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← North Kent Methodist Circuit

2024-08-31-accounts

REGISTERED CHARITY NUMBER: 1134870

REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 FOR NORTH KENT METHODIST CIRCUIT

Levicks Audit Services Limited 61 London Road Maidstone Kent ME16 8TX

NORTH KENT METHODIST CIRCUIT

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Page
Report of the Trustees and Statement of Trustees’ 1 to 7
Responsibilities
Independent Auditors Report 8 to 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to Cash Flow Statement 14
Notes to the Financial Statements 15 to 21

NORTH KENT METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

The trustees present their report with the financial statements of the charity for the year ended 31 August 2024. The trustees have adopted the provisions of the Statement of Recommended Practice: Charities SORP (FRS 102) second edition.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1134870

Principal address:

Union Street Methodist Church 20 Brewer Street Maidstone Kent ME14 1RU

Telephone: 07444 335245

Email: northkentmethodistcircuit@gmail.com

Website : www.nkmethodists.org.uk

Solicitors:

Blake Morgan 6 New Street London EC4A 3DJ

Investment advisers:

Trustees for Methodist Church Purposes (TMCP) Central Buildings Oldham Street Manchester M1 1JQ

Auditors:

Levicks Audit Services Limited 61 London Road Maidstone Kent ME16 8TX

1

NORTH KENT METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

REFERENCE AND ADMINISTRATIVE DETAILS Trustees Charity trustees

Alan Wood Ian Angel Peter Matthews Eileen Smith (Resigned 1 September 2023) Rev. Ronald Gareth West Dr Derek Gallagher (Resigned 1 September 2023) Patricia Robb Tunde Dipita-Williams Barry Errington Sylvia Angel Lynn Rainer (Resigned 1 September 2023) Rachel Smith Deacon Victor Downs Anthony Brown Ian Smith Robert Hardy Carol Waldock Glenis Davison Janet Errington Rev. Dr Bonni-Belle Pickard Chris Chare Roger Byard Mark Frost Sheila Sanderson Derek Jarvis Katherine High Rev. Robert Zachar Linda Smith (Deceased 2024) Tracey Burch Rev. Robin Selmes Deacon Elizabeth Harfleet (Resigned 31 August 2024) Alan Fielder Theresa Green (Resigned 1 September 2023)

Alan Rainer Rev. Naomi Oates Sin Fan Fu (Resigned 1 September 2023) Robert Hipkiss (Resigned 1 September 2023) Sheila Allison Peter Roberts Gill Gray Siu Kuen Tsang (Resigned 1 September 2023) Roger Gledhill Derek Goodger Jenny Gilbert Richard Bridges Henry Chung Stella Lea Fran Shepherd Karen Dudley Kate Hardy Simon Rowe Paul Skipp Kathy Skipp Rev. Alex Terrett Rev. Gill Le Boutillier-Scott (Resigned 31 August 2024) Jill Bridges Grace Chung Anne Downs Linda Gander Jim Bryant Dennis Makowski Dave Warrington Bill Prince Oscar Siu Rev. David Kitchenside (Appointed 1 September 2023)

2

NORTH KENT METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

REFERENCE AND ADMINISTRATIVE DETAILS

Ministers Circuit Stewards Circuit Treasurer

Rev Bonni-Belle Pickard Rev Naomi Oates Rev Robin Selmes Rev Robert Zachar Rev Alex Terrett Deacon Elizabeth Harfleet Mr Richard Bridges Mr Roger Byard Mr Derek Goodger Mr Henry Chung Mr Simon Rowe

Mr Roger Byard

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by the Deed of Union (1932) and Methodist Church Act (1976) as amended 17 March 2011 and constitutes an unincorporated charity.

Induction and training of new Trustees

The board of trustees keeps the skill requirements for the trustee body under review. Training expenses are provided for new trustees together with an induction pack comprising a copy of the governing trust deed, a copy of last year's annual report and accounts, copies of the minutes of trustees’ meetings (circuit meeting) and a copy of the Charity Commission's guidance "The essential trustee".

Organisational structure

The day to day management of the charity is vested in the circuit meeting appointed in accordance with the trust deed. The circuit meeting is composed of the trustees listed above.

