2024-08-31-accounts - Forest Methodist Circuit

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator. This document is also available as Markdown.

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

The Methodist Church

Annual Trustees Report for

Forest Methodist Circuit

For the Year ended 31[st] August 2024

Forest Circuit Circuit No . 35/33

Registered Charity Registration Number 1134384

Circuit Superintendent Minister The Revd Michael Long and Chair of Trustees Circuit Ministers Revd Oseias Da Silva Revd Sue Creighton ~~SS~~ Revd Stephanie Njeru Circuit Stewards: Florestine Corbett Eric Aidoo from 28 September 2023 Samuel Ebden to 31 July 2024 Circuit Meeting Secretary Dallion Roye Circuit Finance Group Convenor Hannah Roberts Circuit Finance Group Martin Howarth Circuit Finance Group Graham Burgess ~~———~~

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

Forest Methodist Circuit - Trustees’ Annual Report For the year ended 31[st] August 2024

Report Content

1	Reference and Administration Details
	List of the CharityTrustees

2	Objectives and Activities
	- Aims and Organisation
	- Forest Circuit Vision
	- Circuit Goals

3	Review ofprogress and Achievements in theyear
	- The Annual Report
	- Future Plans

4	Financial Review

5	Reserves Policy

6	Structure,Governance and Management
	- Structure
	- Governance
	- Management

7	Related Parties

8	Public Beneft Requirement

9	Trustee Responsibilities
	- General Responsibilities
	- Financial Responsibilities
	- The Church Council
	- The Finance and PropertyCommittee

10	Risk Management

11	Report Approval and signature

Attachments

12	Standard form of Accounts for theyear and accompanyingnotes
	- Statement of Financial Activities
	- Balance sheet
	- Statement of cash fows
	- Notes to the accounts
	- Declarations and Scrutiny

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

Forest Methodist Circuit - Trustees’ Annual Report For the year ended 31[st] August 2024

1. Reference and Administration Details

1.1. The full name of the Charity is Forest Methodist Circuit. “Forest Circuit”. The Forest Circuit is registered as a charity with the Charity Commission in England and Wales. The organisation’s Charity registration number is 1134384
1.2. The address of Forest Circuit for correspondence is - 1 Chester Road, Wanstead, London E11 2JR. The name of the person to whom correspondence should be addressed is Revd Michael Long, the Circuit Superintendent.
1.3. The Circuit's Bankers are: Charity Aid Foundation Bank (CAF Bank) and the Central Finance Board of the Methodist Church "CFB".
1.4. Investments managed by the Circuit are held by Trustees for Methodist Church Purposes “TMCP”.

1.5. Auditors

Clay Ratnage Strevens & Hills were re-appointed as auditors at the Circuit Meeting in September 2024. They have been auditors for the Forest Circuit for 15 years, however a different partner of the firm now has responsibility for the Forest Circuit Audit.

1.6. Disclosure of information to Auditors :
As far as the trustees are aware:
there is no relevant 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.
1.7. The Charity's Managing Trustees are those members of the Circuit Meeting who have agreed to be the Trustees of the Forest Circuit. The membership of the Circuit Meeting is governed by the Standing Orders of the Methodist Church.

The Forest Circuit Trustees that served during the year are listed below:

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

Forest Methodist Circuit - Trustees’ Annual Report For the year ended 31[st] August 2024

Trustees of the Circuit	Date Retired as Trustee	Appointed since 1 September 2023

Revd Oseias da Silva
Revd Sue Creighton
Revd Michael Long
Revd Stephanie Njeru
Revd Jongikaya Zihle
Revd ArmstrongFummey
Dallion Roye		15/01/24
Florestine Corbett
Janet Tweedale
Graham Burgess
GaryIan Marshall
Martin Howarth
Sharon Heather
Stephen Murray
Loyl Marcia Brandt
Elvena Bernita Brumant
Leslie Stowe
Pat Evans
Hannah Roberts
Carole Merriman
Jean Norton
Hazel Mathews
Pat Ovenden
Kathleen Poole
Michael Higgins	31/08/24
Andronica Mugombe
Phyllis Lloyd
Millicent Freeman
Jojo N Monney
Eunice Edwards
Stella Heskey
Samuel Ebden	31/07/24
Eric Aidoo

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

Forest Methodist Circuit - Trustees’ Annual Report For the year ended 31[st] August 2024

2. Objectives and Activities

2.1. Aims and organisation

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

to secure and sustain the Circuit’s viability and future
to give assurance to the general public that the Circuit, which is a charity intends to use all of the money coming into its care for the purpose of the charity.

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.

Worship: Attributing worth to God, Father, Son and Holy Spirit
Bible knowledge: Engaging with the scriptures in our daily lives
Serving the community: concern and help for the needs of the local community
Diversity and cultural relevance: maintaining the rich diversity of the churches and circuit and communicating the Gospel effectively
Empowered laity: Recognising the ministry of the whole people of God
Safeguarding: Creating safer spaces for all including children and vulnerable adults
Quest for a just world: Actively working for peace with justice

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

ministerial oversight and pastoral care of the local churches in the circuit
the support of a ministry team of presbyteral ministers and supernumerary ministers
and the maintenance of manses and other property in the trusteeship of the Circuit

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

3. Review of Progress and Achievements

3.1. Forest Circuit Annual Report

In September 2023, the Circuit welcomed the new Circuit Superintendent Revd Michael Long. Under his leadership the Forest Circuit began reviewing the next steps for the Circuit, in considering the implementation of the Circuit’s Mission and Strategy, the use of Circuit Property and the roles needed to support the Circuit for the future. Awaydays were held allowing the Circuit Leadership Team (CLT) to explore this area.

