DocuSign Envelope ID: 08D19FB9-C087-4E81-A25C-49BB7E9D12D1
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The Methodist Church - Hackney and Stoke
Newington Circuit
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(London District – Circuit No 35/10)
Charity Registration Number 1134389
Accounts for the year ended 31 August 2021
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2021
DocuSign Envelope ID: 08D19FB9-C087-4E81-A25C-49BB7E9D12D1
## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
|**TABLE OF CONTENTS**|**Page**|
|---|---|
|**REFERENCE AND ADMINISTRATIVE DETAILS**|**3**|
|**TRUSTEES’ REPORT**|**4 – 7**|
|**STATEMENT OF TRUSTEES’ RESPONSIBILITIES**|**8**|
|**INDEPENDENT EXAMINER’S REPORT**|**9**|
|**STATEMENT OF FINANCIAL ACTIVITIES**|**10-11**|
|**BALANCE SHEET**|**12**|
|**NOTES TO THE ACCOUNTS**|**13- 20**|
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Reference and Administrative Details**
## **Names and addresses**
The address of the registered office for the Hackney and Stoke Newington Circuit for the purposes of the Methodist Church Act 1976 and any other legislation is:
The Methodist Church in Hackney and Stoke Newington Dalston Methodist Church 11 - 13 Richmond Road London E8 3HY Tel: 07736972202 Email:handsnmethodist@gmail.com Web: www.hackneymethodist.org.uk
## **Custodian Trustees:**
Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ
## **Senior Management Team:**
Rev Andrew Letby Rev Paulo Bessa Da Silva
## **Investment Managers:**
Central Finance Board of the Methodist Church Trustees for the Methodist Connexional Funds (registered) 9 Bonhill Street 9 Bonhill Street London EC2A 4PE London EC2A 4PE
## **Bankers:**
HSBC PLC CAF BanK 333 Vauxhall Bridge Road 25 Kings Hill Avenue, Victoria ME 19 4JQ London SW1V 1EJ
## **Independent Examiner:**
Stephen Simou FCA Citroen Wells Chartered Accountants & Statutory Auditors Devonshire House 1 Devonshire Street London W1W 5DR
## **Solicitors:**
Lovell Son and Pitfield 9 Gray`s Inn Square Gray`s Inn London WC1R 5JT
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Trustees’ Report for the year ended 31 August 2021**
The Trustees present their report and the examined accounts of the Circuit for the year ended 31 August 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and accounts of the Circuit.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Circuit’s governing document, the Charities Act 2011 and “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 (FRS 102)” (effective from 1 January 2019).
## **Governance**
The governing body of the Methodist Church is the Conference, which meets annually. The authority under which the Conference acts is given by the Methodist Church Act 1976.
We are governed by the Methodist Churches Constitutional Practice and Discipline and all Charity Law of the United Kingdom.
The Church is governed by the Methodist Church Act 1976, the deed of Union and the Model Trusts of the Methodist Church. The purposes of the Methodist Church are and shall be deemed to have been since the date of union of advancement of: (a) the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church (b) any charitable purpose for the time being of any Connexional, District, Circuit, local of other organisation of the Methodist Church (c) any charitable purpose for the time being of any society or institution or subsidiary or ancillary to the Methodist Church; any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church. In setting our objectives and planning our activities, the Circuit has given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing our objectives as set out above.
The Methodist Church in Hackney and Stoke Newington is part of the Methodist Church London District, and is a registered charity, number 1134389.
Full Name of Charity: Hackney Methodist Circuit
Registration Charity Number: 1134389
Date of Registration: 18 February 2010
Main Communication Address: The Methodist Church in Hackney and Stoke Newington
Dalston Methodist Church 11 - 13 Richmond Road London E8 3HY
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Trustees’ Report for the year ended 31 August 2021 (continued)**
## **Trustees**
The full list of Trustees who served during the year and up to date of signature of the accounts were as follows: Trustees who joined during 2020/21 are shown with an (*) and those who left during the year with two (**). Trustees who have joined during 2021/22 are denoted with three (***) and those who left during 20201/22 are denoted with four (****).
