrestricted)
Total Unrestricted Funds
Restricted Funds
Total Funds
General
Funds
(Unrestricted)		 Circuit Model
Trust Funds
(Unrestricted		 Restricted
Funds		 Totals at
31 August
2023
1,971,513 455,465 0 2,426,978
General Funds(Unrestricted) 1,971,513 455,465
0		 1,971,513
Circuit Model Trust Funds(Unrestricted) 455,465 455,465
Total Unrestricted Funds 2,426,978
Restricted Funds 0 0
Total Funds 1,971,513 455,465 0 2,426,978

F-5

5 Payments to trustees

ments to trustees
Payments made to trustees for additional services provided to the
Circuit by agreement with the Circuit Meeting
£
Number of trustees who were paid expenses
Total amount of expenses paid to trustees
£		 2023/24
0
2023/24
7
5,908		 2022/23
0
2022/23
7 5
5,908 21,202

Expense payments primarily relate to reimbursement for travel and other costs. In 2022/23, the Treasurer was reimbursed £20,507 against his personal direct payment of expenses incurred by the Circuit. The Independent Examiner has verified that each payment so made was duly authorised by two of the Circuit’s bank account signatories and appropriate records thereof are held by the Circuit. The Treasurer was reimbursed £1,741.62 in 2023/24 for expenses in the normal course of his duties, with very limited exceptions (where tradesmen will not accept cheques or urgent prepayment in advance of services was required).

6 Fees for examination or audit of the accounts

Independent examiner’s or auditors' fees for reporting on the
accounts
£
Other fees (e.g.: advice, accountancy services) paid to the
independent examiner or auditor
£
7 Paid employees
Staff Costs paid during the year were:
Gross wages, salaries and benefits in kind
£
Employer’s National Insurance costs
£
Pension costs
£
Apprenticeship levy
£
Total staff costs1
£
Average number of full-time equivalent employees in the year2:
8 Analysis of debtors and prepayments
Stipends and associated costs paid in advance
£
Other debtors and prepayments3
£
Total debtors and prepayments
£		 2023/24
0
0
2023/24
73,792
6,217
15,625
368
96,001
2.35
2024
7,549
9,361
16,910		 2022/23
0
0
2022/23
41,908
2,689
7,244
211
52,051
1.25
2023
7,549 6,901
9,361 300
16,910 7,201

1 Up to rounding.

2 Full time: Rev. Graham Claydon-Knights and Sang Wook Han; part time: Rev. Ermal Kirby for one quarter (at 25%) & Linda Lucking (Administrator) (at 25%).

3 For 2024 the full amount relates to a deposit paid in advance of the installation of new windows at a manse

F-6

9 Analysis of creditors (due in under one year)

alysis of creditors (due in under one year)
Assessments received in advance
£
Rental payments received in advance
£
Accrued costs4
£
Total creditors (due in under one year)
£		 2024
11,422
1,373
0
12,795		 2023
11,422 9,439
1,373 1,050
0 292
12,795 10,781

10 Loans

The Circuit currently has no loans.

11 Capital Commitments and Contingent Liabilities

At 31 August 2024 there were no capital commitments (2023: nil). No contingent liabilities were identified at 31 August 2024(2023: nil).

12 Tangible Fixed Assets

12.1 Disposition of Circuit’s Properties

The following table displays the disposition of the Circuit’s properties over the course of the financial year, recording the effect of the disposal Hurst Green Methodist Church during the course of the year.

