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2023-08-31-accounts

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

District Accruals Accounts 2022-23

THE METHODIST CHURCH

STANDARD FORM OF ACCOUNTS ACCRUALS BASIS

for the year ended 31 August 2023

London District London District 35
Districtno
The Revd Nigel Cowgill
District Council Secretary
Mrs Hilary Porter(till 31st May 2023)
Ms Priya Rasanayagam(from 1st June 2023)
Treasurer
Mr George Kulasingham
District Chairs
Synod Secretary
Mr John Logan
Presbyteral Synod Secretary
Revd Rosamund Hollingsworth
Revd Dr Jongikaya Zihle
Registered Charity - Registration number
1134871
1134871
The Revd Nigel Cowgill
Revd Dr Jongikaya Zihle
Mr John Logan
Revd Rosamund Hollingsworth
Mrs Hilary Porter(till 31st May 2023)
Ms Priya Rasanayagam(from 1st June 2023)
Mr George Kulasingham

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

1 Objectives and Activities

1.1 Aims and organisation

The aims of the District are to advance the mission of the Church in the region, by providing opportunities for Circuits to work together and support each other, by offering them resources of finance, personnel and expertise which may not be available locally and by enabling them to engage with the wider society of the region as a whole and address its concerns. The District serves the Local Churches and Circuits and the Conference in the support, deployment and oversight of the various ministries of the Church and in programmes of training. Wherever possible the work of the District is carried out ecumenically.

The District Council constitutes the Leadership Team between meetings of the District Synod, with a Group of Officers acting as the managing trustees. The District Council set the policy for the District and delegate various tasks to sub-committees and officials to implement that policy and to report back.

1.2 The London District Vision

The London District of the Methodist Church currently comprises 15,000 members, 200 ministers, of which 128 are in active ministry, 218 churches and 34 circuits and their projects together with a number of educational institutions. We are a diverse group of people originating from many different countries and communities who find ourselves worshipping and witnessing together in urban, suburban and more rural areas. We have come together in the belief that we are better together and our intention is to contribute to the well-being of each other, of this global city and the surrounding areas; and of the wider Methodist Church.

As the people, churches and projects of the London regional District of the Methodist Church our mission is:

To share the good news of Jesus Christ throughout Greater London and the surrounding areas and to improve the well-being of people and their communities by:

1.3 The District ways of working include:

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

2 Review of progress and achievements

2.1 The London District Annual Report

The London District Annual Report is prepared and presented to the Representative session of the Spring District Synod each year. It gives full details of the activities of the Commissions and all the groups making up the Commissions and the core central resources. Please contact the District Office at the registered address for a copy of the Full Annual Report of Activities.

2.2 District Goals

Have been adopted by Synod:

  1. To develop lay leadership – in breadth, depth, numbers and confidence.

  2. To ensure that every Minister and Local Preacher is engaged in an intentional review and development of their ministry.

  3. To increase participation in social and civic action by identifying and sharing good practice and promoting networks of practitioners - rooting such engagement in our Methodist identity.

It is clear that the goals by no means exhaust the wider remit of Commissions and other groups or embrace anything like the range of essential activities carried out in the name of the District. They are, however, intended to help us focus on the major developmental work that is seen to be key to the next phase of the District's life as it seeks to support the ministry and mission of the local churches and circuits and to engage with the wider context of London as a global city.

2.3 Achievements

Each body in the life of the District has been challenged and given the opportunity locally to respond to the District Goals within their own context. This has provided a focused strategy and has drawn on the things that are unique about being in London to engage with a particular issue, speak into the City, offering to the connexion and the world church. This has been achieved through our district theme ''Woven'' (God's Story & Our Faith Story woven into the fabric of our communities). Our focused theme fits in with the Evangelism & Growth strategy of the Methodist Conference and the JDS Strategy.

2.4 Plans for future years

We continue to review and develop our mission across the District by resourcing local churches and circuits to proclaim the good news of Jesus Christ through projects and training opportunities. In recognition of the importance of Safeguarding we continue to employ a Assistant Safeguarding Officer to work alongside our current District Safeguarding officer. We continue to work with the Regional Learning Network to support the life of the District and meeting the goals.

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

3 Financial Review

The District's income and expenditure is detailed in the SOFA on page 9.

A copy of the accounts for the year accompany this report. The managing trustees are responsible for the preparation of the accounts and consider that an audit is required.

The managing trustees have reviewed the amounts held in the various reserve accounts and, having regard to the commitments of the District to expand its activities and acquire appropriate equipment for its purposes, consider the reserves are adequate but not excessive.

The purposes of each individual fund under the control of the District is shown in note 17 of the notes to the accounts along with a summary of movements on each individual fund.

The general fund does not include the value of the two manses owned by the District. These are held in a separate fund for ease of management.

The London District continues to have the following principal sources of income:

3.1 Investment Policy

The investment of surplus funds is operated through the Central Finance Board (CFB) of the Methodist Church. CFB aims to provide a high quality investment service seeking above average returns for long term investors, whilst ensuring that the securities held by all its funds are in line with the ethical policy of the Methodist Church. The District has its funds in a deposit account with CFB. The Restricted Funds are managed by Trustees for Methodist Church Purposes (TMCP). These funds are also invested with CFB. The Trustees liaise with the Tower Hamlets Circuit on the use of the City Centre funds for the benefit of the Tower Hamlets Circuit.

3.2 Reserves policy and level

- General Funds (unrestricted)

The funds in the general fund at the end of the year are held as a reserve to cover for an irregular flow of expenditure. Historically, reserves equivalent to approximately six months annual expenditure was retained by the District. In view of the Covid-19 pandemic, the District Council consider a lower level of retained reserves is appropriate. The District Council expected to retain between two and six months annual expenditure for the financial years 2020-21 and 2021-22, rising to between three and six months annual expenditure in the years subsequent. The funds released by retaining less reserves will be used to continue manse maintenance and, to provide support for the work of Circuits in the London District as necessary.

- Designated Funds (unrestricted)

The designated funds are earmarked for those purposes as detailed in Note 17 to the accounts.

- Restricted Funds

The restricted funds, as detailed in Note 17 to the accounts, are to be used exclusively for the purposes listed.

3.3 Collaborative arrangements with connected charities

The London District's main source of funding is the assessments obtained from each Circuit within the District. These assessments are generally based on the membership and staffing levels of the Circuits. The assessments are used to defray most of the cost of administering the District.