Charity circuit meeting

Rev Bonni-Belle Pickard (Chair) Roger Byard (Treasurer) Mr James Walker (Secretary)

Associated committees

The circuit meeting has empowered sub committees to deal with debate and to formulate resolutions to be taken to the circuit meeting. These committees also have limited authority given by the circuit meeting to take minor decisions. The circuit meeting always has ultimate authority.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that the systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

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NORTH KENT METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

OBJECTIVES AND ACTIVITIES

Objectives and aims

The purpose of the Methodist Church of Great Britain is and shall be deemed to have been since the date of Union the advancement of:

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the circuit’s aims and objectives, and in planning future activities. The charity seeks to support the work of churches within its remit and to that end has deployed lay-workers onto projects to support the vulnerable in our communities. As the charity assesses the effects of the Covid-19 pandemic on its work it will work to identify new projects that will address the needs of the marginalised in the communities the local churches serve and seek to support them through grants and loans to do so.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

In accordance with the objectives and aims above, the charity works to:

Investment performance

The main investment is in the properties held as manses. These are revalued at the end of each year. The current revaluation shows a surplus of £2,211,755.

Circuit aims

The current aim of the North Kent Methodist Circuit is to empower the membership of the Circuit Churches for witness and mission. To achieve this aim the trustees hope to:

A review will take place each year to monitor the progress towards achieving these aims.

4

NORTH KENT METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

FINANCIAL REVIEW

North Kent Methodist Reserves Policy Statement - February 2016 Policy Statement

The policy statement agreed at the 2012 Circuit Meeting remains in place with a commitment that 60% of reserves are to be used to facilitate Mission and Ministry and 40% to support buildings and other projects. Reserves continue to be used to support a Deacon, Lay workers and establishing new church groups within the Circuit. Subject to the approval of the Circuit Meeting grants of up to 25% of the cost of any church project can be awarded.

Year ended 31 August 2024 Review

North Kent continued to be a large Circuit extending from Dartford to Sittingbourne and Maidstone incorporating the Isle of Sheppey and the Medway Towns. At the beginning of the year under review there were 17 Methodist Churches, 1 Methodist Class and 3 LEPs. Following the departure of the lay pioneer mission enabler in the summer of 2023, the Methodist staff team consisted of 6 ministers and 1 Chinese Lay pastor. A member of the Anglican clergy and a lay URC minister worked with the LEPs.

The proposals brought by the Circuit Leadership Team to establish a restructured Circuit administrative support team were approved by the Circuit Meeting held in September 2023. The restructuring saw the appointment of a full time operations manager and a part time property officer (job share) from April 2024. These changes resulted in the redundancy of two of the part time lay workers, with the third of them remaining in a redefined role. Seven part time teachers continue to be employed at the Chinese School.

Following the conclusion of the stationing process the Circuit saw the departure of Rev Gillian Le Boutillier-Scott and Deacon Elizabeth Harfleet from ministry in the Circuit as they pursue their calling elsewhere.

The year was marked with sadness following the decision to close the churches at Burham and Swanscombe. The Church in Burham had continued to provide an effective witness in the village even though its members were a class of Larkfield Methodist Church. However, the outcome of the recent quinquennial property review indicated that significant expenditure was likely to be incurred in repairs to the fabric of the church which was beyond the resources of the class and Larkfield Methodist Church. Reluctantly the decision was made to close the church with effect from 31 August 2024.

Swanscombe Methodist Church closed pursuant to the provisions of the Standing Orders of the Methodist Church again with effect from 31 August 2024 as the number of members had fallen below 12 for more than 4 quarters. Steps are being taken to dispose of both churches.

During the summer of 2024 Union Street Methodist Church temporarily ceased to worship in its building after reaching agreement to sell the community centre at the rear of the premises to a third party and needing space to store the equipment that had to be relocated. This is the first significant step towards an ambitious renovation project.

The Circuit continues to see a decline in membership, (mostly through age and death) which brings increasing financial pressure to bear both on individual churches and the Circuit. However, an increase in the Circuit Assessment met by the churches, a significant improvement in interest rates and prudent management resulted in a small surplus for the financial year and saw a halt to the deficits of recent years. That said grants from sources outside the Circuit remain in steep decline.

Whether a balanced budget can be sustained is open to question and will require further careful thought and management. To that end the Trustees agreed a budget for 2024-25 which provides for a 7% increase in the Circuit Assessment. However, it is believed that the amount to be raised through the Circuit Assessment during 2024-25 will represent a zenith and the Circuit Treasurer has indicated that a review of the way in which the Circuit Assessment is calculated will be undertaken for 2025-26.