Rev Andrew Letby Rev John Pamhare Sakutombo Vera Ferquharson** Mackenzie Greer Rev Paulo Bessa Da Silva* Roland Hagan Rev John Richey* Catherine Hogan Mandy Baafi* Alexander Amarteifio Laura Dyer Gloria Amarteifio Valentine Baxter Vera Mawu Joyce Borley Faginette Beatrice Mclean Susan Millman Cora Woolcock Mathilda Small-Byam Eric Frempong Icilda Lynch Mary Campbell Vicky Ryan Rudolph Homer Ernell Watson Lucinda Ansah Tetty Kojo Nartey**** Thomas Daley Merlin Williams Clord Dyer Allins Horne Esther Adekunle Vanessa Baxter**** Charlote Morgan Kwaku Anyemedu Eunice Whyte Anthony Jumpah Jacob Ogunleye
## **Objective and purpose**
The calling of the Hackney and Stoke Newington Methodist Circuit is to respond to the gospel of God's love in Christ and to live out its discipleship in worship and mission. This is expressed through Worship, Learning and Caring, Evangelism and Service. The Circuit is committed to use its resources in a clearly focussed and intentional way to ensure an effective response to the needs of our congregations and wider community.
## **Activities**
The mission of the Circuit is to worship God as it celebrates its diversity according to the teachings of Jesus Christ. Through social ministry, prayer and pastoral care we will express God's kingdom of love.
## **Organisational structure**
The Circuit includes responsibility for the Methodist Churches at Dalston, Clapton, Clapton Park, Mare Street and Stoke Newington (Stoke Newington Methodist Church operates from 2 sites on Green Lanes and Stoke Newington High Street).
## Internal Organisations
The Circuit includes two internal organisations: the Chatsworth Road Lunch Club project and Women in Britain group. The Chatsworth Road Lunch Club project has with its own management committee, chaired by Rev John Richey, under the umbrella of the Circuit Meeting. Women in Britain have no separate bank nor cash accounts. All income raised and spent in connection with this group is recorded by the Circuit and transacted through the Circuit bank account.
## **Staff**
The Superintendent Minister and Chair of the Managing Trustees is Rev Andrew Letby. From September 2020 Rev Paulo Bessa da Silva was also stationed to the Circuit. In addition, the Circuit employs a supernumerary minister, Rev John Richey, for 2 days per week to assist with pastoral and preaching duties.
Together they have pastoral charge of the 5 Churches in the Circuit. Theresa Sam (Church and Community Worker) left her post in August 2020.
Helen Cornick was employed as part-time (30 hours per week) Circuit Administrator and PA to the Superintendent from December 2020 in succession to Joan Van Anderson. The Circuit ‘buys in’ payroll and finance support from the Methodist Church in Tower Hamlets.
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Trustees’ Report for the year ended 31 August 2021 (continued)**
## **Achievements and performance**
There are 4 active and 4 inactive Local Preachers in the Circuit. Circuit Stewards are Valentine Baxter, Sue Millman Kwaku Anyemedu and Catherine Hogan.
A full programme of Christian education, social activity and mission outreach work continued throughout the year despite the constraints put upon in person activity during the pandemic.
## **Property**
Dalston Church rents out many of its rooms using the standard Methodist License. The Richmond Road Manse is let out on a managed tenancy through Courtney’s Estate Agents until 30 June 2022.
At Stoke Newington High Street and Green Lanes Churches a full time premises manager has oversight of both sites, and the Listening Place Project offers drop-in and signposting for vulnerable people.
## **Investments**
The investment of surplus funds is operated via the Central Finance Board (CFB) of the Methodist Church. CFB aims to provide 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. The Restricted Fund which is mainly funds from sales of properties is managed by Trustees for Methodist Purposes (TMCP). These funds are also invested with CFB.
## **Public Benefit Requirement**
The Trustees have 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:
- 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.
## **Financial Review**
Circuit ministry is funded through the offering receipts from all the Churches in the Circuit and their respective assessment contributions. This was supplemented by rent received from the Circuit property in Richmond Road (a manse) and a grant of £12,000 towards the cost of the Circuit Administrator.
The various properties are funded from their income on a day-to-day basis.
The value of Circuit funds (including land and buildings) as at 31 August 2021 was £1,125,821 which is a decrease of £6,576 from the previous year.
A minister stationed in another circuit resides in Hackney and Stoke Newington Manse. Deacon Belinda Letby is a minister in the West London Mission Circuit. The West London Mission Circuit make payments to Hackney and Stoke Newington Circuit as rent and as a contribution to Council Tax and the provision of telephone and broadband. The amount contributed this year was £6,986.
