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← Forest Methodist Circuit

2023-08-31-accounts

DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

Circuit Accruals Accounts 2022-23

THE METHODIST CHURCH STANDARD FORM OF ACCOUNTS ACCRUALS BASIS for the year ended 31 August

2023

Forest Circuit Circuit no 35/33 Registered Charity - Registration number 1134384

Circuit Superintendent Minister
and Chair of Trustees
Circuit Ministers
Circuit Treasurer
Circuit Finance Group Convenor
Circuit Stewards		 The Revd Michael Long from 1st September 2023
The Revd Anthony Guy Malcolm till 31st August 2023
Revd Oseias Da Silva
Revd Sue Creighton
Revd Stephanie Njeru
Florestine Corbettfrom 1st July 2023
Samuel Ebdenfrom 28th September 2023
Eric Aidoofrom 28th September 2023
Dallion Royetill 31st March 2023
Lincoln Fearontill 30th September 2022
Hannah Roberts
Florestine Corbetttill 30th June 2023

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

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 eleven 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).

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 circuit 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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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

3 Review of progress and achievements

3.1 The Forest Circuit Annual Report

The year was one of many changes, some difficult decisions, some sad farewells, but also some hope for a renewed focus in 23-24.

Trinity Debden Methodist Church (MC) is now a class of Loughton MC. It is currently self funding, but grants may need to be applied for from the Circuit should significant property work be needed.

Wanstead church closed and became the responsibility of the Circuit meeting from the 1[st] September 2022. A decision is yet to be made on the future of the building. A fellowship coffee morning group continue to meet in the church welcome area till a decision is made.

In September 2022, Shern Hall Methodist Church reopened after major flood damage. It had taken over a year to refurbish, but activity, worship, ministry and hope has been restored at the church.

North Chingford Methodist Church, with great sadness, took the decision to cease to worship from August 2023. A final uplifting service was held at the church with representatives from churches across the Circuit and many old friends returning from afar to share happy memories. The building becomes the responsibility of the Circuit from 1[st] September 2023.

In line with the agreed Mission and Strategy for the Circuit, Zak Njeru, the new lay pastoral worker joined the Circuit in September 2022, but it took longer to find someone to fill the role of Property and Facilities Manager. Reinart Van Zyl was appointed in July 2023.

The Circuit said a sad farewell to Rev Tony Malcolm in July 2023, who moved to a new Circuit in the Midlands, but then Forest was blessed with the appointment of a new superintendent, Rev Mike Long from Notting Hill in September 2023.

Two Circuit Stewards stepped down in the year. Lincoln Fearon in September 2022 and Dallion Roye in March 2023. They were thanked for their considerable work particularly given the lack of other stewards to share the load. Flo Corbett relinquished her remaining financial responsibilities as Circuit Treasurer in June 2023, but remained a Circuit Steward. Her financial responsibilities being taken on by the Circuit Finance Group Coordinator Hannah Roberts. To support the Circuit in the absence of circuit stewards with finance and property knowledge, the Circuit meeting agreed in June 2023 that

the Circuit Finance Group bank authorisers should share the decision making responsibility for the Circuit and become part of the Circuit Leadership team for Property & Financial decisions. John Millar previously of Cambridge Park MC & Loughton MC passed away in the year and left a financial legacy, from which the Circuit benefits. A new designated Circuit fund has been established in his name. Churches from across the Circuit are invited to apply for a grant from the fund for work in line with the agreed mission and ministry criteria.

Financial awareness training was held for Church trustees at Shern Hall and Leytonstone.

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

3.2 Plans for future years

Conversations continue with churches on their future and the implementation of the Circuit Mission Strategy to sustain mission in the the Forest Circuit.

The future of Church buildings no longer being used for Methodist Worship needs to be addressed and a decision is awaited on whether to rent or sell the manse vacated by Rev Hilary Cheng in October 2022.

All churches are again likely to face considerably difficulty in the coming year from much higher utility bills, which may again impact their ability to pay assessment contributions to the Circuit.

The Circuit meeeting was pleased to welcome Revd Mike Long as the new Superintendent to the Circuit at the beginning of September 2023. In addition the Circuit appointed Eric Aidoo and Samuel Ebden, as new Circuit Stewards at the September 2023 Circuit meeting.