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

Forest Methodist Circuit - Trustees’ Annual Report For the year ended 31[st] August 2024

The use of the closed church buildings was explored. For the short term, agreements and licences were established with churches of other denominations ensuring continued use of the buildings and assisting with the upkeep costs. This gives more time for consideration of the longer term future for the buildings. The management, maintenance and compliance of the buildings was the responsibility of the Circuit Property manager. He established a Minor Works agreement with a contractor enabling a quicker response for small jobs at a discounted cost. This was agreed by the Circuit Meeting.

The Circuit Property Manager, Reinart Van Zyl, gave notice in March that he would be leaving the Circuit in July 2024 to emigrate. The Circuit was grateful for his work in the year. The long notice period he gave allowed the Circuit more time to reconsider the role. A known contractor was engaged for a short term giving the Circuit time to rethink the operational support roles needed.

The Circuit meeting agreed that the Circuit’s residential property on the Ridgeway would not be needed as a manse and should be let. The cost of preparing the property for letting could be expected to be covered in under 18 months.

Revd Armstrong Fummey was appointed to provide pastoral oversight for South Chingford till Aug 2025. Revd Oseias Da Silva used part of his sabbatical to continue walking the Pilgram way Santiago Compostela, exploring solitude and a retreat focused on crossroads.

Grants were awarded to Loughton and Lighthouse from the newly established John Millar fund focusing on hospitality, catering and outreach.

Training made available in the year covered; Safeguarding; Equality, Diversity and Inclusion; and finance awareness and governance in the methodist church.

The Circuit had a successful and uplifting May with two Circuit Events. The first on the 19[th] May brought the Circuit churches together for a meal and Pentecost Celebration. The second on the 25[th] May was a Circuit trip to Epworth to the Wesley Memorial Methodist church.

3.2. Future Plans

Following the Circuit Invitation Committee Consultation, Revd Stephanie Njeru was reinvited for a further two years. After 12 years in the Forest Circuit, Revd Oseias da Silva would be seeking restationing, and would be leaving the Forest Circuit in July 2025.

10 young people from the Circuit were expected to attend the Re-Gen weekend at the NEC in Birmingham.

A new role of Operations Manager was advertised in the autumn of 2024. David Bishop would take up the role in December 2024. Following a period familiarisation with the Circuit and their churches, David would initially focus on property related matters then begin to take responsibility for financial operations.

2 organisations had expressed interest in long term use of the Circuit managed church buildings. Consultations would be held to explore further these options.

4. Financial Review

Total Income in the year was £360,435. The General fund income was £299,193 of which £266,290 was due from church assessments. Investment properties income was £23,232 from the net rental

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

Forest Methodist Circuit - Trustees’ Annual Report For the year ended 31[st] August 2024

of the Hollywood Way and £8,540 was received from Church lettings. Other miscellaneous irregular income amounted to £3,042. Interest received was £59,331 from accounts at CFB and TMCP. 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 £55,703 to £54,257.

The total expenditure in the year was £580,184. The General fund expenditure was £337,471 giving a net deficit for the fund of £38,278. 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 £22,322 Manse repairs and maintenance from the General Fund, £36,956 was spent in the year on the Church Buildings managed by the Circuit and £43,947 on the residential property managed and let or to be let by the Circuit.

Grants were made to Lighthouse MC from the John Millar Fund towards their kitchen refurbishment 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 funds were drawn down to ensure such funds will be available to pay employed staff salaries, expenses etc. till approximately 2027. £80,801 was used from this fund in the year

North Chingford assets were incorporated into the Circuit Accounts as of 1[st] September 2023. £12,677 in cash and the approximate value of the building £2,785,250 into capital. These amounts were moved to a designated fund relating to the North Chingford property.

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.

5. Reserves Policy and Level

5.1. Reserves Policy

The Circuit needs to maintain a current assets operating reserve approximately equal to six 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 also been made from Capital Reserves to pay the salary and expenses of two lay workers for the Circuit till approximately 2027. This is shown in a separate designated fund.

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 the buildings of Wanstead Methodist Church and North Chingford Methodist church. The future of the buildings is yet to be decided.

5.2. Explanation and reserves level

Fixed Assets: (Designated)

The Circuit currently has six residential properties. Four of the properties are used as manses for ministers stationed in the Circuit. One property is let, and another property is being

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

Forest Methodist Circuit - Trustees’ Annual Report For the year ended 31[st] August 2024

prepared for letting. Total value of the residential properties used as manses is £3,295,000. The value of the properties being let is £1,475,000. The church buildings of Wanstead Methodist Church, and North Chingford are valued at £5,571,250.