5

NORTH KENT METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

In addition to purely financial matters, there continue to be questions about the viability of some congregations and church buildings. The Circuit conference at the beginning of the 2023-24 Connexional year to explore these issues in more depth only emphasised the importance to church members of place and being ‘local’. This militates against the merger of churches or sharing (particularly lay) ministry. The availability of volunteers who are both capable and able with sufficient energy to undertake key church and Circuit roles continues to decline.

The trustees continue to look for ways in which to grow the Circuit churches despite the amount and complexity of the work required.

FINANCIAL REVIEW

Current Reserves (unrestricted) at 31 August 2024
Trustees for Methodist Church Purposes (TMCP)
£581,155
Central Finance Board (CFB)
£112,041
Current Account (Co-operative Bank)
£70,920
TOTAL

Commitments
Lay Workers:
Gravesend MC Daytime Hub grant of £3,000 for three years £9,000
MCMC Chinese Lay Pastor: £37,000 p.a. for one year £37,000
Redundancy payments – set aside£50,000
TOTAL

Uncommitted Funds
 £764,116 £764,116
£96,000
£668,116		 £96,000

Reserves policy

The Trustees consider the Circuit needs a reserve of £150,000 to cover budget deficits or unexpected problems. Manses are held as reserve capital should the Trustees not be able re-invite a Minister or obtain a replacement.

Principal funding sources

The principal source of funding is the Circuit Assessment, payment of which is shared between the individual churches within the Circuit. The Circuit Assessment is defined in the Constitutional Practice and Discipline of the Methodist Church and is the income level set by the Circuit Meeting to maintain the Staff, other Circuit operating costs and the grants that the Circuit awards to individual projects across the Circuit. Other income is derived from grants made to the Circuit, rental of unused manses and investment income.

The Circuit Meeting acts as Managing Trustees in the sale or purchase of property for which it is responsible. (It does not own the property; all Methodist Property is owned by the Trustees for Methodist Church Purposes (TMCP)). Proceeds from any disposal of property are directed to TMCP who, after deducting a levy to fund projects across the Methodist Connexion, transfer the residue to the Circuit’s TMCP Model Trust Fund.

The Circuit does not employ any professional fund raisers or organisations raising funds directly from members of the public.

Investment policy and objectives

Capital generated from the sale of redundant Churches or Manses is invested as trust funds with Trustees for Methodist Church Purposes (TMCP). Funds are used for the purposes of mission in support of the policy aims.

6

NORTH KENT METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees are responsible for preparing the report of the trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, the Statement of Recommended Practice: Charities SORP (FRS 102) second edition and the provisions of the Trust Deed require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Statement of Recommended Practice: Charities SORP (FRS 102) second edition and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT OF DISCLOSURES TO THE AUDITORS

In so far as the trustees are aware at the time of approving the trustees’ annual report:

Approved by order of the Circuit Meeting of trustees on 22 May 2025 and signed on its behalf by:

R S Byard - Trustee

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NORTH KENT METHODIST CIRCUIT

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF NORTH KENT METHODIST CIRCUIT FOR THE YEAR ENDED 31 AUGUST 2024

Opinion

We have audited the financial statements of North Kent Methodist Circuit for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Practice.)

In our opinion, the financial statements:

Basis of 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 trustee’s 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 12 months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the Trustees’ annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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.

8

NORTH KENT METHODIST CIRCUIT

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF NORTHKENT METHODIST CIRCUIT FOR THE YEAR ENDED 31 AUGUST 2024

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 7, 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 financial statements

We have been appointed auditor under section 144 of the Charities Act 2011 and report to you in accordance with regulations made under section 154 of that Act.

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 material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulation, was as follows:

To address the risk of fraud through management bias and override of controls, we:

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NORTH KENT METHODIST CIRCUIT

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF NORTHKENT METHODIST CIRCUIT

FOR THE YEAR ENDED 31 AUGUST 2024

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the 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’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

J A Griggs FCA (Senior Statutory Auditor)

For and on behalf of Levicks Audit Services Limited Chartered accountants & statutory auditors 61 London Road Maidstone Kent ME16 8TX

25 June 2025

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NORTH KENT METHODIST CIRCUIT