4 Financial Review

Total Income in the year was £585,135. The General fund income was £309,113 of which £273,213 was due from church assessments and £23,232 was the net rental of the Hollywood Way Property. A further £12,668 was interest received. All churches were able to pay the year's assessment by the end of the year. In addition, the outstanding debt from churches was reduced from £68,666 to £55,703.

The new John Millar fund received £250,276. £243,000 was received before 31st August 2023 and the final remainder amount of £7,276 was received in November 2023.

The total expenditure in the year was £530,559. The General fund expenditure was £328,381 giving a net deficit for the fund of £19,268. This general fund deficit was not unexpected. The budget for the year had included a subsidy from reserves to reduce the total assessments requested of churches.

In addition to the £15,862 Manse repairs and maintenance from the General Fund, £31,537 was spent in the year from reserves on manse renovations at 2 Manses.

Grants were made from reserves of £15,000 to Lighthouse MC to assist with urgent maintenance work and to Loughton MC from the John Millar Fund towards their Café mission project.

The Circuit has insufficient regular income to cover the cost of additional Lay staff. Increasing the Income from Assessments is not possible at this time. Under Standing order 917, Model Trust Funds can be used to support the personnel serving in the circuit. Employment is a commitment. Therefore to ensure such funds will be available to pay employed staff salaries, expenses etc. till approximately 2027. £275,934 was drawn down from reserves and added to the Lay employment fund. As further new staff are employed additional funds may need to be moved to the Lay employment fund.

Wanstead church finances and fixed assets have been added into the Circuit Accounts, for the time being into separate designated funds. Assets received were made up of £19,264 current assets and the value of the church building (Capital Assets) of £2,786,000. A further £1,864 was received in the year from outstanding rent due to the church. £10,274 was spent in the year on maintaining the property e.g. on Insurance and Utilities.

North Chingford assets will be incorporated into the Circuit Accounts as of 1[st] September 2023.

There are still churches in the Circuit with significant financial challenges, which will be exacerbated by much increased utility bills in the coming year. The Circuit is a vehicle for the group of churches to operate together to benefit from shared activity and costs. A failing church impacts all other churches in the Circuit. Circuit Trustees must be mindful of the financial position of individual churches in the circuit as well as the Forest Circuit itself.

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

5 Reserves policy and level

5.1 Reserves Policy

The Circuit needs to maintain a current assets operating reserve approximately equal to 6 months of annual expenditure in order to allow for any urgent work to its Manses and pay ministers stipends, should Circuit income be impacted. A commitment has been made from Capital reserves to pay the salary & expenses of two lay workers for the Circuit till approximately 2027.

The Forest Circuit is required to provide a manse for each minister stationed in the Circuit as a base for work as well as home. Such manses satisfy the accommodation guidelines in CPD Book VII Part 2. The value of these properties are shown as fixed assets in a designated fund. The Circuit has also taken responsibility for Wanstead Methodist Church. The future of the building is yet to be decided.

5.2 Explanation and reserves level.

Fixed Assets: (Designated)

The Circuit currently has 6 residential properties. Four of the properties are used as manses for ministers stationed in the Circuit. 1 Property is being let, and consideration is being given to whether to let or sell the sixth manse. Total valuation of the properties is £4,770,000. Wanstead Methodist Church, approximate value is £2,786,000. Remaining fixed assets of £471 are for depreciating equipment. Current Assets:

The total Circuit unrestricted current assets amount to £1,254,798. This includes: £55,703 of debts due from Circuits which are being paid off over a number of years; £420,785 designated to pay the salary & expenses of lay pastoral workers till approximately 2027; and a legacy of £250,276 designated for mission grants. This leaves £528,034. Which is well in excess of 16 months reserves.

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 Circuit 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: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

8 Circuit Trustee Responsibilities

In preparing these financial statements, the Trustees must:

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:

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: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