Land
£		 Manses
£		 Other buildings
£		 Fixtures,
fittings and
equipment
£		 Payments on
account and
assets under
construction
£		 Total
£
Balance brought forward 1,230,000 700,000 1,930,000
Additions
Revaluations(+/-)
Disposals(-) 0 (700,000)
Transfers *(+/-)
Balance carried forward 1,230,000 0 1,930,000
Accumulated depreciation
Balance brought forward 0 0
Depreciation charge for year
(-)
Revaluations(+/-)
Disposals(-)
Transfers*(+/-)
Balance carried forward 0 0
Net book value
Brought forward 1,230,000 700,000 1,930,000
Carried forward 1,230,000 0 1,230,000

4 Relates only to accrued costs due to the URC in respect of Martin Knight, until his resignation in 2024.

F-7

12.2 Manse valuations

Until considered for sale, the manses have been held at their historic book value (as at 31[st] August 2015) as follows:

Property £
27, Woodhatch Spinney 360,000
11, Cranleigh Gardens 410,000
1, Bromford Close 460,000
Total 1,230,000

12.3 Transfers between funds

12.3.1 Sale of Hurst Green Methodist Church

As anticipated in last year’s accounts, the Circuit sold Hurst Green Methodist Church to Tandridge District Council at the anticipated gross price of £700,000 and accordingly the property has been derecognised from this year’s accounts. This is represented as a transfer out of General Funds (sale of the property) to the Circuit’s Model Trust Fund (receipt of the gross proceeds).

The Connexional Levy on the sale of Hurst Green was £250,973 paid directly from the Circuit’s Model Trust Fund.

12.3.1 Transfer from Model Trust Fund to General Fund

At its meeting on 14[th] March 2024, the Circuit resolved to transfer £126,000 from the Circuit’s Model Trust Fund to its General Fund comprising (a) £14,000 to cover the projected deficit for 2023/24; (b) £72,000 to ensure that the General Fund met the Circuit’s revised reserves policy (agreed at the same meeting); and (c) to establish an amount of £40,000 to enable the circuit to cover ad hoc funding requests from individual Churches

12.4 Gain/(loss) on investment properties.

There was no gain nor loss in the financial year 2023/24.

F-8

12.5 Other Outgoings

In addition to the disposal charges arising from the sale of Hurst Green Methodist Church, of £12,567, other expenses were incurred as follows:

£
Payments to the United Reformed Church 7,625
PreachingFees 900
Miscellaneous Costs (purchase of local arrangement service aids,
connexional publications and an updated appraisal of the sale price of
Selcroft Road)		 1,601
Benevolent Fund disbursement 50
Total5 10,177

13 Other Income

13.1 Donations and Legacies

An unrestricted legacy of £1,000 was received by the Circuit from the estate of a member of Hurst Green Methodist Church (in its capacity as the successor to the Church)

13.2 Other Charitable Income

Other income of £7,058, comprising the recovery of expenses incurred in prior years in relation to the sale of Hurst Green Methodist Church, was received from the sale proceeds of the Church.

13.3 Refund from the Pension Reserve Fund

The Circuit contributed £5,000 to the Methodist Pension Reserve Fund following Conference’s 2021 appeal for contributions towards reversing the Pension Scheme’s funding deficit (following its Triennial Valuation in 2020). The 2023 Triennial Valuation showed the Fund to be in surplus and the 2024 Conference resolved to return such contributions to the Circuits (with accrued interest).

14 Investment assets

The funds that support the Circuit Model Trust Fund are held by TMCP, mainly in the Trustees Interest Fund, on which interest is credited each month, with a smaller amount held in CFB Managed Mixed Fund units, as analysed below. These are regarded as medium- and long-term investments.

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 Trustees who are responsible for the day-to-day management of trust property. TMCP ensure that, through providing

5 Numbers may not add up due to rounding

F-9

guidance and acting under their direction, the Managing Trustees comply with charity law and Methodist law and polity as determined by the Methodist Conference.

Analysis of investments
Investments listed on a recognised Stock Exchange
£
Investments held in common investment funds6
£
Securities not listed on a recognised Stock Exchange
£
Trustees Interest Fund (see note below)7
£
Total investments
£
Change in common investment fund valuations
Carrying (market) value at start of year
£
Plus: additions to investments at cost
£
Less: disposals at carrying value
£
Net gain/(loss) on revaluation
£
Carrying (market) value at end of year
£		 2024
4,848
786,942
791,790
2023/24
4,500
348
4,848		 2023
4,500
450,965
455,465
2022/23
4,500 4,700
348 (200)
4,848 4,500

The Circuit Trustees Interest Fund increased by an amount of £436,460 in July 2024 that being the proceeds to the Circuit of the sale of the Hurst Green Methodist Church net of (a) sale expenses of £12,567 and (b) a transfer to the Connexional Fund (CPF) of £250,973 as required under the Standing Orders of the Methodist Church.