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

Unrestricted
funds
Notes
£
INCOMING RESOURCES
Incoming resources from generated funds
Donations income
2
505,468
Other trading income
3
44,858
Investment income
4
36,060
Total incoming resources
586,386
RESOURCES EXPENDED
Charitable activities
5
Hong Kong community integration
-
Grants and donations
1,206
Support costs
6
558,355
Governance costs
7
6,780
Total resources expended
566,341
NET INCOME
20,045
Transfers between funds
-
Gains on revaluation of fixed assets
Revaluation of manses
1,563,246
__
NET MOVEMENT IN FUNDS
1,583,291
TOTAL FUNDS BROUGHT FORWARD
4,344,227
TOTAL FUNDS CARRIED FORWARD
5,927,518		 31.8.24
Restricted
Total funds
fund
£
£
61,196
566,664
-
44,858
-
36,060
61,196
647,582
21
21
-
1,206
70,243
628,598
-
6,780
70,264
636,605
(9,068)
10,977
-
-
-
1,563,246
_
_
(9,068)
1,574,223

9,543
4,353,770
475
5,927,993
 31.8.23
Total funds
£
548,822
17,077
23,326
589,225
16,320
17,862
652,677
6,600
693,459
(104,234)
-
(1,254,861)
__
(1,359,095)
5,712,865
4,353,770

11

NORTH KENT METHODIST CIRCUIT

BALANCE SHEET AT 31 AUGUST 2024

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
11
5,170,889
CURRENT ASSETS
Debtors
12
4,531
Cash at bank
763,641
TOTAL CURRENT ASSETS
768,172
CREDITORS
Amounts falling due within one year
13
(11,543)
NET CURRENT ASSETS
756,629
TOTAL ASSETS LESS CURRENT LIABILITIES
5,927,518
TOTAL NET ASSETS
5,927,518
FUNDS
15
Unrestricted general funds
Unrestricted revaluation reserve
Restricted funds
16
TOTAL FUNDS		 Restricted

fund
£
-
-
475
475
-
475
475
475		 31.8.24
Total funds
£
5,170,889
4,531
764,116
768,647
(11,543)
757,104
5,927,993
5,927,993
3,715,763
2,211,755
475
5,927,993		 31.8.23
Total funds
£
3,608,081
12,536
749,430
761,966
(16,277)
745,689
4,353,770
4,353,770
3,695,718
648,509
9,543
4,353,770

The financial statements were approved by the Board of Trustees on 22 May 2025 and were signed on its behalf by:

R S Byard Trustee

12

NORTH KENT METHODIST CIRCUIT

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2024

Notes
Cash flows from operating activities:
Cash generated from operations
(a)
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Additions of tangible fixed assets
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Interest received
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the
reporting period		 31.8.24
£
(21,374)
(21,374)
-
(21,374)
36,060
36,060
14,686
749,430
764,116		 31.8.23
£
(142,174)
(142,174)
-
(142,174)
23,326
23,326
(118,848)
868,278
749,430

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NORTH KENT METHODIST CIRCUIT

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2024

(a) RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
statement of financial activities)
Adjustments for:
Revaluation of freehold properties
Depreciation charges
Interest received
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by (used in) operating activities		 31.8.24
£
1,574,223
(1,563,246)
438
(36,060)
8,005
(4,734)
(21,374)		 31.8.23
£
(1,359,095)
1,254,861
653
(23,326)
(11,597)
(3,670)
(142,174)

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NORTH KENT METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES

Basis of accounting

The Charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Charities SORP (FRS 102) second edition, the Charities Act 2011 and UK General Accepted Accounting Practice. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note below.

Incoming resources

All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Resources expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings 25% straight line Freehold property Not depreciated

Property values

Legal title of freehold property is held by the Trustees for Methodist Church Purposes as custodian trustee. In accordance with Charity Commission guidance, these are recognised on the balance sheet of the North Kent Methodist Circuit.

Freehold property has previously been revalued annually as per the insurer’s rebuild valuation. For the year ended 31 August 2023, the accounting policy remained the same but the tool used to provide those values changed. The Charity used the BCIS rebuild calculator to provide more reliable rebuild valuations. For the year ended 31 August 2024, freehold property was revalued to market value. The values were provided by an independent valuer. The accumulative amount of revaluation has been included in the revaluation reserve on the balance sheet. The comparative figure for revaluation reserve includes revalued amounts to 31 August 2023.

Taxation

The charity is exempt from tax on its charitable activities.