The total Circuit unrestricted current assets amount to £1,125,945. This includes: £54,257 of debts due from Circuits which are being paid off over a number of years; £339,984 designated to pay the salary & expenses of lay pastoral workers till approximately 2027; and a legacy of £157,552 designated for mission grants. This leaves £574,152 This is well in excess of twelve months reserves.

Restricted fund

The Circuit’s Benevolent find is the only restricted fund at the end of the year.

6. Structure, governance and Management

6.1. Structure

Forest Circuit 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 is a charity, registered with the Charity Commission on the 18[th] February 2010. It is part of the London District of the Methodist Church. Overall regulatory authority rests with the Methodist Conference. There are nine local churches in the Forest Circuit.

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. Decisions are made at or ratified by the Circuit Meetings. A District is the coordinating charity for a group of contiguous circuits and makes its decisions at half yearly synods.

Overall regulatory authority rests with the Methodist Conference. The Connexional office implements decisions made by Conference and is also responsible for the stationing of presbyters and deacons (collectively known as ministers) in individual Circuits within the District.

Connexional decisions are passed to the Chair of the Districts and the appropriate officers of the District for implementation.

The District delegates authority to the Circuit Meeting for local implementation by the Superintendent Minister, Ministerial staff and Circuit Stewards.

The Circuit Meeting passes regulatory control down to Church Councils for local implementation by the presbyter, the Church Stewards, and other officers, and this regulatory authority is then exercised by church councils as Managing Trustees of their charity.

6.2. 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 Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church,
any charitable purposes for the time being of any connexional, District, Circuit, local or other organisation of the Methodist Church,

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

Forest Methodist Circuit - Trustees’ Annual Report For the year ended 31[st] August 2024

any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church,
any purpose for the time being of any charity being a subsidiary or ancillary of the Methodist Church
providing opportunities for Churches to work together and support each other
o offering to Churches, resource of finance, personnel and expertise.

The District serves the Local churches and Circuits and the Conference in the support, development and oversight of the various ministries of the church, and in programmes of training.

6.3. Governance

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

Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by the 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

6.4. Management

Day to day management of the Forest Circuit, between Forest Circuit Meetings is undertaken by the Circuit Leadership team (CLT), supported by the Circuit Finance Group. The Local Preachers meeting exercises oversight over those authorised to lead worship. The CLT act on behalf of the Forest Circuit Meeting between Circuit Meetings. The CLT is appointed by the Forest Circuit Meeting and consists of the Ministerial and Lay staff, Circuit Stewards and members of the Circuit Finance Group.

7. Related Parties

The Forest Methodist Circuit is part of the London District of the Methodist church and is therefore 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.

8. 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:

The organisation must have an identifiable benefit.

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

Forest Methodist Circuit - Trustees’ Annual Report For the year ended 31[st] August 2024

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

The church exists to:

increase awareness of God’s presence and to celebrate God’s love;
help people to learn and grow as Christians, through mutual support and care; and
be a good neighbour to people in need and challenge injustice.

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

9. Circuit Trustee Responsibilities

9.1. General Responsibilities Include:

formulation and promotion of policies which will advance the mission of the Forest Circuit of the Methodist Church in the local Churches in the circuit, in particular, to supervise the use of resources of personnel, property and finance and to assist Local Churches which have exceptional problems,
encouragement of ecumenical co-operation
keeping within its purview all Church concerns not dealt with elsewhere,
constantly being aware of the public benefit guidance issued by the Charity Commission

9.2. Financial Responsibilities include:

a) ensuring that sufficient accounting records are kept which disclose with reasonable accuracy at any time the financial position of the Forest Methodist Circuit and enables them to ensure that the financial statements comply with the law and Standing Orders of the Methodist Church.
b) safeguarding the assets of the Church and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
c) ensuring financial statements are prepared for each financial year ending 31st August, that give a true and fair view of the Church's financial activities during the year and of its financial position at the end of the year

In preparing these financial statements, the Trustees must:

a) select suitable accounting policies and then apply them consistently;
b) make judgements and estimates that are reasonable and prudent;
c) ensure accounts comply with the Charities Statement of Recommended Practice (SORP);
d) follow applicable accounting standards subject to any material departures disclosed and explained in the accounts
e) prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
f) be aware that the stipend of the Ministers stationed in the Circuit is set by the Methodist Conference – currently by reference to the change over a year in the Consumer Price Index and to the annual change in the Average Weekly Earnings Index – using a formula that was agreed by the Methodist Conference for all ministers within the Connexion

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

Forest Methodist Circuit - Trustees’ Annual Report For the year ended 31[st] August 2024

9.3. The Forest Circuit Meeting

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

a) to encourage the Circuit to consider its Vision, and enable it to achieve its Goals
b) to monitor the life and mission of the whole Circuit
c) to identify and advocate strategic policy directions
d) to oversee formal authorisations and approvals
e) to ensure essential appointments are made and compliances met

9.4. The Circuit Leadership Team

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.

10. Risk Management

The Circuit Meeting considers the various risks facing the circuit and the impact and the likelihood of issues occurring. 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:

a) Safeguarding Risks
b) Governance Risks including Trustees’ Responsibilities
c) Financial Risks
d) Operational Risks including Resources, People and Property
e) External Risks and Legal Risks

11. Report Approval

24/6/2025

The report was approved by the trustees on ………………………… and signed on their behalf by

Micdcacl Wl [ony

……………………………………..