16 Summary of fund movements for the year ended 31 August 2024

Fund Name Opening
Balance		 Income Expenditure Transfers
Gains/
(losses)		 Closing
Balance
£ £ £ £ £ £
Unrestricted Funds
General Expenditure Fund 34,368 157,329 163,465 104,660 132,892
Manse Maintenance Fund 6,695
-		 7,483 14,000 13,212
Benevolence Fund 450
-		 50
-		 400
Circuit Model Trust Fund 455,465 462,231 254 (126,000) 348 791,790
Total Unrestricted Funds
(excluding land and buildings)		 496,978 619,561 171,253 **(7,340) ** 348 938,294
Restricted Funds
Covid-19 Grants for Circuit Fund 0
Total Restricted Funds 0 0 0 0 0 0

There were no endowment funds and no restricted funds in the year ending 31 August 2024.

6 Recognised as an Investment under Fixed Assets

7 Recognised as an Investment with TMCP under Current Assets

F-10

The Manse Maintenance Fund is designated by the Circuit for repairs to and maintenance of manses. The Benevolence Fund is designated by the Circuit for financial support for those in poverty or distress.

At its meeting on 14th March 2024, the Circuit passed a Resolution to transfer £126,000 from the Circuit’s Model Trust Fund to its General Fund comprising

The following transfers were made between the funds or to the Circuit Churches during the year:

The net proceeds to the Circuit from the sale of Hurst Green Church are accounted for in the above table as Circuit Model Trust Fund income.

14.2 Comparative figures for the year ended 31 August 2023

Fund Name Opening
Balance		 Income Expenditure Transfers
Gains/
(losses)		 Closing
Balance
£ £ £ £ £ £
Unrestricted Funds
General Expenditure Fund 42,668 132,677 126,976 (14,000) 34,368
Manse Maintenance Fund 13,474 20,780 14,000 6,695
Benevolence Fund 450 450
Circuit Model Trust Fund 9,312 446,612 259
-		 (200) 455,465
Total Unrestricted Funds
(excluding land and buildings)		 65,904 579,289 148,015
-		 **(200) ** 496,978

There were no endowment funds and no restricted funds in the year ending 31 August 2023.

During the year £14,000 was transferred from the General Expenditure Fund to the Manse Maintenance Fund for repairs and maintenance.

F-11

Declarations and Scrutiny

I confirm that these accruals-based accounts for the year to 31 August 2024 have been prepared from the records of the Circuit and that they include all funds under the control of the Circuit meeting.

Signature of treasurer

Date

Name and address of treasurer:

Dr R J Baston 57 Westhall Road, Warlingham, CR6 9BG

F-12

Independent Examiner’s Report to the Trustees of the Purley Circuit of the Methodist Church (No 35/40)

Charity Number 1134261

Responsibilities and basis of report

I report to the trustees on my examination of the accounts of the Purley Circuit for the year ended 31 August 2024 set out on pages F-1 to F-12. As the Circuit’s trustees, 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 Circuit’s accounts carried out under section 145 of the 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 which give me cause to believe that in, any material respect:

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.

I have obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10,000 (ten thousand pounds) at the balance sheet date.

Signature of independent examiner ………………………………………………………………….

Name of independent examiner

R J E Bamford

Relevant professional qualification of independent examiner

ICAEW

Name of firm (where appropriate)

N/a

Address

9 Peter Avenue, Oxted RH8 9LG

Date ………………………………………

F-13

Presentation to the Circuit meeting

I confirm that the annual report and accounts for the year ended 31 August 2024 were presented to the Circuit

26th March 2025

meeting held on: …………………………………………………………..

Signature of the Chair of the meeting Name of the Chair of the meeting: Rev[d] Graham Claydon-Knights

Date 26th March 2025

F-14