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2020-08-31-accounts

DocuSign Envelope ID: 9B9D882D-CA7E-44E7-BB59-D9FF8386F947

Circuit Accruals Accounts 2019-20

THE METHODIST CHURCH

STANDARD FORM OF ACCOUNTS ACCRUALS BASIS

for the year ended 31 August

2020

----- Start of picture text -----
Forest Circuit Circuit no 35/33
Registered Charity - Registration number 1134384
Circuit Superintendent Minister The Revd Anthony Guy Malcolm
and Chair of Trustees
Circuit Ministers Revd Charles Illunga (to 31st August 2020)
Revd Oseias Da Silva
Revd Hilary Cheng
Revd Ebute Obiabo (to 31st August 2020)
Revd Sue Creighton
Revd Stephanie Njeru (From 1st September 2020)
Rev Norman Grigg (to 31st August 2020)
Circuit Stewards Dallion Roye
David Hobbs (until 31st August 2020)
Lincoln Fearon
Circuit Treasurer Mrs Florestine Corbett
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DocuSign Envelope ID: 9B9D882D-CA7E-44E7-BB59-D9FF8386F947

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

1 Introduction

The Forest Methodist Circuit was until 1st September 2006, one of the constituent circuits of the London North East District. On 2nd September 2006 that district ceased to exist and a new London District was formed of which the Forest Circuit became part. There are twelve local churches in the Forest Circuit.

On the 18th February 2010 the Circuit was entered into the Register of Charities in England & Wales.

The Managing Trustees of the Forest Circuit are those members of the Circuit Meeting who have agreed to be the Circuit trustees. The Circuit Meeting meets at least twice each year to consider the work of God in the Circuit and the general management of the Circuit and its business. The membership of the meeting is governed by the Standing Orders of the Methodist Church. The Circuit Leadership team (CLT) are appointed by the Circuit Meeting to act upon its behalf between Circuit Meetings, with guidance where appropriate from the Circuit Finance Group. The CLT comprises, the Circuit Superintendent Minister, the Ministerial Staff team, the Circuit Stewards and the Circuit Financial Steward (treasurer) and the Circuit Safeguarding officer

2 Objectives and Activities

2.1 Aims and organisation

The aims of the Circuit Meeting through its officers are to:

2.2 The Forest Circuit Vision

The Circuit's current mission statement is "The Forest Circuit is committed to further God's Kingdom by enabling and supporting the local churches in the growth of their discipleship and mission; resourcing local churches under the power of the Holy Spirit to function as effective worship, witness and community wellbeing".

The circuit achieves this by holding the following values in all its dealings with individuals, communities, local and national authorities, other charities and businesses,

The Vision, its wording and Implementation shall be reviewed annually. It provides for the:

2.3 Circuit Goals

The principal purpose of the ciruit is to act as a supporting body between Churches and the District and Connexion. The circuit does not seek and in large measure, does not attain direct contact with the public. The direct contact is by the Churches. It is these that the circuit supports in their desire to provide benefit to the public.

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FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

3 Review of progress and achievements

3.1 The Forest Circuit Annual Report

The year to 31st August 2020 has been the first full year since the new superintendent, Rev Anthony Guy Malcolm joined the circuit, following the Presidential Inquiry in 2016. It has been a challenging year in many ways for the Forest Circuit Meeting (trustees) and in particular the Forest Circuit Leadership team. Only three people offered to be Circuit Stewards and carry out the responsibilities required.

Two ministers were coming to the end of their stationing in the circuit and consultations were required with ministers and churches to consider the future. One minister decided to move on to another stationing and another decided to sit down (take retirement).

The opportunity was then taken to start considering the future of the Forest Circuit and the number of ministers appropriate for the Circuit. After discussion the Circuit Meeting decided in autumn 2019 to reduce the number of ministers by one to five from September 2020. A profile of the Circuit was then submitted to the Methodist Stationing requesting one additional minister. The Circuit was pleased to welcome Revd Stephanie Njeru in September 2020.

Following the decisions on stationing, the CLT considered the ministers' accommodation in the Circuit and plans were made for three ministers to move manses, aligning the manses with the churches for which they would have pastoral charge. Work was required to three manses plus a property, temporarily used as a manse, which would be used for rental after the moves had been completed. The renovation work, once investigated, was considerable and disrupted by the Covid-19 Lockdown in the spring of 2020. However with considerable work from the Circuit Stewards, most of the work was done allowing ministers to move into their new manses in August 2020, with the remaining work completed by November 2020.

Safeguarding training was reviewed and organised in the year and a very successful Circuit safeguarding conference held. However training in the later part of the year was postponed till after the Covid-19 problems

A Circuit Finance Group was established at the start of the year and terms of reference agreed by the circuit Meeting in September 2019. The group met once or twice a month as necessary during the year. It adddressed governance and cash flow issues of the Circuit, prepared policy papers, enhanced operational procedures and facilitated a regular management reporting format.

A new training program was started for Worship Leaders and Local Preachers, with successful results already being witnessed.

The Covid-19 pandemic has caused much sadness, pain and disruption in the lives of the churches and congregations in the Circuit, as in churches thoroughout the world.

The ministers, local preachers and lay church leadership teams had done considerable work to reach out to isolated members of the congregations, comfort grieving families and explore new ways of being church using new technology.

As the lockdown eased, with guidance from the Government, the London District of the Methodist Church and support from the Local safeguarding officer, risk assessments were carried out and arrangements made for some small congregations to attend services again. They continue to be mindful of the situation and manage arrangement appropriately.

