Docusign Envelope ID.. 1F8278B0-881OCF-8207-277SF493g7B8 2024 The Methodist Church - Tower Hamlets Circuit (London District- Circuit No 35109) Charity Registration Number 1134888 Accounts for the year ended 31 August 2024
Do¢usSgn Envelope ID.. 1F8278BO.881640CF.B291.2775F4939788 THE METHODIST CHURCH IN TOWER HAMLETS TABLE OF CONTENTS Pages REFERENCES AND ADMINISTRATIVE DETAILS TRUSTEES. REPORT 4-10 STATEMENT OFTRUSTEES, RESPONSIBILITIES li INDEPENDENT AUDITORS, REPORT 12-14 STATEMENTOF FINANCIALACTIVITIES 15- 16 BALANCE SHEET 17 STATEMENT OF CASH FLOWS NOTESTOYHE ACCOUNTS 19. 31 Page 2
Oocuslgn Env81ope10.. 1F82TBBO.881640CF-8291.2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Reference and Admlnlstrative Detalls Name5 and addresses The addre55 of the registered office for the Tower Hamlets Circuit for the purposes of the Methodist Church Act 1976 3nd any other legislation is.. The Methodist Church in Tower Hamlets Bow Road Methodist Church l Merchant Street London E3 4LY Tel.. 020 8880 7301 Web.. www.mcth.org.uk Circult Office: Circuit Office l Merchant Street London E3 4LY Tel-. 020 8880 7301 Custodlan Trustees: Trustees for Method15t Church Purposes Central Buildings Oldham Street Manchester Ml IJQ Clrcult Leadershlp Team: Rev. Jenny Impey Deacon Theresa Simons-sam Mrs Harriet Graham-mensah Ms Verna Coke Mr lones Ankrah Rev. Davld HollinBSWOrth (until 31 August 20241 Mr Doug Swanney (until 31 August 20241 Investment Managers: Central Finance B03rd of the Methodist Church Methodist Church House 25 Tavistock Place London WCIH 9SF Trustees for the Methodist Connexional Funds Ireglsteredl Methodist Church House 25 Tavistock Place London WCIH 9SF Bankers: CAF Bank 25 Klngs Hill Avenue Kings Hill West Malling Kent ME19 41Q Independent Audltor: clay Ratnage Strevens & Hllls Chartered Accountants & Statutory Auditors Sulte D. The Busines5 Centre Faringdon Avenue Romford, Essex RM3 8EN Sollcitors: Lovell Son and Pltfield 9 Gray s Inn Square Gray s Inn London WCIR 51T Page 3
Oocuslgn Envelope ID.. 1F8278BO.8816.40CF.8291.2715F49397B8 THE MEfHODIST CHURCH IN TOWER HAMLETS Trustees, Report for the year ended 31 Au8USt2024 The Trustees present thelr report anil the audited accounts of the charity for the year ended 31 August 2024. The Trustees have adopted the provision5 of the Statement of Recommended Practice ISORPI "Accounting and Reporting by Charities" IFRS 1021 in preparing the annual report and accounts of the charity. The accounts have been prepared In accordance with the accountlng policies set out in note I to the accounts and comply with the Circuit'5 governing docltment, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice appllcable to charities preparing theiraccounts in accordance with the Financlal Reportingstandard applicable in the UK and Republic of Ireland IFRS 1021 leffective l January 20191- Governante The governing body of the Methodist Church is the Conference, whlch meets annually. The authority under which the Conference act5 is given by the Methodist Church Act 1976. We are governed by the Methodist Church's Constitutional Practice and Disclpline and all Charity Law of the United Kingdom. The church is governed by the Methodist Church Act 1976, the Deed of Unlon and the Model Trusts of the Methodist Churih. The purposes of the Methodlst Church are and shall be deemed to have been since the date of union the advancement of.. lal the Christian faith in accordance wlth the doctrinal standards and the discipline of the Methodlst Church Ibl any charitable purpose for the time being of any Connexional, (Jistrict. circult, local of other orEanisation of the Methodlst Church Icl any charltable purpose for the time being of any society or Institulion or subsidiary or ancillary to the Methodist Church; Idl any purpose for the time being of any charlty being a charity 5ubsldlary or ancillary to the Methodist Church. In setting our oblectives and planning our activitie5. the Circuit has 8Sven careful consideratlon to the Charity Commission's general guidance on public benefit and in particular to its svpplementary public benefit guidance on advanclng OL+r oblectlves as set out above. The Methodlst Church In Tower Hamlets Is part of the London Dlstrict of the Methodist Church, and Is a reglstered charity, number 1134888. The Circuit is also registered for Gift Aid with H M Revenue & Cu5t0ffl5 under the reference XR16174. Full Name of Charity: Methodist Church In Tower Hamlets ReBi5tration Charity Number: 1134888 Date of Registration: 12 March 2010 Maln Communlcatlon Address: Methodist Church In Tower Hamlets Bow Road Methodist Church l Merchant Street London E3 4LY Page 4
Docusign Envelop& ID.. lF8278BO-887OCF-82g1-21I5F4g397B8 THE METHODIST CHURCH IN TOWER HAMLETS Trustees, Report for the year ended 31 August2024 (continued) Trustees The full list of Trustees who seNed during the year and up to date of slgnature of the accounts weie as follows.. Tru51ees who joined during 2023124 are shown wlth an a5terix I'l. those who lelt during the year withl. Mr5 Glenda Adams Mr Joseph Amoah* Miss Susan Bothamley Ms Verna Coke Mrs Harrlet Graham-mensah Revd Dr Jongikaya Zlhle Rev lenny Impey Mrs Evelyn Louls M5 Ella Sibley-Ryan Deacon Theresa Simons-5am' Miss lean Thomas Dr Keith Aldred Mr Jones Ankrah Nana Abrafi Mrs Shella de Winter Ms Cheryl Gurnham Rev Davld Hollingsworth • Mrs Dorrett Kirw3n" Mrs Lily Odartev Mr john Singleton Mr Doug Swanney Mrs Patience Yeboah ** Mpthod to recruit new Trustees There are a number of ex officlo trustees- a London Dlstrlct Chair, Presbyters, Deacons, Clrcuit Steward5, the secretary of the Local Preachers, Meeting together with the Treasurer and one Church Steward from each of the churches in the Circuit. These trustee5 wlll change when the post holders change. Addltlonal member5 from each church are appointed by the relevant Church Council or General Church Meeting. A Secretary of the Circuit Meeting, who is a Lay Person. is appointed by the meeting. Oblectlve and purpose The calllng of the Methodist Church in Tower Hamlets Is to respond to the gospel of God's love in Christ and to live out its discipleship in worshlp and mi55ion. This is expressed throuBh Worshlp, Learning and Caring, Evangelism and Service. The Circuit is committed to use its resources In a clearly focu55ed and intentional way to ensure an effective response to the need5 of our congregations and wider communitv. Actlvltles The fflission of the Clrcult Is to worship God a5 It celebrates its diversity according to the teachlngs of Jesus Christ. Insplred by Jesus we will offer hope and build communitles of love, through prayer. pastoral care and social mlnistry. Organlsational structure The Circuit includes responsibility for the Methodist Churches at Bow Road, Bethnal Green, Poplar, and Whitechapel. The churches at Bow Road and Bethn31 Green formally recognised that they were unable to fulfil their responsibilities as Managlng Trustees with respect to finance and property and both congregatlons delegated these responsibilities to the Circuit meeting as set out under the Model Trust, section 16 Ikl from 2014115. Accordingly. these accounts Include Bow Road and Bethnal Green Methodist Churches. Pastoral, worshlp and mission matters are discusseLI at General Church meetings, with at le35t two Church Meetings held during the year in Bethnal Green and Bow Road. Approval was given by the District for Old Ford Methodist Church to cease to meet for worshlp In 2022 butthe bulldlng remains in use for mission. Poplar Methodist Church has Its own managlng trustees but Is excepted from registration as a charity by virtue of Statutory Instrument No 242 oF2014 and produces separate accounts however Poplar Church Council agreed at its meeting in August to ask the circuit to assume managing trusteeship of the church. The Circuit Meeting has been asked to consider this. The Whitechapel Mission for the Homeless and Rootle55 of London is registered Separately with the Charity Commisslon 12279051. Page 5
