**2025 The Methodist Church Tower Hamlets Circuit (London District Circuit No 35/09)** Charity Registration Number 1134888 Accounts for the year ended 31 August 2025 Page 1 ~~1~~ ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **TABLE OF CONTENTS** |**TABLE OF CONTENTS**||| |---|---|---| ||**Pages**|| |**REFERENCES AND ADMINISTRATIVE DETAILS**||**3**| |**REPORT**|**4**
|**11**| |||**12**| |**INDEPENDENT**|**13 -**|**15**| |**STATEMENT OF FINANCIAL ACTIVITIES**|**16-**|**17**| |**BALANCE SHEET**||**18**| |**STATEMENT OF CASH FLOWS**||**19**| |**NOTES TO THE ACCOUNTS**|**20-**|**31**| Page 2 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Reference and Administrative Details** ## **Names and addresses** The address of the registered office for the Tower Hamlets Circuit for the purposes of the Methodist Church Act 1976 and any other legislation is: The Methodist Church in Tower Hamlets Bow Road Methodist Church 1 Merchant Street London E3 4LY Tel: 020 8880 7301 Web: www.mcth.org.uk ## **Circuit Office:** Circuit Office 1 Merchant Street London E3 4LY Tel: 020 8880 7301 **Custodian Trustees: Circuit Leadership Team:** Trustees for Methodist Church Purposes Rev. Jenny Impey Central Buildings Deacon Theresa Simons-Sam Oldham Street Mrs Harriet Graham-Mensah until 18[th] May 2025 Manchester M1 1JQ Ms Verna Coke Mr Jones Ankrah until 20[th] May 2025 Ms Ella Sibley-Ryan from 10[th] September 2025 Mr Michael Spurr from 10[th] September 2025 **Investment Managers:** Central Finance Board of the Methodist Church Trustees for the Methodist Connexional Funds (registered) Methodist Church House Methodist Church House 25 Tavistock Place 25 Tavistock Place London WC1H 9SF London WC1H 9SF **Bankers:** CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ **Independent Auditor: Solicitors:** Clay Ratnage Strevens & Hills Sintons LLP Chartered Accountants & Statutory Auditors The Cube Suite D, The Business Centre Barrack Road Faringdon Avenue Newcastle-upon-Tyne NE4 6DB Romford, Essex RM3 8EN Page 3 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **for the year ended 31 August 2025** The Trustees present their report and the audited accounts of the charity for the year ended 31 August 2025. The Trustees (FRS 102) in preparing the annual report and accounts of the charity. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). ## **Governance** The governing body of the Methodist Church is the Conference, which meets annually. The authority under which the Conference acts is given by the Methodist Church Act 1976. We are governed by the Methodist Church s Constitutional Practice and Discipline and all Charity Law of the United Kingdom. The church is governed by the Methodist Church Act 1976, the Deed of Union and the Model Trusts of the Methodist Church. The purposes of the Methodist Church are and shall be deemed to have been since the date of union the advancement of: (a) the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church (b) any charitable purpose for the time being of any Connexional, district, circuit, local of other organisation of the Methodist Church (c) any charitable purpose for the time being of any society or institution or subsidiary or ancillary to the Methodist Church; (d) any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church. In setting our objectives and planning our activities, the Circuit has given careful consideration to the Charity advancing our objectives as set out above. The Methodist Church in Tower Hamlets is part of the London District of the Methodist Church, and is a registered charity, number 1134888. The Circuit is also registered for Gift Aid with H M Revenue & Customs under the reference XR16174. Full Name of Charity: Methodist Church in Tower Hamlets Registration Charity Number: 1134888 Date of Registration: 12 March 2010 Main Communication Address: Methodist Church in Tower Hamlets Bow Road Methodist Church 1 Merchant Street London E3 4LY Page 4 **THE METHODIST CHURCH IN TOWER HAMLETS** ## **for the year ended 31 August 2025 (continued)** ## **Trustees** The full list of Trustees who served during the year and up to date of signature of the accounts were as follows: Trustees who joined during 2024/25 are shown with an asterix (*), those who left during the year with (**) Trustees who have joined during 2025/26 are denoted with (#) Revd Dr Jongikaya Zihle** Dr Keith Aldred Rev Jenny Impey Mr Jones Ankrah** Deacon Theresa Simons-Sam Nana Abrafi Ms Verna Coke Mrs Sheila de Winter Mrs Glenda Adams Ms Cheryl Gurnham Miss Jean Thomas Mrs Lily Odartey Mr John Singleton Mrs Patience Yeboah Miss Susan Bothamley Ms Ella Sibley-Ryan Mrs Evelyn Louis Mr Michael Spurr# Rev. Dr Jonathan Dean# Mrs Harriet Graham-Mensah** ## **Method to recruit new Trustees** There are a number of _ex officio_ trustees a London District Chair, Presbyters and Deacons stationed to the circuit, Circuit Stewards, the together with the Treasurer and one Church Steward from each of the churches in the Circuit. These trustees will change when the post holders change. Additional members 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. Vacancies are advertised across the Circuit. ## **Objective and purpose** The calling 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 worship and mission. This is expressed through Worship, Learning and Caring, Evangelism and Service. The Circuit is committed to use its resources in a clearly focussed and intentional way to ensure an effective response to the needs of our congregations and wider community. ## **Activities** The mission of the Circuit is to worship God as it celebrates its diversity according to the teachings of Jesus Christ. Inspired by Jesus we will offer hope and build communities of love, through prayer, pastoral care and social