Many churches have also suffered a considerable reduction in income since the pandemic started, from lettings as well as service offerings. In some cases this has had a knock on effect onto the Circuit Finances with some churches unable to pay their assessments to the circuit. The Circuit Finance Group has been monitoring this situation and providing support and guidance where requested.

This is an additional problem for a few churches as they have already been suffering financial management difficulties due to the lack of treasurers, or financially inexperieinced treasurers, ministers and trustees. The church finances being the collective responsibility of the trustees (church council). The Circuit Finance Group will provide support and guidance where it is requested.

In starting to consider the future, the Circuit Stewards, reviewed and summarised all the quinquennial inspection reports of Methodist Property in the Circuit. This gave a sobering message when the estimated cost of necessary repairs and maintenance was considered. With the agreement of the Circuit Leadership team and the Circuit Finance Group a valuation report of all the property was commissioned. This will provide some practical input to a future review of the Circuit and its mission in the area and an updated value for all churches and the circuit to include in their accounts.

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DocuSign Envelope ID: 9B9D882D-CA7E-44E7-BB59-D9FF8386F947

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

3.2 Plans for future years

The immediate focus for 20-21 is the wellbeing and safey of the church congregations, supporting the reopening of churches when and where possible for worship and other activites at the churches.

Alongside this considerable task is the plan to continue the review of vision, direction and location of mission in the circuit.

The Local Preacher and Worship leader training program will continue utilising meeting technology and Safeguarding training will be rescheduled.

The Circuit Finance Group continue to monitor the finances of the Circuit and provide support and expertise to churches as requested.

The cost of the work on Circuit Manses has used up all the Circuit's liquid reserves. One of the Circuit's residential properties, that is no longer used as a manse had been rented out and the tenency expired in July 2020. As a considerable amount of money was needed to return the property to an acceptable standard, the Circuit meeting agreed in June 2020 that the property should be sold. the proceeds of sale would then restore the circuit reserves to the required level and potentially allow for funding of a significant project in support of the Circuit Review.

4 Financial Review

Total Income in the year was £352,119 of which £337,405 was due from church assessments.In addition £14,274 was received from the rental of the Hartley Road Property.

The total expenditure in the year was £513,754. giving a net deficit of £161,635.

A few churches were not able to pay their full assessments in the year. These outstanding amounts are expected and the amounts due have been moved to debtors.

The cumulative situation has left the circuit with no reserves. If the churches in debt to the circuit are unable to pay the amounts in the three months following the end of year the Circuit will need a loan to continue operating. Provisional arrangements for such loan facilities have been explored.

The Circuit Finance Group assisted the treasurer to change the financial record keeping format and process to facilitate regular management reports to the Circuit Finance Group (CFG), the Circuit Leadership team (CLT) and the Circuit Meeting.

In order to facilitate an easier understanding and monitoring of the Circuit's liquid assets, the value of the residential properties (manses and rental properties) managed directly by the Circuit have been split from the General Fund into a separate designated fund.

The restrictions of use were explored with CFB & TMCP of the two static funds "Circuit Development fund" and "Sale of Chapel and land fund". Both contained relatively small amounts around £5,500. As no restrictions were identified the circuit meeting agreed that the money from these funds should be transferred to the General Funds to assist in meeting property expenses.

A number of the circuit manses were found to need considerably more repair and refurbishment than had been expected. This is for various reasons, e.g. lack of Circuit Property Stewards and Manse Visitors for many years and therefore some neglect of the properties. This situation led to Circuit stewards taking on this role temporarily to enable ministers to move into manses in an acceptable state. The Circuit Meeting is most grateful for their work in this area.

The resultant spend on property refurbishment in by the end of the 19-20 year was £104,134. With a further estimated spend of up to £30,000 in the year 20-21.

Grants and Loans: The Circuit paid a grant to Wanstead church promised in 2016 And a grant was made to Debden in 2019 of £10,000.

Assessments: Leytonstone repaid all their outstanding assessment to the Circuit and their assessment for 19-20. Shern hall was unable to pay approximately half of its assessment, due to difficulties with hirers and the pandemic lockdown. However they have now established a repayment plan, planning to repay what is due by the end of Aug 21. Lighthouse have outstanding assessments from previous years as well as for 19-20 in total amounting to £63,504. They also have a loans outstanding to the circuit of £11,939, A statement is awaited from the church trustees on their financial status and a repayment plan.

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DocuSign Envelope ID: 9B9D882D-CA7E-44E7-BB59-D9FF8386F947

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

5 Reserves policy and level

5.1 Reserves Policy

The Forest Circuit needs to maintain approximately 6 months worth of annual expenditure in liquid reserves, currently £195,000, to facilitate a smooth running of the circuit. Such funds are needed to allow for any urgent work to its Manses and to prevent cash flow problems caused by late payment of church assessments. This is

5.2 Explanation and reserves level.

At the start of year 19-20 the net current assets were £327,235. This dropped to £167,227 by the end of the year.

In 19-20 £104,134 was spent on manse refurbishment, but £116,117 was owed at the end of the year by churches to the Circuit, with no clear repayment date. This has resulted in cash flow difficulties and the need for possible short term loans in 20-21. Debtors are £134,463, leaving £47,182 working funds available.

The unrestricted funds include £6,506,880 of fixed assets: £6,505,000 in residential property, (5 Manses, 1 rented property, 2 properties soon to be sold) and £1,881 of depreciating equipment.

The 20-21 quarter 1 income due is £84,413 with general expenditure £94,331, leaving £37,264. However approximately £30,000 more is committed on manses in 20-21 quarter 1, leaving £7,264.

Therefore after taking into account creditors & debtors as explained above the Circuit currently has very little liquid reserves. Discussions are ongoing with Churches for outstanding debt repayment dates.