10 Trustees of the Circuit Date Retired Appointed since
as Trustee 1 September
2023
Revd Oseias da Silva
Revd Sue Creighton
Rev Michael Long 01/09/23
Revd Anthony Guy Malcolm 31/08/23
Revd Stephanie Njeru
Revd Jongikaya Zihle
Revd Armstrong Fummey
Dallion Roye 31/03/23
Lincoln Fearon 20/09/23
Florestine Corbett
Janet Tweedale
Graham Burgess
Christine Okpattah 31/08/23
Gary Ian Marshall
Jill Geddes 31/08/23
Martin Howarth
Sharon Heather
Stephen Murray
Patricia Bott 31/08/23
Gordon Trevor Lumer 31/08/23
Loyl Marcia Brandt
Elvena Bernita Brumant
Joseph Kusi 31/08/22
Leslie Stowe
Pat Evans
Robert Amey 31/08/22
Hannah Roberts
Bernard Mansell 31/08/22
Carole Merriman
Jean Norton
Hazel Mathews
Pat Ovenden
Kathleen Poole
Michael Higgins
Andronica Mugombe
Phyllis Lloyd
Millicent Freeman
Jojo N Monney
Eunice Edwards
Stella Heskey 01/09/23
Eric Aidoo 28/09/23

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

11 Structure, governance and management

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:

The primary purpose of this Circuit is to advance the mission of the church in this are of London by:

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)

The Circuit Meeting is the trustee body, and consists of office holders and 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.

Day to day management of the Forest Circuit is undertaken by the Circuit Leadership team, supported by the Circuit Finance Group. The Local Preachers' meeting, exercises oversight over those authorised to worship.

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

12 Reference and Administration Details
12.1 The full name of the Charityis the Forest Methodist Circuit, "Forest Circuit".
12.2 The Forest Circuit is registered as a charity with the Charity Commission in England and Wales. The
organisation'sCharity No is 1134384.
12.3 The address of the Forest Circuit for correspondence is 1 Chester Road, Wanstead,London E11 2JU. The
name of the person to whom correspondence should be addressed is Revd Michael Long, the Circuit
Superintendent.
12.4 The trustees that served during the year are listed in section 10
12.5 The Circuit's Bankersare: HSBC and Charity Aid Foundation "CAF" Bank and the Central Finance Board of
the Methodist church "CFB".
12.6 Investments managedby the District are held by Trustees for Methodist Church Purposes "TMCP".
12.7 Disclosure of information to auditors
In so far as the trustees are aware:
- there is no relevant audit information of which the charity's auditors are unaware; and
- the trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant
audit information and to establish that the auditors are aware of that information.
12.8 Auditors
A recommendation was put to the Circuit Meeting inSeptember 2023that they re appointed Clay Ratnage
Strevens & Hills. They have been auditors to the Circuit for 14 years.

Approval

The report was approved by the trustees on 21st March 2024 and signed on their behalf by:

…………………………………………….

Revd Michael Long Circuit Superintendent & Chair of Trustees

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2023

Notes General Fund
(Unrestricted)
£		 Reserves, &
Investment
Funds
(Designated)
£		 Lay Workers
Fund
(Designated)
£		 Manse /
Church
Valuation
(Designated)
£		 Circuit
Benevolent
fund
(Restricted)
£		 Total
2022-23
£


Total
2021-22
£
Incoming Resources
1 Donations & Legacies 3 - 250,276 - - - 250,276 -
2 Interest and Investment Income 4 12,668 23,982 - - - 36,650 4,305
3 Manse Rent Received (net) 5 23,232 - - - - 23,232 22,720
4 Assessment on Churches 2 273,213 - - - - 273,213 283,632
6 Capital Receipts - - - - - - -
7 Grants received(E.g. from DAF) - - - - - - -
8 Other income (Closed church) - 1,764 - - - 1,764 -
9 Total Incoming Resources 309,113
276,022		 - - - 585,135 310,657
10 Resources Expended
11 Grants and Donations 6 450 65,000 - - 500 65,950 1,010
12 Salaries and associated costs 7 173,675 - 38,704 - - 212,379 203,737
13 Property (incl Ins., C tax, utilities etc) 8 37,769 41,811 - - - 79,580 45,330
14 Connexional Assessment & CPF Levy 64,884 - - - - 64,884 432,583
15 District Assessment & DAF Levy 15,344 53,787 - - - 69,131 35,268
16 Depreciation 470 - - - - 470 470
17 Office Expenses incl Investment
Managment costs(Admin.,tel. travel etc.)		 9 15,894 2,376 - - - 18,270 15,742
18 Other Expenditure (incl admin fees) 10 15,208 - - - - 15,208 5,033
19 Accountancy & Audit 11 4,687 - - - - 4,687 4,452
20 Capital Expended - - - - - - -
21 Total Resources Expended 328,381
162,974
38,704		 - 500
530,559		 743,625
22 Net Incoming/(Outgoing) Resources (19,268) 113,048 (38,704) - (500) 54,576 (432,968)
23 Transfers between funds - (275,934) 275,934 - - - -
24 Sub Total (19,268) (162,886) 237,230 - (500) 54,576 (432,968)
25 Gains/(losses) on disposal of Manse - - - - - - 10,476
26 Gains/(losses) on revaln fixed assets - - - - - - -
27 Gains/(losses): on investment assets - - - - - -
28 Net investment in funds (19,268) (162,886) 237,230 - (500) 54,576 (422,492)
29 Transfer of Balances from Wanstead
Methodist Chuch to the Circuit		 - **19,265 ** - 2,786,000 - 2,805,265 -
30 Total funds brought forward from last
year		 163,549 833,824 183,555
4,770,000
732
5,951,660		 6,374,152
31 Total funds carried forward at end of
year		 144,281
690,203		 420,785 7,556,000
232
8,811,501		 5,951,660
Balance still to be paid
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		 2,187
-
2,187
-
2,187 -
- 2,187
2,187 -
- 2,187