Revd Michael Long

Forest Circuit Superintendent Minister and Chair of Trustees

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2024

		Notes	General Fund (Unrestricted) £	Reserves, & Investment Funds (Designated) £	Lay Workers Fund (Designated) £	Manse / Church Valuation (Designated) £	Circuit Benevolent fund (Restricted) £	Total 2023-24 £	Total 2022-23 £
Incoming Resources
1	Donations & Legacies	3	-		-	-	-	-	250,276
2	Interest and Investment Income	4	32,741	26,590	-	-	-	59,331	36,650
3	Rent / Lettings Received	4	-	31,772	-	-	-	31,772	23,232
4	Assessment on Churches	2	266,290	-	-	-	-	266,290	273,213
6	Capital Receipts		-	-	-	-	-	-	-
7	Grants received(E.g. from DAF)		-	-	-	-	-	-	-
8	Other income (Closed church)	5	162	2,880	-	-	-	3,042	1,764
9	Total Incoming Resources		299,193	61,242	-	-	-	360,435	585,135
10	Resources Expended
11	Grants and Donations	6	885	50,000	-	-	-	50,885	65,950
12	Salaries and associated costs	7	184,324	-	79,689	-	-	264,013	212,379
13	Property (incl Ins., C tax, utilities etc)	8	40,862	80,903	-	-	-	121,765	79,580
14	Connexional Assessment & CPF Levy		70,736	-	-	-	-	70,736	64,884
15	District Assessment & DAF Levy		11,900	29,553	-	-	-	41,453	69,131
16	Depreciation		471	-	-	-	-	471	470
17	Office Expenses incl Investment Managment costs(Admin.,tel. travel	9	18,383	1,456	1,112	-	-	20,951	18,270
18	Other Expenditure (incl admin fees)	10	5,110	-	-	-	-	5,110	15,208
19	Accountancy & Audit	11	4,800	-	-	-	-	4,800	4,687
20	Capital Expended		-	-	-	-	-	-	-
21	Total Resources Expended		337,471	161,912	80,801	-		580,184	530,559
22	Net Incoming/(Outgoing) Resources		(38,278)	(100,670)	(80,801)	-		(219,749)	54,576
23	Transfers between funds		-	-		-	-	-	-
24	Sub Total		(38,278)	(100,670)	(80,801)	-		(219,749)	54,576
25	Gains/(losses) on disposal of Manse		-	-	-	-	-	-	-
26	Gains/(losses) on revaln fixed assets		-	-	-	-	-	-	-
27	Gains/(losses): on investment assets		-	-	-		-	-	-
28	Net investment in funds		(38,278)	(100,670)	(80,801)	-	-	(219,749)	54,576
29	Transfer of Balances to the Circuit from North Chingford Methodist Chuch		-	12,677	-	2,785,250	-	2,797,927	2,805,265
30	Total funds brought forward from last year		144,281	690,203	420,785	7,556,000	232	8,811,501	5,951,660
31	Total funds carried forward at end of year		106,003	602,210	339,984	10,341,250	232	11,389,679	8,811,501
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								- 850 850 -
								-	2,187
								850	-
								850	2,187
								-	-

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

Final Accts 23-24 Forest - Final.xlsx, SOFA

Page 12

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

BALANCE SHEET

AS AT 31 AUGUST 2024

*AS AT 31 AUGUST 2024*	*AS AT 31 AUGUST 2024*	*AS AT 31 AUGUST 2024*	*AS AT 31 AUGUST 2024*	*AS AT 31 AUGUST 2024*	*AS AT 31 AUGUST 2024*	*AS AT 31 AUGUST 2024*	*AS AT 31 AUGUST 2024*	*AS AT 31 AUGUST 2024*
Notes General Fund (Unrestricted) Reserves Funds (Designated) Lay Workers Fund (Designated) Property Valuation (Designated) Circuit Benevolent fund (Restricted) Total 2024 Total 2023 £ £ £ £ £ £ ~~TTT~~
Tangible Fixed Assets
Manse and otherproperty 13 - - - 3,295,000 - 3,295,000 3,295,471 Investmentproperties 13 - - - 7,046,250 - 7,046,250 4,261,000 Investments with TMCP - - - - - - - *Total fixed assets* - - - 10,341,250 - 10,341,250 7,556,471 ~~————————~~
Current Assets
Debtors and Prepayments 14 72,522 - - - - 72,522 82,432 Trustees for Methodist Church Purposes - Interest Accounts 15 - 474,276 - - - 474,276 515,737 Central Finance Board Deposits 16 75,200 132,934 339,984 - - 548,118 740,445 Cash at Bank and in hand 16 31,029 - - 232 31,261 35,104 *Total current assets* 178,751 607,210 339,984 - 232 1,126,177 1,373,718 ~~SESE~~
Current Liabilities
Creditors (due in under 1 year) 17 72,748 5,000 - - - 77,748 118,688 - - - - - - - Total current liabilities 72,748 5,000 - - - 77,748 118,688 Net current(liabilities)/assets 106,003 602,210 339,984 - 232 1,048,429 1,255,030 ~~========~~
*Total assets less current liabilities*		106,003	602,210	339,984	10,341,250	232	11,389,679	8,811,501
Long term liabilities
liabilities due after 1 year		- - - - - -	- - - - - -	- - - - - -	- - - - - -	- - - - - -	- - - - - -	-