DoGuslgn Env81op8 ID.. 1F8278BO_8BlfAQCF-B291_2775F4939788 THE METHODIST CHURCH IN TOWER HAMLETS Tru5tees' Report for the ar ended ai August 2024 {contlnuedl OrgaTrisatlonal structure Icontinuedl In addition to the above, the Circuit ran two community and mission project5 as Internal Organisations. The two projects are: The Zacchaeu5 Project to support those who have long term Illness, the elderly and infirm and those who care for them in Tower Hamlets. Fundlng over and above th@ amount5 raised as grants and payments for the various activitie5 of the project Is now provided by Circuit investments. "Band for Llfe" providing a music workshop once a week at Bow Road Methodlst Church for people who have experienced mental Illness or are socially Isolated. Activlties were funded by grants and Clrcult investments which originated from thp sale of properties in previous years. Numbers attending the project continue to grow. The management of these projects Is undertaken by a project manager for each project, who provides a regular report to the Trustees. Each project is supported by a Steering Group which meets regularly to guide strategic direction and advise on any operational Issues. Clrcult Mlnlsters and offlters The Superintendent Minister and Chair of the Managing Trustees during 2023124 was the Rev. Jenny Impey who had pastoral responsibility for Bethnal Green, Bow Road, Poplar and Whitechapel churches. Deacon Theresa Simons-5am has been appolnted to have a partlcular focus on Bethnal Green and to support the Zacchaeus Projett. During the year the Rev. Davld Hollingsworth began to explore new methods of mlssion and disciple5hlp, through a Heartfelt project, but ill health prevented thi5 Starting. The Clrcult beneflted slgnlficantly from the voluntary mlnlstry of two Supernumerary minlsters. the Rev. David Hollingsworth and the Rev. Cameron Kirkwood, and a student mlnister, Mr Eric Bediako It was also able to make use of the minSslry of the Rev. Hannah Faal-Heim for 7 months whi15t She wa5 Otherwise without appolntment and expresses its gratitude to her nurture and encouragement of the congregatlon at Bow Road. In 202312024 there were slx Local Preachers in the Circuit and four worshlp leaders, Pastoral Support wlthin the ffircult Pastoral support Is provided by a team of pastoral visitors at Poplar and informally by members at other churches. The ministerial team also offer support. Lay staff structure The Circuit Administrntive structure remains under review. Facllities and Property Management is currently being undertaken by the Superintendent Minister wlth sUPPOrt from exlstlng staff and volunteer5. The Circuit employs a part time Flnance Manager and a part time Adminlstrator. Propertv The Circuit continue5 to review its Use of its propertie5. Following the change in difection on the major redevelopment of Bethnal Green, Minor works are continued in 202312024 with a total budget ofup lo £500,000 designated for this work. The Clrcult commenced slgniflcant work on the property at Bow Road to repair part of the roof and the concrete claddlng and sills. The prolect Is not yet complete and additional costs of £24,000 will be incurred to complete the project. The former manse at 2a Stepney Green has been sold. Proceeds of sale amounted to £978,332, out of whlch a levy of £367,333 has been taken for the Connexional Advance and Priorlty Fund to support mission around the Connexion. The money had originally come from the East End Mission Fund and so the money ha5 been lodged in Tru5120520. Page 6
Docuslgn Env81op& ID= IF8278BO-8816-40CF-8291-2775F49397B8 THE mHoDIST CHURCH IN TOWER HAMLETS Trustees. Report for the year ended 31 August 2024 Icontinuedl 25 Campbell Road.. As it Was not currently needed as a manse, it was agreed to let the house to a family under an AST for 2 years. In preparatlon for thi5 a new fire alarm system was installed together with some additional fire-proofing. Manse Approach Road.. New porch doors and back door have been installed to improve energy efficiency-* 95 South Road- New wlndows have been Installed to improve energy efficiency together with some redecoration. Plans for a new cOnseatOry and refurbished kitchen have been approved and work will be undert3ken in the comlnE year. LanhOrne House (adjacent to Bow Road) The leaseholders have approached the circult with a view to extending the leasehold or purchasing the freehold. A surveyors report has been commissioned. Safeguardlng The clrcult has adopted the Safeguardlng Pollcy of the Methodlst Church and reviews this annually ensuring that appropriale DBS checks are undertaken. and volunteers and employees undergo appropriate Iraining. Achievements and performance During 2023124 the Methodist Church in Tower Hamlets contlnued Its mlnlstry and seTvice to the people of the Borough though the provision of worship and service opportunitie5 in four congregations. the continued sUPPOrt of the homeless, elder5 and their carer5 and people wlth mental health Issues through the Whitechapel Mi5slon. the Zacchaeus and 83nd for Lile projects. The Whltechapel Mission has continued to expand as it serve5 the homeless and marBlnallsed since 1876 offering 3 day centre, skills training and careeradvice, activity programmes and specialist supportfor complex needs. By encouraging eath person to address the issues which caused their homelessness. the mission helps them to gairh the skills and confidence to make lasting chanEes in their lives. The Zacchaeus Project proved once again in 202312024 that it has made a Significant contribution to the live5 of so many older people and carer5 who attend its various activities. There has been a significant r15e In the numbers of people seeklng advice and support in obiaining the grants and benefit5 they are entitled to. A new diet and exercise clas5 started wilh an aim of improvinB memberfs health and wellbeing. Grant5 have been recelved Irom the London Borough of Tower Hamlets and the Canary Wharf Group. We have been pleased to welcome new volunleers to the prolect. The project celebrated 25, Annlversary to In July 2024. marking 25 years of service to the community. The Band for Life Project, based at Bow Road, continues to develop and respond to the needs of those who attend. The group weie able to resume public performances in Canary Wharf and The Space. Poplar Methodist Church contlnued to meet in the Ernery Hall of the Queen Victoria Seaman's Rest. The church Inltiated a coffee afternoon in the re5taurantofthe QVSR which 15 attended by church members and residents. There was one baptism during the year. Bethnal Green congregatlon attracts a wlde range of vlsltors. a number of whom have worshlpped regularly for the time they were In the area. Bow Road continues to meet weekly for worship and holds an online prayer meeting. We were pleased to welcome 7 new new members this year, 2 of whom have a150 become church steward5. and the others are serving In a varlety ot ways. Page 7
Docu51gn Envelope ID.. 1 F8276BO-B816-40CF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Trustee5' Report for the year ended 31 August 2024 Icontlnuedl Under the leadership of the Rev. Cameron Kirkwood, the Circuit once again ran a Warm Space at 8ethnal Green for the winter of 202312024 and thi5 has proven to be a welcome addition to the piolects of the Circuit, providing a space where people can keep warm, be piovlded with drinks and snacks, enjoy company or solltude, recharge phone5 and lust relax. The clrcult contlnued to Improve Its provision at Bethnal Green and the Zacchaeus Project by Ltndertaking some refurbishment. intluding new flooring in the corridors. In the comlng year it hopes to install double glailnE and new doors and we are working with the London Borough of Tower Hamlets to agree a suitable design given its location in a conservation area. Bethnal Green Methodist Church provided temporary accommodation a5 a registration centre and waiting room for the Bow Foodbank from December 2023 to July 2024. During thls tlme 16,000 adult food parce15 9.200 children's food parcels and food worth over £350,000 was given by the Foodbank to 3497 8LFests. The Circuil continued to work with Age UK East London to support a knSt and natter group at Old Ford Methodlst Church. 