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

Forest-31-08-23 Final Accts 20.3.24.xlsx, SOFA

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

BALANCE SHEET

AS AT 31 AUGUST 2023

AS AT 31 AUGUST 2023
Notes General
Fund
(Unrestricted)
£		 Reserves
Funds
(Designated)		 Lay Workers
Fund
(Designated)
£		 Property
Valuation
(Designated)
£		 Circuit
Benevolent
fund
(Restricted)
£		 Total
2023
£		 Total
2022
£
Tangible Fixed Assets
Manse and otherproperty 13 471 - - 3,295,000 - 3,295,471 4,770,941
Investmentproperties 13 - - - 4,261,000 - 4,261,000 -
Investments with TMCP - - - - - - -
4,770,941
Total fixed assets 471 - - 7,556,000 - 7,556,471
Current Assets
Debtors and Prepayments 14 75,156 7,276 - - - 82,432 83,692
Trustees for Methodist Church
Purposes - Interest Accounts		 15 13,074 502,663 - - - 515,737 833,824
Central Finance Board Deposits 16 92,957 226,703 420,785 - - 740,445 279,547
Cash at Bank and in hand 16 31,311 3,561 - - 232 35,104 42,264
1,239,327
Total current assets 212,498 740,203 420,785 - 232 1,373,718
Current Liabilities
Creditors (due in under 1 year) 17 68,688 50,000 - - - 118,688 58,608
- - - - - - 58,608
Total current liabilities 68,688 50,000 - - - 118,688
Net current(liabilities)/assets 143,810 690,203 420,785 - 232 1,255,030 1,180,719
5,951,660
Total assets less current liabilities 144,281 690,203 420,785 7,556,000 232 8,811,501
Long term liabilities
liabilities due after 1 year - - - - - - -
Net assets 144,281 690,203 420,785 7,556,000 232 8,811,501 5,951,660
Funds of the Circuit
21
General Fund(Unrestricted) 144,281 690,203
420,785
7,556,000		 144,281 163,549
Reserves & Projects(Designated) 690,203 420,785 1,110,988 833,824
Manse Fund(Designated) 7,556,000 7,556,000 4,953,555
Total Unrestricted funds 8,811,269 5,950,928
Benevolent Fund(Restricted)
232 232 732
5,951,660
Total Funds 144,281 690,203 420,785 7,556,000 232 8,811,501

The Notes on pages 13 to 23 form part of these accounts.

…………………………………………….