Each year the District is allocated a sum by the London Mission Fund (LMF). In the year this was £129,397. This amount is made available to the District Advance Fund committee to meet applications for grants as they see fit. Any grants are paid directly from the LMF and are not paid into the District funds.

The District also obtained from each Circuit with a reserve known as a Circuit Model Trust Fund (CMTF) a levy based on the size of the Circuits' CMTFs at the start of the connexional year (1st September). In the year this CMTF amount was £379,760.

The District receives quarterly from circuits within the district, each circuits' contribution to the Methodist Church Fund (MCF). These sums are collected as agent for the MCF and are passed to the MCF later in the same quarter. Funds received by the District as agent are not recognised as asset in the financial statements because the funds are not within its control. No fee is earned in respect of this agency arrangement and the District incurs no cost through this arrangement.

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

4 Trustees Responsibilities

For each financial year ending 31st August, the Trustees are required to prepare financial statements that give a true and fair view of the District's financial activities during the year and of its financial position at the end of the year. In preparing these financial statements, the Trustees must:

The trustees are responsible for ensuring that sufficient accounting records are kept which disclose with reasonable accuracy at any time the financial position of the Methodist Church - London District and enables them to ensure that the financial statements comply with the law and Standing Orders of the Methodist Church.

They are also responsible for safeguarding the assets of the District and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

4.1 Risk Management

A Risk Register has been agreed by the District Council. The register documents the various risks considered by the council to be facing the District, the potential impact of those risks and the likelihood of the issues happening. It is reviewed annually, and continues to be monitored by the District Council in light of the Covid pandemic. The headings under which these risks are being categorised include:

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

5 Structure, governance and management

5.1

Structure

The London District is an unincorporated association and is governed by the Methodist Church Act 1976, the deed of Union and the Model Trust Deeds of the Methodist Church. It was registered with the Charity Commissioners on 12th March 2010.

Circuits are the coordinating charities for local groups of churches; circuits pay the stipends of the ministers and employ lay staff to serve the churches in the circuit; most decisions are made at or ratified by the circuit meetings. A District is the coordinating charity for a group of contiguous circuits and makes its decisions at half yearly synods. The Methodist Conference meets once each year as the supreme denominational body for all Methodist Churches.

5.2 Purpose of the District

The District is an expression, over a wider geographical area than a Circuit, of the Connexional character of the Church. The purposes of the Methodist church are and shall be deemed to have been since the date of the union the advancement of:

a the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church, and

The primary purpose of this District is to advance the mission of the church in London by:

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

5.3 Governance

The District operates within a statutory framework of regulation and seeks to ensure that it follows Methodist Standing Orders. It relies on the Connexional Office at 25 Marylebone Road, London NW1 5JR to provide guidance on changes that could affect the District.

The members of the District Policy Committee (DPC), known in the London District as the District Council, are annually appointed by a vote of the Synod for a continuous term not normally exceeding six years. One of the chairs of the London District is ex officio chair of the District Council. When a position becomes vacant on the District Council, nominations are invited from ministers and lay members of Circuits within the District. The Chair of the District then shares with nominees what the roles involve. If they wish to be considered for a role, their names and reasoned statements are taken to the District Council and the District Synod for appointment. Members may be either ministers or lay people attending churches in the area covered by the District.

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

5.4 Responsibility of the District Council

vi to be aware that the stipend of the Chair of the District is set – currently by reference to the change over a year in the Consumer Price Index and to the annual change in the Average Weekly Earnings Index – using a formula that was agreed by the Methodist Conference for all ministers within the Connexion vii constantly to be aware of the public benefit guidance issued by the Charity Commission

5.5 The London District Council

The London District meets between 3 and 5 times a year to deal with routine and exceptional matters. It seeks to think strategically about the work of the District and carry out administrative matters for the District between Synods. Its key functions have been:

5.6 Public Benefit Requirement

The trustees had due regard to the guidance published by the Charities Commission in compliance with its duties under section 4 of the Charities Act 2011.

This guidance sets out two key principles:

  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:

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

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

For the purposes of Model Trusts under the Methodist Church Standing Order 966, the District trustees who served during the year as trustees of district property were:

Revd Nigel Cowgill, Revd Jongikaya Zihle, Mr George Kulasingham, Mrs Hilary Porter till 31st May 2023, Ms Priya Rasanayagam from 1st June 2023, Revd Rosamund Hollingsworth and Revd Faith Nyota.

6.7 Disclosure of information to auditors

In so far as the trustees are aware:

6.8 Auditors

Trustees considered it prudent to periodically review / retender for the audit work where possible in line with the Methodist 6 year general guideline.

A recommendation was put to the District Council in the summer of 2023 that they re appointed Clay Ratnage Strevens & Hills.

Approval

31/1/2024

The report was approved by the trustees and signed on their behalf by: 31/1/2024

…………………………………………….

Revd Dr Jongikaya Zihle District Chair

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2023

Notes General
Fund
(Unrestricted)
£		 Designated
Funds
(Unrestricted)
£		 District
Advance Fund
(Designated)
£
Other Funds
(Restricted)
£		 Endowment
Funds
£		 Total
2022-23
£