The Circuit is fortunate in that it has manses to sell, but it is acknowledged that significantly more management and forward planning is needed in future to prevent a repeat of the current situation.

The Circuit has now committed to sell two vacant Manses, which will restore the liquid reserves to the required level, but it could take 6 months for funds to be received. So short term loan(s) are being requested if needed from the District and churches with reserves. It is also hoped that any connexional levy on the property sales, can be minimised to facilitate a Mission Review within the circuit.

5.3 Restricted fund

The Circuit's Benevolent fund is the only restricted fund held at the end of the year.

6 Related Parties

The Forest Methodist Circuit is part of the London District of the Methodist church and is also accountable to the Methodist Conference. The Churches in the Forest are listed in Note 2 of the accounts.

The Forest Circuit's main source of funding is the assessments obtained from each church within the Circuit. The assessments are used to defray the cost of administering the Circuit and to pay the contributions to the expenses of the London Methodist District and to the Methodist Church Fund i.e. the Methodist Connexion.

The approach to calculating each Church's contributions to the Circuit is also discussed in Note 2 of the accounts.

7 Public Benefit Requirement

The trustees had due regard to the guidance published by the Charities Commission in compliance with its duties under section 4 of the Charities Act 2011.

This guidance sets out two key principles:

  1. The organisation must have an identifiable benefit.

  2. The benefit must be to the public or a section of the public.

The church exists to:

The trustees consider that for these reasons the charity meets these public benefit requirements.

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DocuSign Envelope ID: 9B9D882D-CA7E-44E7-BB59-D9FF8386F947

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

8 Circuit Trustee Responsibilities

8.2 Financial Responsibilities include:

8.3 The Forest Circuit Meeting

The Forest Circuit Meeting meets at least 2 times a year to deal with routine and exceptional matters. It seeks to think strategically about the work of the Circuit and carry out administrative matters for the Circuit. Its key functions have been:

8.4 The Circuit Leadership Team, have been authorised by the circuit meeting to act in an executive capacity in matters requiring action and decision between meetings of the Circuit Trustees / Circuit Meetings.

9 Risk Management

The Circuit Meeting considers the various risks facing the circuit and the impact and the likelihood of issues occuring. Guidance is received from the London District of the Methodist Church and th Methodist connexion. The headings under which the risks are being categorised include:

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DocuSign Envelope ID: 9B9D882D-CA7E-44E7-BB59-D9FF8386F947

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

10 Trustees of the Circuit Date Retired Appointed since as Trustee 1 September 2020 Revd Charles Illunga 31/08/20 Rev Dr Ebute Obiabo 31/08/20 Revd Hilary Cheng Revd Oseias da Silva Revd Sue Creighton Revd Anthony Guy Malcolm Revd Jongikaya Zihle Revd Armstrong Fummey Dallion Roye David Hobbs 31/08/20 Lincoln Fearon Florestine Corbett Malcolm Bell Janet Tweedale Charity Mensah Agyei 01/07/20 Christine Okpattah Gary Ian Marshall Sheila Elizabeth Wintersgill Stella Heskey Gill Geddes Martin Howarth Jane Gooding Sharon Heather Stephen Murray Patricia Bott Gordon Trevor Lumer Loyl Marcia Brandt Joseph Kusi Ciddra Skerritt 01/07/20 Leslie Stowe Pat Evans Shahla Zare-Azirani Robert Amey Hannah Roberts Bernard Mansell Carole Merriman Jean Norton Hazel Mathews Pat Ovenden Kathleen pool Michael Higgins Maxine Ansah Andronica Mugenbe

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DocuSign Envelope ID: 9B9D882D-CA7E-44E7-BB59-D9FF8386F947

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

11 Structure, governance and management

Structure

The Forest Ciruit is an unincorporated association and is governed by the Methodist Church Act 1976, the deed of Union and the Model Trust Deeds of the Methodist Church. It was registered with the charity Commissioners on 12th March 2010.

Circuits are the coordinating charities for local groups of churches; circuits pay the stipends of the ministers and circuit employed lay staff to serve the churches in the circuit; most decisions are made at or ratified by the circuit meetings. Some churches, who can afford it also employ their own lay workers, e.g. to assist with church managment and administration. A District is the coordinating charity for a group of contiguous circuits and makes its decisions at half yearly synods. The Methodist Conference meets once each year as the supreme denominational body for all Methodist Churches.

11.2 Purpose of the Circuit

The Circuit is an expression, over a lesser geographical area than a District, of the Connexional character of the Methodist Church. The purposes of the Methodist church are and shall be deemed to have been since the date of the union the advancement of:

11.3 Governance

The Circuit operates within a statutory framework of regulation and seeks to ensure that it follows Methodist Standing Orders. It relies on the London District, Connexional Office and the Charity Commission to provide guidance on changes that could affect the Circuit.

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

Day to day management of the Forest Circuit is undertaken by the Circuit Leadership team along with the Local Preachers meeting, and the Circuit Finance Group.

The Circuit Meeting consists of representatives of the local churches within the Circuit who are all annually appointed by Church Councils The Circuit Superintendent is ex officio chair of the Circuit Meeting.