Revd Mike Long Circuit Superintendent and Chair of Trustees

Forest-31-08-23 Final Accts 20.3.24.xlsx, Bal sht

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

STATEMENT OF CASH FLOWS

AS AT 31 AUGUST 2023

Total Funds
£		 Prior year
funds
£
Cash flows from operating activities:
Net income/(expenditure) for the reporting period (as per the statement of
financial activities)		 2,859,841 (422,492)
Adjustments for:
Depreciation charges 470 470
(Gains)/losses on investments and fixed asset revaluation - -
Dividends, Interest and rents from investments (36,650) (4,305)
Loss/(profit) on the sale of fixed assets - (10,476)
Property transferred to Circuit (2,786,000) -
(Increase)/decrease in stocks - -
Decrease in debtors 1,260 110,439
Increase in creditors 60,080 4,920
Net cash provided by/(used in) operating activities 99,001 (321,444)
Cash flows from investing activities:
Dividends, interest and rents from investments 36,650 4,305
Proceeds from the sale of property, plant & equipment - 960,476
Purchase of property, plant and equipment - -
Proceeds from sale of investments - -
Net cash provided by (used in) investing activities 36,650 964,781
Cash flows from financing activities:
Repayment of borrowing - -
Cash inflows from new borrowing - -
Receipt of endowment - -
Net cash provided by (used in) financing activities - -
Change in Cash and Cash equivalents in the reporting period 135,651 643,337
Cash and Cash equivalents at the beginning of the reporting period 1,155,635 512,298
Change in Cash and Cash equivalents due to exchange rate movements - -
Cash and Cash equivalents at the end of the reporting period 1,291,286 1,155,635
Cash in hand (at bank,- HSBC,CFB, TMCP)
Notice deposits (less than 3 months)
Overdraft repayable on demand
1,291,286 1,155,635
- -
- -
Total cash and equivalents 1,291,286 1,155,635

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting framework and accounting policies

ii Public benefit entity

The circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transactionvalue unless otherwise stated in the relevant accounting policy notes(s) below.

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 accruals basis to show a true and fair view of the Circuit's financial position and activities.

iv Content

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

v

Going concern

Based on the monetary assets and human resources available at the end of the financial year, 31st August, the trustees believe that the Circuit is a going concern.

vi Consolidation

The Circuit oversees the work of ministers and lay workers in Churches within the Circuit, but does not have control over those Churches, 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 Circuit to pay out resources.

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

ix Grants

Grants are recognised annually only as and when any performance conditions attaching to the award are met, even when the awards is for a recurrent grant over more than one year . All grants awarded for payment in future financial years are conditional on the Grants committee being satisfied, on the basis of progress reports from the grantee, that the grants achievements to data justify the payment of further instalments of that grant. such committments are noted as contingent liabilities and included within the circuit Advance Fund or other relevant designated fund in these accounts.

x VAT

Since the Circui 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. Investment properties are stated at fair value. Any realised or unrealised gains or losses are shown in the Statement of Financial Activities.

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 Circuit 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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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

2 Assessment from Churches

Forest Circuit assessments due from Churches to the Circuit for the year were as follows. The Circuit Finance Group continued 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 (incorporating Trinity Debden since Sept 2020)
Woodford
Winchester Road
Leytonstone
Leyton Trinity
Wanstead
Lighthouse

In line with the assessment of 21-22, the Circuit Finance Group gave further consideration to the assessment apportionment. A calculation was again drafted using a number of factors, such as church capita, but also a factor to reflect a church's ability to pay. This was a church's total funds as a percentage of the combined churches' total funds. However with some churches still suffering financially from the impact of the covid pandemic, the assessment calculation what ever percentages were used could be seen to be difficult for many churches. It was therefore suggested that as two Manses had been sold, if sufficient income was not received from interest or letting of the vacant properties, the circuit could usefully again use recently released capital to reduce the assessment. An amount of £40,000 approx was agreed, on the understanding that this was not sustainable.

3

Donations Received
John Millar Legacy
Total Donations & legacies		 2022-23
250,276
250,276		 2021-22
-
-

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
Forest Model Trust Fund
Total Interest & Investment Income		 Fund Type
Held at
U
CFB & CAF
U
TMCP		 2022-23
12,668
23,982
36,650		 2021-22
150
4,155
4,305

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

5 Income from investment Properties - Manse Rent Received

Manse Rental
Gross
Hollywood Way
26,400
Total Interest & Investment Income		 Agents Fees
-3,168		 Agents Fees
-3,168		 2022-23
23,232
23,232		 2021-22

-3,168		 22,720
22,720

A further residential property may no longer be needed as a Manse. A decision is awaited on whether the manse should be sold or rented.