## **Trustees’ interests**
The Ministers who are Trustees of the Circuit are paid a stipend and are given a manse for the Ministers and their family to live. The Council Tax is paid for by the Circuit and also an official telephone line with broadband facilities to enable them to carry out their service as Ministers. These arrangements are practiced throughout the Connexion.
Two payments were made to Trustees during the course of the year in respect of their assistance in developing Covid safe measures for all the churches. £500 was paid to each of Mrs Gloria Amarteifio and Mrs Catherine Hogan.
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Trustees’ Report for the year ended 31 August 2021 (continued)**
## **Risk Management**
The Circuit has reviewed its risk policies and is producing a Risk Register highlighting the various risks facing the Circuit, the impact and the likelihood of them happening. The main headings under which these risks have been categorised are:
- Trustees' Responsibilities
- Membership and Mission
- Resources, People and Property
- Financial
- Legal
These risks are reviewed regularly to ensure effectiveness.
## **Reserves Policy**
The primary purposes of the Circuit are:
- (i) to support the presbyteral ministers in their responsibilities to preach, offer a sacramental ministry and provide pastoral care to the congregations of the six Methodist Churches and to the wider community within the borough of Hackney and Stoke Newington.
- (ii) to support the work of the lay employees, Circuit officers and Church members in their various responsibilities in relation to the Circuit’s overall mission.
The reserves policy in connection with this purpose is to maintain sufficient funds to ensure the payment of stipends, other allowances, manse costs and contributions to the District assessment for two ministers for six months.
The unrestricted funds, excluding Manses, of £158,251 are for the purpose of the Circuit.
## **Plans for the future**
This has been another challenging year due to consequences of Covid 19 lockdown and other restrictions. The Circuit moved to offering most services of worship and fellowship groups using online platforms with in person worship services and meetings beginning to restart from July 2021. Even as it becomes possible to resume regular worship, we have continued to develop our online offering to allow for wider participation. To support this the Circuit will continue to work on addressing issues of digital exclusion through an ongoing link with Hackney Citizens.
## 21/6/2022
Approved by the Trustees on the signed on their behalf by:
**Rev Paulo Bessa Da Silva Minister**
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Statement of Trustees’ responsibilities for the year ended 31 August 2021**
The Trustees are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year, which give a true and fair view of the state of affairs of the Circuit’s financial activities during the year and of its financial position at the end of the year.
In preparing these accounts, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts, and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Circuit and enable them to ensure that the accounts comply with the Standing Orders of the Methodist Church, the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and other relevant regulations. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities.
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Independent Examiner‘s Report to the Trustees of Hackney and Stoke Newington Methodist Church**
I report to the Trustees on my examination of the accounts of Hackney and Stoke Newington Methodist Church (the Circuit) for the year ended 31 August 2021.
## **Responsibilities and basis of report**
As the Trustees of the Circuit you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act).
I report in respect of my examination of the Circuit’s accounts carried out under section 145 of the Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner’s statement**
Your attention is drawn to the fact that the Circuit has prepared accounts in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for accounts to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the Circuit as required by section 130 of the Act; or
- 2 the accounts do not accord with those records; or
- 3 the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Stephen Simou FCA**
## **The Institute of Chartered Accountants in England and Wales (ICAEW)**
## **Independent Examiner**
Devonshire House 1 Devonshire Street London, W1W 5DR 21/6/2022 Date: …………………….