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FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

12 Reference and Administration Details

Approval 29/6/2021

Revd Anthony Guy Malcolm Circuit Superintendent & Chair of Trustees

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FOREST METHODIST CIRCUIT

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2020

----- Start of picture text -----
General Fund Reserves Designated Circuit Dev't Circuit Total Total
(Unrestricted) Funds Funds Fund & Sale Benevolent 2019-20 2018-19
(Designated) (Unrestricted) - of Chapel fund
Incl Manse Fund (Restricted)
Valuation (Restricted)
£ £ £ £ £ £ £
Incoming Resources
1 Donations & Legacies 3 - - - - - - 1,742
2 Interest and Investment Income 4 124 277 - 39 - 440 2,128
3 Manse Rent Received 5 14,274 - - - - 14,274 15,300
4 Assessment on Circuits 2 337,405 - - - - 337,405 359,125
6 Capital Receipts - - - - - - -
7 Grants received (E.g. from DAF) - - - - - - -
8 Other income (Insurance Claim) - - - - - -
9 Total Incoming Resources 351,803 277 39 352,119 378,295
10 Resources Expended
11 Grants and Donations 6 700 18,429 - - - 19,129 10,600
12 Salaries and associated costs 7 224,392 - - - - 224,392 209,331
13 Property (incl Ins., C tax, utilities etc) 8 41,678 104,134 - - 145,812 42,937
14 Connexional Assessment & MTF Levy 68,164 - - - 68,164 71,263
15 District Assessment & Levy 14,720 7,475 - - - 22,195 28,076
16 Depreciation 627 - - - 627 836
17 Office Expenses incl Investment 9 17,592 399 - 5 - 17,996 21,668
Managment costs(Admin., tel. travel etc.)
18 Other Expenditure (incl admin fees) 10 11,407 - - - 11,407 9,589
19 Accountancy & Audit 11 4,032 - - - 4,032 4,032
20 Capital Expended - - - - - - -
21 Total Resources Expended 383,312 130,437 5 513,754 398,332
22 Net Incoming/(Outgoing) Resources (31,509) (130,160) 34 (161,635) (20,037)
23 Transfers between funds (6,331,128) (7,866) 6,344,167 (5,173) - -
24 Sub Total (6,362,637) (138,026) 6,344,167 (5,139) (161,635) (20,037)
25 Gains/(losses) on disposal of Manse - - - - - - -
26 Gains/(losses) on revaln fixed assets 12 - - 160,833 - - 160,833 -
27 Gains/(losses): on investment assets - - - - - - -
28 Net investment in funds (6,362,637) (138,026) 6,505,000 (5,139) - (802) (20,037)
29 Total funds brought forward from last 6,467,485 199,494 5,139 1,792 6,673,910 6,693,947
year
30 Total funds carried forward at end of 104,848 61,468 6,505,000 - 1,792 6,673,108 6,673,910
year
For information only: Money received and passed on to External Organisations
Balance brought forward from last year - -
Offerings/Gifts - received for External Organisations - -
Offerings/Gifts - passed to External Organisations - -
Balance still to be paid - -
----- End of picture text -----

The notes on the following pages form part of these accounts.

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DocuSign Envelope ID: 9B9D882D-CA7E-44E7-BB59-D9FF8386F947

FOREST METHODIST CIRCUIT

BALANCE SHEET

AS AT 31 AUGUST 2020

----- Start of picture text -----
General Fund Reserves Designated Circuit Dev't Circuit Total Total
(Unrestricted) Funds Funds - Manse Fund + Sale Benevolent 2020 2019
(Designated) Valuation of Chapel fund
(Designated) Fund (Restricted)
(Restricted)
£ £ £ £ £ £
Tangible Fixed Assets
Manse and other property 13 1,881 6,505,000 - - 6,506,881 6,346,675
Investment properties - - - - - - -
Investments with TMCP - - - - - - -
Total fixed assets 1,881 - 6,505,000 - - 6,506,881 6,346,675
Current Assets
Debtors and Prepayments 14 134,463 - - - - 134,463 134,585
Trustees for Methodist Church 15 - 61,468 - - - 61,468 199,494
Purposes - Interest Accounts
Central Finance Board Deposits 16 19,409 - - - 19,409 36,772
Cash at Bank and in hand 16 40,955 - - - 1,792 42,747 19,332
Total current assets 194,827 61,468 - - 1,792 258,087 390,183
Current Liabilities
Creditors (due in under 1 year) 17 91,860 - - - - 91,860 62,948
- - - - - -
Total current liabilities 91,860 - - - - 91,860 62,948
Net current (liabilities)/assets 102,967 61,468 - - 1,792 166,227 327,235
Total assets less current liabilities 104,848 61,468 6,505,000 - 1,792 6,673,108 6,673,910
Long term liabilities
liabilities due after 1 year - - - - - -
Net assets 104,848 61,468 6,505,000 - 1,792 6,673,108 6,673,910
Funds of the District 21
General Fund (Unrestricted) 104,848 104,848 123,318
Reserves & Projects (Designated) 61,468 61,468 199,494
Manse Fund (Designated) 6,505,000 6,505,000 6,344,167
Total Unrestricted funds 6,671,316 6,666,979
Circ Devt & Sale of Chapel & Land - - - 5,139
Benevolent Fund (Restricted) - 1,792 1,792 1,792
Total Funds 104,848 61,468 6,505,000 - 1,792 6,673,108 6,673,910
----- End of picture text -----

The Notes on pages 14 to 37 form part of these accounts.

Revd Anthony Guy Malcolm Circuit Superintendent and Chair of Trustees

2020 Final Accts 19-20 DRAFT 3 - 210608g.xlsx, Bal sht

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DocuSign Envelope ID: 9B9D882D-CA7E-44E7-BB59-D9FF8386F947

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting framework and accounting policies

i Accounting framework

ii Public benefit entity

iii Basis

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) below.

