Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E 2025 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** |**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**| Page 2 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **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:** Trustees for Methodist Church Purposes The Hive 47 Level Street Manchester M1 1FN ## **Senior Management Team:** Rev Dr Paulo Bessa Da Silva (October 2020-August 2025) Rev Yangsun Yi (September 2024 – present) Revd Dr Jonathan Dean (September 2025 – present) Rev Rupert Weekes (October 2025 – present) ## **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 Page 3 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Trustees’ Report for the year ended 31 August 2025** The Trustees present their report and the examined accounts of the Circuit for the year ended 31 August 2025. 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 Page 4 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Trustees’ Report for the year ended 31 August 2025 (continued)** ## **Trustees** The full list of Trustees who served during the year and up to date of signature of the accounts were as follows: Rev Dr Paulo Bessa Da Silva (resigned 31/08/25) Rev Dr Jongikaya Zihle (resigned 31/08/25) Rev John Pamhare Sakutombo Rev Yangsun Yi (from 01/09/24) Mackenzie Carty Macdonald Greer Edris Lucinda Russell Cecilia Eze Ebun Esther Abebi Adekunle Alexander Amarteifio (resigned 10/12/24) Gloria Amarteifio Lucinda Ansah Kwaku Oppong Anyemedu Eric Olayinka Ayoola Mandy Noreen Baafi (resigned 10/06/25) Valentine Baxter Rita Donyina-Ameyaw (resigned 10/09/24) Koby Hagan (from 01/09/24) Joe Offei (from 01/09/24) Suezanne Awotwi (from 04/12/25) Aminata Gborie Margaret Greer (from 10/09/24; resigned 09/06/26) Tamba Gborie Mathilda Small-Byam (resigned 05/06/25) George Minter Eunice Cordelia Whyte Catherine Hogan (resigned 11/02/25) Clord Dyer Laura Dyer Mary Elvira Campbell (resigned 28/04/26) Rita Kusiwaah Dapaah Susan Jane Millman Charlotte Morgan Ernell Diana Watson Oluyinka Oludare (from 01/09/24) Anita Sackey (from 01/09/24) Rev Dr Jonathan Dean (from 01/09/25) Rev Rupert Weekes (from 14/10/25) ## **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 (until May 2025). A Circuit Contemporary Song Service has been led on the second Sunday evening of the month at Stoke Newington High Street which is attended by a good number from the circuit churches and friends and family of church members. The Listening Place offers a safe, warm space at Stoke Newington Churches. A Lunch Club operates from Clapton Park, primarily for elderly people with Afro-Caribbean heritage. The charity supports a Youth Club and Food bank at Clapton Park. ## **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. Page 5 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Trustees’ Report for the year ended 31 August 2025 (continued)** ## **Internal Organisations** The Circuit includes 1 internal organisation: the Chatsworth Road Lunch Club project. This 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. In addition, the property and finance of Clapton Park Methodist Church has been 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 2 Churches in the Circuit (on 4 sites). Rev Yangsun Yi came to the Hackney and Stoke Newington Circuit as a Minister in September 2024 and has pastoral charge of 2 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 is a full-time Circuit Pastoral and Community Outreach Worker. The Listening Place in Stoke Newington has a number of regular and visiting guests and is served by regular volunteers. Velma Bramble is the part-time Co-ordinator of the Chats Lunch Club. The Circuit uses Methodist Stipends for payroll, and has had some accounting support from Clay, Ratnage, Strevens and Hills. ## **Achievements and Performance** A regular pattern of worship is happening in churches and there has also been a weekly service broadcast on Zoom until May 2025. There has been a monthly evening Contemporary Song Service at Stoke Newington High Street. There have been groups meeting for prayer, Bible Study, social activities and mission outreach during the year. The Circuit have also been involved with activities taking place through Churches Together in Hackney, Citizens UK, and Community Champions. The Circuit Pastoral and Community Outreach Worker has been helping with the coordination of The Listening Place which has included a table-top sale and also a Coffee and Cake morning for Macmillan Cancer Care. Support has also been given to the Chats Lunch Club, and with the Youth Group at Hackney Mare Street and the monthly Contemporary Song Service. The role of the Circuit Pastoral and Community Outreach Worker became redundant in August 2025. 