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

Grants from Circuit Model Trust Fund
Loughton (from John Millar Fund for Café refurbishment) Accrued
Lighthouse (Heating & repairs) paid
Total Grants from Model Trust fund Reserves
Benevolent Fund Grants

General donations

Total		 2022-23
50,000
15,000
65,000
500
450
65,950		 2021-22
-
-
-


560
450
1,010

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

FOR THE YEAR ENDED 31 AUGUST 2023
7
Salaries and associated costs
2022-23
2021-22
115,969
133,037
10,552
12,492
29,541
34,734
Stipend apprenticeship Levy
534
951
48,979
13,960
4,123
707
1,951
7,787
Payroll administration charge and apprenticeship Levy for all lay staff
730
69
212,379
203,737
Lay StaffGross Pay (Part time Administrator, Pastoral worker Full
time, Property & Facilities manager Full time from July)
Gross StipendsPaid - 4 ministers
Employer's National Insurance contribution
Employer's pension contribution to defined contribution scheme
Total cost
Employer's National Insurance contribution re Lay Staff
Employer's pension contribution re Lay staff		 2022-23
115,969
10,552
29,541
534
48,979
4,123
1,951
730		 2021-22
133,037
12,492
34,734
951
13,960
707
7,787
69

The Superintendent Minister and Ministers Stationed in the Circuit are paid a stipend, pension and expenses by the Circuit. This Stipend is that agreed annually by the Conference of the Methodist Church.

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.

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

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

The Lay staff are members of the TPT Retirement Solutions Pension Scheme. The Circuit contributes 6% to their pension.

8 Property costs
Manse Costs
Wanstead Insurance & Utility Cost
Professional Fees and Survey costs
Manse Renovation costs from Reserves
Total
Council tax
Repairs, Maintenance and Renewals
Insurance and Utilities		 2022-23
15,862
6,758
12,644
2,505
37,769
37,769
31,537
10,274
41,811
79,580		 2021-22
20,154
9,820
14,551
805
45,330
45,330
45,330

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

9
10
11		 Office expenses & investment management fees
2022-23
2021-22
Office expenses & other ministerial costs
3,487
3,086
Telephones & Broadband
6,470
5,979
Travel & Parking
3,295
3,133
Ministerial Worship Resources & Support
2,642
2,264
15,894
14,462
Investment management
During the year the Circuit paid the following amounts to TMCP as custodians of the Trust Funds
Circuit Model Trust Fund
2,376
1,280
2,376
1,280
Office expenses & other ministerial costs
Total 18,270
15,742
Other Expenditure
2022-23
2021-22
General Fund (U) Other items
Training
357
605
1,023
1,419
Youth Work
350
850
Health checks
-
1,213
Bank charges & Auditor's letter
74
176
Sundries
1,592
500
Removal Costs
11,812
-
Acountancy guidance during year
-
270
15,208
5,033
Total Other Expenditure & Training 15,208
5,033
Fees for Accountancy and audit of the Accounts
2022-23
2021-22
Auditor's Fee
2,351
2,226
Other Fees (e.g. accountancy services)
2,336
2,226
4,687
4,452
Total
Preachers fees and expenses
Total
Printing, postage and stationery
Total		 2022-23
2021-22
3,487
3,086
6,470
5,979
3,295
3,133
2,642
2,264
15,208
5,033
2022-23
2021-22
2,351
2,226
2,336
2,226
4,687
4,452

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

12 Manse Valuations

All Manses and churches were professionally revalued at the end of August 2020.

13 Tangible Fixed assets

Tangible Fixed assets
Cost or Valuation Manse
Property
Investment
Property
£
£		 Total Land
& Buildings
£		 Equipment
& Software
Furniture
£
£		 Total Other
Property
£		 Total Assets
£
Balance at31st Aug 2022 4,770,000 4,770,000 11,247 - 11,247 4,781,247
Additions in the year (Wanstead ch
revaluations in the year
less: disposals in year
Transfers between categories
Balance at31st Aug 2023		 - 2,786,000
-
-
-
-
(1,475,000) 1,475,000		 2,786,000
-
-
-
 - -
-
-
-
-
- -		 -
-
-
-		 2,786,000
-
-
-
3,295,000 4,261,000 7,556,000 11,247 - 11,247 7,567,247
Accumulated depreciation
Manse
Property
Investment
Property		 Total Land
& Buildings		 Equipment
& Software
Furniture
Total Other
Property		 Total
Changes
Balance at31st Aug 2022
Depreciation charge for the year
revaluations in the year
less: disposals in year
Balance at31st Aug 2023		 £
£
- -
- -
-
-
-
-		 £
-

-

-
-		 £
£
10,306 -
470 -
-
-
-
-		 £
10,306
470
-
-		 £
10,306
470
-
-
- - -
 10,776 - 10,776 10,776
NB: Years over which value is depreciated
3
3

Net Value

Net Value
Manse
Property
Investment
Property		 Total Land
& Buildings		 Equipment Furniture
Total Other
Property		 Total
Balance at31st Aug 2022
Balance at31st Aug 2023		 £
4,770,000 -		 £
4,770,000		 £
£
941 -		 941 £
4,770,941
3,295,000 4,261,000 7,556,000 471 - 471 7,556,471

Two residential properties in the year were recognised as no longer needed as Manses.