5 women from the circuit were sP01150red to attend a national Methodist Women In Brilain Conference to Insplre and equip them for Service locally. The Circuit churches provided vital space for community actlvltles at each of its churches. Investments The Clrculvs proceeds from property sales relating to the East End Mission are classed as City Centre funds and as a result are held by the London Distrlct ITrust 205201. An amount equivalent to the interest on thi5 fund is glven to the Circult as a grant. The Brant for 202312024 was £100,365 received from Trustee interest and Dividend5. An additional grant of £IOO,000 was also recelved for diaconal ministry. The balan held by Trust as at 31 August 2024 was £2,702,426 that includes £402,700 that has been designated for the Bethnal Green Methodist Church for prem15es work and a further £400.000 for Illaconal ministry based at Bethnal Green. Thi5 amount also includes net sale proceeds amounted to £610,999 (Sale proceeds of £978,332 les5 £367,333 levy pald on sale of Manse, 2a 5tepney Greenl- The investment of Surplus funds Is operated via the Central Finance Board ICFB) of the Methodist Church. CFB aims to provide high quality investment service seeking above aveiage returns for long-term investors, whllst ensuring that the securlties held by all Its funds are in line with the ethical policy of the Methodist Church. The Circuit has its funds in a deposlt account wlth CFB. The Restricted Fund whlch is mainly fund5 from sales of properties is managed byTrustees for Methodist Purposes ITMCPI. These funds are also invested with CFB. The Trustees continue to utili5e these funds for the furtherance of the Circuit'5 mission. Publlc Benefit The Trustees have due regard to the guldance publlshed by the Charitie5 Commission In accoTdance with its dutles under section 17 of the Charities Act 2011. This guidance sets out two key principle5: l. The organisation must have an identifiable benefit. 2. The benefit must be to the publit or a section of the public. The church exists to: increase awareness of God's presence and to celebrate God'5 love,. help people to learn and grow as Christians, through mutual support and care; and be a good neighbour to people in need and challenge injustice. The Trustee5 consider that for these reasons the charity meets these publlc benefit requirements. Page 8
Docusign Env8lope ID. 1 F927880481640CF-8291-2775F49397BB THE METHODIST CHURCH IN TOWER HAMLETS Trustees, Report for the year ended 31 August 2024 Icontinuedl Financial Revlew Circuit ministry and mission is funded mainly through Incoming rents from the Circuit propertles and interest from investments a5 well as the offering receipt5 from the churche5 at Beihnal Green and Bow Road. and the assessment contTibutlOll5 from the Poplarchurch. The work of the social mission pToletts, includlng part of the ministerial costs, is dependent on the continued recelpt of extemal grants, which continue to be supplemented from the Interest from the Ctty Centre Funds (held by the London Dlslrlctl and proceed5 of sale of other sites. The cost of running and maintaining the properties on a day-to-day basls is funded from the Income generated from lettings and tenancie5. Repairs and refurbishments are currently funded from the sale proceeds of other sltes, however in general all are in good condition. The Circuit recognlses that it is drawlng heavily on Its reserves and is monitoring this sliuation and reviewinB Its work. The value of the arcult funds as at 31 August 2024 was £6,465.724 whl(h a decrease of £671,216 from the previous year. This large decreasewas dueto transfers of fund5 from thetru5t 15955 which is held by Circvitto the Circuit trust 20520 held at District level. Trustees, Interests The Minister5 who are Trustees of the Circuit and stationed to the Circuit by the Methodist Church in Britain are Office Holders and are pald a stipend and are provided with a manse for the Ministers and their families to live in. Council Tax is paid by the Circuit and a150 an official telephone line with broadband facilities to enable them to carry out their service as Minlsters. These arranEemenls are practiced throughout the Connexion who silpulate thelrterms of servlce. One Trustee, Dorrett Klrwan was an employee of the Clrcult in 202312024. However, her appointment as a Trustee is unconnected to the employment by the Circuit and she receives no remuneration for her service a5 a Trustee. Any conflict of interest 15 declared at the commencement of each meeting. Her trusteeshlp ended in March 2024. Rlsk Management The Circuit is reviewing its risk polSdes and is pmducing a Risk Register highlightlng the variou5 ri5k5 facing the CirculL the Impact and the likelihood of them happenlng. The main headings under whlch these ri5k5 have been calegori5ed are: Trustees, Responsibilitie5 Membershipand mI10n Resour5, People and Property Financial &AfegrdIng Re5erve5 Pollcv The prlmary use of the Circuit fund is to support the ordained ministers, lay ernployee5 and congregations of the churches in their calllng to worship, learning and caring. servlce and evangelism and to support of the wider community in the Borough of Tower Hamlets, through projects. The unrestricted funds of £6,427.658 include propertie5 in use for the purpose of the Clrcuit and other Investments that generate income upon which the Circuit is reliant upon to Sustain its core activities. RecoBnising the significance of the mlssSon of the churches and proSec¢s of the Methodist church In Tower Hamlets and the care that would be needed In ensuring alternative provislon If they needed to be wound down, the reserve5 pollcy of the Methodlst Church In Tower Hamlets is to maintain a reserve of 6 month5 ordinary expenditure plus the underwriting of the Whitechapel mission to the tune of £IOO.000 and accrued redundancy costs for Circuit staff. Page 9
Docusign Envelope ID.. IF8278BO-881640CF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLErs Trusteeg Report for the year ended 31 AuBUSt 2024 Icontlnuedl Commltment5 All known commitments are included In the accounts. Plans for the future It is the intention to continue to keep under review the existing activities of the local Churches and Circuit to ensure they continue to Serve thelr purpose in the current context. In addition, the Clrcult will contlnue to assess the needs of the local community and. where relevant, consider the deployment of resources in extendlng the services currently provided to support the congregatlon5 In thelr mlsslon and to the broader communlty. Where possible, the Clrtult wlll apply for grants in order to develop those initiative and ensure their sustainability into the future. In addition to its ongoing funding of the Zacchaeu5 Project the circuit has agreed to underwrite the Project by £50,000 in the coming year if the project 55 unable to 5e£ure a key grant it ha5 applied for. A new Digital Inclusion inltiative will be run by the Zacchaeus Project with the support of a grant from the London Borough of Tower Hamlets. The Circuit has commissioned quinquennial reviews of its properties which wlll be undertaken in October 2024. The circuil intends to continue to maintain Its bulldlngs and In partlcular to install double glazing at Bethnal Green to Increase energy effSciency and to ynderlake necessary work on the roof and window cllls at Bow Road and work identifled in the quinquennial reports on its properties. It will contlnue to revlew Its provlsion of manses for the mintsters who are appolnted to the clrcult. In partl¢ul3r the Clrcuit will look to sell 25 Campbell Road at the rlght time and buy a more manageable. energy elficient manse in the area. Dlsclosure of Informatlon to audltors In so far astheTrustees are aware: there Is no relevant audit Information of which the charivs auditors are unaware,. and theTruslees have taken 811 the steps that they ought to have taken to make themselves aware of any relevant audit informatlon nd loestabli5h that the audilors are aware of that information. Audltors The audltors. Clay Ratnage Strevens & Hills, were newly appointed at the Twstee's meeting in September 2023. This report has been prepared by the Trustees wlth support of Circult staff, the Mlnlsters and Clrcult Stewards. They can be contacted at Bow Road Methodist Church, l Merchant Street, London, E3 4LY. Approved by the Trustees on the 1310212mS and slgned on thelr behalf bv: IbMffUI Revdjenny Impey Circult Superlntendent Mlnlster Page 10