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
**Statement of Financial Activities for the year ended 31 August 2021**
|**Notes**
**Income and Endowments from:**
Circuit assessment
**3**
Grants and donations received
**4**
Investment income and interest
**5**
Rental income
Other income
**6**
Internal organisations
**10**
**Total income**
**Expenditure on:**
**Charitable activities:**
Stipends and staff costs:
Ministry
**7**
Internal organisations
**10**
District assessment
Telephone, travel and administration
**8**
Maintenance on manses
**9**
District advance fund
Other expenditure
**11**
Internal organisations
**10**
Grants and donations
**12**
**Total expenditure**
**Net expenditure before transfers**
**Transfers between funds**
**Net movement in funds**
Funds balances at 1 September 2020
**Funds balances at 31 August 2021**|**Unrestricted**
**Funds**
**£**
134,525
-
285
33,800
25,878
-
**194,488**
96,047
-
43,824
6,494
24,914
708
26,205
-
508
**198,700**
**(4,212)**
(922)
(5,134)
1,126,862
**1,121,728**|**Restricted**
**Funds**
**£**
-
21,644
-
-
446
10,210
**32,300**
21,644
6,880
-
-
-
-
-
5,890
250
**34,664**
**(2,364)**
922
(1,442)
5,535
**4,093**|**2021**
**Total**
**£**
**134,525**
**21,644**
**285**
**33,800**
**26,324**
**10,210**
**226,788**
**117,691**
**6,880**
**43,824**
**6,494**
**24,914**
**708**
**26,205**
**5,890**
**758**
**233,364**
**(6,576)**
**-**
(6,576)
**1,132,397**
**1,125,821**|**2020**
**Total**
**£**
167,000
36,271
936
31,547
18,795
11,661|
|---|---|---|---|---|
|||||266,210|
|||||112,646
6,396
39,984
4,959
65,201
1,212
31,308
7,859
250|
|||||269,815|
|||||(3,605)
-|
|||||(3,605)
1,136,002|
|||||1,132,397|
All activities are classified as continuing.
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Statement of Financial Activities for the year ended 31 August 2021**
|**Comparative year information**
**Year ended 31 August 2020**
**Notes**
**Income and Endowments from:**
Circuit assessment
**3**
Grants and donations received
**4**
Investment income and interest
**5**
Rental income
Other income
**6**
Internal organisations
**10**
**Total income**
**Expenditure on:**
**Charitable activities:**
Stipends and staff costs:
Ministry
**7**
Internal organisations
**10**
District assessment
Telephone, travel & administration
**8**
Maintenance on manses
**9**
District advance fund
Other expenditure
**11**
Internal organisations
**10**
Grants and donations
**12**
**Total expenditure**
**Net movement in funds**
Funds balances at 1 September 2019
**Funds balances at 31 August 2020**|**Unrestricted**
**Funds**
**£**
167,000
36,271
936
31,547
18,795
-
**254,549**
112,646
-
39,984
4,959
65,201
1,212
31,308
-
250
**255,560**
**(1,011)**
1,127,873
**1,126,862**|**Restricted**
**2020**
**Funds**
**Total**
**£**
**£**
-
**167,000**
-
**36,271**
-
**936**
-
**31,547**
-
**18,795**
11,661
**11,661**
**11,661**
**266,210**
-
**112,646**
6,396
**6,396**
-
**39,984**
-
**4,959**
-
**65,201**
-
**1,212**
-
**31,308**
7,859
**7,859**
-
**250**
**14,255**
**269,815**
**(2,594)**
**(3,605)**
8,129
**1,136,002**
**5,535**
**1,132,397**|
|---|---|---|
All activities are classified as continuing.
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Balance Sheet as at 31 August 2021**
|**Notes**
**Fixed Assets**
Tangible assets
**13**
**Current Assets**
Debtors
**14**
T.M.C.P. Interest funds
Central Finance Board Deposits
Cash at bank and in hand
Fund held by internal Organisations
**Creditors**
Amounts falling due within one year
**15**
**Net Current Assets**
**Net Assets**
**Accumulated funds**
Unrestricted funds
Restricted funds
**Total Funds**|**Unrestricted**
**Funds**
**£**
963,477
963,477
8,723
28,334
113,937
47,258
-
198,252
(40,001)
158,251
**1,121,728**
1,121,728
-
**1,121,728**|**Restricted**
**Funds**
**£**
-
-
-
-
-
1,118
2,975
4,093
-
4,093
**4,093**
-
4,093
**4,093**|**2021**
**2020**
**Total**
**Total**
**£**
**£**
**963,477**
963,477
**963,477**
963,477
**8,723**
8,850
**28,334**
48,483
**113,937**
78,386
**48,376**
62,040
**2,975**
5,535
**202,345**
203,294
**(40,001)**
(34,374)
**162,344**
168,920
**1,125,821**
1,132,397
**1,121,728**
1,126,862
**4,093**
5,535
**1,125,821**
1,132,397|
|---|---|---|---|
21/6/2022
The accounts were approved by the Trustees on and signed on their behalf by:
**…………………………………………………….. Rev Paulo Bessa Da Silva Minister**
**……………………………………………………..**
**Susan Millman Circuit Steward**
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Notes to the accounts for the year ended 31 August 2021**
## **1. Accounting policies**
## **a) Circuit information**
The Methodist Church in Hackney and Stoke Newington is an unincorporated Charity in England and Wales. The main address is given on page 4 of these accounts.