*Net assets*		106,003	602,210	339,984	10,341,250	232	11,389,679	8,811,501
Funds of the Circuit	21
General Fund(Unrestricted)		106,003					106,003	144,281
Reserves & Projects(Designated)			602,210	339,984			942,194	1,110,988
Manse fund(Designated)					10,341,250		10,341,250	7,556,000
Total Unrestricted funds							11,389,447	8,811,269

Benevolent Fund(Restricted)						232	232	232
*Total Funds*		106,003	602,210	339,984	10,341,250	232	11,389,679	8,811,501

The Notes on pages 15 to 25 form part of these accounts.

…………………………………………….

Revd Mike Long Circuit Superintendent and Chair of Trustees

Final Accts 23-24 Forest - Final.xlsx, Bal sht

Page 13

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

STATEMENT OF CASH FLOWS

AS AT 31 AUGUST 2024

	Total Funds £	Prior year funds £
Cash flows from operating activities:
Net income/(expenditure) for the reporting period (as per the statement of financial activities)	2,578,178	2,859,841
Adjustments for:
Depreciation charges	471	470
(Gains)/losses on investments and fixed asset revaluation	-	-
Dividends, Interest and rents from investments	(91,103)	(59,882)
Loss/(profit) on the sale of fixed assets	-
Property transferred to Circuit	(2,785,250)	(2,786,000)
(Increase)/decrease in stocks	-	-
Decrease in debtors	9,910	1,260
(Decrease)/increase in creditors	(40,940)	60,080

Net cash provided by/(used in) operating activities	(328,734)	75,769
Cash flows from investing activities:

Dividends, interest and rents from investments	91,103	59,882
Proceeds from the sale of property, plant & equipment		-
Purchase of property, plant and equipment	-	-
Proceeds from sale of investments	-	-

*Net cash provided by (used in) investing activities*	91,103	59,882
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	(237,631)	135,651
Cash and Cash equivalents at the beginning of the reporting period	1,291,286	1,155,635
Change in Cash and Cash equivalents due to exchange rate movements	-	-
Cash and Cash equivalents at the end of the reporting period	1,053,655	1,291,286
Cash in hand (at bank,- HSBC,CFB, TMCP) Notice deposits (less than 3 months) Overdraft repayable on demand
	1,053,655	1,291,286
	-	-
	-	-
*Total cash and equivalents*	1,053,655	1,291,286

Final Accts 23-24 Forest - Final.xlsx, Cashflow

Page 14

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

1 Accounting framework and accounting policies

i Accounting framework

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

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 transaction value 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.

Final Accts 23-24 Forest - Final.xlsx, 1 Notes Acct Pol

Page 15

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

ix Grants

Grants are recognised annually only as and when any performance conditions attaching to the award are met, even when the award 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 Circuit 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.

Final Accts 23-24 Forest - Final.xlsx, 1 Notes Acct Pol

Page 16

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

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 Leytonstone Leyton Trinity Lighthouse Loughton (incorporating Trinity Debden since Sept 2020) Shern Hall South Chingford Winchester Road Woodford North Chingford

An assessment apportionment was drafted in line with previous calculations. i.e. using factors, such as church capita, and a factor to reflect a church's ability to pay. The ability to pay factor being based on a church's total funds as a percentage of the combined churches' total funds. The draft assessments were circulated to church treasurers for discussion following which some basis figures were received, updated and the figures recirculated. These adjusted figures were proposed and agreed at the Circuit Meeting.

It was stated that if sufficient income was not received from interest or letting of the vacant properties, the circuit would again need to use the caplital obtained from the residential properties sold in recent years. An estimate of £40,000 was accepted, on the understanding that this was not sustainable.

Donations Received John Millar Legacy Total Donations & legacies		2023-24 - -	2022-23 250,276
			250,276

3 Donations Received

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.

4.1	Interest Received General Fund Forest Circuit Model Trust Fund Wanstead Accounts before amalgamation North Chingford Accounts before amalgamation Total Interest & Investment Income	Fund Type Held at U CAF&CFB U TMCP TMCP & CFB CFB & CAF	Fund Type Held at U CAF&CFB U TMCP TMCP & CFB CFB & CAF	2023-24 32,741 26,113 302 175 59,331		2022-23
						12,668 23,982 - -
						36,650

Final Accts 23-24 Forest - Final.xlsx, 2-6 Income & Grants

Page 17

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

4.2 Income from investment Properties

Residential Property Rental Gross Hollywood Way 26,400 Total Residential Property Income Lettings at Circuit Church buildings Wanstead North Chingford Total Circuit Church buildings Total Circuit Investment Property Income 5 Other Income Circuit Service Offerings / Tax claim re Wanstead Offerings / Tax claim re N Chingford 6 Grants, donations and related Support costs	Agents Fees -3,168	Agents Fees -3,168	2023-24 23,232 23,232 6,740 1,800 8,540 31,772 2023-24 162 465 2,415 3,042	2022-23
	-3,168			23,232
				23,232 - -
				-
				23,232
				2022-23
				- 1,764 -
				1,764