Docu51gn EnvalopB ID.. 1F8278BO-881640CF-8291-2775F4939788 THE METHODIST CHURCH IN TOWER HAMLETS Statement of Trustees, re5ponslbllitles for the year ended 31 August 2024 The Tfustees are responsible for preparing the Trustee5' Report and the accounts iri accordance with applicable law and Unlted Kingdom Accounting Standard5 (Uniled Kingdom Generally Accepted Accounting Piaclicel. The law applicable to charitie5 In England and Wales requires the Trustee5 to prepare accounts for each financial year, whichgive a true and fairview of the state of affairs of the Circuit and of the incoming resources and application of resources of the Circult for that year. In preparing these accounts, the Trustees are required to.. select suitable accounting policies and then apply them consistentlyi observe the methods and prlnclples in the Charitles SORP 2019 IFRS 1021,. rnakeludBements and estlmate5 that are reasonable and prudent: state whether appllcable accountlng standards have been followed, subject to any material departures disclosed and explalned in the accounts, and prepare the accounts on the going concern basis unle55 It is inappropriate to presume that the Charity wlll continue in operation. The Trustees are responsible for keeping Sufficient accounting record5 that disclose wlth reasonable accuracy at any time the financlal posltion of the Clrcuit and enable them to ensure that the accounts comply wlth the Standing Orde15 of the Methodist Church, the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and other relevant regulations. They are also responslble for safeguarding the assets of the charity and hen for taking reasonable steps for the prevention and detection of fraLFds and other irregularities. Page 11
Docuslon Envelope ID.. 1F8278BO-881640CF-8291-2775F49397B8 THE MEfHODIST CHURCH IN TOWER HAMLETS Independent Audltor's Report to the Trustee5 of The Methodlst Church In Tower Hamlets Oplnlon We have audited the account5 ofThe Methodist Church In Tower Hamlets Ithe'charity'l forthe year ended 31 August 2024. whlch coinprise the Statement of Flnancial Activities, the 8313nce Sheet, Cash Flow Statement and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financlal Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accountln8 Practlcel. In our oplnlon, the accounts: give a true and fair vlew of the state of the Charity's affaSrs as at 31 August 2024 and of Its Incomin8 resources and application of resources, including its income and expenditure, for the year then ended,. have been properly prepared in accordance wlth United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requlrements of the Charities Act 2011. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those 5tand3rds are further described In the Audltor's responsibilities for the audit of the accounts section of our report. We are independent of the Charity in accordance with the eihical requirements that are relevant to our audlt of the accounts in the UK, including the FRC'S Ethlcal standard, and we have fulfilled our other ethital re5ponsibilitie5 in accordance wlth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our oplnlon. Conclu51ons relating to golng concern In audltlng the 3ccounts. we have concluded ihat the Trustees. use of the golng concern basis of accountlng in the preparation of the accounts Is appropriate. Based on the work we have performed, we have not identified any materlal uncertalnlles relating to events or conditlons that, individually or collectively, may cast 51gnificant doubt on the Charitls abllity to continue as a going concern for a perlod of at least twelve months from when the financial statements are authorlsed for issue. Our responsibilities and the re5ponslblllties of the Trustee5 Wlth respect to gulng concern and described In the relevant sectlons of thls report. other Informatlon The other information comprises the informatlon Included In the trustees, annual report, other than the financlal statefflents and our auditorfs report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does notcoverthe other information and we do not expressany form ofaSSuran conclusion thereon. Ouf responsibility is to read the other information and. in doing so. conslder whether the other information is materially Inconslstent wlth the account5 or our knowledge obtained In the audit, or otherwlse appears to be materially m155tated. If we identify such material inconsistencies or apparent material m155tatements, we are required to determine whether this give rise to a material misstatement In the account5 themselves. If. based on the work we have performed, we conclude that there Is a materlal mlsstatement of this other information. we are required to report that lact. We have nothing to report in this reBard. Page 12
Docuslon Envelope ID.. 1F8278BO-881640CF-8291-2775F4939788 THE METHODIST CHURCH IN TOWER HAMLETS Independent Audltor's Report to the Trustees of The Methodlst Church In Tower Hamlets {tontlnuedl Matters on which we are requlred to report by exception We have nothing to report in respect of the following matters In relatlon to which the Charitles (Accounts and Reports) Regulations 2008 require us to report to you if, in OUT opinion.. the information given in the Tru5tees' report15 inconsistent In any material respect with the accounts- or sufficient accountlng records have not been kept; or the accovnt5 are rbot In agreement wlth the accounting records,. or we have not received all ihe information and explanations we require for our audit. Responslbllltles of Trustees As explalned more fully In the statement of Trustees 'responsibilities set out on page 11, the Trustees are responsible for the preparation of the accounts and for being satisfied that thev give a true and fair view, and for such internal control as the Trustees determine 15 necessary to erkable the preparatlon of accounts that are free from material misstatement. whether due to fraud or error. In preparing the accounts, the Trustees are responsible for assessing the Charity'5 ability to continue as a going concern. disclosing, as applicable, matters related to going concern and using the going concern ba515 of accounting unless the Trustees either Intend to liquidate the chaflty or to cease operation5, or have no realistic altefnative bul to do so. Auditorf5 responslbllltles for the audlt of the accounts We have been appointed bs auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulatlons made or havlng effect thereundei. Our objectives are to obtaln reasonable assurance abolgt whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to Issue an auditorfs report that includes our opinSon. Reasonable assurance is a high level of assurance but Is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 basls of these accounts. To identify risk5 of material misstatement due to fraud {"fraud rlsks'l we assessed events or condltions that could indicate an incentive or pressure to commit fraud or provide an opportunlty to commit fraud. Our risk asse55ment procedures included: Obtaining an Understanding of the legal and regu13tory frameworks applicable to the charity and the sector in whlth they operate. Obtained an understanding of how the charity are complying with those legal and regulatory framework5 by making enquirie5 to the management of the charlty's accountlng department, and management itself. The susceptibility of the comp3ny's financial statement5 to material misstatement cavsed by fraud or other irregularities were assessed with the following procedures.. Identifying and assessing the design effectiveness of controls whlch management have in place to prevent and detect fraud Understanding how those charged with governance considered and addressed the potential for overrlde of controls and management biases Identifying and testing journal entrles, in particular any journal entries posted with unusual account combinations Assessing the extent of compliance with the relevant laws and re8ulatlons Assessing the extent to which pressures existed which may have Increased the risk of fraudulent revenue recognitio Page 13