## **b) Accounting convention**
The accounts have been prepared in accordance with Charities Act 2011 and ‘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 (FRS 102) (effective from 1 January 2019)’. The Circuit is a Public Benefit Entity as defined by FRS 102.
The Circuit has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The accounts are prepared in sterling, which is the functional currency of the Circuit.
The accounts of the Methodist Church in Hackney and Stoke Newington have been prepared under the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies are set out below.
## **c) Going concern**
At the time of approving the accounts, the Trustees have a reasonable expectation that the Circuit has adequate resources to continue in operational existence for the foreseeable
## **d) Funds**
## Unrestricted funds
Unrestricted funds are held for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.
## Restricted funds
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors and grantors. The aim and use of the major restricted funds are set out in the notes to the accounts.
## **e) Income recognition** Church assessment
The Church assessment is accounted for on a receivable basis.
## Benevolence
Benevolence funds have been historically contributed by the six Churches from their general funds and are accounted for on a receipts basis in accordance with Standing Order 527 of the Constitution of the Methodist Church.
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Notes to the accounts for the year ended 31 August 2021 (continued)**
## **1. Accounting policies (continued)**
## **Grants and donations received**
Grants from third parties are included when the relevant conditions for the grant have been met.
Voluntary income comprises donations and contributions and is accounted for when entitlement has been confirmed, the amount can be measured and receipt is probable.
## **Rental income**
Rental income from investment properties is accounted for on a receivable basis.
## **Other income**
Other income is accounted for on a receivable basis.
## **Lunch Club**
Lunch Club is the project of Hackney and Stoke Newington Methodist Church Circuit. The income is either derived from voluntary income, grants or by way of charitable activities.
## **Investment income and interest**
Interest on deposits and investments is accounted on a receivable basis.
## **f) Expenditure recognition** Expenses
All expenses is accounted for on an accruals basis. Any ensuing liabilities are recognised as soon as a legal or constructive obligation arises.
## District assessment
District assessment is accounted for on an accruals basis.
## **g) Tangible fixed assets**
Properties are stated at cost or in the case of donated assets at valuation at the date that the assets are gifted to the Circuit. The Trustees consider that the lives of the properties are so long and their residual values so high based on prices prevailing at the time of acquisition that the annual depreciation charge and accumulated depreciation is not material. Accordingly, no depreciation is provided on freehold properties used for charitable activities. Any material impairment in the value of such properties, following an annual review, would be chargeable to the Statement of Financial Activities.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the Statement of Financial Activities for the year.
## **h) Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
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## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Notes to the accounts for the year ended 31 August 2021 (continued)**
## **1. Accounting policies (continued)**
## **i) Financial instruments**
- The Circuit has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Circuit’s balance sheet when the Circuit becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the accounts, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## **Basic financial assets**
Basic financial assets, which include other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## **Basic financial liabilities**
Basic financial liabilities, including other payables are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
## **j) Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Circuit is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **k) Retirement benefits**
Stipendiary Circuit Ministers are eligible to join the Methodist Ministers’ Pension Scheme (MMPS). The MMPS is a funded defined benefit scheme maintained by The Methodist Church of Great Britain. As the Circuit is unable to identify its share of the underlying assets and liabilities of the scheme, the Circuit has taken the advantage of the exemption in Financial Reporting Standard 102, Retirement Benefits, and has accounted its contributions to the scheme as if it were a defined contribution scheme. The pension costs for the scheme represent the contribution payable by the Circuit in the year. The contribution rates are set each year by the Methodist Conference.
Access to a stakeholder pension scheme is provided to all eligible lay employees and the Circuit contributes an amount equal to 6% of the employee’s gross salary into this scheme. Two employees are contributing to the scheme.