Pensions

All Methodist Ministers in the Circuit are members of the Methodist Ministers’ Pension Scheme, which is a defined benefit scheme. The Charity is unable to identify its share of the underlying assets and liabilities of the scheme and therefore contributions are accounted for as if it were a defined contribution scheme. Contributions are therefore charged in the accounts as they become payable in accordance with the rules of the scheme.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

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NORTH KENT METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024

2. DONATIONS INCOME

Assessment or share
Grants
Collections and donations
Grants received, included in the above, are as follows:
Grants received from Methodism
Non-Methodist grants
The aggregate amount of trustee donations without restrictions to the charity
amounts to £1,250 (2023: £1,000).
The aggregate amount of trustee donations by trustees with restrictions to the
charity amounts to £nil (2023: £nil).		 31.8.24
£
489,925
75,469
1,270
566,664
31.8.24
£
75,469
-
75,469		 31.8.23
£
443,778
103,931
1,113
548,822
31.8.23
£
95,531
8,400
103,931

3. OTHER TRADING ACTIVITIES

31.8.24 31.8.23
£ £
Rent received (net of costs) 44,858 17,077
Rents received are shown net of costs of £1,868 (2023 £3,323)
INVESTMENT INCOME
31.8.24 31.8.23
£ £
Interest and investment income 36,060 23,326

4. INVESTMENT INCOME

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NORTH KENT METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024

5. CHARITABLE ACTIVITIES COSTS

Hong Kong community integration
Donation to Emmanuel Church, Eastbourne
Wifi and recording equipment for churches
Support costs
6.
SUPPORT COSTS
Clergy expenses
Staff costs (note 9)
District Assessment
District Levy on Circuit Advance Fund
Insurance, utilities, etc
Repairs and maintenance including quinquennials
Telephone
Depreciation of fixtures and fittings
Printing, postage and stationery
Training
Resources for services
Computer and software
Property management fees
Bank charges
Sundry expenses
Bad debt		 31.8.24
£
21
-
1,206
628,598
629,825
31.8.24
£
17,236
393,868
109,210
35,363
33,820
22,281
1,205
438
2,089
490
1,247
1,920
583
1,676
1,569
5,603
628,598		 31.8.23
£
16,320
10,000
7,862
652,677
686,859
31.8.23
£
18,137
398,648
100,193
46,841
38,344
35,669
1,371
653
2,037
1,243
3,022
2,286
1,011
2,112
1,110
-
652,677

Support costs include £70,243 of salary expenses treated as restricted expenditure. The funding for these salary expenses is received by way of Methodist grant income also treated as restricted due to being given for a specific purpose.

7. GOVERNANCE COSTS

31.8.24 31.8.23
£ £
Auditors’ remuneration – Audit of the financial
statements 4,500 4,380
Auditor’s remuneration – Other services 2,280 2,220
6,780 6,600

17

NORTH KENT METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024

8. TRUSTEES' REMUNERATION AND BENEFITS

Ministers who also serve as trustees of the charity received the following stipends for the year ending 31 August 2024: -

Rev Bonni-Belle Pickard, Rev Gillian Le Boutillier-Scott, Rev Robin Selmes, Rev Alexandra Terrett, Deacon Elizabeth Harfleet, Rev Robert Zachar and Rev Naomi Oates all received the basic stipend of £29,205 (2023: £27,104), except for Deacon Elizabeth Harfleet who received a stipend of £26,620 (2023: £27,104), Rev Naomi Oates who received a stipend of £26,785 (2023: £22,440) and Rev Gillian Le Boutillier-Scott £13,043 (2023: £13,281). Employer’s pensions contributions of £7,678 (2023: £7,291) were paid by the charity for each minister named above except deacon Elizabeth Harfleet £7,161 (2023: £7,291), Rev Gillian Le Boutillier-Scott £3,509 (2023: £3,573) and Rev Naomi Oates £7,027 (2023: £6,036).

Each minister named above except for Rev Naomi Oates received a Computers in ministry allowance of £194 for the year (2023: £176).

Rev Bonni-Belle Pickard received a Superintendent’s allowance of £2,921 for the year (2023: £2,710). Rev Bonni-Belle Pickard and Deacon Elizabeth Harfleet received a General allowance of £1,000 and £1,218 for the year respectively (2023: £1,000 and £1,329).

None of the ministers named above received remuneration for being a trustee.

The below table shows Lay workers who were employed and also served as trustees. Their remuneration is shown only for the period they served as a trustee:-

The below table shows Lay workers who were employed and also served as trustees. Their
remuneration is shown only for the period they served as a trustee:-		 The below table shows Lay workers who were employed and also served as trustees. Their
remuneration is shown only for the period they served as a trustee:-
Gross salary (2023) Employers pension (2023)
C Chare (employment ceased 17/4/24) £10,359 £10,557 £422
 £633
L Rainer (resigned as trustee 1/9/23, £- £4,341 £- £-
employment ceased 17/4/24)
O Siu
£26,928 £26,928 £1,616		 £1,616

The lay employees listed above did not receive any remuneration for being a trustee. The authority for the circuit to pay remuneration to its trustees is detailed in its governing document, The Methodist Church Act 1976.