Doojsign EnvBlope ID.. 1F8278BO-881640CF-8291-2775F4939788 THE METHODIST CHURCH IN TOWER HAMLETS Independent Auditor's Report to the Trustees of The Methodlst Church In Tower Hamlets {contlnuedl Potential fraud ri5k5 that had been identified throughout the planning and commencement of the audit were communicated to the audit team. The inherent limltatlons of audit present an unavoidable risk that we, the auditors, may not have detected some material misstatements within the financial statements despite proper planning and performance of our dutie5 as auditors. Equallyi there remalns a rlsk of the non-detection of fraud which could involve collusion, forgery, intentional omi55ions, mlsrepresenlations, or the override of Internal controls. The audit procedures carried out are deslgned to detect material mlsstatements within the financSal statements, and a5 such we take no responsibility for preventSng non-compllance or fraud and cannot be expected to detect non-compliance with all laws and regulation5. A further description of our responslbilities for the audit Df the accounts is located on the Financial Reporting Councll's webslte at-. http'.Ilwww.frc.org.uklauditorsrespon5ibilities. This description foTm5 part of our auditor's report. Clay Ratnage Strevens & Hills Chartered Accountants & Statutory Auditors Suite D, The Buslness Centre Farlngdon Avenue Romford Essex RM3 8EN L%Iz120Lr Clay Ratnage Strevens & Hills is ellglble to act as auditor in terms of Section 1212 of the Companies Act 2006. Page 14
DoGusign Envelope ID.. 1F8278BO-881640CF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Statement of Flnanclal Artlvltles for the year ended 31 August 2024 Unrestrlrted Fund5 Restrlrted Fund5 2024 Total 2023 Total Note5 Income and Endowments from.. Circult assessment OFlerings Grant5 and donation5 received Investment income and interest Rental income Other Income Internal organlsatlons Total Income Expendltltre on: Charitable actlvltles Stipend5 and staff costs.. MinÈstry Internal organlsatlons Distrltt assessrnent Telephone. travel & admlnlst¥atlon pPertY Malntenance Expenditure on other Circuit propertles District advance fund Other expenditure Internal orRanisations Grants and donation5 Totsl ÈXPEndlture 6,SOLI 12,756 100.B(Kl 54,806 169.183 77.283 6,500 12,756 201,450 54,910 169,183 77,283 83,613 605,695 5,500 10.725 94,166 77,969 144,490 78,332 24,141 435,323 I,650 104 io 83,613 184,367 421,328 192,315 39,879 115,633 232,194 115.633 22,576 10,754 173,019 30,213 50.706 52,919 43,774 25 731,813 211,764 104,726 21,916 10,107 80,375 2,206 54.874 47,660 41,800 io 22,576 10.754 173,019 30,213 50,706 19.137 li 12 13 io 33,782 43.774 14 25 498.745 233.068 575,428 Galn5 on dlsposal of Manse Capital payment Galns on ValUatIOn of flxed assets Net 8alns/llosseslon Investments 16 16 368,294 1978,3321 368,Z94 1978,3321 235,OC 12,1561 64,940 64.940 Net expendlture before transfer5 1622.5151 148.701} 1671,2161 92,739 Transfers between funds 171,1431 71,143 Net movement In funds {693.6581 22.442 1671.216) 92,739 Fund5 balances at I September 2023 Funds bal8nce5 at 31 August 2024 7,121,316 6,427,658 15,624 aB,066 7.136,940 6.465,724 7,044.201 7,136.940 The nDte5 on pages 19 to 31 form an Integral part of these account5. Page 15
Docusign Envelope ID.. IF827890481640CF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Statement of Flnan¢lal Artlvities for the year ended 31 August 2024 Comparathie yearlnformotlon Yearended 31 August20Z3 Unrestrfcted Restrlcted 2023 Notes Fund5 Funds Total Income and Endowments from: Circuit assessment orferings Grants and donatlons rece5ved Investment income and Interèst Rental income Other intotne Internal or8ani5atioThs Tolal Income 5,500 10.725 94,166 77,969 144,490 78.332 24,141 435,323 10,725 69,466 77,902 144,490 78,163 24.700 67 169 24,141 49,077 io 386,246 Expendlture on: Chartlable actlvltles Stipends and staff costs-. Ministry Internèl organisations District assessrnent Telephone. travel & admtnistration Propprty Maintenance Expenditure on otherclrcult propertles District advancè funEI Otherexpenditure Internèl orEanisations Total expenditure 211,764 211,764 IIM,726 21,916 10.107 80.375 Z,206 54.874 47,660 41.800 575A28 io 104.726 21,916 10,107 56,675 2,2Q6 54,874 47,118 li 23,71YJ 12 13 542 io 41,800 170,768 404.660 Gains on revaluation of fixed assets Net1055 on investments 235,000 2,156 235,000 {2.1561 Net expendlture before transfe 214.430 IIZl.6911 92.739 Transfers between funds 91,6541 91,654 Net movement In funds 122.776 130.0371 94739 Funds balances at I September 2022 IRestatedl Funds balance5 at 31 August 2023 6,998,540 7,121,316 45,661 15,624 7,044,201 7,136,940 The notes on pages 19 to 31 form an Inte11 part of thèse accounts. Page 16
Docusign Envslope ID.. 1F8278BO.881640CF_8291_2775F4939788 THE METHODSST CHURCH IN TOWER HAMLETS Balan Sheet 35 at 31 August 2024 Unre5trirted RÈ51rlrted 2024 2023 Funds Funds Total Total Note5 FIMed Assets Tangible assets Investment properties Investments 16 3,241,997 1,960,295 492,710 5.695.002 2SO 3,242247 1,960,295 492.710 5.695,252 3,858,881 1,960,383 427,770 6.247.034 17 18 250 Current Assets Debtors 20 119.237 338.822 262.402 88,288 808,749 119,237 338W22 308.073 90.574 856.706 122,082 469,331 351,819 72,525 1.015.757 T,M.C.P. Interest funds Central Fi nance Board Deposits Cash at bank and in hand 45,671 2,286 47,957 Credltors: amounts falllng due wlthln one year 21 176,0931 110,1411 186.234) 1123,2111 Net Current Assets 732,656 37.816 770072 892.546 Totalassets less current Ilabllltles 6.427,658 38,066 6A65,724 7,139,580 Crèditors: Amounts falllnE due after more than one year 22 12,6401 Nel Aet$ 6A27.658 38,066 6.465,724 7,136.940 AUMUlated funds Unre5trlcted fund5 5.972,658 5,972,658 38,066 455.000 6,465.724 6.666,316 15.624 455,000 7,136,940 Re5trlcted funds 24 38,066 Revaluation reserve 455,000 6,427,658 Total Funds 25 38,066 The accounts were approved by theTrustees on 1310212QIP25 and 51Bned on their behalf by.. Revd lenny Impey Clrcuit Superlntendènt Mlnlster Msverna Coke Clrcuit Steward The note5 on pages 19 to 31 form an it)tegral part of these accounts. Page 17
Docuslgn Envelope ID.. 1F8278BO.8816.40CF_8291.2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLErs Cash ffow statement for the year ended 31 August 2024 2024 2023 Stalement of ¢ash Ilow$ Note Ca5hfrom operatlng actlvltles Net cash tjsed In operating actSvitle5 1.560.171 90.191 Cash flows from Inve511ng actlvltles Dlvidend5,interest and renls from InveStmets Proieed5 liomthe53le of property. plant and eoulptnETrI Purchaseof propÈrty plant and equipment Purchaseof InianElble a55e15 Procoeds Irom IhesHleol Investments Purchase of investments Other 425.543 978,422 316.62S 90 22,593 Ntt ts5h provlded by Irwestlngartlvllles IA03.965 339.308 Cash flow5from IlnartdthKattivltles NewbDrrowing Repayments olborKovAnK Net L35h used In ftnanclng actlvhls Chan80 In ¢4sh and ta5h equlvalents In the reportlnmperlod Cash and cash equivalents at the beginning of the rÈporiinR period Cash and wh e4ulvalent$ at the end of the reportlng perlod 1156,2061 893,675 737N69 429.499 464.176 893.675 2024 2023 Reconrillatlon of net Income to net cash Ilow from o eratln aclfvitle5 NEI Sncomefor the reporting period l as per staternent of financial activitlesl 1671,2161 92.739 Adlustrntnts for: Depreciation and amortlsatlon charBes Profit on the sale of fixed a55ets L05s on thesale of fixed assets Unreallsed Gains on Investrneat5/revaluatioTh Divldends, Interest and rents from Investments Decreaselllncreasel In stocks Ilncreaselldrease In debtors increase/ldecreasel In credliors 13 1.298 1362,9981 4.134 164,9401 1425,5431 1232,8441 1316,6251 2,845 139,6171 519,256 23,533 Net (ash used In operatlng a¢tlvitles 11.560.171) 90.191 Z024 2023 Ana Is olta$h and o5h e Cash In hand Shortiermdeposlt (less than 3 rnonihsl Total tdsh and fosh equlvalent5 ulvalent 737.469 893.675 737,469 893,675 The notes on pages 19 to 31 form an integral part of these accounts. Page 18