Wanstead church closed for worship and came under the responsibility of the Forest Circuit on 1st September 2022.

The long term use is as yet undecided. In the meantime a fellowship group meet there and it is rented to another church. The property Valuation has been added to the Investment Fund.

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

14 Debtors and prepayments

Not all sums shown as debtors at the start of the year, 1st September, were received during the year. A few churches had outstanding assessments, but these have reduced during the year.

outstanding assessments, but these have reduced during the year. r.
Amount outstanding from churches at Year End
Leyton (Trinity)
Assessments
Lighthouse
Assessments & other item
Lighthouse
Loan / Transfer 2016
Total		 2022-23
£
11,361
44,342
-		 2021-22
£
14,360
44,306
10,000
55,703 68,666

Leyton Trinity aim to repay the amount owed to the Circuit - by £3,000 per year till 2026. Lighthouse aim to pay the amount owed to the Circuit by approx £3,366 over 15 years from 2023.

Prepayments and accrued income
Council tax & Utilities 5,927 2,433
Stipend 13,526 12,543
Other sundry debtors, e.g. remaining John Millar Payment 7,276 50
Total 26,729 15,026
Total (net) 82,432 83,692

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 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 the Manse at The Ridgeway became vacant with the retiring of Rev Hilary Cheng and a replacement minister not sought. A decision has yet to be made on whether to sell or rent the property.

In the year the Circuit Trustees took responsibility for Wanstead Methodist Church after the Church ceased to worship. A decision is yet to be made on what to do with the building.

16 Central Finance Board (CFB) and cash at banks

The Circuit closed its account with HSBC plc in June 2022. In 19-20 the Circuit agreed to open an account with CAF Bank (Charities Aid Foundation), this was opened in October 2020. The account with CAF bank facilitates online banking with dual authorisation. In taking responsibility for the Assets of Wanstead Methodist Church, Wanstead's accounts at HSBC, CFB and TMCP are transferred onto the Circuit balance Sheet. In the 2023-24 connexional year the funds will be transferred to the Circuit bank accounts and the separate Bank accounts closed. CAF and HSBC are authorised institutions. The sums held on the accounts are immediately available.

The Circuit has a 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.

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

17 Creditors and accrued expenses

Other Creditors unpaid as at EOY
Pension Back payments
Grant to Loughton 2023 - not yet drawn
Removals
Expenses reimbursement
Creditors:
Audit & accountancy Fees & bank audit letter
Connexional Funds & received for others unpaid
Property related expenses
Total of creditors and accrued expenses
Total creditors
Pre receipts
Assessments
Rent in Advance
Total accruals		 2022-23
£
4,701
5,797
-
210
50,000
600
-		 2021-22
£
4,466
787
1,064
7,787
-
-
2,446
61,308 16,550
57,380
-		 42,058
-
57,380 42,058
118,688 58,608

It is expected that all sums accrued at the end of year will be paid before the end of the following year.

18 Capital commitments and contingent liabilities

18.1
Capital commitments at end of year amounted to:		 2022-23
-		 2021-22
-
-

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 2023

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

Circuit Property e.g. manses, residential property and churches which have ceased to worship, are under the managment of the Circuit, but are legally owned by Trustees for Methodist Church Purposes. The value of this property if sold does not fully accrue to the Circuit. The value of these properties are shown in a separate Manse Value Fund in order to simplify and clarify the reporting and monitoring of the Circuit's more liquid assets in the General Fund.

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.
Circuit Model Trust Reserves D1 To support the funding of projects in the Circuit
Lay Staff Fund D2 A fund set up, setting aside sufficient funds to employ specific lay staff staff for a
designated number of years. E.g. A Pastoral Worker for 5 years.
Manse Refurbishment Fund D3
A temporary project fund, to assist in the management and reporting of refurbishement
work on Circuit property. i.e. Manses and rental property.
John Millar fund D4 A legacy from the Late John Millar for Mission & Ministry project grants in the Circuit
Wanstead Cash Fund D5 A fund receiving the Cash Assets from Wanstead Church into the Circuit
Church Valuation Fund D6 A fund to hold the Property Assets from closing churches - as at Sept 2023 this is just
Wanstead MC
Manse Valuation Fund D7 The freehold properties owned by the circuit used as manses for the ministers stationed
in the circuit. And theproperties rented out.
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.