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) Lighthouse (from John Millar Fund - for Kitchen) Lighthouse (from Circuit Funds - for Heating & repairs) Total Grants from Model Trust fund Reserves Benevolent Fund Grants Donations / Gifts Total		2023-24 - 50,000 - 50,000 - 885 50,885	2022-23 50,000 15,000
			65,000
			500 450
			65,950

Final Accts 23-24 Forest - Final.xlsx, 2-6 Income & Grants

Page 18

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

7 Salaries and associated costs 2023-24 2022-23 124,075 115,969 11,579 10,552 31,247 29,541 Stipend apprenticeship Levy & P11D charge 1,108 534 81,194 48,979 7,373 4,123 6,544 1,951 Payroll administration charge and apprenticeship Levy for lay staff 893 730 264,013 212,379 Lay StaffGross Pay (Part time Administrator, Pastoral worker Full time, Property & Facilities manager Full time to July) Gross StipendsPaid - 4.15 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		2023-24 124,075 11,579 31,247 1,108 81,194 7,373 6,544 893	2022-23
			115,969 10,552 29,541 534 48,979 4,123 1,951 730

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.

Ministers stipends and expenses are paid from the general fund, which is funded principally from assessments. Lay staff salaries and expenses are paid from a designated fund drawn from Capital reserves at the point the roles were initially agreed. This fund will need to be reviewed every few years to ensure sufficient funds are in place to pay lay staff for the coming years.

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.

Lay staff are enrolled in the TPT Retirement Solutions Pension Scheme. The Circuit's contribution is 6% of salary.

8	Property costs Operational Property (Manse) Costs Professional Fees and Survey costs Manse Renovation costs (from Reserves) Total Council tax Repairs, Maintenance, checks and renewals Insurance and Utilities		2023-24 22,322 7,267 11,273 - - 40,862	2022-23
				15,862 6,758 12,644 2,505 31,537
				69,306

Final Accts 23-24 Forest - Final.xlsx, 7-11 Notes

Page 19

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

*FOR*	*THE YEAR ENDED 31 AUGUST 2024*	*THE YEAR ENDED 31 AUGUST 2024*
8 9 10 11	Property costs cont Investment Property Costs 2023-24 Church Buildings Wanstead North Chingford Total Utilities & Fire Extinguishers 2,640 1,450 4,090 Insurance 3,767 12,089 15,856 Cleaning 1,471 1,269 2,740 Professional Fees - surveys 650 650 1,300 Repairs, Maintenance 6,923 70 6,993 Other, e.g. Clearing 2,275 3,702 5,977 Total Expenditure 17,726 19,230 36,956 Residential Properties Hollywood Way The Ridgeway Utilities & Fire Extinguishers 786 786 Council tax 3,055 3,055 Professional Fees - surveys 525 525 Repairs, Maintenance 7,958 31,344 39,302 Other, e.g. Clearing 279 279 7,958 35,989 43,947 Total Circuit Property costs 121,765 Office expenses & investment management fees 2023-24 Office expenses & other ministerial costs 4,288 Telephones & Broadband 6,894 Travel & Parking 4,948 Ministerial Worship Resources & Support 2,253 18,383 Lay staff Expenses 1,112 Total 19,495 Investment management During the year the Circuit paid the following amounts to TMCP as custodians of the Trust Funds Circuit Model Trust Fund 1,456 1,456 Office expenses & other ministerial costs Total 20,951 Other Expenditure 2023-24 General Fund (U) Other items Training & Special Activties, e.g. Epworth visit, Pentecost celebrations, 705 2,474 Youth Work 500 Health checks 765 Bank charges & Auditor's letter 74 Sundries (Website hosting, job advets,etc.) 592 Removal Costs - 5,110 Total Other Expenditure & Training 5,110 Fees for Accountancy and Audit of the Accounts 2023-24 Auditor's Fee 2,400 Other Fees (e.g. accountancy services) 2,400 4,800 Total Preachers fees and expenses Total Printing, postage and stationery		2022-23
			Total 4,213 3,901 667 - 970 523	Total
			10,274
			79,580
			2022-23 3,487 6,470 3,295 2,642
			15,894 -
			15,894
			2,376
			2,376
			18,270
		2023-24 705 2,474 500 765 74 592 -	2022-23 357 1,023 350 - 74 1,592 11,812
			15,208

		5,110	15,208
		2023-24 2,400 2,400	2022-23 2,351 2,336
		4,800	4,687

Final Accts 23-24 Forest - Final.xlsx, 7-11 Notes

Page 20

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

12 Manse Valuations

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

A review has been initiated to provide an updated professional market valuation of properties to reflect in the annual accounts next year and to provide a more accurate rebuild cost for insurance cover.