These accounts have been prepared on the basis of historical cost except that investments and land and buildings are shown at their market value at the end of the year, and grants committed , but not paid are provided on the

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

Going concern

vi Consolidation

The District oversees the work of ministers and lay workers in Churches within the Circuit, but does not have control over those Churches, ministers or lay workers except in accordance with standing orders of the Methodist church 1932 Act, none of which were applicable. For this reason, the financial statements of the Churches within the Circuit are not consolidated into these financial statements.

vii Income recognition

Income is brought into account when it is more likely than not that the economic benefit of the income will accrue to the Circuit. No attempt is made to measure the value of services donated by volunteers. In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised.

viii Expenditure

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 District to pay out resources.

ix Grants

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

x VAT

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

xi Tangible fixed assets

These are capitalised if they can be used for more than one year, and individually cost at least £500 . The freehold properties are shown in the accounts at market valuation at the end of the financial year. The building value has been depreciated over a period of 50 years.

xii Investment Policy

The investment of surplus funds is operated through the Central Finance Board (CFB) of the Methodist Church. CFB aims to provide a high quality investment service seeking above average returns for long term investors, whilst ensuring that the securities held by all its funds are in line with the ethical policy of the Methodist Church. The Circuit has its funds in a deposit account with CFB and in Trust funds managed by Trustees for Methodist Church Purposes (TMCP). TMCP funds are also invested with CFB.

xiii Debtors and creditors; bank and cash

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 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 account balances are shown at the realisable values.

xiv Loans

Where concessionary loans ( i.e., free of interest) are made to (or received by) the District to further its charitable purposes, and are repayable after more than one year, they are initially recognised at the amount paid [or received], with the carrying value adjusted in subsequent years to reflect repayments and any accrued interest, adjusted for any impairment, if necessary.

Where there is objective evidence of impairment, an immediate impairment loss is recognised in the Statement of Financial Activities. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the Statement of Financial Activities.

xv Ministers' manse costs

The Circuit is required to provide accommodation for each Minister and his / her family. The Circuit bears the cost of repairs, maintenance, building insurance, Council Tax and water charges. These costs are not shown separately as benefits-in-kind for Ministers as HMRC does not seek to tax these receipts in the hands of the Ministers.

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DocuSign Envelope ID: 9B9D882D-CA7E-44E7-BB59-D9FF8386F947

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

2 Assessment from Churches

Forest Circuit assessments due from Churches to the Circuit for the year 2019-20 were as follows. However the annual meeting of Church Treasurers in November 2018 requested a subgroup to review the method of apportionment of the assessments across churches in the circuit and make recommendations for changes.

Church Name
Cann Hall
South Chingford
North Chingford
Shern Hall
Loughton
Woodford
Winchester Road
Leytonstone
Leyton Trinity
Loughton Trinity (Debden)
Wanstead
Lighthouse
 less Debden Assessment 18-19 written off		 2019-20
11,255
17,288
18,504
52,114
70,199
18,224
33,072
36,189
34,918
(5,000)
15,590
35,052
337,405		 2018-19
11,034
16,949
18,142
61,637
68,823
17,865
32,424
43,497
34,233
5,000
15,156
34,365
359,125

The Circuit Finance Group took on the task of considering the apportionment of the assessments. They initially considered the available criteria and recommended that for 20-21 the membership and attendance figures should continue to be used. However, from further studying the last 3 years figures, a better understanding emerged of the difficulties. In 17-18 a calculated assessment had been proposed, but this presumably had not been possible for a number of churches to meet, (i.e. Leytonstone, Shern Hall). An alternative approach was agreed whereby other churches, due a decrease, agreed to pay the same assessment as in 16-17. This then reduced the particularly large increase needed from Shern Hall and Leytonstone.

In 18-19 and 19-20 the deviation from the calculation was perpetuated. The calculation was not used. Generally churches received a 2% increase, except Leytonstone and Shern Hall which received significant reductions.

In considering the 20-21 budget and assessments, the Circuit Finance Group therefore considered three further options.

  1. Using revised church capita figures a number of small increases and decreases were reflected across the circuit, but significant increases would be due from Shern Hall and Leytonstone, which currently they would find very difficult to meet. 2. A proposed blanket 2.7 % increase across all churches for another year to give time for further considerations to be included, e.g. the revised costs of 5 ministers in the Circuit instead of 6. This should also allow churches to prepare for potential increases in future.

  2. Proposes an initial move towards the calculation. Suggesting a maximum of 10% increase & decrease.

The three options above were carefully considered at the Circuit Treasurers' meeting. Whilst Option 3 was considered as a possible way forward, the Circuit is still in a state of flux. The true impact of reduced costs and improved information will not be available until 21-22. With that information the Finance Group should be in a better position to devise a practical calculation to move towards and give churches more time to consider the implications.

The option accepted by the Circuit Meeting was that Option 2 is used for 20-21.

3

Donations Received
Pastoral & Benenvolent Fund
General Fund
Total Donations & legacies		 2019-20
-
-
-		 2018-19
650
1092
1,742

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

4 Interest & Investment Income

The Circuit currently holds no investments.

Funds are held on deposit at CFB, either directly or through a model Trust fund held at TMCP.

Interest Received
General Fund
Circuit Development Fund
Sale of Chapel and Land fund
Forest Model Trust Fund
Total Interest & Investment Income		 Fund Type
U
R
R
U		 Held at
CFB
CFB
TMCP
TMCP		 2019-20
124
17
22
277
440		 2018-19
149
17
22
1,940
2,128

5

Income from investment Properties - Manse Rent Received

Manse Rental
Hartley Road
Total Interest & Investment Income		 Gross
16,164		 Agents Fees
-1,890		 Agents Fees
-1,890		 2019-20
14,274
14,274		 2018-19
15,300

-1,890
15,300

The circuit had expected to have two residential properties, no longer required to be used as manses, available for rent.