Total
2021-22
£
Incoming Resources
1 Donations & Legacies - - 1,100 768 - 1,868 10,000
2 Charitable activities - - - - - - -
3 Interest and Investment Income 2 16,024
1,839
57,605
75,650
2,194
153,312		 54,407
4 Other income 3.1 - 37,050
17,073		 - - 54,123 50,368
5 Assessment on Circuits 3.2 310,035 - - - - 310,035 228,344
6 Contributions from Circuit Model Trust
Funds		 - - 379,760 - - 379,760 470,859
7 Connexional Advance & Property Fund - - 59,984 - - 59,984 -
8 Contribution to cost of chair 90,178 - - - - 90,178 86,490
9 Capital Receipts - - - - - - -
10 Grants (including tfrs from DAF &
General Fund)		 4.2 - 206,534 - 5,000 - 211,534 106,625
11 Manse Rent Received - - - - - - -
12 Total Incoming Resources 416,237
245,423
515,522
81,418
2,194
1,260,794		 1,007,093
Resources Expended
13 Grants and Donations committed in year 5.1 3,548 37,664 441,940
98,036		 - 581,188 251,351
14 Salaries and associated costs 6 258,430
123,918		 - - - 382,348 402,876
15 Property (incl Ins., C tax, utilities etc) 7 33,666 115,561 - - - 149,227 44,052
16 Office Expenses (Admin., tel. travel etc.) 18,239 5,003 - - - 23,242 29,262
17 Synods, committees, Conference, etc 9,823 - - - - 9,823 28,128
18 Depreciation 9 1,520
19,693		 - - - 21,213 20,430
19 Training 8 631 1,694 - - - 2,325 10,926
20 Other Expenditure 8 9,850 15,005 3,623 6,876 204 35,558 37,341
21 Audit and Accountancy fees 19 10,105 - - - - 10,105 9,625
22 Manse loan interest - - - - - - -
23 Capital Expended - - - - - - -
24 Total Resources Expended 345,812
318,538
445,563
104,912
204
1,215,029		 833,991
25 Net Incoming/(Outgoing) Resources 70,425 (73,115) 69,959 (23,494) 1,990 45,765 173,102
26 Transfers between funds (31,000) (13,480) 44,480 - - - -
27 Sub Total 39,425 (86,595) 114,439 (23,494) 1,990 45,765 173,102
28 Gains/(losses) on disposal of Manse - - - - - - -
29 Gains/(losses) on revaln fixed assets - - - - - - -
30 Gains/(losses): on investment assets - - - (161,320) (2,073) (163,393) (155,847)
31 Net investment in funds 39,425 (86,595) 114,439 (184,814) (83) (117,628) 17,255
32 Total funds brought forward from last
year		 150,676 1,948,775 605,675
2,372,942
71,760
5,149,828		 5,132,573
33 Difference - - - - - - -
34 Total funds carried forward at end of
year		 190,101
1,862,180
720,114
2,188,128
71,677
5,032,200		 5,149,828
Balance still to be paid
For information only: Money received and passed on to External Organisations
Balance brought forward from last year
Offerings/Gifts - received for External Organisations
Offerings/Gifts - passed to External Organisations
- -
- -
- -
- -

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

London District of M C Accounts 31 August 2023 - Final.xlsx,

Page 9, of 33

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

BALANCE SHEET

AS AT 31 AUGUST 2023

Tangible Fixed Assets Notes General Fund
(Unrestricted)
£		 Designated
Funds
(Unrestricted)		 District
Advance Fund
(Designated)
£		 Other Funds
(Restricted)
£		 Endowment
Funds
£		 Total
2023
£		 Total
2022
£
Manse and otherproperty 9 2,200 1,666,557 - - - 1,668,757 1,687,184
Investmentproperties - - - - - - -
Investments with TMCP - - - 1,348,516 46,735 1,395,251 1,558,644
Total fixed assets 2,200 1,666,557 - 1,348,516 46,735 3,064,008 3,245,828
Current Assets
Debtors and Prepayments 10 38,665 - 6,865 - - 45,530 38,602
Loans bythe District - - - - - - -
Trustees for Methodist Church
Purposes - Interest Accounts		 11 - 183 1,540,190 812,040 24,942 2,377,355 2,244,113
Central Finance Board Deposits 12 - 195,440 - 27,572 - 223,012 176,570
Cash at Bank and in hand 12 165,893 - - - - 165,893 137,022
Total current assets 204,558 195,623 1,547,055 839,612 24,942 2,811,790 2,596,307
Current Liabilities
Creditors (due in under 1 year) 13 16,657 - - - - 16,657 24,772
Grants Payable within 1 year 5 - - 708,936 - - 708,936 561,535
Total current liabilities 16,657 - 708,936 - - 725,593 586,307
Net current assets 187,901 195,623 838,119 839,612 24,942 2,086,197 2,010,000
Total assets less current liabilities 190,101 1,862,180 838,119 2,188,128 71,677 5,150,205 5,255,828
Long term liabilities
(due after more than oneyear)
Grants Payable after 1 year 5 - - 118,005 - - 118,005 106,000
Loans to the District - - - - - - -
Other liabilities due after 1 year - - - - - - -
Net assets 190,101 1,862,180 720,114 2,188,128 71,677 5,032,200 5,149,828
Funds of the District
17
General Fund(Unrestricted) 190,101 190,101 150,676
Projects(Designated) 1,862,180 1,862,180 1,948,775
District Advance Fund
(Designated)		 720,114 720,114 605,675
Total Unrestricted funds 2,772,395 2,705,126
Other Funds(Restricted) 2,188,128 2,188,128 2,372,942
Endowment Funds 71,677 71,677 71,760
Total Funds 190,101 1,862,180 720,114 2,188,128 71,677 5,032,200 5,149,828

The Notes on following pages form part of these accounts.

Approved by the managing trustees on and signed on their behalf by: 31/1/2024

…………………………………………….

Revd Dr Jongikaya Zihle District Chair

London District of M C Accounts 31 August 2023 - Final.xlsx,

Page 10, of 33

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

STATEMENT OF CASH FLOWS

AS AT 31 AUGUST 2023

Cash flows from operating activities: Total Funds
£		 Prior year funds
£
Net income/(expenditure) for the reporting period (as per the
statement of financial activities)		 (117,628) 17,255
Adjustments for:
Depreciation charges 21,213 20,430
(Gains)/losses on investments and fixed asset revaluation 163,393 155,847
Dividends, Interest and rents from investments (153,312) (54,407)
Loss/(profit) on the sale of fixed assets - -
(Increase)/decrease in stocks - -
(Increase)/decrease in debtors (6,929) (16,347)
Increase/(decrease) in creditors 151,291 (190,651)
Net cashprovided by (used in) operating activities 58,028 (67,873)
Cash flows from investing activities:
Dividends, interest and rents from investments 153,312 54,407
Proceeds from the sale of property, plant & equipment - -
Purchase of property, plant and equipment (2,785) (1,028)
Proceeds from sale of investments - -
Purchase of investments - -
Net cashprovided by (used in) investing activities 150,527 53,379
Cash flows from financing activities:
Repayment of borrowing - -
Cash inflowsfrom newborrowing - -
Receipt ofendowment - -
Net cashprovided by (used in) financing activities - -
Change in Cash and Cash equivalents in the reporting period 208,555 (14,494)
Cash and Cash equivalents at the beginning of the reporting
period		 2,557,705 2,572,199
Change in Cash and Cash equivalents due to exchange rate
movements		 - -
Cash and Cash equivalents at the end of the reporting period 2,766,260 2,557,705
Cash in hand (at bank,- HSBC,CFB, TMCP)
Notice deposits (less than 3 months)
Overdraft repayable on demand
2,766,260 2,557,705
- -
- -
Total cash and equivalents 2,766,260 2,557,705

London District of M C Accounts 31 August 2023 - Final.xlsx,

Page 11, of 33

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting framework and accounting policies

i Accounting framework

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

ii Basis

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) below.