Docuslgn Envelope ID.. 1F8278BO-881640CF-8291-2775F49397B8 THE MEfHODIST CHURCH IN TOWER HAmLs Notes to the accounts for the year ended 31 August 2024 l. Accountlng policle5 al Clrcult Informatlon The Methodist Church in Tower Hamlets is an unincorporated charity in England and Wales. The principal correspondence 3ddre55 is given on paEe 3 of these accounls. The nature of the Clrcuit's operations and prlnclpal activities are set out in the Trustees, RepDrt. bl Accountlng convention The accounts have been prepared in accordance with the Charitie5 Act 2011 and 'AccountinE and Reportlng 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 Ire13nd' (FR5 1021 leffedive l January 20191. The Circuit Is a Pvblic Benefit Entity as defiried by FR5 102. The accounts have departed from the Charities (Accounts and Reports) Regulatlons 2008 only to the extent required to provide a true and fair view. Thi5 departure has Involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Prartice which is referred to in the Regulations but which ha5 slnce been wlthdrawn. The accounts are prepared in sterling, which is the functional currency of the Circuit. Monetary amounts in these accounts are rounded to the nearest pound. The accounts have been prepared under the h15torlcal cost convention. modified to Include the revaluation of investment properties and certain financial instruments at fair value. The princlpal accounting policie5 are set out below. cl GolnB concern At the time of approving the accounts, the Trustees have 3 reasonable expectation that the Circuit has adequate resources to continue in operatlonal exlstence for the foreseeable future. Thus, the Truslees contlnue to adopt the going concern basis of accounting in preparing the accounts. dl Funds Unrestrirted funds Unrestricted fund5 are held for use at the discretion of the Trustees In furtherance of the general objectives of the Charity. Restricted funds Restrlcted funds are funds whlch are to be used In accordance with specific restrictions Imposed by donors and grantor5. The aim and use of the major restricted funds are set out in the notes to the accounts. e) Incomlng resources Church assessment The church assessment is accounted for on a recelv3ble basls. Church offerin Church offerin8s are accounted for on a receipts basls. Page 19
Docvslgn Envelop9 ID.. 1 F8278BO-881640CF-8291-2775F4939788 THE METHODIST CHURCH IN TOWER HAMLErs Notes to the accounts for the year ended 31 August 2024 l¢ontlnuedl l. A¢¢ountlng pollcles Icontlnuedl Benevolence Benevolence funds have been historically contributed by the four churches frorn their general funds and 8fe accounted for on a receipts basis In accordance with Standlng Order 527 of the Constitution of the Method15t Church. Grants and donations received Grants from thlrd partie5 are included when the relevant conditions for the grant have been met. Voluntary income comprises donations and contributions and is accounted forwhen entitlement has been confirmed, the amount can be measLrred and receipt Is probable. Rental income Rental income from investment properties is accounted for on a receivable basls. Other income other Income is accounted for on a receivable basis. Internal Or anlsatlons Internal organisalions comprise two projects of the Methodist Church in Tower Hamlets Circuit. The income is either derived from voluntary incomei grants and donations by way of charltable actlvltles. Irsvestment income and interest Interest on deposits and investments is accounted on a receivable basls. Expendlture re¢oBnltlon All expenditure is accounted for on an accruals basis when an obligation that can be measured or reliably estimated exists at the reportlng date. Grants awarded are provided in the Statement of Financial Activitles in theyear in which they are approved byTru5tees and the offer is communicated to the recipient. Grant5 awarded but not paid are recorded as a liability withSn the Balance Sheet. Grants awarded subject to conditlOll5 belng met by the recipient before payments are made are not accrued untll such conditions have been met. Such commitments are disclosed in the accounts as contingent Ilablllties. gl Tanglble Ilxed assets Properties are stated at C05t or in the case of donated assets at valuatlon at the date that the assets are gifted to the Circuit. The Trustees conslder that the lives of the properties are so long and their residual values so high based on prices prevalling at the tlme of acquisltlon that any annual depreciation charge would not be material. Accordingly, no depreciation is provided on freehold propertles used for charitable activities. Any materlal Impairment in the value of such properties, followlnE an annual review, would be chargeable to the Statement of Flnancial Activities. Assets having an Inltial cost of £l.000 or less are written off on acquisltion. Fixtures and fittings, office and computer equlpment having an initlal cost greater than £l.000 are tapitalised and are stated at cost less depreciation. Depreciatlon rates calculated to wrlte off the cost less estimated resldual value of each asset over its expected useful life are as follows: Fixture5, fittings and equipment.. Office equipment: 10%- 20% on a straight line basi5 20% on a stralght Ilne bas15 The galn or loss arlsing on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the a55et, and is recognlsed In the Statement of Financial Activities for the year. Page 20
Do¢uslgn Erwelope ID.. 1F827890.881640CF.8291_2715F49397B8 THE MEfHODIST CHURCH IN TOWER HAMLETS Notes to the accounts for the year ended 31 Au8USt 2024 Icontlnuedl Attountlng policies l£ontlnuedl h) Investment propertle5 Investment properties, which are propertie5 held to earn rentals andlor for capital appreclation, are initially measured at cost and subsequently stated at the Trustee5' estSmates of the fair valuation at the year-end, based on an index of property price5 in the relevant areas. Any surplus or deficit on revaluation is recogn15ed in the Statement of Financial Activities. l) Non-current investments Fixed assets investments, which are held in units in the Trtjstees Methodist for Church Purposes ITMCPI, are stated at the Board's publlshed valuations at the year-end. Realised and unrealised galns and losses on Inve5tment5 are recognised in the Statement of Fin3ncial Activities. A) ImpalrmeTht of non<urrent Investments At each reporting end date, the Circuit reviews the carrylng amounts of its tangible assets to determine whether there is any Indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated In order to determlne the extent of the Impairment loss and any impalrments are recognised in the Statements of Financial Activitie5. k) Cash and cash equlvalents Cash and cash equivalents include cash In hand, deposlts held at call with banks. other short-term liquid investments with orlglnal maturities of three months or less. 11 Financlal Instrument5 The Circuit has elected to apply the provisions of Seclion Il'Basic Financial Instruments, of FRS 102 to all of it5 financial instruments. Financial Instruments are recogni5ed In the Circuivs balance Sheet when the Circuit becomes party to the contractual provisions of the instrument. Flnancial assets and liabilities are offset. with the net amounts presented In the accounts, when there is a legallv enforceable right to set off the recognised amounts and there is an intention to settle on a net basi5 Qr to reallse the asset and Settle the liability simultaneou51y. Baslcflnanclal assets Basic financial assets, which include other debtors and cash and bank balances. are initially measured at transaction price including transaction costs and are subsequently carrled at amortised cost using the effettive interest method unless the arrangement constltutes a financlng transaction, where the transaction Is measured at the present value of the future receipts dlscounted at a market rate of Interest. Financlal asset5 cla55ified as receivable wlthin one year are not awnortised. Baslc flnanclal Ilabllitle5 Basic flnancial liabilities. includlng other payables are init1311y recognlsed at transaction price unless the arr3ngement constitutes a financingtransaction. where the debt Instrument 15 measured at the present value of thefuture payments dlscounted at a market rate of interest. Flnanclal liabilitle5 classified as payable within one year are not amortlsed. Page 21