The Hollywood Way property had been assigned for rental, but changing circumstances meant it needed to be used as a temporary manse for the superintendent until his appointed manse became free and could be renovated. The superintendent was able to move to his new manse in August 2020. Since then required checks and works have been carried out at the property and the property has been rented out from September 2020.

The Hartley Road property rental came to an end in June 2020 and the tenants moved out. The Circuit Meeting agreed that the property should be sold and the sale is expected to complete in the first half of the 20-21 connexional year.

6 Grants, donations and related Support costs

Grants and donations were made in the year as shown below:

Grants from Circuit Model Trust Fund
Shern Hall - Corridor & security project
Wanstead - Welcome Area Project
Debden Trinity
- Paid to date
2,938
- Remaining creditor
7,062
Total Grants from Model Trust fund Reserves
Benevolent Fund Grants

General donations

Total		 2019-20
-
8,429
10,000		 2018-19
10,000
-


18,429
-

700		 10,000
-
600
19,129 10,600

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

7 Salaries and associated costs 2019-20 2018-19
Gross Stipends Paid - 7 ministers + 1 part time supernumerary * 156,162 145,843
Employer's National Insurance contribution 13,925 12,639
Employer's pension contribution to defined contribution scheme 40,111 35,757
Stipend administration charge and apprenticeship Levy 700 1,465
Circuit Administrator's Gross Pay - Part time 12,842 13,627
Employer's National Insurance contribution re Administrator 574
Payroll administration charge and apprenticeship Levy 78
Total cost 224,392 209,331

No employees received employee benefits that totalled more than £60,000. There is no accrual for holiday pay as it is immaterial; the holiday year ends on 31 August. All staff are paid at or above the living wage.

No accrual is made for ministers sabbaticals as their functions are undertaken by other ministers and delegated lay persons in the Churches and Circuit at minimal extra cost to the Circuit.

It should be noted that the Ministers stationed in the Circuit are required to occupy the Circuit manses. The council tax and water charges for the manses occupied by ministers are paid by the Circuit. HMRC does not regard this as a taxable benefit to the minister.

Payment to Trustees

The Methodist Ministers stationed in the Forest Circuit are included as trustees of the Circuit.

The Circuit Treasurer was paid £1,000 in the year 19-20 (18-19 £1,000).

It is Circuit Policy to offer to reimburse local preachers and others involved in the administration of Circuit affairs for expenditure properly incurred in carrying out their duties.

Pensions

is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers (which term includes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National be in an employing body.

The Connexion accounts for the MMPS schemes and shows the figures in the annual Methodist Church in Great Britain accounts. The MMPS is in deficit but a plan for removal of the deficit has been proposed and is being implemented. Details of the deficits on this scheme can be found in the Annual Report and Accounts of The Methodist Church at www.methodist.org.uk.

8 Property costs
2019-20
Manse Costs
£
£
7,615
9,077
15,916
1,150
33,758
7,920
41,678
104,134
145,812
Council tax
Repairs, Maintenance and Renewals
Insurance and Utilities
Professional Fees and Survey cosyts
Circuit Property Valuation Survey
Manse Renovation costs
Total*		 2018-19
15,502
9,095
15,319
3,021
-
42,937
-
42,937

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

9
10
11		 Office expenses & investment management fees
2019-20
2018-19
£
£
Office expenses & other ministerial costs
3,026
4,399
Telephones & Broadband
4,738
4,288
Travel & Parking
6,619
12,405
Ministerial Worship Resources & Support
3,209
-
17,592
21,092
Investment management
During the year the Circuit paid the following amounts to TMCP as custodians of the Trust Funds
Circuit Model Trust Fund
399
571
Sale of Chapel & land Fund
5
5
404
576
Office expenses & other ministerial costs
Total 17,996
21,668
Other Expenditure
2019-20
2018-19
General Fund (U) Other items
£
£
Training
1,125
150
500
2,457
Payment to Treasurer
1,000
1,000
Sundries
622
686
Removal Costs
8,160
5,296
11,407
9,589
Total Other Expenditure & Training 11,407
9,589
Fees for Accountancy and audit of the Accounts
2019-20
2018-19
Auditor's Fee
2,016
2,016
Other Fees (e.g. advice, accountancy services)
2,016
2,016
4,032
4,032
Preachers fees and expenses
Total
Printing, postage and stationery
Total
Total		 2019-20
2018-19
£
£
3,026
4,399
4,738
4,288
6,619
12,405
3,209
-
2019-20
2018-19
2,016
2,016
2,016
2,016
4,032
4,032

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

12 Manse Valuations

All Manses were professionally revalued at the end of August 2020. The report showed an increase of £160,833.

13 Tangible Fixed assets

----- Start of picture text -----
Land Buildings Total Land & Equipment Furniture Total Equipment Total Assets
Buildings & Software & Furniture
Cost or Valuation £ £ £ £ £ £
Balance at 31st Aug 2019 6,344,167 11,247 - 11,247 6,355,414
Additions in the year - - - -
revaluations in the year 160,833 - 160,833
less: disposals in year - - - -
- -
Transfers between categories
Balance at 31st Aug 2020 - - 6,505,000 11,247 - 11,247 6,516,247
Accumulated depreciation
Land Buildings Total Land Equipment Furniture Total Equipment Total
& Buildings & Software & Furniture
Changes Not Depreciated £ £ £ £ £
Balance at 31st Aug 2019 - 8,739 8,739 8,739
Depreciation charge for the year - 627 627 627
-
revaluations in the year
less: disposals in year - - -
Balance at 31st Aug 2020 - - - 9,366 - 9,366 9,366
NB: Years over which value is depreciated 50 3 3
Net Value
Land Buildings Total Land Equipment Furniture Total Equipment Total
& Buildings & Furniture
£ £ £ £ £
Balance at 31st Aug 2019 - - 6,344,167 2,508 - 2,508 6,346,675
Balance at 31st Aug 2020 - - 6,505,000 1,881 - 1,881 6,506,881
----- End of picture text -----

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

14 Debtors and prepayments

Not all sums shown as debtors at 31 Aug 2019 were received during the 19-20 year. A few churches had outstanding Assessments which have increased during 19-20.