These accounts have been prepared on the basis of historical cost except that investments and land and buildings are shown at their market value at the end of the year, and grants committed, but not paid are provided on the accruals basis to show a true and fair view of the District’s financial position and activities.

iii Content

The financial information presented is relevant, reliable, comparable and complete. Where estimates are used these are based on experience, research and judgement. The accounts are expressed in £Sterling, rounded to the nearest pound.

iv FRS102 SORP 2019

To ensure a closer compliance with the FRS102 2019 a further policy change has been made to the treatment of undrawn grants from the District Advance Fund, (DAF).

These accounts are compliant with FRS102 and with the FRS102 SORP 2019.

v

Going concern

Based on the monetary assets and human resources available at 31 August 2023, the trustees believe that the District is a going concern.

vi Consolidation

The District oversees the work of ministers and lay workers in Churches and Circuits within the District, but does not have control over those Circuits or Churches, ministers or lay workers except in accordance with standing orders of the Methodist Church 1932 Act, none of which were applicable. For this reason, the financial statements of the Churches and Circuits within the District are not consolidated into these financial statements.

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

vii Income recognition

Income is brought into account when it is more likely than not that the economic benefit of the income will accrue to the District. No attempt is made to measure the value of services donated by volunteers. Details of how the contribution to the cost of the District Chair has been determined appears in Note 4.1. A similar figure appears in the Expenditure at Note 6.

Individual amounts categorised as Other income in the SOFA will be shown separately if they are considered material.

The District acts as agent in the following matters:

  1. the collection of quarterly assessments from circuits which are paid to the Methodist Church Fund

  2. the payment of expenses of delegates from the District to the Methodist Conference

  3. the cost of ministerial health checks recovered from Circuits.

In all these matters the transactions are not reflected in the SOFA because there is no obligation on the District to make up any shortfall in assessments from Circuits. Sums received as Circuit assessments cannot be recognised as income in the District as they are the income of the MCF.

In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised.

viii Expenditure

This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the District to pay out resources.

ix Grants

From 2016-17 all grants committed to a specific project will be included as grant liabilities. The exceptions being grants which are older than 6 years and are unlikely to be drawn down from the DAF and funds earmarked for potential grants, e.g. to facilitate an emergency response. These undrawn grants may be cancelled by the DAF committee and the funds released back to available funds for reallocation. Until these grants are agreed as cancelled, the funds will be are treated as Contingent Liabilities.

x VAT

Since the District is not VAT registered, all input VAT is charged with the expenses to which it refers.

xi Tangible fixed assets

These are capitalised if they can be used for more than one year, and individually cost at least £500. The freehold properties are shown in the accounts at market valuation at the end of the financial year. The building value has been depreciated over a period of 50 years.

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

xii Investments

The investments of the District are held by the Trustees for Methodist Church Purposes (TMCP) as custodian trustees. The valuations, at market value, are those provided by TMCP. The unrealised gains arising on investments at the end of the year are shown in the SOFA and in Note 17.

xiii Debtors and creditors; bank and cash

Debtors are stated at the amounts owed to the District or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or amount advanced to the District. Subsequently creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit account balances are shown at the realisable values.

xiv Loans

Where concessionary loans ( i.e., free of interest) are made to (or received by) the District to further its charitable purposes, and are repayable after more than one year, they are initially recognised at the amount paid [or received], with the carrying value adjusted in subsequent years to reflect repayments and any accrued interest, adjusted for any impairment, if necessary.

Where there is objective evidence of impairment, an immediate impairment loss is recognised in the Statement of Financial Activities. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the Statement of Financial Activities.

xv Methodist Church Fund

The District acts as agent for the Methodist Church Fund (MCF) by collecting its assessments on Circuits and does not, therefore, include the assessments in the SOFA. If a Circuit is late in paying its MCF assessment to the District but such sum is received before the quarterly transfer to the MCF, the amount paid late will be shown as a debtor in the District’s accounts.

xvi Ministers' manse costs

The District is required to provide accommodation for each Minister and his / her family. The District bears the cost of repairs, maintenance, building insurance, Council Tax and water charges. These costs are not shown separately as benefits-in-kind for Ministers as HMRC does not seek to tax these receipts in the hands of the Ministers.

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THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

2 Interest & Investment Income

The market valuations for Trusts holding not cash investments have been provided by TMCP.

Other funds are held on deposit at CFB or in the current accounts at CAF or HSBC.

2.1
2.2		 Interest Received
Fund Type		 Held at 2022-23
General Fund
U
Manse Fund
D
District Advance fund
D
Pastoral & Benevolent Fund
R
Tower Hamlets - Trustee A/C
R
Jean Richardson Endowment
E		 CFB
TMCP
TMCP
CFB
TMCP
TMCP		 16,024
1,839
57,605
129
26,518
754
Dividend Income Received
Fund Type		 Held at 2022-23
Tower Hamlets - Trustee account
R
Jean Richardson Endowment
E		 TMCP
TMCP		 49,003
1,440
Total Interest & Investment Income

3.1 Other income

The District does not undertake fundraising.

Contributions are received from organisations and individuals towards various activities organised by, with or through the District e.g. conferences, training, chaplaincy etc. Those contributions in the year consisted of :

Towards Chaplaincy (City University)
G
District Youth Work
G
Mission in Britain
D
District Advance Fund		 2022-23 2021-22
£
36,750
300
17,073		 £
33,810
-
16,558
54,123 50,368
- -
54,123 50,368

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THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

3.2 Assessment from Circuits

All Circuits (see list given below in this note) paid their assessments to the District and to the MCF during the year. An assessment on Circuits is annually determined by Districts by reference to the number of staff in the Circuits and the number of Church members but may also take into account a Circuit’s ability to pay. Circuits in the District are as follows:

Circuit No
Circuit Name
35/01
City Road
35/02
West London Mission
35/03
Westminster
35/04
Chelsea, Hammersmith & Fulham
35/05
Battersea and Wandle Valley
35/06
Lambeth (merged with Clapham 2022-23)
35/07
Southwark & Deptford
35/09
Tower Hamlets
35/10
Hackney & Stoke Newington
35/11
Islington and Camden Mission
35/12
LM - North West
35/13
Harlesden
35/14
Notting Hill
35/17
Clapham
35/20
Newham
35/22
New River
35/23
Wembley
35/24
Ealing Trinity
35/25
Richmond & Hounslow
35/26
Wimbledon
35/28
Blackheath & Crystal Palace
35/30
Lesnes Abbey
35/31
Barking, Dagenham & Ilford
35/32
Romford
35/33
Forest
35/34
Enfield
35/35
Barnet & Queensbury
35/36
Harrow & Hillingdon
35/37
Teddington
35/38
Kingston upon Thames
35/39
Sutton
35/40
Purley
35/41
Croydon
35/42
Bromley
35/43
Orpington & Chislehurst		 2022-23 2021-22
54,960
46,356
51,288
43,164
43,168
43,716
26,856
21,924
58,048
59,324
75,412
36,324
98,596
102,064
21,916
17,624
43,268
43,824
21,108
16,924
30,936
30,844
19,352
18,424
11,676
8,724
-
28,924
35,096
33,024
91,336
94,424
33,088
33,104
48,540
45,036
36,856
33,424
25,828
24,724
46,348
47,024
43,807
45,724
52,748
47,756
52,128
49,624
80,228
82,724
77,456
65,924
48,088
46,424
102,776
90,524
29,968
24,624
34,520
34,616
60,028
61,464
25,788
25,424
63,696
65,324
28,588
28,124
47,756
48,544
1,621,251
1,545,740
Assessments From Circuits
1,545,740

Contribution to Methodist Church Fund (MCF)

In addition to the assessments on the Circuits to help defray the costs of running the District, the District acted as agent for the Methodist Church Fund which levied assessments on the Circuits in this District all of which were collected or shown as debtors at the end of the year and paid over to the MCF in the year. No balance was held at the end of the year; no fee is received for this service which is performed at nearly nil cost to the District. These sums collected for and remitted to the MCF do not appear elsewhere in these financial statements.

Total Methodist Church Fund assessments levied on circuits in the year
Assessment of Circuits towards London District Expenses		 2022-23 2021-22
1,311,216 1,317,396
310,035 228,344

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THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

4.1 Cost of Chair and trustees

The Chair of District chairs meetings of the District Policy Committee (DPC). The members of the DPC are the trustees of the District. The stipend, employer’s NIC and employer’s pension contributions of the Chair of District are paid by the Methodist Connexion. The Chair’s other costs are met mostly by the District.

Since the stipend-related costs above are borne by the Connexion, they appear both in the Income of the District and the Expenditure of the District .

It should be noted that the District Chairs are required to occupy the District manses. Two manses are provided and maintained by the London District alone. The third manse is owned by the London Committee fund and the cost of maintenance is shared between the London District and the London Committee. The value of the council tax and water charges paid for a minister by the District is not included as HMRC does not regard this as a taxable benefit to the minister.

No accrual is made for the Chair's entitlement to a sabbatical as his / her functions are undertaken by other District Chairs or delegated persons at minimal extra cost to the District.

Payment to Trustees

It is District policy to offer to reimburse members of the District Council and others involved in the administration of District affairs for expenditure properly incurred in carrying out their duties. The Chair of the District undertakes the primary executive role within the District. Apart from the Chair of District no member of the District Council was in receipt of any payment for work undertaken on behalf of the District, although certain travelling and administration costs were reimbursed whenever this was requested. None of the trustees is an employee of the District.

4.2 Grants to Direct District Projects / Funds

Grants to Direct District Projects / Funds
2022-23 2021-22
The Annual budget allows for a contribution from the general fund to the
Benevolent fund. This is not treated as a transfer but agrant.		 - -

The District Advance Fund committee made grants to the following projects managed directly by the District. The following grants were made in the year. These are not treated as transfers, but as external payments. Being reflected in DAF payments and in the individual fund income as Grants Income received.

individual fund income as Grants Income received.
Project
DAF Grants Paid to District Accounts		 2022-23 2021-22
(D) District youth work
(D) District Theme (Moving stories)
(D) Creating Safer Space Advanced Level Training
(D) District Chaplaincy grant
(D) New Community Church Project
(D) ADSO Grant
(D) CRM Grant
(D) HIV Chaplaincy grant
(D) Warm Space grant
(D) Emergency Response grant
(R) Circuit Support Income grant		 50,000
-
-
7,000
15,000
24,534
16,000
44,000
20,000
30,000
5,000		 52,000
21,873
8,926
-
-
23,826
-
-
-
-
-
Total 211,534 106,625

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THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

5.1 Grants, donations and related support costs

The accounts show all grants committed to date and likely to be paid, analysed as liabilities either due in one year or after one year. Only DAF commitments made in the year are shown in expenses for the year. These are shown below. A breakdown of forward Grants committed is shown in section 5.2.

2022-23 2021-22
Unrestricted:
DAF Payments
- Committed in year and paid in current year
- Committed in year for payment in future years
- Unspent grant refunded (4 Projects)
Emergency Rapid Response Fund
Forest Emergency Fund
Covid-19 Support Grant
CDiM Grant
3 Generate Coaches
District Youth Enablement
Warm Space Grant
HIV Chaplaincy
Other grant
Sub total
Restricted:
- Pastoral and Benevolent
- From City Centre Tower Hamlets Trust to Tower Hamlets Circuit
- Inter Circuit Support
Sub total
Total		 £
60,000
440,309
(88,369)
30,000
-
-
1,214
500
5,950
8,000
22,000
479,604
3,548		 £
28,800
120,000
(24,475)
-
500
7,000
2,725
-
-
-
-
134,550
-
483,152
500
92,536
5,000		 134,550
5,041
111,760
-
98,036 116,801
581,188 251,351

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DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

5.2 Grants committed but not paid

DAF Future Commitments

Grants from the District Advanced Fund are usually paid when documentary evidence is received that the project is going ahead, e.g. a contract for the worker for a mission project. Grant payments for second and subsequent years are paid when acceptable reports are received indicating that the funds are being spent in line with the grant application and that the project is continuing.

Now only those grants which have not been taken up in the last 6 years are treated as Contingent liabilites. It is possible that they will not be taken up and will be released back to the funds for reallocation.