## **2. Critical accounting estimates and judgements**
In the application of the Circuit’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Page 15
DocuSign Envelope ID: 08D19FB9-C087-4E81-A25C-49BB7E9D12D1
## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Notes to the accounts for the year ended 31 August 2021 (continued)**
|**3 .**
**4 .**
**5 .**
**6 .**
**7 .**|**Circuit assessment**
Clapton Methodist Church
Clapton Park Methodist Church
Dalston Methodist Church
Green Lane / Stoke Newington Methodist Church
Mare Street Methodist Church
**Grants and donation received**
**Unrestricted**
**Funds**
**£**
London District Methodist Church
**-**
Tower Hamlets Methodist Church
**-**
HMRC Job Rentention Scheme
**-**
Hackney Giving
**-**
Others
**-**
**-**
**Investment income and interest**
**Unrestricted**
**Funds**
**£**
Interest from CFB Bank
125
Interest from Trust
160
285
**Other Income**
**Unrestricted**
**Funds**
**£**
Management fees
16,796
Women in Britain(Network)
-
West London Mission
6,986
Other income
2,096
25,878
**Stipends and staff costs**
**Unrestricted**
**Funds**
**£**
Ministry
Stipends
71,871
Salaries
41,603
Employer's National Insurance
2,323
Pension costs
1,894
**117,691**|**Circuit assessment**
Clapton Methodist Church
Clapton Park Methodist Church
Dalston Methodist Church
Green Lane / Stoke Newington Methodist Church
Mare Street Methodist Church
**Grants and donation received**
**Unrestricted**
**Funds**
**£**
London District Methodist Church
**-**
Tower Hamlets Methodist Church
**-**
HMRC Job Rentention Scheme
**-**
Hackney Giving
**-**
Others
**-**
**-**
**Investment income and interest**
**Unrestricted**
**Funds**
**£**
Interest from CFB Bank
125
Interest from Trust
160
285
**Other Income**
**Unrestricted**
**Funds**
**£**
Management fees
16,796
Women in Britain(Network)
-
West London Mission
6,986
Other income
2,096
25,878
**Stipends and staff costs**
**Unrestricted**
**Funds**
**£**
Ministry
Stipends
71,871
Salaries
41,603
Employer's National Insurance
2,323
Pension costs
1,894
**117,691**|**Restricted**
**Funds**
**£**
18000
**-**
**-**
3,644
**-**
**21,644**
**Restricted**
**Funds**
**£**
**-**
**-**
**-**
**Restricted**
**Funds**
**£**
-
446
-
-
446
**Restricted**
**Funds**
**£**
-
-
-
-
**-**|**2021**
**£**
**24,800**
**20,800**
**20,800**
**45,175**
**22,950**
**134,525**
**2021**
**Total**
**£**
**18,000**
**-**
**-**
**3,644**
**-**
**21,644**
**2021**
**Total**
**£**
**125**
**160**
**285**
**2021**
**Total**
**£**
**16,796**
**446**
**6,986**
**2,096**
**26,324**
**2021**
**Total**
**£**
**71,871**
**41,603**
**2,323**
**1,894**
**117,691**|**2020**
£
31,000
28,000
26,000
57,000
25,000|
|---|---|---|---|---|---|
||||||167,000|
||||||**2020**
**Total**
**£**
18,929
5,000
11,640
-
702|
|||**-**|||36,271|
|||**Unrestricted**
**Funds**
**£**
125
160|||**2020**
**Total**
**£**
338
598|
|||285|||936|
|||**Unrestricted**
**Funds**
**£**
16,796
-
6,986
2,096
25,878
**Unrestricted**
**Funds**
**£**
71,871
41,603
2,323
1,894
**117,691**|||**2020**
**Total**
**£**
16,241
-
-
2,554|
||||||18,795|
||||||**2020**
**Total**
**£**
67,968
41,332
1,101
2,245|
||||||112,646|
The average monthly number of staff employed during the year was 4 (2020: 4). There were no employees whose annual emoluments were £60,000 or more.
Page 16
DocuSign Envelope ID: 08D19FB9-C087-4E81-A25C-49BB7E9D12D1
## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Notes to the accounts for the year ended 31 August 2021 (continued)**
## **7a. Trustees' emoluments**
One or more Trustees have been paid remuneration or have received other benefits from their employment with the Circuit. Trustees only receive remuneration in respect of services they provide undertaking their employment roles under their contracts of employment and not in respect of their services as Trustees.
|Joan Van Anderson
Rev Andrew Letby
Revd Hazel Forecast
Revd Paulo Bessa Da Silva|**2021**
**£**
**1,592**
**37,832**
**-**
**34,039**
**73,463**|**2020**
**£**
4,766
36,668
31,142
-|
|---|---|---|
|||72,576|
## **7b. Key Management Personnel**
The key management personnel of the Circuit comprise of the Trustees and the senior management team as listed on page 3. The total amount of the employee benefits (including employer pension contributions received by the key management personnel for their services to the Circuit was £76,972 (2020: £72,576).
