2024-08-31-accounts - Hackney Methodist Circuit

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2024

Docusign Envelope ID: 7563912C-16DE-4E70-9BC6-3BA6DD75C331

THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

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TABLE OF CONTENTS	Page
REFERENCE AND ADMINISTRATIVE DETAILS	3
TRUSTEES’ REPORT	4–8
STATEMENT OF TRUSTEES’ RESPONSIBILITIES	9
INDEPENDENTAUDITORS’ REPORT	10-12
STATEMENT OF FINANCIAL ACTIVITIES	13-14
BALANCE SHEET	15
NOTES TO THE ACCOUNTS	16-25

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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: 07736 972202 Web: www.hackneymethodist.org

Custodian Trustees:

Senior Management Team:

Trustees for Methodist Church Purposes Central Buildings Rev Paulo Bessa Da Silva Oldham Street Manchester M1 1JQ

Investment Managers:

Central Finance Board of the Methodist Church 25 Tavistock Place London WC1H 9SF

Trustees for the Methodist Connexional Funds (registered) Oldham Street Manchester M1 1JQ

Bankers:

CAF Bank HSBC PLC (for Lunch Club) 25 Kings Hill Avenue 1-3 Bishopsgate ME19 4JQ London EC2N 3AQ

Independent Auditor:

Solicitors:

Clay Ratnage Strevens & Hills Anthony Collins Solicitors Chartered Accountants & Statutory Auditors 134 Edmund Street Suite D, The Business Centre Birmingham Faringdon Avenue B3 2ES Romford, Essex RM3 8EN

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THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Trustees’ Report for the year ended 31 August 2024

The Trustees present their report and the examined accounts of the Circuit for the year ended 31 August 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP 2019) “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 the 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; (d) 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 London District of the Methodist Church, 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 2024 (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 23/24 are shown with an asterix () and those who left during the year with (). Trustees who have joined during 2024/25 are denoted with three asterisks (**).

Rev Dr Paulo Bessa Da Silva Rev Dr Jongikaya Zihle Rev John Pamhare Sakutombo Rev Yangsun Yi Mackenzie Carty Macdonald Greer Edris Lucinda Russell Cecilia Eze Ebun Esther Abebi Adekunle Afua Adofo Alexander Amarteifio Gloria Amarteifio Amanda Ansah Lucinda Ansah Kwaku Oppong Anyemedu Eric Olayinka Ayoola Mandy Noreen Baafi Janette Baxter Valentine Baxter Rita Donyina-Ameyaw Joyce Ampofo Borley Koby Hagan Joe Offei**

Kwabena Okyere Darko Aminata Gborie Margaret Greer Tamba Gborie Mathilda Small-Byam George Minter Eunice Cordelia Whyte Catherine Hogan Rudolph Homer Clord Dyer Laura Dyer Mary Elvira Campbell Rachael Icilda Lynch Rita Kusiwaah Dapaah Alexandra Weekes-Aggrey Susan Jane Millman Charlotte Morgan Cora Woolcock Ernell Diana Watson Oluyinka Oludare Anita Sackey

Method to recruit new Trustees

The members of the Circuit Meeting are the trustees of the Hackney and Stoke Newington Methodist Circuit. The constitution for the Circuit Meeting was agreed at the Circuit Meeting on 15th March 2022. Most of the members of Circuit Meeting are trustees due to the role they play within the church or circuit (for which they are nominated or volunteer). Further, each Church Council nominates church representatives to the Circuit Meeting at their Annual Church Meeting.

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 the wider community.

Activities

Christian faith-based activities in accordance with the Methodist doctrine. Regular worship takes place in 6 church buildings, as well as on Zoom. The Listening Place offers a safe, warm space at Stoke Newington Churches. A Lunch Club operates from Clapton Park primarily for elderly people from the Caribbean. The charity supports a Youth Club and Food bank at Clapton Park.

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THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Trustees’ Report for the year ended 31 August 2024 (continued)

Organisational Structure

The Circuit includes responsibility for the Methodist Churches at Dalston, Clapton (Clapton Methodist Church operates from 2 sites on Downs Road and Chatsworth Road, Clapton Park), Mare Street and Stoke Newington (Stoke Newington Methodist Church operates from 2 sites on Green Lanes and Stoke Newington High Street). The Circuit has responsibility for the finance and property of Clapton Park Methodist Church.

Internal Organisations

The Circuit includes two internal organisations: the Chatsworth Road Lunch Club project and a Methodist Women in Britain group (which has not met since Easter 2023). The Chatsworth Road Lunch Club project has its own management committee, chaired by Rev Dr Paulo Bessa Da Silva ~~,~~ under the umbrella of the Circuit Meeting. The Chatsworth Road Lunch Club has its own HSBC account. Methodist 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.

In addition, the property and finance of Clapton Park Methodist Church is the responsibility of the Circuit since 1[st] September 2021.