ministry. ## **Organisational structure** The Circuit includes responsibility for the Methodist Churches at Bow Road, Bethnal Green, Poplar, and Whitechapel. The churches at Bow Road and Bethnal Green formally recognised that they were unable to fulfil their responsibilities as Managing Trustees with respect to finance and property and both congregations delegated these responsibilities to the Circuit meeting as set out under the Model Trust, section 16 (k) from 2014/15. Accordingly, these accounts include Bow Road and Bethnal Green Methodist Churches. Pastoral, worship and mission matters are discussed at General Church meetings, with at least 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 worship in 2022 but the building remains in use for mission. Poplar Methodist Church has its own managing trustees but is excepted from registration as a charity by virtue of Statutory Instrument No 242 of 2014 and produces separate accounts. The Whitechapel Mission for the Homeless and Rootless of London is registered separately with the Charity Commission (227905). Page 5 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **for the year ended 31 August 2025 (continued)** ## **Organisational structure (continued)** From 1[st] September 2025 Bow Road, Bethnal Green and Poplar congregations will come together as one church which will be known as the Tower Hamlets Methodist Church. There will be a Church Council which will have responsibility for pastoral and missional matters within the church, but the Circuit Meeting will continue to be the Trustees of the properties at Bethnal Green and Bow Road. In addition to the above, the Circuit ran two community and mission projects as Internal Organisations. The two projects are: - The Zacchaeus Project to support those who have long term illness, the elderly and infirm and those who care for them in Tower Hamlets. Funding over and above the amounts raised as grants and payments for the various activities of the project is now provided by Circuit investments. - experienced mental illness or are socially isolated. Activities were funded by grants and Circuit investments which originated from the sale of properties in previous years. 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. ## **Circuit Ministers and officers** The Superintendent Minister and Chair of the Managing Trustees during 2024/25 was the Rev. Jenny Impey who had pastoral responsibility for Bethnal Green, Bow Road, Poplar and Whitechapel churches. Deacon Theresa Simons-Sam has a particular focus on Bethnal Green and supporting the Zacchaeus Project but also exercises ministry across the circuit. The Rev. Norman Grigg exercised ministry across the circuit with a focus on Bow Road from 1 September 2024 to 31[st] July 2025 and the circuit is grateful for the preaching and pastoral care he exercised in this time. The Circuit benefited significantly from the voluntary ministry of a Supernumerary minister, the Rev. Cameron Kirkwood, and a student minister, Mr Eric Bediako Verna Coke, Harriet Mensah Graham and Jones Ankrah served as Circuit Stewards during the year, The Circuit expresses its thanks to them for their voluntary service. Both Jones and Harriet resigned in May illness and subsequent death. The circuit benefitted greatly from her prayerful, encouraging and gentle service. In 2024/2025 there were six Local Preachers in the Circuit and four worship leaders together with a local preacher in training. ## **Pastoral Support within the Circuit** 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 Administrative structure remains under review. Facilities and Property Management is currently being undertaken by the Superintendent Minister with support from existing staff and volunteers. The Circuit employs a part time Finance Manager and a part time Administrator together with three part time cleaners and a part time project manager. Three staff are employed by the Circuit to run the Zacchaeus Project. The Circuit records its gratitude to the Zacchaeus to pursue other opportunities ## **Property** The Circuit continues to review its use of its properties. Following the change in direction on the major redevelopment of Bethnal Green in 2021, minor works are continued in 2024/2025 with a total budget of up to £500,000 designated for this work. Work in this financial year included the installation of new windows and doors. These have led to an improvement in our carbon footprint. The automatic entrance Page 6 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **for the year ended 31 August 2025 (continued)** door to the Walter Newby Centre has improved our accessible and enhanced our welcome. An upgraded fire alarm system was installed in the premises which will enable remote monitoring. The Circuit completed significant work on the property at Bow Road to repair part of the roof and the concrete cladding and sills. It has started work on improving the water supply to the property and upgrading the plumbing. Old Ford continues to offer modern, energy-efficient space for the circuit, churches and other community groups. The manse at 25 Campbell Road continued to be let to a family but notice has now been given to the tenants as the circuit requirements for a good manse. The circuit will continue to search for a more suitable property for use as a second manse.: The Circuit made use The Approach Road Manse continued to be occupied by a minister. 