## **7c. Pension costs**
The total pension cost for the Circuit for the year ended 31 August 2021 was £1,894 (2020: £2,245). There were no outstanding or prepaid pension contributions at 31 August 2021.
|**8 .**
**Telephone, travel and administration**
Travel
Printing
Stationery and postage
Telephone ,internet and website
Bank charges
Investment management fees
**9 .**
**Maintenance on manses**
Building repairs and maintenance
Fire and security systems
Manse Council tax
Insurance
Utilities, telephone and other services
Cleaning costs|**Unrestricted**
**Funds**
**£**
102
805
1,292
4,094
104
97
**6,494**
**Unrestricted**
**Funds**
**£**
17,923
270
3,117
2,722
882
-
**24,914**|**Restricted**
**Funds**
**£**
-
-
-
-
-
**-**
**Restricted**
**Funds**
**£**
-
-
-
-
-
**-**|**2021**
**Total**
**£**
**102**
**805**
**1,292**
**4,094**
**104**
**97**
**6,494**
**2021**
**Total**
**£**
**17,923**
**270**
**3,117**
**2,722**
**882**
**-**
**24,914**|**2020**
**Total**
**£**
178
611
530
3,475
15
150|
|---|---|---|---|---|
|||||4,959|
|||||**2020**
**Total**
**£**
57,961
1,663
2,918
2,520
139
-|
|||||65,201|
Page 17
DocuSign Envelope ID: 08D19FB9-C087-4E81-A25C-49BB7E9D12D1
## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Notes to the accounts for the year ended 31 August 2021 (continued)**
## **10. Internal organisations**
The Hackney and Stoke Newington has a lunch club project and the income and expenditure was as follows:
|**Income and Endowments from:**
Grants received *
Activities for generating funds
Charitable activities
**Total Income**
**Expenditure**
Charitable activities
Staff costs
Support costs
**Total expenditure**
**Net movement in funds**
Funds balances at 1 September 2020
**Funds balances at 31 August 2021**|**Total**
**Restricted**
**Funds**
**£**
**7,841**
**230**
**2,139**|
|---|---|
||**10,210**
**5,354**
**6,880**
**536**|
||**12,770**
**(2,560)**
**5,535**|
||**2,975**|
Notable grants were received during the year from the following organisations:
* London Borough of Hackney Fund (£7,841) provided funding for the lunch club Project.
## **11. Other expenditure**
|Youth expenses
Tower Hamlets Methodist Circuit fees
Dalston Project
Training, conference and workshops
Ministry costs
Relocation expenses
Profession fees
Independent examiner's fees
Church independent examination fees
Letting agent fees
Subscription
Apprenticeship Levy
Other expenses|**Unrestricted**
**Funds**
**£**
-
4,364
-
580
5,061
617
1,630
3,300
500
4,056
1,452
281
4,364
**26,205**|**Restricted**
**Funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
**-**|**2021**
**Total**
**£**
**-**
**4,364**
**-**
**580**
**5,061**
**617**
**1,630**
**3,300**
**500**
**4,056**
**1,452**
**281**
**4,364**
**26,205**|**2020**
**Total**
**£**
121
9,900
3,810
396
7,227
-
825
3,120
-
4,056
1,567
286
-|
|---|---|---|---|---|
|||||31,308|
Page 18
DocuSign Envelope ID: 08D19FB9-C087-4E81-A25C-49BB7E9D12D1
## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Notes to the accounts for the year ended 31 August 2021 (continued)**
|**12. Grants and donations**
**Unrestricted**
**Funds**
**£**
All We Can
-
Dalston Methodist Church
50
Methodist World Church Fund
50
Others
408
**508**
**13. Tangible assets**
**Cost or valuation**
At 1 September 2020 and
**At 31 August 2021**
The carrying value of freehold land and building comprises of:
Manses
**14. Debtors**
Other debtors
**15. Creditors: amounts falling due within one year**
Other Creditors
Accruals
**16. Restricted funds**
**Balance as at**
**01.09.20**
**Incoming**
**£**
**£**
**Funds**
i. Grants