DAF Future Commitments 22-23 Accounts -
DAF Commitments		 21-22 Accounts -
DAF
Commitments
Year Grants to bepaid 31/08/2023 31/08/2022
22-23
23-24
24-25
Contingent Liabilities
(Grants identified as less likely to be taken up)		 -
708,936
118,005
-		 561,535
84,000
22,000
30,000
Total future commitments 826,941 697,535
DAF Fund EOY
720,114
605,675
Salaries and associated costs
2022-23
£
Gross salaries paid to 4 full time and 4 part time employees were as follows:		 2022-23 2021-22
£ £
Contribition to pension fund
Employer's pension contribution to defined contribution scheme
Total cost for staff members
Cost of 2 District Chairs
Total staff costs
Gross pay
Employer's National Insurance contribution		 250,188
22,543
19,439
292,170
-
90,178		 245,284
23,529
22,573
291,386
25,000
86,490
382,348 402,876

6 Salaries and associated costs

No employees received employee benefits that totalled more than £60,000. There is no accrual for holiday pay as it is immaterial; the holiday year ends on 31 December. All staff are paid at or above the living wage.

One of the full time employee was engaged exclusively in safeguarding matters. A part time member of staff was shared with the London Committee fund, providing support to the District with property matters. The District pays a contribution to the London committee for the cost of this employee. The District Stipend costs also includes a Chaplaincy. The main focus for the Chaplaincy is City Universit, which funds the majority of the woek.

4 part time employees provided administration assistance at the District office.

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DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

Pensions

Most ordained presbyters and deacons are members of the Methodist Ministers’ Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers (which term includes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National Insurance Contributions and pension contributions, the terms ‘employer’ and ‘employee’ are used as they would be in an employing body.

The Connexion accounts for the MMPS schemes and shows the figures in the annual Methodist Church in Great Britain accounts. At the last triennial valuation 31 August 2020, the MMPS was in deficit but a recovery plan for removal of the deficit was agreed by The Council in April 2022 and is being implemented. Details of this scheme can be found in the Annual Report and Accounts of The Methodist Church at www.methodist.org.uk.

Lay employees are contractually employees and have the option of joining The Pensions Trust. Those contributing to the penion scheme contribute 6% of gross salary and the London District contributes the same amount of 6% of gross salary.

7 Property costs 2022-23 2021-22
£ £
Manse repairs and redecoration
Manse refurbishment
District office, rent and services
Manse and office Insurance, utilities etc		 22,238
1,050
10,832
115,107		 25,939
120
10,633
7,360
Total 149,227
 44,052
8 Other Expenditure
2022-23 2021-22
Professional fees
Ecumenical grants
Investment management
Training and resources
Total
Miscellaneous office expenses
Miscellaneous expenses		 £
10,380
2,630
10,838
2,325
4,590
7,120		 £
14,508
3,128
11,008
10,926
515
8,182
37,883
 48,267

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DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

9 Manse and other property

At the start of the financial year the District owned two manses freehold at Brunswick Quay and Oakington Avenue. The historical cost and subsequent revaluation are as follows:

The Brunswick Quay manse was independently valued in September 2016 by - P L W Morgan, of Morgans chartered Surveyors, 28 Sundridge Avenue Bromley BR1 2PX. Using evidence from the sale of comparable local properties updated in accord with the Land Registry House Price index for the London Borough of Southwark, Mr Morgan considered the open market value to be £955,000 including land value of £400,000. The trustees consider this to be a fair value at 31 August 2023 considering current market conditions.

The Oakington Avenue manse was valued in April 2014 by Jeremy Taylor of Wenlock & Taylor Ltd, 97 Chamberlayne Road London NW10 3NN. The total property was valued at £850,000, the reinstatment cost £350,000, the Land value £500,000. Considering the advertised prices of equivalent properties in the local area a reasonably conservative value for the property by the trustees at 31 August 2023 would be £900,000.

Total Tangible Fixed Assets

Cost or valuation Land
Buildings
Total Land
& Buildings
£
£
£		 Land
Buildings
Total Land
& Buildings
£
£
£		 Equipment
& IT
Furniture
Total Equipment
& Furniture
£
£
£		 Equipment
& IT
Furniture
Total Equipment
& Furniture
£
£
£		 Total Assets
£
Balance at31st Aug 2022 900,000 955,000 1,855,000 25,491 4,748 30,239 1,885,239
Additions in the year
Revaluations in the year
Less: disposals in year
Transfers between categories
Balance at31st Aug 2023		 - -
-
-
-
-
- -		 -
-
-
-		 2,786 -
-
-
(9,301)
-
- -		 2,786
-
(9,301)
-		 2,786
-
(9,301)
-
900,000 955,000 1,855,000 18,976 4,748 23,724 1,878,724
Accumulated depreciation
Cost or Valuation Land
Buildings		 Total Land
& Buildings		 Equipment
& IT
**Furniture **		 Total Equipment
& Furniture		 Total
Changes
Balance at31st Aug 2022
Depreciation charge for the year
Revaluations in the year
Less: disposals in year
Balance at31st Aug 2023		 £
£
- 169,343
- 19,100
-
-
-
-		 £
169,343
19,100
-
-		 £
£
23,964 4,748
2,113
-
-
-
(9,301)
-		 £
28,712
2,113
-
(9,301)		 £
198,055
21,213
-
(9,301)
- 188,443 188,443 16,776 4,748 21,524 209,967
NB: Years over which value is depreciated
50
3
3
Net Value
Land
Buildings		 Total Land
& Buildings		 **Equipment Furniture ** Total Equipment
& Furniture		 Total
Balance at31st Aug 2022
Balance at31st Aug 2023		 £
£
900,000 785,657		 £
1,685,657		 £
£
1,527
-		 £
1,527		 £
1,687,184
900,000 766,557 1,666,557 2,200
-		 2,200 1,668,757

Net Value

Land Buildings Total Land **Equipment ** **Furniture ** Total Equipment Total
& Buildings & Furniture
£ £ £ £ £ £ £
Balance at 31st Aug 2022 900,000 785,657 1,685,657 1,527 - 1,527 1,687,184
Balance at 31st Aug 2023 900,000 766,557 1,666,557 2,200 - 2,200 1,668,757

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DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

10 Debtors and prepayments

Trade debtors 2022-23 2021-22
£ £
The London Mission Committee and others 24,700 28,220
Total
Prepayments and accrued income		 24,700 28,220
CRB Subscription
Deposit for probation retreat (2024)
Chaplaincy services QE Nov23
Other sundrydebtors
Stipend
Grant Payable (3 Generate)		 3,855
1,750
410
950
7,000
6,865		 3,629
5,050
-
-
-
1,703
Total
Total(net)		 20,830 10,382
45,530 38,602

11 Trustees for Methodist Church Purposes

The funds that support the District Advance Fund, and Manse Reserve Fund are held by TMCP in Trustees Interest Funds on which interest is credited to the accounts each month. These are regarded as medium and long term investments.