95 South Road: The significant refurbishment of this property continued during the year and the installation of a new kitchen and conservatory are almost complete. ## **Langthorne House (adjacent to Bow Road)** The circuit has negotiated and agreed heads of terms of an extension of the existing lease with the leaseholders to give an unexpired term of 125 years and hope that the new lease will be finalized soon. ## **Safeguarding** The circuit has adopted the Safeguarding Policy of the Methodist Church and reviews this annually ensuring that appropriate DBS checks are undertaken, and volunteers and employees undergo appropriate training. ## **Achievements and performance** During 2024/25 the Methodist Church in Tower Hamlets continued its ministry and service to the people of the Borough though the provision of worship and service opportunities in four congregations, the continued support of the homeless, elders and their carers and people with mental health issues through the Whitechapel Mission, the Zacchaeus and Band for Life projects. The Whitechapel Mission has continued to see an increase in numbers as it serves the homeless and marginalised since 1876 offering a day centre, skills training and career advice, activity programmes and specialist support for complex needs. By encouraging each person to address the issues which caused their homelessness, the mission helps them to gain the skills and confidence to make lasting changes in their lives. The Zacchaeus Project proved once again in 2024/2025 that it has made a significant contribution to the lives of so many older people and carers who attend its various activities. There has once again been a significant rise in the numbers of people seeking advice and support in obtaining the grants and benefits, they are entitled to. An estimated £1m of benefits and grants were claimed by members as a result of this work. A popular diet and exercise class continued with the aim of improving members health and wellbeing. Grants have been received from the London Borough of Tower Hamlets and London Cycling CAM. The London Borough of Tower Hamlets provided a grant to run two digital inclusion courses, including one with ESOL (English as a Second Language) provision. We have been pleased to welcome new volunteers to the project. A significant review of policies and procedures was undertaken during the course of the year. The Band for Life Project, based at Bow Road, continues to develop and respond to the needs of those who attend. The group gave very well received public performances in Canary Wharf and The Space. Page 7 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **for the year ended 31 August 2025 (continued)** Poplar Methodist Church continued to meet in the Eme continued its coffee afternoon in the restaurant of the QVSR which is attended by church members and residents. There was one baptism during the year and 3 new members were welcomed. Bethnal Green congregation attracts a wide range of visitors, a number of whom have worshipped regularly for the time they were in the area. Two new members have been welcomed. Bow Road continues to meet weekly for worship and holds an online prayer meeting. New people continue to be drawn to the church. We thank Susan Bothamley for her service as a church steward until 31[st] August. The activities of each congregation are open to all. In taking the decision to join together as one church the congregations are simply recognising that we already do much together. The Circuit Choir now meets monthly, there is an established pattern of quiet days, Advent and Lent study groups and participation in Bible Month. Under the leadership of the Rev. Cameron Kirkwood and Deacon Theresa Simons-Sam, the Circuit once again ran a Warm Space at Bethnal Green for the winter of 2024/2025 , providing a space where people can keep warm, be provided with drinks and snacks, enjoy company or solitude, recharge phones and just relax. Attendance was lower this year as it was a warmer winter and more venues have opened up much needed and better resourced spaces. The circuit continued to improve its provision at Bethnal Green and the Zacchaeus Project by undertaking some refurbishment, including new doubled glazed windows and doors, creating a warmer and more welcoming environment. This has also reduced our carbon footprint. This was no easy project given the church is situated in a conversation area, but working with the Council plans were ultimately agreed. The fire alarm system was also upgraded. Whilst the Knit and Natter Group at Old Ford a joint project between Age UK East London and the circuit came to an end, the circuit was delighted to welcome Age UK to Bow Road where they build on our own work with older people by running a lunch club and other activities 3 days per week. This now means that older people and their carers are provided with activities at Bow Road on 4 days each week. 3 women from the circuit were sponsored to attend a national Methodist Women in Britain Conference to inspire and equip them for service locally. The Circuit churches provided vital space for community activities at each of its churches including self-help groups, dance, music, community meals and offers hospitality to 4 other churches across its premises. Whilst the circuit may only have a formal membership of just over 100, at least 1000 each week are directly impacted by its mission and service. The Circuit expresses its thanks to the staff and volunteers who offer of their time and skill. The circuit has agreed a new 3-year strategic plan. ## **Investments** are held by the London District (Trust 20520). An amount equivalent to the interest and dividends on this fund is given to the Circuit as a grant. The grant for 2024/2025 was £100,770, An additional grant of £100,000 was received for diaconal ministry. Further grants from this trust were given to Whitechapel Mission (£100,000 to support the mission was paid directly from the District and £25,000 to support chaplaincy/pastoral provision at the Mission; to the Queen Victoria Zacchaeus Project and Band for Life. The balance held by Trust as at 31 August 2025 was £2,322,821 that