Amount outstanding from churches at Year End
Leytonstone
Assessments
Repaid
Lighthouse
Assessments
Lighthouse
Loans
Shern Hall
Assessments
Repayment Plan
Shern Hall
Boiler Loan
Repayment Plan
Trinity Debden
Write off outstanding assessment
Total
Other sundry debtors
Total
Total (net)
Prepayments and accrued income
Council tax & Utilities
Professional Fees
Stipend		 2019-20
£
-
63,504
11,938
29,613
13,000
-		 2018-19
£
58,042
37,042
10,000
3,563
-
5,000
118,055 113,647
-
1,708
14,700
-		 1,007
1,807
17,124
1,000
16,408 20,938
134,463 134,585

15 Trustees for Methodist Church Purposes

TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property and assets, 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 provide provide guidance and require the circuits to act under TMCP direction. Thereby Managing Trustees will comply with charity law and Methodist law and policy as determined by the Methodist Conference.

In the year 19-20, enquiries were made into the restrictions on the static Trust "Sale of Chapel and Land Fund". TMCP advised that the trust is a standard model trust funds and therefore could be used for any methodist purpose agreed by the Circuit Meeting. The Circuit Meeting agreed that the trust should be closed and the money transferred to the General Fund to assist in covering unbudgetted expenses in the year.

16 Central Finance Board (CFB) and cash at bank

The Circuit has had a current account at HSBC plc for many years. In 19-20 the Circuit agreed to open an account with CAF Bank (Charities Aid Foundation), but this has not been operational until October 2020. The account with CAF bank will facilitate online banking with dual authorisation. HSBC and CAF are authorised institutions. The sums held on the accounts are immediately available.

In addition, the Circuit had two deposit accounts at CFB. Interest earned on these CFB accounts is credited monthly; the sums deposited can be withdrawn without notice and without loss of interest.

In the year 19-20, enquiries were made into the restrictions on the static account "Circuit Development Account". CFB explained that all CFB deposit accounts are unresstricted. The Circuit Treasurer could find no information in the Circuit documentation on any restrictions or designation. The Circuit Meeting agreed that the account should be closed and the money transferred to the General Fund to assist in covering unbudgetted expenses in the year.

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

17 Creditors and accrued expenses

18-19 Expenses reimbursement
Other Creditors unpaid as at EOY 18-19
19-20 Property related accruals
Audit & accountancy Fees
Connexional Funds unpaid
Property Valuation report
Total of creditors and accrued expenses
Total creditors
Pre receipts
Assessments
Rent in Advance
Total accruals
Remaining Grant to Debden Trinity
19-20 Expenses reimbursement
Creditors:		 2019-20
£
-
2,101
4,032
878
14,900
7,920
7,062
10,356		 2018-19
£
2,751
2,101
4,032
-
-
5,149
47,249 14,033
44,611
-		 48,051
864
44,611 48,915
91,860 62,948

It is expected that all sums accrued at 31 Aug 2020 would be paid during the year to 31 Aug 2021.

18 Capital commitments and contingent liabilities

18.1
Capital commitments at end of year amounted to:		 2019-20
-		 2018-19
-
- -

19 Volunteer contributions

Every entity (Connexion, District, Circuit, 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. For the Forest Circuit directly this contribution is generally by serving on committees of the Circuit that deal with mission, manses, finance, policy, grants, training, development and governance, but there are many others who assist with the preparation and running of Circuit events. We are grateful to all of them for their help and commitment.

20 Lease commitments

The Circuit had the following lease commitments at the end of August:

Leased facility Review Period Payment Period Annual Payment Total Commitment
Printer / copier
Mobile phones		 5 year contract
2 year contract		 21/08/2022
01/05/2022		 quarterly
monthly		 1,762
734		 3,523
1,223

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

21 Circuit funds (Unrestricted, Restricted and Endowment)

The Forest Circuit of the Methodist Church maintains a number of separate funds. The purpose, type, movement and state as at the end of year is documented below: The funds held constitute: Unrestricted (U) General Funds held for any purpose, Designated (D) funds allocated for a specific purpose, Restricted (R) funds which are held for a narrower purpose. The Forest circuit does not hold any Endowment funds.

21.1 Fund Purpose & Type

The value of property owned by the Circuit, e.g. Manses and rental property, has been moved from the General fund to a separate Manse Value Fund in order to simplify and clarify the reporting and monitoring of the Circuit's more liquid assets.