Trustees’ expenses

No trustee was reimbursed expenses for their duties as a trustee for the year ended 31 August 2024 (2023: no trustees).

All Ministers and some Lay workers are required to be Trustees of the Charity by the Constitution of the Circuit Meeting laid down by the Methodist Church.

9. STAFF COSTS

Wages and salaries
Social security costs
Pension costs
Apprenticeship levy		 31.8.24
£
315,122
23,668
52,934
2,144
398
393,868		 31.8.23
£
322,716
18,362
55,377
2,193
398,648

18 18

18

NORTH KENT METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024

The average monthly number of employees during the year was as follows:

31.8.24 31.8.23
Average number of employees 21 19

No employees received emoluments in excess of £60,000.

10. PENSION COMMITMENTS

The Charity participates in a pension scheme providing benefits for Ministers and Deacons based on final pensionable pay. The assets of the scheme are held separately from those of the Charity, being invested with the Methodist Ministers’ Pension Scheme.

and Deacons from 1 September 2019 were set at 26.9% and 9.3% of earnings respectively.

The Charity contributes a matching 6% of salary to a defined contribution scheme for the benefit of 4 of the lay employees.

11.TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 September 2023
Additions
Disposals
Revaluations
At 31 August 2024
DEPRECIATION
At 1 September 2023
Eliminated on disposal
Charge for year
At 31 August 2024
NET BOOK VALUE
At 31 August 2024
At 31 August 2023		 Freehold
Fixtures and
property
Fittings
£
£
3,606,754
3,704
-
-
-
-
1,563,246
-
5,170,000
3,704
-
2,377
-
-
-
438
-
2,815
5,170,000
889
3,606,754
1,327		 Totals
£
3,610,458
-
-
1,563,246
5,173,704
2,377
-

438
2,815
5,170,889
3,608,081

The historical cost of freehold property is £2,958,245.

19

NORTH KENT METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024

12.DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other creditors		 31.8.24
£
4,531
31.8.24
£
11,543		 31.8.23
£
12,536
31.8.23
£
16,277

13.CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

14. RELATED PARTY TRANSACTIONS

All trustee’s listed on page 2 of these financial statements, except for Rev Gareth West, Bill Prince and Deacon Victor Downs are also trustees of individual churches within the Circuit who contribute to the assessment income of the Circuit. Assessment income for year ended 31 August 2024 was £489,925 (2023: £443,778).

During the year ended 31 August 2024 the Circuit paid £893 (2023: £964) to Greenapple Graphics for printing services. Greenapple Graphics is owned and operated by Paul Skipp, a trustee of the North Kent Methodist Circuit. At 31 August 2024, North Kent Methodist Circuit owed Greenapple Graphics £nil (2023: £nil).

15. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Circuit Model Trust Fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Net
movement in
At 1.9.23
Funds
£
£
3,756,056
27,061
588,171
1,556,230
4,344,227
1,583,291
9,543
(9,068)
4,353,770
1,574,223		 Transfers
between
funds
£
1,563,246
(1,563,246)
-
-
-		 At 31.8.24
£
5,346,363
581,155
5,927,518
475
5,927,993

20

N ORTH KENT METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024

15. MOVEMENT IN FUNDS continued

Net movement in funds, included in the above are as follows:

Gains on
Incoming Resources revaluation Movement in
Of fixed
Resources expended assets funds
£ £ £ £
Unrestricted funds
General fund 556,362 (529,301) - 27,061
Circuit Model Trust Fund 30,024 (37,040) 1,563,246 1,556,230
586,386 (566,341) 1,563,246 1,583,291
Restricted funds
Restricted fund 61,196 (70,264) - (9,068)
TOTAL FUNDS 647,582 (636,605) 1,563,246 1,574,223

16. RESTRICTED FUNDS PURPOSES

The restricted fund balance of £475 includes the remaining balance of a Kent County Council grant at £385 awarded to the Circuit for restricted use towards the educational integration, professional integration and social integration of the local Hong Kong community and a £90 balance remaining from a Methodist grant relating to a contribution towards the employment costs of the Gravesend Centre Manager.

21