Staff

The Superintendent Minister and Chair of the Managing Trustees is Rev Dr Paulo Bessa Da Silva. He has pastoral charge of the 4 Churches in the Circuit.

Helen Cornick is employed as a part-time (30 hours per week) Circuit Administrator and PA to the Superintendent. Abena Adofo was appointed as a full-time Circuit Pastoral and Community Outreach Worker from September 2023. Velma Bramble is the part-time Co-ordinator of the Chats Lunch Club. The Circuit ‘buys in’ payroll and finance support from the Methodist Church in Tower Hamlets.

Achievements and Performance

A regular pattern of worship is happening in churches and there is also a weekly service broadcast via Zoom. Congregations are smaller than before the pandemic, reflecting the experience of many churches across the country. There continues to be a Circuit link with Hackney Citizens, particularly through the work of the Minister and the Pastoral and Community Outreach Worker. The Listening Place in Stoke Newington is flourishing and at the end of the year a new Churches Together in Hackney group was started.

The Circuit Pastoral and Community Outreach Worker has been helping with the coordination of both The Listening Place and the Chats Lunch Club, and also providing some support at the Youth Group at Hackney Mare Street which invited young people from other churches to attend.

There are 5 active and 3 inactive Local Preachers in the Circuit, and 2 members who have a ‘note to preach’. In addition there is a Minister in other appointment who takes some services, and we have some visiting preachers from other circuits and denominations. Circuit Stewards are Sue Millman, Kwaku Anyemedu, Catherine Hogan, Eric Ayoola and Eunice Whyte.

There was a successful Circuit Vision Day in June led by Rev Stephen Poxon where, within the context of Bible Study, around 40 members from the circuit explored how resources might be shared across the churches. These are conversations that will continue into the coming years.

A full programme of Christian education, social activity and mission outreach work continued throughout the year with some activities continuing online. The Listening Place at Stoke Newington High Street and Green Lanes offers drop-in and signposting for vulnerable people.

Property

Dalston Church and Chatsworth Road, Clapton Park rent out many rooms using the standard Methodist License. After much renovation work, the Richmond Road Manse has been let out to a minister from the Methodist Church in Tower Hamlets Circuit. Chatsworth Road, Clapton Park also have tenants in a flat.

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THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Trustees’ Report for the year ended 31 August 2024 (continued)

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:

The organisation must have an identifiable benefit.
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 assessment contributions from churches. This was supplemented by rent received from the Circuit property in Richmond Road (a manse), and rental money from Chatsworth Road, Clapton Park. and a grant of £25,000 towards the cost of the Circuit Pastoral and Community Outreach Worker received in October 2023.

The various properties are funded from their income on a day-to-day basis.

The value of the Circuit funds (including land and buildings) as at 31 August 2024 was £4,860,604 which is a decrease of £38,417 from previous year.

Trustees’ Interests

The Minister who is a Trustee of the Circuit is paid a stipend and is given a manse for the Minister and his family to live. The Council Tax is paid for by the Circuit and also an official telephone line with broadband facilities to enable him to carry out his service as a Minister. These arrangements are practiced throughout the Connexion.

Payments were made to Rev Dr Paulo Bessa Da Silva (£220) in respect of funeral fees paid to the circuit, to Rev John Sakutombo (£420 + £50 Accruals) as preaching fees (practiced throughout the Connexion) and to Mrs Eunice Whyte (£30) in respect of stewarding duties.

Risk Management

The Circuit will review its risk policies and is preparing 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.

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THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Trustees’ Report for the year ended 31 August 2024 (continued)

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 four Methodist Churches on six sites, 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 its ministers for six months.

The unrestricted funds, excluding Manses, of £199,646 are held for the purpose of the Circuit.

Plans for the Future

A regular pattern of worship is happening in churches and there is also a weekly service broadcast via Zoom. Since the congregations are smaller than in previous years, the circuit is looking at it’s membership numbers and making them more realistic. The Circuit has started, and will continue a monthly evening Contemporary Song Service: ‘Here I am to Worship’ at Stoke Newington High Street, hoping that it will grow in numbers and encourage more younger members to worship. There continues to be a Circuit link with Hackney Citizens and during this year a service was held at Mare Street with contributions from Hackney Citizens. The Listening Place in Stoke Newington is flourishing and at the end of the year a new Churches Together in Hackney group was started.

Disclosure of Information to Auditors

In so far as the Trustees are aware:

there is no relevant audit information of which the charity’s auditors are unaware; and
the Trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Auditors

The Hackney and Stoke Newington Methodist Circuit have appointed Clay, Ratnage and Co as the auditors for the second year.