7 of the young people from Hackney Mare Street and 3 leaders took part in ‘3 Generate’ in October 2024. This was a weekend for children and young people of the Methodist Church, held at the NEC in Birmingham. The weekend was part-funded from the Church, the Circuit and the London Methodist District. There are 4 active and 3 inactive Local Preachers in the Circuit, and 2 members have a ‘note to preach’. In addition there is a Minister in other appointment who takes some services and there are visiting preachers from other circuits and denominations. Circuit Stewards are Sue Millman, Kwaku Anyemedu, Eric Ayoola, Eunice Whyte and Margaret Greer. The circuit have continued to explore how it might work more closely across the churches into the future – particularly since Rev Dr Paulo Bessa Da Silva will be moving to another circuit, and the Hackney and Stoke Newington Circuit did not receive a minister through the Methodist stationing process. ## **Property** All of the churches rent out rooms using the standard Methodist License. The Richmond Road manse was let out to a minister from another circuit, although experienced a major water leak in January, making it necessary to repair/renovate the property. Chatsworth Road also has tenants in a flat. ## **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. Page 6 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Trustees’ Report for the year ended 31 August 2025 (continued)** ## **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 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 £20,000 (2024: £25,000) towards the cost of the Circuit Pastoral and Community Outreach Worker received in September 2024. A grant was also received towards the costs of having a Warm Space at Clapton Park. 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 2025 was £4,860,614 which is an increase of £10 from previous year. ## **Trustees’ Interests** Active Ministers who are Trustees of the Circuit are paid a stipend and are given a manse for the Minister and their family to live in. 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 a Minister. These arrangements are practiced throughout the Methodist Connexion. Payments were made to Rev Dr Paulo Bessa Da Silva (£1000) in respect of a leaving gift, to Rev John Sakutombo (£450) as preaching fees (practiced throughout the Connexion) and to Rev Yangsun Yi (£600) in respect of relocation expenses (practiced throughout the Connexion). ## **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. Page 7 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Trustees’ Report for the year ended 31 August 2025 (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 properties, of £194,462 are held for the purpose of the Circuit. ## **Plans for the Future** A regular pattern of worship is happening in churches. Since the congregations are smaller than in previous years, the circuit has been looking at it’s membership numbers and making them more realistic. The Circuit has continued a monthly evening Contemporary Song Service: ‘Here I am to Worship’ at Stoke Newington High Street, hoping that it will continue to grow in numbers and encourage more younger members to worship. From September, the London Methodist District Co-Chair, the Rev’d Dr Jonathan Dean will be the Acting Superintendent of the Hackney and Stoke Newington Circuit after Rev Dr Paulo Bessa Da Silva has moved to another circuit, and the Circuit will seek a part-time active supernumerary minister to offer some pastoral work and preaching, particularly in the Clapton and Stoke Newington Churches. The Circuit will continue to explore further where God is leading, particularly regarding mission and resources. It is expected that The Listening Place and the Chats Lunch Club will both continue and provide outreach opportunities for members of the local communities. It is hoped that further ecumenical