Docusign Envelop8 ID.. 1F8278BO-881640GF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Note5 to the accounts for the year ended 31 August 2024 Icontlnuedl l. Accountlng polS¢les l¢ontlnued) m) Employee benellts The c05t of any unused holiday entitlement is recognised in the perlod in which the employee's services are received. Termlnatlon beneflt5 are retognlsed Immediately a5 an expense when the Circult Is demonstrably committed to terminate the employment of an employee or to provide termination benefits. n) Retirement beneflt5 Stipendiary Circuit Ministers ale eligible to join the Methodist Ministers, Pension Scheme IMMPSI. The MMPS is a funded defined benefit scheme maintained by The Methodist Church of Great Britain. As the Circult is unable to identify it5 share of the underlying assets and liabilities of the scheme, the Circuit ha5 taken the advantage of the exemption in Financial Reporting Standard 102. Retirement Benefits, and has accounted for Its contributions to the scheme as if It were a deflned contrlbutlon scheme. The pension costs for the scheme represent the contribution payable by the Circult In the year. The contributlon rates are set each year by the Methodist Conference. Access to è stakeholder pension scheme 15 provided to all ellBlble lay employee5 and the Circuit contributes an amount equal to 6% of the employee's gross salary into this scheme. All employees who were already in penslon schemes and new employees who quallfy for auto enrolment are enrolled into new pension schemes (The Penslon Trust and NESn. ol Mlnlsters. manse costs The Circuit is required to provide accommodation for each minister and their families, and MinSsters are expected to occupy them. The Clrcuit bears the c05t of repairs and maintenance. premlses Insurance, council taxand watercharges. These are not regarded as taxable benefits In klnd by HM Revenue & Customs. p) Leases Lease5 are classilied as finance leases whenever the terms of the lease transfer substantially all the risks and reward5 of ownershlp to the lessees. All other leases are cl3551fied as operating leases. Asset5 held under finance lease5 are recognised as 3S5ets at the lower of the assets falr value at the date of inceptlon and the present value of the minlmum lease payments. The related liablllty15 Included In the balance sheet as a finance lease obligation. Lease payment5 are treated as con51Stlng of tapltal and Interest elements. The interest 15 charged to the Statement of Financial Activities for the year so as to produce a constant perlodic rate of interest on the remainlng balance of the liabllity- 2. Crlttcal accountlng estlmates and ludgement5 In the application of the Circuit's accounting policies. the Trustees are required to make ludgements. estimates and 5sumptions about the carryinB amount of asset5 and liabilitie5 that are not readily apparent from other sources. The estlmates and associated assumption5 are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estlmates and underlylng assumptlons are revlewed on an ongoing basis. Revisions to accounting estlmates are recognised in the period in which the estimate is revised where the revlsion affects only that period, or in the period of the revlsion and future periods where the revislon affects both current and future periods. Page 22
DocuslgTr Envelop8 ID.. 1FB278BO-BB1640CF-8291-2775F4939788 THE METHODIST CHURCH IN TOWER HAMLErs Note5 to the accounts tor the year ended 31 August 2024 Icontlnuedl 3. Clrcuit assessment Unrestrlded Funds Restrlcled Funds 2024 Total 2023 Total Poplar Methodist Church 6,500 6,500 6,500 6.500 5.500 5,500 4. Offerlngs Unreslrlrted Funds Restdcted Funds 2024 Totsl 2023 Total Bethnal GeTh Methodist Churth Bow Road Methodist Churth 3,221 9.535 12,756 3.221 9.535 12.756 2,966 7,759 10,725 5. Grants and Donation5 recelved Unrestrlcled Funds Restrfcted Funds 2024 Total 2023 Total inndon District Olhers 100,365 435 IOD.81JO loo,000 650 100.650 200,365 1,085 201,450 93.536 630 94.166 6. Investment income and Interest Unreslrlrted Funds Restritted Funds 2024 Total 2023 Total TMCP InvE5tment holdings= Dividends Interest Cefitral Finano Board dep051t interest Loan Inte$t 14,346 21,605 15,881 2.974 54.806 14,346 21,605 15,985 2.974 54,910 15,401 11,023 8,089 43,456 77,969 104 104 7. Rentsl income Unrestrlcted Funds Ilestrfcted Funds 2024 Total 2023 Total Income from investment properties held 169,183 169,183 144,490 8. Other Income Unrestritted Funds Restrltted Funds 2024 Total 2023 Total Management fee5 Galn on disposal of tangible a5set5 Glft Ald re1Ve Insuran claim Bow Road MC properties hall letting income Bethnèl Green MC propertles hall letting Income Old Ford MC propertles hall letting incorne Other Income 6,010 6.010 6,520 3,284 3.284 3,128 2,860 28,704 30.418 5.936 764 78.332 30,259 26,794 10.342 592 77,283 30.259 26.794 10.342 592 77,283 Page 23
Do¢uslgll Envelope ID.. 1F8278BO-881640CF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Notes to the accounts for the year ended 31 August 2024 Icontlnuedl 9. Stlpends and staff costs Unre5trlcted Funds Re5trlcted Funds 2024 Total 2023 Total Mlnlsl Stipends Salarie5 Employer's National Insurance Penston Costs 41.806 122,064 14.232 14.213 192.315 29,399 71.205 122.064 17,094 Zl,891 232,194 57,270 120.892 12,944 20,658 211.764 2002 7,678 39,879 er nisa Salarie5 Employer's National Insuran Pension Costs 99.665 9,988 s,0 115.633 99.665 9,988 5.980 IIS,633 92.428 6,752 5,546 104.726 The average monthly number of staff employed durlng the year was 912023.. 91. There were no employees whose annual emoluments were £60.000 or more. 9a. Trustees, emoluments One or more Trustees have been paid remuneration OT have received other beneflis from thelr employment ol Office Holding wlth the Circuit. Trustees only ieteive remuneratlon In respect of servlces they provide undertaklng thelr employment roles under thelr contracts of employment and not in respect ol their services as Trustees. 2024 2023 Rev lenny Impey Deacon Terrystreet Deacon Theresa Sam Mrs Dorrett Reid Kirwan 39,997 37,281 31,500 3,071 12.336 84,188 37,077 7,686 84.760 9b. Key Management Personnel The key management personnel of the Circubt comprise of the Trustees and the circuit leadership tearn a5 Ilsted on page 3. The total amount of the employee benefits lincluding employer penslon contributions received by the key mana8ement personnel for their Servi5 to the Circuit was £91,05712023- £90,022). 9c. Penslon Costs The total penslon cost for the Clicult for the year ended 31 AuBusl 2024 wa5 £27,87112023-. £26.2041. Thete were no outstandin8 or prepaid pension conlribulioTTrS at 31 August 2024. Page 24
DDcusign Envelope10.. 1 F8278BO-881640CF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Notes to the accounts for the year ended 31 August 2024 Icontlnued) 10. Internal Organlsatlon The Tower Hamlets Circuil incorporates iwo social and community projects, Band for Ufe and Zacchaeu5. The Income and expenditure for these projects was as follow5.' Zacchaeus Project Band for Llfe Prolect Totèl Restrlcted Funds Income and Endowments from: Oonatlon5 received Grant received Activitie5 for 8eneratin8 fuThd5 Charitable actlvitles other Incomlng resourtes Total 1.087 65,161 265 13,123 2.029 81,665 200 1.645 1.287 66.806 265 13,123 2,132 83,613 103 1.94B Empenditure on.. Charltable 3ctlvltles Support and staff costs Total 23.063 120.525 I4388 15,759 60 38,822 120,585 159.407 Net expendlture before transfers Transfers from unrestrlcted funds Net movement in funds 161.9231 60.989 934 113,8711 10,154 3,717 175,7941 71.143 4,6511 Funds balances at I September 2023 Funds balantes at 31 August 2024 8,401 7A67 4.605 888 13.006 Notable grant5 recelved In previous years from The National Lottery Community Fund amounting to £36.553. Grants received thi5 year are from London Borough of Tower Hamlets (Mayorfs fund) £22,917 and from Canary Wharf £7,336. 11. Property maintenance Unrestrlrted Funds Restrlcted Funds 2024 Total 2023 Total Building repairs and maintenance Fire and security 5y5tems Insu¥ance Rents, Rates & Servlce char8es Professional lees 100,429 IE.744 14.031 936 20,382 18.497 173,019 IOOA29 IB.744 14,031 936 20,382 18,497 173,019 45,994 3,838 13,625 4.469 12,449 80.375 These malntenante costs relate to Clrcuit Manses, Bow Road flats, Bow Road Church bulldlng, Bethnal Green Church building, and Old Fold Church building. The professional fee iricludes Circuit Letlings agents fee of £8,565 for Campbell Road and 2A Stepney Green, Bow Road flats Lettings agents fee of £4.995 and Surveyors and Consultancy fee of £6,822. Page 25
DOCs1Qn Envelope ID.. IF827890-881640CF.8291.2715F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Notes to the Accounts for the year ended 31 August 2024 lcontlnuedl 12. Expenditure on other Circuit propertles (95 South Road) Unrestrlded Funds Restrlded Funds 2024 Total 20Z3 Total Buildlng iepalrs and malnlenance Insurance Professional fees 22,461 1.280 6,472 30,213 22,461 1,280 6.472 30,213 969 1,237 2,206 13. Other expendlture Unre5trlrted Funds Restrlcled Funds 2024 Total ZO23 Totèl Depreclatlon Finance cost5 General and other ad hoc expense5 Loss on disposal of tangible assets Minlstry cost5 Deacon costs Prole55ion31 fees staff welfare and training 1,298 330 4,222 2,836 3,354 l.Zg8 330 4.638 2.836 3.354 33,366 5,880 1,217 52,919 4,134 859 io.oio 416 2.119 33,366 5,880 1.217 19.137 29.483 1,055 47,660 33,782 14. Grants and donatlons Unre5trlcled Funds Re5tiltted Funds 2014 Total 2023 Total Donations 25 25 25 25 15. Audltors, remuneratlon 2024 2023 Fees payable to the Clrcuit's audltor5 foT audit of the annual accounts 5,100 5,100 Page 26