The Tower Hamlets City Centre Trust consists of a small number of investment funds plus a Trustees fund. These are regarded as medium and long term investments. Interest and Dividends received less TMCP administration fees are paid to The Tower Hamlets Circuit as a grant towards their mission projects work.

TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds. Trust property is held for and on behalf of local Managing Trustees who are responsible for the day to day management of trust property. TMCP ensure that, through providing guidance and acting under their direction, the Managing Trustees comply with charity law and Methodist law and policy as determined by the Methodist Conference.

12 Central Finance Board (CFB) and cash at bank

The District has an account at the CAF (Charities Aid Foundation), to facilitate online banking with dual authorisation. CAF is an authorised institution. The sums held on the account is immediately available.

In addition, the District has two common deposit accounts at CFB. Interest is earned on these CFB accounts and credited monthly; the sums deposited can be withdrawn without notice and without loss of interest. These sums are viewed as being liquid.

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THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

13 Creditors and accrued expenses

Creditors and accrued expenses
Creditors: 2022-23 2021-22
£ £
Accountancy fees
Accounts payable
Total of creditors and accrued expenses
Total creditors
Accruals:
Deferred income for grants
Deferred income for activity next year
Total accruals
Audit fees
Expenses reimbursement		 -
7,975
2,130
6,552		 -
7,595
2,030
15,147
16,657 24,772
-
-		 -
-
- -
16,657 24,772

Maturity analysis of basic financial instruments

Accrued at 1st
Sep 2022
£		 Used in year
£		 Accruals made
this year
£		 Accrued at 31 Aug
2023
£
Expenses reimbursement
Audit fees
Accountancy fees
Accounts payable
Total costs		 -
7,595
2,030
15,147		 -
7,595
2,030
15,147		 -
7,975
2,130
6,552		 -
7,975
2,130
6,552
24,772 24,772 16,657 16,657

It is expected that all sums accrued at 31 August 2023 would be paid during the year to 31 August 2024.

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THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

14 Capital commitments and contingent liabilities

14.1
Capital commitments at end of year amounted to:
14.2
Contingent liabilities amounted to:
For Further information See Note 5 DAF commitments		 2022-23 2021-22
- -
2022-23 2021-22
- 30,000

15 Volunteer contributions

Every entity (Connexion, District, Circuit, Church) within the Methodist Church in GB is heavily reliant on volunteers who contribute their skills, time and money in the furtherance of the work of the Church. For the London District directly this contribution is generally by serving on committees of the District that deal with mission, manses, finance, policy, grants, training, development, but there are many others who assist with the preparation and running of District events, e.g. the Spring and Autumn synods. We are grateful to all of them for their help and commitment.

16 Lease commitments

The District had the following lease commitments at the end of August:

Leased facility Review Period Payment Period Annual Payment Commitment
Office Rental (through WCH)
Printer / copier
Telephone / broadband (through WCH)
Franking Machine		 Annual
2026
Annual
2024		 quarterly
quarterly
quarterly
quarterly		 25,939
1,426
324
163		 25,939
3,920
324
163

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THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

17 District funds (Unrestricted, Restricted and Endowment)

The London District of the Methodist Church maintains a number of separate funds. The purpose, type, movement and state as at the end of year is documented below:

The funds held constitute: Unrestricted General Funds held for any purpose of the District, Designated funds allocated for a specific purpose, Restricted funds which are held for a narrower purpose and Endowment funds which represent gifts, the capital normally being unavailable for spending, and the income from which is either Restricted or Unrestricted. Details of each material fund are disclosed in the notes below.

17.1 Fund Purpose & Type

17.1.1
17.1.2		 Fund Name
Type		 Fund Name
Type		 Purpose of the Fund
Unrestricted Funds (U)
General Fund U For use at the discretion of the trustees in the furtherance of the objectives of the
District. This excludes funds which have been designated for a specific purpose. (see
designated funds below)
Designated Funds (D) For specific purposes but not restricted by document or deed to that purpose alone.
District Advance Fund D1 To support the funding of projects in the London District
Manse Property Fund D2 The freehold properties used as manses for the District Chairs.
Manse Refurbishment
Fund		 D3 For major manse maintenance work and refurbishment. This fund resulted from a
surplus of funds following the purchase and sale of manses.
District Training D5 To support District organised training activities.
District Youth Enablement D6 To give young people opportunities to “Get Connected” with God and their churches.
London District Chaplaincy D9 To support the District Chaplaincy work, over and above the City University
Chaplaincy.
Growing London Leaders D10 To equip lay leaders from across the London District as leaders in their church, work
and communitycontexts.
District Focus D11 District Wide Focus project started 2017.
WL & LP Training D12 District facility for training Worship Leader (WL) and Local Preachers (LP).
CSS Advance Level
Training		 D13 Admin support and delivery of the the Safeguarding Creating Safer Space Advanced
Level Module training
City University Chaplaincy D14 Chaplaincy at City University
Forest Circuit Emergency
Fund		 D15 District Wide Focus project started 2017. See Trustee Report section 2.3, To provide
support for the Forest Circuit
3 Generate Coaches D16 To provide assistance for Children to attend 3 Generate
Media & Interfaith Project D17 To provide Media training and support Interfaith discussion
New Community Church
Project		 D18 To support new community church
CDiM D19 To assist ministers in Continuous Development and training in their ministry
ADSO D20 Assistant District Safeguarding Officer to support the continuing Safeguarding work of
the District
Covid 19 Support D21 To support Churches with additional requirements on reopening for worship following
the Covid pandemic
CRM project D22 The selection, customisation,implementation and ongoing costs of a new CRM
database & events system for the District.
Warm Spaces D23 To support Churches with requirement to open as a warm space in response to the
increase in cost of living.
Emergency Rapid
Response funds		 D24 To help the District meet needs arising from an emergency
HIV Chaplaincy D25 To support the work of a HIV Chaplain

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

17.1.3
17.1.4		 Restricted Funds (R )
London District Pastoral &
Benevolent Fund		 R1 To help meet the exceptional needs of presbyters and deacons and District lay
employees and their dependents within the London District that cannot be met at a
local church or Circuit level alone, by providing a resource from which confidential
payments can be made at the discretion of the Trustees.
Tower Hamlets - Sale-
Land StepneyEast End		 R2 Continuing the work of God in Tower Hamlets
Worship & Local Preacher
Resources Centre		 R3 To develop local preachers and worship leaders
London Regional Network
(incl deferred Income)		 R7 To support the work of the London Regional team
Inter Circuit Support R8 To provide support to circuits who are struggling financially
Endowment Funds (E )
Jean Richardson Bursary
Fund		 E To provide assistance to Churches and Circuits, from the former London North West
District, in promoting exchange visits between young people from the former District
and overseas youth organisations.