outreach will happen in liaison with the new Churches Together in Hackney group. ## **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 third year. Approved by the Trustees on `30/6/2026` and signed on their behalf by: ## **Rev Dr Jonathan Dean (Acting) Superintendent Minister** Page 8 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** **Trustees’ Report for the year ended 31 August 2025 (continued)** **Statement of Trustees’ responsibilities for the year ended 31 August 2025** 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. Page 9 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **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 2025 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 2025, 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. Page 10 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **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. Page 11 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **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)** 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** 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. Clay Ratnage Strevens & Hills Chartered Accountants & Statutory Auditors Suite D, The Business Centre Faringdon Avenue Romford Essex RM3 8EN `30/6/2026` Date: Clay Ratnage Strevens & Hills is eligible to act as auditor in terms of section 1212 of the Companies Act 2006. Page 12 Docusign EnvelopÈ ID." 767C4ED9479E-8EEA-813(k82B958F6E94E THE METHODISTCHURCH IN HACKNEY AND STOKE NEWINGTON statement of Finanoal Activitie5 for the year ended 31 August 2015 Unre5trirted Re5ttKted 1025 2024 Funds Fund5 Total Total lrtome and Endowments from: Circuit assessment 163.5C 163.5 163.51x1 Le8aciÈs Grants and donations received 566 23.385 23.951 7￿35 66.423 26.296 10.771 49.298 Investment income and interest 7.835 66.423 Rental income Capital Receipt other income 28.048 io.c 20.799 54,184 38.048 20.799 320.556 42.394 14.404 306.663 Internal organisations Total Ib)come io 266,372 Expendtture on.. Charstable *tO¥Otles: Stipends and staff costs= Ministry Internal organisations District assessment 138.561 168.561 111.429 io 41.656 6.669 39.461 1.224 39.347 41.656 6.669 39A61 1.224 40.732 20.251 44.568 4.711 128.944 1.202 40.733 13.322 Telephone. travel and administration Maintenance on manses District ad¥ance fund other expenditure Internal organisations Grants and donations li 1,385 20.251 io 12 51x1 Total expenditure 266.918 53.636 320.554 345.409 Unrealised eain on revaluation of in¥estments 329 Net movement In funds before transfers (538} io 138.4171 Transfers betW￿n funds 14.6461 4,646 Fund5 balances at I September 2024 4,856,021 4,583 4*60.604 4,899,021 Fund5 balance5 at 31 August 2025 4￿50￿37 9,7TI 4A60.614 4￿60.60￿ l activities are classified a5 iontinuing. Page 13 Docusign EnvelopÈ ID." 767C4ED9479E-8EEA-813(k82B958F6E94E THE METHODISTCHURCH IN HACKNEY AND STOKE NEWINGTON Statement of Financial Activities for the year ended 31 August 2024 Comparative Year Information Unr•¥triEt•d Fund* R•strict•d Funds Y••r Total Not•$ Income and Endowments from: Circuit assessment Legacies Grant5 and donation5 received Investment income and interest Rental income Capital Receipt Other income Internal organisations Total income Expenditure on: Charrtable activrtie5: Stipends and Staff costs: Ministry Internal organisations District assessment Telephone, travel and administration Maintenance on manses District advance fund Other expenditure Internal or8anisations Grants and donations Total expendltur• 163,500 163.500 1.296 10,771 49,298 25,000 26.296 10.771 49,298 32,342 10,052 14,404 49.456 42.394 14.404 306.663 io 257.207 76,429 35,OCKI 111,429 io 44,568 4,711 128,944 1.202 39,680 44.568 4.711 128.944 1.202 40.755 13,322 5fy) 345.409 li 1,053 13,322 500 49.875 io 12 295.