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 at*31st Aug 2023*	3,295,000 4,261,000	7,556,000	11,247 -	11,247	7,567,247
Additions in the year (N. Chingford revaluations in the year less: disposals in year Transfers between categories Balance at*31st Aug 2024*	- 2,785,250 - - - -	2,785,250 - - -	- - - - - - - -	- - - -	2,785,250 - - -
	3,295,000 7,046,250	10,341,250	11,247 -	11,247	10,352,497
Accumulated depreciation
	Manse Property Investment Property	Total Land & Buildings	Equipment & Software Furniture	Total Other Property	Total
Changes Balance at*31st Aug 2023* Depreciation charge for the year revaluations in the year less: disposals in year Balance at*31st Aug 2024*	£ £ - - - - - - - -	£ - - - -	£ £ 10,776 - 471 - - - - -	£ 10,776 471 - -	£ 10,776 471 - -
	- -	-	11,247 -	11,247	11,247
NB: Years over which value is depreciated 3 3 Net Value
	Manse Property Investment Property	Total Land & Buildings	Equipment Furniture	Total Other Property	Total
Balance at*31st Aug 2023* Balance at*31st Aug 2024*	£ 3,295,000 4,261,000	£ 7,556,000	£ £ 471 -	471	£ 7,556,471
	3,295,000 7,046,250	10,341,250	- -	-	10,341,250

Two residential properties are no longer needed as Manses.

Hollywood Way Property - this is already rented out
The Ridgeway Property - It has taken some time to prepare the property for rental. A tenant took up occupation in November 2024. These two properties are included in the Property investment Fund £1,475,000

Wanstead church has been under the responsibility of the Forest Circuit since 1st September 2022. £2,786,000 North Chingford church closed for worship and the building came under the responsibility of the Forest Circuit on 1st September 2023. The North Chingford property Valuation has been added to the Investment Fund. £2,785,250

The long term use of these church buildings is as yet undecided. In the meantime the buildings are let to various organisations. Also a fellowship group meet at Wanstead

Final Accts 23-24 Forest - Final.xlsx, 13 Note Fixed Assets

Page 21

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

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.

2023-24 2022-23 Amount outstanding from churches at Year End £ £ Leyton (Trinity) Assessments 9,917 11,361 Lighthouse Assessments & other item 44,340 44,342 Total 54,257 55,703 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/ per year over 15 years from 202 3,852 5,927 14,413 13,526 Other sundry debtors, e.g. remaining John Millar Payment - 7,276 Total 18,265 26,729 72,522 82,432 Total Prepayments and accrued income Council tax & Utilities Stipend		2023-24 £ 9,917 44,340	2022-23 £ 11,361 44,342
		54,257	55,703

Lighthouse aim to pay the amount owed to the Circuit by approx £3,366/ per year over 15 years from 2023.

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.

Before the start of the year, the Forest Circuit had responsibility for: 2 residential properties, which are now rented out; and the Wanstead Church building, which is periodically let.

In September 2023 the Circuit Trustees took responsibility for North Chingford Methodist Church building after the Church ceased to worship. A decision is yet to be made on what to do with the building. While possibilities are being explored, the building is being let to a church from another organisation.

16 Central Finance Board (CFB) and cash at banks

The Circuit carries out most of its business through its CAF Bank account (Charities Aid Foundation), which was opened in October 2020. The account with CAF bank facilitates online banking with dual authorisation. CAF is an authorised institution. The sums held on the account are immediately available.

In taking responsibility for the Assets of Wanstead Methodist Church and North Chingford Methodist Church, their accounts at HSBC, CFB, TMCP and Barclays are transferred on to the Circuit Balance Sheet. The balances in these accounts have been transferred into the Circuit bank accounts and the accounts of Wanstead and North Chingford Churches closed.

The Circuit has a deposit account at CFB. Interest earned on this account is credited monthly; the sums deposited can be withdrawn without notice and without loss of interest.

Final Accts 23-24 Forest - Final.xlsx, 14-20 Notes CR

Page 22

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

17 Creditors and accrued expenses

Other Creditors unpaid as at EOY Pension Back payments Grant to Loughton 2023 - remaining undrawn 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		2023-24 £ 4,815 2,493 6,853 1,770 5,000 - -	2022-23 £ 4,701 5,797 - 210 50,000 600 -
		20,931	61,308
		56,817 -	57,380 -
		56,817	57,380
		77,748	118,688

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:		2023-24 -	2022-23 -
			-

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
Peak Uk ltd (Printer / copier) 4Com Network (Mobile phones)	5 year contract 1 year contracts	24/04/2029 01/05/2025	quarterly monthly	1,718 1,464	8,592 1,464

Final Accts 23-24 Forest - Final.xlsx, 14-20 Notes CR

Page 23

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

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.

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 mayagree from time to time to transfer funds from a designnated fund.
Operational Funds
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 for a designated number of years. E.g. A Pastoral Worker for 5 years. This fund needs to be reviewed at least every couple of years to ensure sufficient funds are available to cover lay salaries for the years ahead.
John Millar fund	D3	A legacy from the Late John Millar for Mission & Ministry project grants in the Circuit. Grant criteria have been agreed. Applications are invited from Churches using a form indicating the information required. Grants cannot be paid if a church's financial and property reporting is not up to date.
Manse Valuation Fund	D4	The value of the freehold properties owned by the Circuit, used as manses for the ministers stationed in the circuit.
Investment Funds
Hollywood Way Fund	D5	To assist the monitoring of the profitablilty of the residential property - Hollywood Way.
The Ridgeway Fund	D6	To assist the monitoring of the profitablilty of the residential property - The Ridgeway.
Wanstead Cash Fund	D7	To assist the monitoring of the profitablilty of the Wanstead church building.
North Chingford Fund	D8	To assist the monitoring of the profitablilty of the North Chingford church building.
Church Valuation Fund	D9	The value of the non residential freehold properties managed by the Circuit. I.e. Wanstead MC and North Chingford MC buildings.
Residential Investment PropertyValue	D10	The value of the freehold residential properties owned by the Circuit, i.e.Hollywood Way & The Ridgeway.
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.