17.2 Fund Balances and Movements

17.2.1
17.2.2		 Fund Name Fund Name Opening
Balance		 Incoming
Resources		 Resources
Expended		 Gains/
(losses) on
revaluation		 Transfers Closing
Balance
£ £ £ £ £ £
Unrestricted Funds
General Fund (excluding
manse fund)		 U 150,676 416,237 (345,812) - (31,000) 190,101
Designated Funds
London District Advance
Fund (incl. loan to circuit)		 D1 605,675 515,522 (445,563) - 44,480 720,114
ManseValueFund D2 1,685,658 - (19,100) - - 1,666,558
Manse Refurbishment
Fund		 D3 105,338 1,839 (115,432) - 31,000 22,745
District Training Personnel
& Facilities		 D5 8,831 - (953) - 3,973 11,851
District Youth Enablement D6 24,381 50,300 (58,662) - - 16,019
London District Chaplaincy D9 2,380 43,750 (40,332) - - 5,798
Growing London Leaders D10 6,745 - -
 - - 6,745
DistrictFocus D11 27,932 (60) (6,431) - - 21,441
WL & LP Training D12 3,973 - -
 - (3,973) -
CSS Advance Level
Training		 D13 10,663 - (4,671) - - 5,992
City University Chaplaincy D14 - - -
 - - -
Forest Emergency Fund D15 621 - -
 - (621) -
3 Generate Coaches D16 500 - (500) - - -

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

17.2.3
17.2.4		 Fund Name Fund Name Opening
Balance		 Incoming
Resources		 Resources
Expended		 Gains/
(losses) on
revaluation		 Transfers Closing
Balance
£ £ £ £ £ £
Media and Interfaith
Project		 D17 50 - -
 - - 50
New Community Church
Project		 D18 6,718 15,000 (6,755) - - 14,963
CDiM (New) D19 4,332 - (1,214) - - 3,118
ADSO (New) D20 16,173 24,534 (25,843) - 14,864
Covid 19 Support D21 44,480 - -
 - (44,480) -
CRM Project D22 - 16,000 (8,585) - - 7,415
Warm Spaces D23 20,000 (8,000) - - 12,000
Emergency Response
funds		 D24 30,000 -
 - 621 30,621
HIV Chaplaincy D25 44,000 (22,000) - - 22,000
Total Designated
(excluding DAF)		 1,948,775 245,363 (318,478) - (13,480) 1,862,180
Total Unrestricted &
Designated		 2,705,126 1,177,122 (1,109,853) - - 2,772,395
Restricted Funds
London District Pastoral &
Benevolent Fund		 R1 3,137 897 (500) - - 3,534
Tower Hamlets - Sale-
Land Stepney East End
Mss		 R2 2,345,577 75,521 (99,221) (161,320) - 2,160,557
London Regional Network
(incl defferred Income)		 R7 528 - (191) - - 337
InterCircuit Support R8 23,700 5,000 (5,000) - - 23,700
Total Restricted Funds 2,372,942 81,418 (104,912) (161,320) - 2,188,128
Endowment Fund
Jean Richardson Bursary E 71,760 2,194 (204) (2,073) - 71,677
Total Funds
5,149,828 1,260,734 (1,214,969) (163,393) - 5,032,200

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

18 Connected organisations and related parties

Connected organisations include the Methodist Connexion, Circuits and Churches within the District, other Methodist Districts in Great Britain, CFB and TMCP, except as reported in Note 3. All of these entities have their own trustees or directors and autonomous administration such that the London District has no significant influence over any of them, nor they over the London District. They are, therefore, not considered related parties.

Name of Connected Organisations Receipts Payments Adjustments
£ £ £
Donee: Methodist Church Fund
Doner: Circuits within the London District
(assessments on Circuits)
Total
Donor / Donee: Circuits within the London District
(levies / grants)
Donor / Donee: Churches within the London
District (grants)		 -

1,621,251
168,534
-
 (1,311,216)
-
(50,000)
(54,000)		 -
310,035
118,534
(54,000)
1,789,785 (1,415,216) 374,569

There were no related party transactions.

19 Auditor

Auditor
An accrual has been made for the accountancy fee of the auditor.
An accrual has been made for the fee of the auditor.		 2022-23 2021-22
7,975
2,130		 7,595
2,030
10,105 9,625

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London District of M C Accounts 31 August 2023 - Final.xlsx

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

FOR THE YEAR ENDED 31 AUGUST 2023

DECLARATIONS

Treasurer

I confirm that I have prepared the accounts from the records of the District and that they include all funds under the control of the District Council.

Signature of Treasurer Date 29/1/2024 Name Mr George Kulasingham Address 3 Beehive Close, UXBRIDGE, UB10 9QP

Presentation to the District Council for approval.

I confirm that the Accounts have been presented to the District Council on 23 January 2024 and were approved.

Signature of the Chair of the meeting Name of the Chair of the Revd Dr Jongikaya Zihle meeting Date 31/1/2024

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DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

INDEPENDENT AUDITORS' REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

TO THE TRUSTEES OF THE METHODIST CHURCH - LONDON DISTRICT

Opinion

We have audited the financial statements of London District of the Methodist Church (the ‘charity’) for the year ended 31 August 2023 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 2023, and of its incoming resources and application of resources, for the year then ended;

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 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.

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DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE TRUSTEES OF THE METHODIST CHURCH - LONDON DISTRICT

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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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.

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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 5, 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.

Page 31 of 33

DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE TRUSTEES OF THE METHODIST CHURCH - LONDON DISTRICT

Auditor’s responsibilities for the audit of the financial statements

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

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

+The susceptibility of the charity’s financial statements to material misstatement caused by fraud or other irregularities were assessed with the following procedures:

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/library/standards-codes-policy/audit-assurance-and-ethics/auditorsresponsibilities-for-the-audit/. This description forms part of our auditor’s report.

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DocuSign Envelope ID: DA6F4D99-49EE-4595-A718-D797B8689995

THE METHODIST CHURCH - LONDON DISTRICT

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE TRUSTEES OF THE METHODIST CHURCH - LONDON DISTRICT

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 Auditor

Suite D, The Business Centre Faringdon Avenue Romford, Essex, RM3 8EN

Date:

31/1/2024

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

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