Docusign Env81opo ID: IF8278BO-881640CF-8291-2775F49397B8 THE METHODIST CHURCH INTOWER HAMLETS Note5 to the accounts for the year ended 31 August 2024 (tontlnuedl 16.Tangible assets Freehold land & Bulldlngs Flxtures Nttlng5 & Equlpment offl Equlpment Total Cost or valuatlon At 15eptember 2023 Dlsposa15 and at 31 August 2024 3,850,717 1612,500 3,238.217 29.847 14.180 114,1801 3,894,744 1626,6801 3.268,064 29.847 Depreua¢ion At I September 2023 Charge for year Di5P05a15 At 31 Au8USt 2024 24,519 I,Z98 11,344 35,863 1.298 111.3441 25,817 111.3441 25,817 CarrTrg Amount At 31August 2024 3.238.217 4030 3,242.247 At 31 August 2023 3,850,717 5,328 1836 3,858,881 The tafrying amount of freehold land and bullding cornpri5es of: Z024 2023 Manses Church bulldings 677,569 2.560,648 3,238,217 1.290,069 2,560,648 3,850,717 The former rnanse at 2a Stepney Green was sold for £999.325 during the year. The Circuit incurred selling Costs of £18,531 and the orlginal cost of the property was £612.500 resulting in an overall gain of £368,294, which is included in the Statement of Financial Activities. Net proceeds of £978,332 were lodged with the London District (Trust 205201 as the money to orl8lnally purthase the property had come from the East End M15slon Fund. Ofltce equlpment were assets held under ffinan leases. The lease contract ended In July 2024, and these assets were dlsposed 17. Investment propertles 2024 2023 Market value at I September 2023 FTeEhold land Revaluation ol Investment Propertle5 Di5P05als Market value at 31 August 2024 1,960,383 1,685,471 40.000 235.000 1881 1.960,383 18BI 1,960,295 The valualion5 of investment propertle5 are stated at the Trustees. estim3te5 of the fair valuation at the year-end, based on an index of property prices In the relevant area5. The Trustee5 consider that these valuations are reasonable at 31 August 2024. Page 27
Docusign EnvelopB ID.. 1 F8278BO-881640CF.8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Note5 to the account5 for the year ended 31 August 2024 Icontlnuedl 18. Investment5 2024 2023 Valuatlon at I September 2023 Disposals Valuatiofi changes Valubtion at 31 August 2024 427,770 452.519 122,5931 12,1561 427,770 64.940 492.710 Investments held by Central Flnance board At 31 August 2024 492.710 427,770 19. Financial In5trumentS 2024 2023 Carrying amount of financial a&set5 Debit instruments measured at amortised c05t 609.198 S48,748 Carrying amount of financial liabilities Measered at amortlsed cost 86,234 84.015 20. Debtors Unrestrltted Funds Restrlrted Funds Z024 Total 2023 Total Prepayments and accrued income other debtors 12,651 106,586 119.237 12.651 106.586 119.237 65,964 56,118 122.082 Debtors Is £105,657 owed from Newham Circuit, of whlch £43,801 Is being paid Dver 48 monthly payments. starting from August 2023. £61.856 of It. including interest of £2,974, will be pald In one lump sum orkce the Forest Gate Development gets underway. 21. Credltor5'. amount5 falling due withln one year Note5 Unrestrlcted Funds Restrlrted Fund5 2024 Total 2023 Total Obligation5 under finance leases Other taxation and 5odal security Deferred income Accruals Other credltors 3,366 5,283 36,553 65,(X)4 13.005 123,211 23 63,168 12,925 76,093 63.168 23.066 86.234 10.141 10.141 Page 28
Docusign Envelop8 ID.. 1 FB278BO481640CF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Notes to the accounts for the year ended 31 August 2024 Icontinuedl 22. Credltors: amounts falling due after more than one year Unrestrlcted Fvnds Restrlcted Funds 2024 Total 2023 Total Obli8ations under finance le05e5 2,640 2024 2023 Net obllÉatlon5 under finan lease and hlre purchase wntrarts: Repaya ble wlthln one year Repayable beNveen one and five years 3,696 5.147 8,843 2.837 6,006 13.366 2.640 Flnancecharges and Interest allocated to future accounting periods Included in Ilabllltles falllng due withln one year 23. Deferred Income Unrest¥lcted Funds Restrirted Funds 2024 Total 2023 Total Other delerred Incorne 36.553 Deferred income Is Included Sn the accounts as follows: Unrest¥lcted Fund5 Re5trlrted Funds 2024 Total 2023 Total Deferred Income15 Included within.. Current Ilabllitles 36,553 Movements In the year- Deferred income at I September 2023 Movements ill the year Dèferred Income at 31 August 2024 36,553 136,5S3 36.553 a653 40.650 14.097 36.553 Page 29
Docusign EnlOpe ID.. 1 F8278BO-881640CF-8291-2775F4939788 THE METHODIST CHURCH IN TOWER HAmLs Notes to the accounts for ihe year endÈd 31 August 2024 Icontlnuedl 24. Restricted funds Balance as at 01.09.23 Transfers Outgolng between funds Balance as at 31.08.24 Incoming Funds i. Internal OT8anisations ii. Bow Road Methodist Church Organ Fund Ill. Dlèconal project Fund iv. Warm space fund 13,006 1,991 83,613 104 loo,000 650 184,367 1159,4071 71,143 B.355 2,095 26,755 861 38,066 173,2451 4161 233.068 627 15,624 71,143 l. Internal Organisatlons. This fund incorporates the Projects of the Tower Hamlets Circuit Band for knfe and Zacchaeu5. li. Bow Road Methodlst Churth Organ Fund. Thls fund was set up for the purposes of buyinB a church Df8an. 11. Dlaconal prolert Fund. Thls 15 foi the diaconal mlsslon In thè proletts and cSrcult churches. Iv. WarTh sPaS fund. The fund for supporting communities through rising costs In winter. by brlnging people together into warm Spacès. Agrant of £650 wès received from Queen Adelaide5 Trust for warm space. 25. Analysis of net assets between funds Unrèstrlcted Funds Restrlrted Funds 2024 Fund balance5 at 31 AuEllSt 2024 are represented by: Total Tanglblefixed assets Investments Net current assets 3,241,997 2.453.005 732,656 6J27,658 250 3.242.247 2,453,005 770,472 6.465.724 37,816 38X)66 26. Contlngent Liabilities A5 at 31 Au8USt 2024, the Circuit had agreed to provlde any rÈ4ulred support and financlal asslstanceto thewhltechapel Mlsslon to enable It to meet Its ftnanclal obllgatlons up to £IOD,000. 27. Operatlng leases- lessee As at 31 August 2024 the charity was committed under non-cancellable operating leases to make the following annual minimum payment5 lat present value): 2024 2023 Printing Equipment Due less than l year Due I to 2 years Due 2 to 5 years 1,502 1,502 4,201 The operating lease 15 in respect of printing equipment taken out with Officeolo8y Ltd for a period of 5 years. Total lease payments expensed during the year wa5 £30412023: £NIII. Page 30
DoGusign EnvÈlope ID.. 1F827BBO-B81640CF-8291-2775F49397BO THE METHODIST CHURCH IN TOWER HAMLETS Notes to the atcounts for the year ended 31 August 2024 {contlnuedl 28. Related party transactlons The Circuit 15 part of The London Oistrict and is also accountable to the Methodlsl Conference, the ultimate controlllng body. Related parties also include Ministers, other Circuit and Churches. Central Finance Board of the Methodist Church and The Trustee5 for Methodist Church Purposes I'TMCP'I. Detai15 of the transactions OCC4Jrfing during the year were as follows: The London Dlslrfct of the Methodlst Church {LDMC.l Durirsg the year, the Circuit received grants of £200,36512023: 93,5361 from TLDMC. The Circuit also paid as5e5sment of £22,576 to TLDMC. Newharn Methodlst Clrcult {"NMUI As at 31 August 2024. NMC owed an amount of £105,65712023- £115.0001 to the Circuit. This amount includes Invoices MCTH pald on behalfof NMC. seNices provided by a Circuit member of 51aff and interest on the balance of £58,882. Interest 15 calculated based on rate of the Income return of the CF6's Corporate Bond Fund for the period. Interest accrued during the year was £2.974. During the year, the Circuit received management and admlni5tration fee5 of £394 12023.. E7601 from East Ham Congregational and Methodist thurch for seNlces provlded by the Clrculys members of staff. Hackney and Stoke NewlnBton Methodlst Clrtult I"HNMC") During the year. the Clrcult recelved management and admlnlstratlon fees of £5,61612023.' £5,761) from HNMCforservices provlded by the Clrculvs members of staff. MCTH also paid £26,103 to HNMC for manse used by McfH Deacon. Poplar Methodlst churchl,PMj During the year, the Circuit received assessment of £6,50012023: 5.5001 from PMC. £1,500 of It was accrued at the end of the year. Page 31