Approved by the Trustees on 30/6/2025 and signed on their behalf by:

Rev Dr Paulo Bessa Da Silva Superintendent Minister

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THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Trustees’ Report for the year ended 31 August 2024 (continued)

Statement of Trustees’ responsibilities for the year ended 31 August 2024

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 2019;
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 Auditor's Report to the Trustees of The Methodist Church in Hackney and Stoke Newington

Opinion

We have audited the financial statements of Hackney Methodist Circuit (the ‘charity’) for the year ended 31 August 2024 which comprise Statement of Financial Activities, the Balance Sheet and notes to the financial statements, 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 financial statements:

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, 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 for opinion

We conducted our audit in accordance with International 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 requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the 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. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Independent Auditor's Report to the Trustees of The Methodist Church in Hackney and Stoke Newington (continued)

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; or
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 9, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the accounts

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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 approach was as follows:

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 irregularities were assessed with the following procedures:
- 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.

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Independent Auditor's Report to the Trustees of The Methodist Church in Hackney and Stoke Newington (continued)

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: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

Date: 30/6/2025

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

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THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

30/6/2025

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THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Notes to the accounts for the year ended 31 August 2024

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 Circuit 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 future.

d) Funds

Unrestricted funds

Unrestricted funds are held for use at the discretion of the Trustees in furtherance of the general objectives of the Circuit.

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 four 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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Notes to the accounts for the year ended 31 August 2024 (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 the Circuit. The income is either derived from voluntary 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 are accounted for on an accruals basis. Any ensuing liabilities are recognised as soon as a legal or constructive obligation arises.

District assessment

The 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 the 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.

Assets having an initial cost of £1,000 or less are written off on acquisition. Fixtures and fittings, office and computer equipment having an initial cost greater than £1,000 are stated at cost less depreciation. Depreciation rates calculated to write off the cost less estimated residual value of each asset over its expected useful life are as follows:

Fixtures, fittings and equipment: 10% - 20% on a straight line basis
- Office equipment: 20% on a straight line basis

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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Notes to the accounts for the year ended 31 August 2024 (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. Three 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.

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Docusign Envelope ID: 7563912C-16DE-4E70-9BC6-3BA6DD75C331

THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Notes to the accounts for the year ended 31 August 2024 (continued)

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Docusign Envelope ID: 7563912C-16DE-4E70-9BC6-3BA6DD75C331

THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Notes to the accounts for the year ended 31 August 2024 (continued)

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Docusign Envelope ID: 7563912C-16DE-4E70-9BC6-3BA6DD75C331

THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Notes to the accounts for the year ended 31 August 2024 (continued)

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Docusign Envelope ID: 7563912C-16DE-4E70-9BC6-3BA6DD75C331

THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Notes to the accounts for the year ended 31 August 2024 (continued)

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Docusign Envelope ID: 7563912C-16DE-4E70-9BC6-3BA6DD75C331

THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Notes to the accounts for the year ended 31 August 2024 (continued)

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Docusign Envelope ID: 7563912C-16DE-4E70-9BC6-3BA6DD75C331

THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Notes to the accounts for the year ended 31 August 2024 (continued)

i . Listening place fund - The Listening Place is run twice a week at Stoke Newington Methodist Church and is part of the church's outreach work, encouraging involvement with the disadvantaged within the community.

ii. Methodist Women in Britain fund - This fund is a self-financing and volunteer run within the Methodist Church in Britain.

iii. Internal Organisations fund - This fund is for the lunch club project operated within the Circuit.

iv. Warm Space – the fund for supporting communities through rising costs in winter, by bringing people together into warm space.

v. Administrator grant - to pay administrator salary.

vi. Pastoral worker grant – for appointment of circuit pastoral and community outreach worker.

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Docusign Envelope ID: 7563912C-16DE-4E70-9BC6-3BA6DD75C331

THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON

Notes to the accounts for the year ended 31 August 2024 (continued)

20. 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:

The London District of Methodist Church (TLDMC)

During the year, the Circuit received grants of £25,000 (2023: £12,000) from TLDMC. The Circuit also paid assessment of £44,568 (2023: £43,268) to TLDMC.

Stoke Newington Methodist Church (SNMC)

During the year, the Circuit received assessment of £94,000 (2023: £93,280) from SNMC. The Circuit received £10,000 from SNMC to pay towards salary of the Circuit Pastoral and Community Outreach Worker. As at 31 August 2024, SNMC paid £20,520 assessment in advance to the Circuit.

Dalston Methodist Church (DMC)

During the year, the Circuit received assessment of £21,500 (2023: £20,968) from DMC. At 31 August 2024, £5,269 is due from DMC for outstanding assessment and £411 is due for expenses paid on behalf of DMC.

Hackney Mare Street Methodist Church (HMSMC)

During the year, the Circuit received assessment of £24,000 (2023: £23,376) from HMSMC.

Clapton Methodist Church (CMC)

During the year, the Circuit received assessment of £24,000 (2023: £23,376) from CMC.

Methodist Church in Tower Hamlets (MCTH)

During the year, the Circuit paid management and administration fees of £5,616 (2023: £5,761) to MCTH for services provided by MCTH Circuit’s finance Officer. Rental income of £26,103 received from MCTH for the manse at 15 Richmond Road, and £875 received from MCTH for reimbursement of council tax and water costs.

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