Final Accts 23-24 Forest - Final.xlsx, 21-23 Funds Notes

Page 24

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

21.2 Fund Balances and Movements

Fund Name	Fund Name	Opening Balance	Incoming Resources	Resources Expended	Gains on revaluation	Transfers In & between	Closing Balance
		£	£	£	£		£
Unrestricted Funds
General Fund (excluding manse fund)	U	144,281	299,193	(337,471)			106,003
Designated Funds		- -
Operational Funds		- -
Circuit Model Trust Reserves	D1	471,896	26,113	(31,009)		(22,342)	444,658
LayStaff Fund	D2	420,785		(80,801)			339,984
John Millar Fund	D3	207,552		(50,000)			157,552
Manse Value Fund	D4	4,770,000				(1,475,000)	3,295,000
Investment Funds
Hollywood Way	D5	-	23,232	(7,958)		(15,274)	-
The Ridgeway	D6	-	-	(35,989)		35,989	-
Wanstead Fund	D7	10,755	7,507	(17,726)		(536)	-
North Chingford Fund	D8	-	4,390	(19,230)		14,840	-
Church Value Fund	D9	2,786,000				2,785,250	5,571,250
Residential Investment PropertyValue	D10	-				1,475,000	1,475,000
Total Designated		8,666,988	61,242	(242,713)	-	2,797,927	11,283,444


Total Unrestricted & Designated		8,811,269	360,435	(580,184)	-	2,797,927	11,389,447
							~~-~~
Restricted Funds		-
Forest Circuit Pastoral & Benevolent Fund	R1	232	-				232
Total Restricted Funds		232	-	-	-	-	232
Total Funds
		8,811,501	360,435	(580,184)	-	2,797,927	11,389,679

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.

Receipts	Payments	Transfers
£ 266,290	£ (50,000) (41,453)	£
	(70,736)	2,797,927
266,290	(162,189)	2,797,927

A salary of £29,106 (2023 - £27,250) was paid to Zakayo Njeru Nyaga in the year for services provided as a Circuit pastoral worker. Zakayo Njeru Nyaga is the husband of Circuit Trustee Rev. Stephanie Njeru.

Final Accts 23-24 Forest - Final.xlsx, 21-23 Funds Notes

Page 25

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

FOR THE YEAR ENDED 31 AUGUST 2024

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 24/6/2025 Convenor ~~Fite~~ Name Hannah Roberts ~~fF |~~ 2S L__ Address 7 Marine Terrace, Waterloo Port, Caernarfon, LL55 1LP Presentation to the Circuit Meeting for approval. I confirm that the Accounts will be presented to the Circuit Meeting on ~~a~~ 24th June 2025

and were approved, subject to Audit

Signature of the Chair of the meeting Name of the Chair of the Revd Michael Long meeting Date ~~fF~~ 24/6/2025 ~~|~~

Final Accts 23-24 Forest - Final.xlsx, Declaration

Page 26

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

INDEPENDENT AUDITORS' REPORT

FOR THE YEAR ENDED 31 AUGUST 2024

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 2024 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).

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s 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.

In our opinion the accounts:

give a true and fair view of the state of the charity’s affairs as at 31 August 2024 and of its incoming resources and application of resources, including income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.

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.

Final Accts 23-24 Forest - Final.xlsx, Audit Report

Page 27

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

FOREST METHODIST CIRCUIT

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE TRUSTEES OF THE FOREST METHODIST CIRCUIT

Other information

The other information comprises the information included in the trustees' annual report, 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.

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 Reports) Regulations 2008 require us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the trustees’ report;
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 10, 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.

Final Accts 23-24 Forest - Final.xlsx, Audit Report

Page 28

Docusign Envelope ID: C88B21DA-5170-473F-A19F-8656F205EE5F

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:

Obtaining an understanding of the legal and regulatory frameworks applicable to the charity. + Obtained an understanding of how the charity is complying with those legal and regulatory frameworks by making enquiries to the trustees.

+The susceptibility of the charity’s financial statements to material misstatement caused by fraud or other

Identifying and assessing the design effectiveness of controls which trustees have in place to prevent and detect fraud
Understanding how those charged with governance considered the potential for override of controls and management biases
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations

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.

Use of our report

Clay Ratnage Strevens & Hills

Suite D, The Business Centre, Faringdon Avenue, Romford, Essex RM3 8EN Chartered Accountants & Statutory Auditor

24/6/2025

Date ……………….

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

Final Accts 23-24 Forest - Final.xlsx, Audit Report

Page 29