21.1.1
21.1.2
21.1.3		 Fund Name
Type		 Fund Name
Type		 Purpose of the Fund
Unrestricted Funds (U)
General Fund U For use at the discretion of the trustees in the furtherance of the objectives of the
Circuit. This excludes funds which have been designated for a specific purpose. (see
designated funds below)
Designated Funds (D) For specific purposes but not restricted by document or deed to that purpose alone.
The trustees mayagreed from time to time to transfer funds from a designnated fund.
Manse Valuation Fund D2 The freehold properties owned by the circuit used as manses for the ministers
stationed in the circuit. And the properties rented out.
Ciruit Model Trust Reserves D1
D3		 To support the funding of projects in the Circuit
Manse Refurbishment Fund A temporary project fund, to assist in the management and reporting of
refurbishement work on Circuitproperty. i.e. Manses and rentalproperty.
Restricted Funds (R )
Forest Circuit Benevolent
Fund		 R1 To help meet the exceptional needs of presbyters, deacons and lay employees in the
Circuit, when these cannot be met by the church alone. Providing a resource from
which confidential payments can be made at the discretion of the Superintendent &
nominated Trustees.
Circuit Development fund
(held at CFB)		 * A small fund to be used primarily on funding an additional member of staff when the
case arises. - No documentation could be found on the restrictions relating to this
fund. Only unrestricted funds may be held at CFB. The Circuit Meeting Trustees
agreed that this fund could be reallocated to manse maintenance.
Sale of Chapel and Land
Fund (held at TMCP)		 * A Circuit Model Trust fund unused since 1997. TMCP were consulted about any
specific restrictions relating to this fund. There were non. The Circuit Meeting
Trustees agreed that this fund could be reallocated to the manse refurbishment fund.
* The two static funds "Circuit Development fund" and "Sale of Chapel and land fund" were previously reported as
restricted in the years to August 2019. However, when the restrictions of use were explored with CFB & TMCP in the
year, no restrictions were identified. Both funds contained relatively small amounts around £5,500. Therefore the circuit
meeting agreed that the money held in each fund should be transferred to the unrestricted General Fund to assist in
meeting property expenses.

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

21.2 Fund Balances and Movements

----- Start of picture text -----
Fund Name Opening Incoming Resources Gains on Transfer Closing
Balance Resources Expended revaluation Balance
£ £ £ £ £
21.2.1 Unrestricted Funds
General Fund (excluding U 6,467,485 351,803 (383,312) (6,331,128) 104,848
manse fund)
Designated Funds -
Manse Value Fund D2 - 160,833 6,344,167 6,505,000
Ciruit Model Trust Reserves D1 199,494 277 (26,303) (126,039) 47,429
Manse Refurbishment Fund D3 - (104,134) 118,173 14,039
199,494 277 (130,437) - (7,866) 61,468
Total Designated 199,494 277 (130,437) 160,833 6,336,301 6,566,468
Total Unrestricted & 6,666,979 352,080 (513,749) 160,833 5,173 6,671,316
Designated
-
21.2.2 Restricted Funds -
Circuit Development Fund * 2,560 17 - (2,577) (0)
Sale of chapel & land fund * 2,579 22 (5) (2,596) (0)
Forest Circuit Pastoral & R1 1,792 - - 1,792
Benevolent Fund
Total Restricted Funds 6,931 39 (5) - (5,173) 1,792
Total Funds 6,673,910 352,119 (513,755) 160,833 - 6,673,108
0 0 0 0 0
----- End of picture text -----

22 Connected organisations and related parties

Connected organisations include the Methodist Connexion, the District and Churches within the Circuit, CFB and TMCP. Except as reported in Note 3. All of these entities have their own trustees or directors and autonomous administration such that the Forest Circuit has no significant influence over any of them, nor they over the Forest Circuit. They are, therefore, not considered related parties.

Donee: Methodist Church Fund via the London District.
Donor: Churches within the Forest Circuit - assessments
Donor / Donee: Churches within the Forest Circuit (grants).
- Wanstead, Trinity Debden.
Donor / Donee: the London District (levies / grants)
Total
Name of Connected Organisations		 Receipts Payments Adjustments
£
337,405		 £
18,429
(22,195)		 £
(68,164)
337,405 (71,930) -

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FOREST METHODIST CIRCUIT

FOR THE YEAR ENDED 31 AUGUST 2020

DECLARATIONS

Treasurer

I confirm that I have prepared the accounts from the records of the Circuit and that they include all funds under the control of the Circuit Meeting.

Signature of Treasurer Date 29/6/2021 Name Mrs Florestine Corbett Address 85 Norlington Road, Leyton, London E10 6LA Presentation to the District Council for approval. I confirm that the Accounts have been presented to the Circuit Meeting on 10th June 2021

and were approved.

Signature of the Chair of the meeting Name of the Chair of the Revd Anthony Guy Malcolm meeting Date 29/6/2021

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FOREST METHODIST CIRCUIT

INDEPENDENT AUDITORS' REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

TO THE TRUSTEES OF THE FOREST METHODIST CIRCUIT

We have audited the financial statements of the Forest Methodist Circuit (the 'charity') for the year ended 31 August 2020 which comprise Statement of Financial Activities, the Balance Sheet and notes to the financial satements, including a summary of significant accounting policies. The reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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

Opinion on accounts

In our opinion the accounts:

Basis of Opinion

We conducted our audit in accordance with Internatonal Standards on auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further sdescribed in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirments that are relevant to our audit of the financial statments in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirments. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for other information. The other information comprises the information included in the trustees' annual report, other than the financial statements and our auditors's report thereon. Our opinion on the financial statements does not cover the other information and ecept to the extent otherwise explicitly stated in our report, we do not express any form od assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material missstatement in the financial statements or a material missstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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FOREST METHODIST CIRCUIT

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE TRUSTEES OF THE FOREST METHODIST CIRCUIT

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the responsibilities statement set out on page 6, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In Preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Responsibilities of auditors for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those

Our objectives are to obtain reasonable assurancwhether the financial statements as a whole are free from material misstatement, whether doe to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs(UK) ill l d t t t il i t t t h it i t Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting council's website at: www.frc.org.uk/auditors responsibilities. This description forms part of our auditor's report.

Clay Ratnage Strevens & Hills

Chartered Accountants & Statutory Auditor

29/6/2021

Clay Ratnage Strevens & Hills is eligible to act as auditor in terms of section 1212 of the Companies Act 2006.

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