-
21,644
ii. Women in Britain(Network
-
446
iii. Lunch Club
5,535
10,210
**5,535**
**32,300**|**12. Grants and donations**
**Unrestricted**
**Funds**
**£**
All We Can
-
Dalston Methodist Church
50
Methodist World Church Fund
50
Others
408
**508**
**13. Tangible assets**
**Cost or valuation**
At 1 September 2020 and
**At 31 August 2021**
The carrying value of freehold land and building comprises of:
Manses
**14. Debtors**
Other debtors
**15. Creditors: amounts falling due within one year**
Other Creditors
Accruals
**16. Restricted funds**
**Balance as at**
**01.09.20**
**Incoming**
**£**
**£**
**Funds**
i. Grants
-
21,644
ii. Women in Britain(Network
-
446
iii. Lunch Club
5,535
10,210
**5,535**
**32,300**|**12. Grants and donations**
**Unrestricted**
**Funds**
**£**
All We Can
-
Dalston Methodist Church
50
Methodist World Church Fund
50
Others
408
**508**
**13. Tangible assets**
**Cost or valuation**
At 1 September 2020 and
**At 31 August 2021**
The carrying value of freehold land and building comprises of:
Manses
**14. Debtors**
Other debtors
**15. Creditors: amounts falling due within one year**
Other Creditors
Accruals
**16. Restricted funds**
**Balance as at**
**01.09.20**
**Incoming**
**£**
**£**
**Funds**
i. Grants
-
21,644
ii. Women in Britain(Network
-
446
iii. Lunch Club
5,535
10,210
**5,535**
**32,300**|**Restricted**
**Funds**
**£**
250
-
-
-
**250**
**Outgoing**
**£**
(21,644)
(250)
(12,770)|**2021**
**Total**
**£**
**250**
**50**
**50**
**408**
**758**
**2021**
**£**
**963,477**
**963,477**
**2021**
**£**
**8,723**
**2021**
**£**
**36,173**
**3,828**
**40,001**
**Transfers**
**between funds**
**£**
-
922
-|**2020**
**Total**
**£**
-
-
-
250|
|---|---|---|---|---|---|
||||||250|
||||||**Freehold**
**Land &**
**Buildings**
**963,477**|
||||||**2020**
**£**
963,477|
||||||963,477|
||||||**2020**
**£**
8,850|
||||||**2020**
**£**
28,821
5,553|
||||||34,374|
||||||**Balance as at**
**31.08.21**
**£**
**-**
**1,118**
**2,975**|
||**5,535**
**32,300**||**(34,664)**|**922**|**4,093**|
Page 19
DocuSign Envelope ID: 08D19FB9-C087-4E81-A25C-49BB7E9D12D1
## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON**
## **Notes to the accounts for the year ended 31 August 2021 (continued)**
## **17. Analysis of net assets between funds**
|Fund balances at 31 August 2021 are represented by:
Tangible fixed assets
Net current assets|**Unrestricted**
**Funds**
**£**
963,477
158,251
**1,121,728**|**Restricted**
**2021**
**Funds**
**Total**
**£**
**£**
-
**963,477**
4,093
**162,344**
**4,093**
**1,125,821**|
|---|---|---|
## **18. Related party transactions**
The Circuit is part of The London District and is also accountable to the Methodist Conference, the ultimate controlling body. Related parties also include Ministers, other Circuit and Churches, Central Finance Board of the Methodist Church and The Trustees for Methodist Church Purposes (“TMCP”).
Details of the transactions occurring during the year were as follows:
## **Methodist church in Tower Hamlets (MCTH)**
During the year, the Circuit paid management and administration fees of £4,364 (2020: £9,900) to MCTH for services provided by MCTH Circuit’s Chief Executive Officer and other members of staff.
Last year, the MCTH advanced a loan of £18,000 to the circuit and £9,000 was still outstanding at 31 August 2021. Capital is repayable in eight equal instalments of £2,250 and interest, calculated based on the rate the Circuit would have received on its investment, will be paid when the capital is fully repaid.
Page 20