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FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

21.2 Fund Balances and Movements

21.2.1
21.2.2		 Fund Name Fund Name Opening
Balance		 Incoming
Resources		 Resources
Expended		 Gains on
revaluation		 Transfer Closing
Balance
£ £ £ £ £
Unrestricted Funds
General Fund (excluding
manse fund)		 U 163,549 309,113 (328,381) 144,281
Designated Funds -
-
Circuit Model Trust Reserves D1 833,824 23,982 (71,163) (307,471) 479,172
LayStaff Fund D2 183,555 (38,704) 275,934 420,785
Manse Refurbishment Fund D3 - (31,537) 31,537 -
John Millar Fund D4 250,276 (50,000) 200,276
Wanstead Fund D5 21,029 (10,274) 10,755
Church Value Fund D6 2,786,000 2,786,000
Manse Value Fund D7 4,770,000 4,770,000
Total Designated 5,787,379 3,081,287 (201,678) - - 8,666,988
Total Unrestricted &
Designated		 5,950,928 3,390,400 (530,059) - - 8,811,269
~~-~~
Restricted Funds -
Forest Circuit Pastoral &
Benevolent Fund		 R1 732 - (500) 232
Total Restricted Funds 732 - (500) - - 232
Total Funds
5,951,660 3,390,400 (530,559) - - 8,811,501
0
0
0
0
0

22 Connected organisations and related parties

Connected organisations include the Methodist Connexion, the District and Churches within the Circuit, CFB and TMCP. 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.

Donor: Churches within the Forest Circuit - assessments
Donor / Donee: Churches within the Forest Circuit (grants).
- Loughton / Lighthouse
Total
Name of Connected Organisations
Transfer of assets from Wanstead Methodist Church
Donee: Methodist Church Fund via the London District.
Donor / Donee: the London District (levies / grants)		 Receipts Payments Transfers
£
273,213		 £
(65,000)
(69,131)		 £
(64,884) 2,805,265
273,213 (199,015) 2,805,265

During the year £27,250 (2022 - £Nil) was paid to Zak Njreu in relation to his lay staff contract of employment. Zak Njreu is the husband of trustee Revd Stephanie Njeru.

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FOREST METHODIST CIRCUIT

FOR THE YEAR ENDED 31 AUGUST 2023

DECLARATIONS

Finance Group Convenor

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.

Circuit Finance Group Date 5/4/2024 Convenor Name Hannah Roberts Address 45 Byron Avenue, London, E18 2HH Presentation to the Circuit Meeting for approval. I confirm that the Accounts have been presented to the Circuit Meeting on 21 March 2024

and were approved.

Signature of the Chair of the meeting Name of the Chair of the Revd Michael Long meeting Date 17/4/2024

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FOREST METHODIST CIRCUIT

INDEPENDENT AUDITORS' REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

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 2023 which comprise Statement of Financial Activities, the Balance Sheet, Statement of cash flows and notes to the financial satements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 described 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

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees' annual report2, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 in relation to which the Charities (Accounts and

Responsibilities of trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 6, the trustees are responsible for the preparation of financial statements and for being satisfied that they 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.

Auditor’s responsibilities for the audit of the financial statements

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due 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) will always detect a material misstatement when it exists. 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.

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DocuSign Envelope ID: 1E01B6A8-DA17-4C4C-83BE-70D1E8A900B4

FOREST METHODIST CIRCUIT

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE TRUSTEES OF THE FOREST METHODIST CIRCUIT

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

+The susceptibility of the charity’s financial statements to material misstatement caused by fraud or other irregularities were assessed with the following procedures:

Potential fraud risks that had been identified throughout the planning and commencement of the audit were communicated to the audit team.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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/auditorsresponsibilities. This description forms part of our auditor’s report.

Clay Ratnage Strevens & Hills Suite D, The Business Centre, Farringdon Avenue, Romford, Essex RM3 8EN Chartered Accountants & Statutory Auditor

17/4/2024

Date ……………….

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

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