$34 Unrealised gain on revaluation of investments 329 329 Net movement in funds {37.9981 (419) (38.417) Funds balances at I September 2023 4,894,019 5,002 4,899,021 Fund$ b•l•n¢•$ •t 31 Au8u$t 2024 4.856.021 4.583 4.860.604 All activities are classified as continuing. Page 14 Docusign EnvelopÈ ID." 767C4ED9479E-8EEA-813(k82B958F6E94E THE METHODISTCHURCH IN HACKNEY AND STOKE NEWINGTON Balance Sheet as at 31.08.25 Unrestricted Funds Restricted Funds 2025 Totsl 2024 Total Not•$ Flx•d As$•ts Tan8ible assets Investments 14 141 4,656,375 4.586 4.660.961 4,656,375 4,656.375 4.578 4,660,953 4.660.961 Current Assets Debtors T.M.C.P. Interest funds Central Finance Board Deposits Cash at bank and in hand Fund held by internal Organisations 16 37.022 48.954 106.377 13.387 io.tK)O 550 4.096 17.4121 5.619 12,853 47.022 49.504 110.473 5.975 5.619 218.593 13,192 48.541 120.862 42.901 3.460 228.956 205.740 Creditors Amounts fallin8 due within one year 17 115.8641 13.0761 118.9401 129.3051 N•t Curr•nt Ass•t• 189,876 9,777 199 653 199.651 Net Assets 4.850.837 9.777 4.860.614 4,860,604 Accumulated funds Unrestricted funds Restricted funds Totsl Funds 4.850.837 4.850.837 9.777 4.860.614 4.856.021 4.583 4.860.604 9,777 9.777 19 4.850.837 The accounts were approved by the Trustees on 301612026 and sl8ned on thelr behalf by.. Or g- Revd Dr Jonathan Dean Acting Superintendent Minister Rev Yangsun fi Trustee Page 15 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Notes to the accounts for the year ended 31 August 2025** ## **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. Page 16 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Notes to the accounts for the year ended 31 August 2025 (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. Page 17 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Notes to the accounts for the year ended 31 August 2025 (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. Page 18 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** Page 19 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** Page 20 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** Page 21 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** **Notes to the accounts for the year ended 31 August 2025 (continued)** Page 22 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** **Notes to the accounts for the year ended 31 August 2025 (continued)** Page 23 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** **i** . **Warm Space** – the fund for supporting communities through rising costs in winter, by bringing people together into warm space. **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. Clapton Park Church-Legacy** – This fund relates to monies received by way of a legacy for the benefit of Clapton Park Church. **v. Clapton Park Church-Music Fees** – This fund represents monies received for the provision of music lessons. **vi. TMCP -14262** - This fund represents various bequests received for the benefit of Clapton Park Church. **vii. Pastoral worker grant** – for appointment of circuit pastoral and community outreach worker. **viii. 3 Generate Youth Weekend –** fund for annual youth assembly Page 24 Docusign Envelope ID: 767C4ED9-879E-8EEA-8130-82B958F6E94E ## **THE METHODIST CHURCH IN HACKNEY AND STOKE NEWINGTON** ## **Notes to the accounts for the year ended 31 August 2025 (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 £23,000 (2024: £25,000) from TLDMC. The Circuit also paid assessment of £41,656 (2024: £44,568) to TLDMC. ## **Stoke Newington Methodist Church (SNMC)** During the year, the Circuit received assessment of £94,000 (2024: £94,000) from SNMC. The Circuit is due to receive £10,000 from SNMC to pay towards the salary of the Circuit Pastoral and Community Outreach Worker, at 31 August 2025 this £10,000 is included in other debtors. At 31 August 2025, £26,460 is due from SNMC for outstanding assessment. Also, during the year, a grant of £2,000 was awarded to SNMC from the Warm Space Fund. This amount was owed to SNMC at 31 August 2025 and is included in creditors. ## **Dalston Methodist Church (DMC)** During the year, the Circuit received assessment of £21,500 (2024: £21,500) from DMC. ## **Hackney Mare Street Methodist Church (HMSMC)** During the year, the Circuit received assessment of £24,000 (2024: £24,000) from HMSMC. ## **Clapton Methodist Church (CMC)** During the year, the Circuit received assessment of £24,000 (2024: £24,000) from CMC. ## **Methodist Church in Tower Hamlets (MCTH)** During the year, the Circuit paid management and administration fees of £Nil (2024: £5,616) to MCTH for services provided by MCTH Circuit’s finance Officer. Rental income of £17,375 (2024: £26,103) received from MCTH for the manse at 15 Richmond Road, and £934 (2024: £875) received from MCTH for reimbursement of council tax and water costs. Page 25