includes £316,700 that has been designated for the Bethnal Green Methodist Church for premises work and a further £300,000 for diaconal ministry based at Bethnal Green. Page 8 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **for the year ended 31 August 2025 (continued)** The investment of surplus funds is operated via the Central Finance Board (CFB) of the Methodist Church. CFB aims to provide high quality investment service seeking above average returns for long-term investors, whilst ensuring that the securities held by all its funds are in line with the ethical policy of the Methodist Church. The Circuit has its funds in a deposit account with CFB. The Restricted Fund which is mainly funds from sales of properties is managed by Trustees for Methodist Purposes (TMCP). These funds are also invested with CFB. The Trustees continue to utilise these funds for the furtherance ## **Public Benefit** The Trustees have due regard to the guidance published by the Charities Commission in accordance with its duties under section 17 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: - help people to learn and grow as Christians, through mutual support and care; and - be a good neighbour to people in need and challenge injustice. The Trustees consider that for these reasons the charity meets these public benefit requirements. ## **Financial Review** Circuit ministry and mission is funded mainly through incoming rents from the Circuit properties and interest from investments as well as the offering receipts from the churches at Bethnal Green and Bow Road, and the assessment contributions from the Poplar church. The work of the social mission projects, including part of the ministerial costs, is dependent on the continued receipt of external grants, which continue to be supplemented from the interest from the City Centre Funds (held by the London District) and proceeds of sale of other sites. The cost of running and maintaining the properties on a day-to-day basis is funded from the income generated from lettings and tenancies. Repairs and refurbishments are currently funded from the sale proceeds of other sites, however in general all are in good condition. The Circuit recognises that it is drawing heavily on its reserves and is monitoring this situation and reviewing its work. It has reviewed all its contracts for services and made considerable savings. It now has a 5-year forecast and has set up a Sustainable Future Group which hopes to present some options to the Circuit Meeting in 2026. The value of the Circuit funds as at 31 August 2025 was £6,377,246 which a decrease of £88,478 from the previous year. The Ministers who are Trustees of the Circuit and stationed to the Circuit by the Methodist Church in Britain are Office Holders and as such are paid a stipend and are provided with a manse for them and their families to live in. Council Tax and water charges are paid by the Circuit and also an official telephone line with broadband facilities to enable them to carry out their service as Ministers. These arrangements are practiced throughout the Connexion who stipulate their terms of service. Page 9 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **for the year ended 31 August 2025 (continued)** ## **Risk Management** The Circuit has reviewed its risk policies and producing a Risk Register highlighting the various risks facing the Circuit, the impact and the likelihood of them happening. The main headings under which these risks have been categorised are: - Trustees' Responsibilities - Membership and Mission - Resources, People and Property - Financial - Legal - Safeguarding ## **Reserves Policy** The primary use of the Circuit fund is to support the ordained ministers, lay employees and congregations of the churches in their calling to worship, learning and caring, service and evangelism and to support of the wider community in the Borough of Tower Hamlets, through projects. The unrestricted funds of £6,282,035 include properties in use for the purpose of the Circuit and other investments that generate income upon which the Circuit is reliant upon to sustain its core activities. Recognising the significance of the mission of the churches and projects of the Methodist Church in Tower Hamlets and the care that would be needed in ensuring alternative provision if they needed to be wound down, the reserves policy of the Methodist Church in Tower Hamlets is to maintain a reserve of 6 months ordinary expenditure plus the underwriting of the Whitechapel mission to the tune of £100,000 and accrued redundancy costs for Circuit staff. ## **Commitments** 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 their purpose in the current context. In addition, the Circuit will continue to assess the needs of the local community and, where relevant, consider the deployment of resources in extending the services currently provided to support the congregations in their mission and to the broader community. Where possible, the Circuit will apply for grants in order to develop those initiatives and ensure their sustainability into the future. In addition to its ongoing funding of the Zacchaeus Project the circuit has agreed to underwrite the Project by £33,380 the coming year if the project is unable to secure a key grant it has applied for. The Circuit has also agreed to underwrite the work of the Whitechapel Mission by £100,000. The Circuit has applied for a grant to extend the successful Digital Inclusion initiative run by the Zacchaeus Project. The Circuit is seeking to increase the number of volunteers across the churches and projects. The Circuit will continue to undertake the work on the properties which have been highlighted by the Quinquennial reviews of the churches and looks make some improvements to the kitchen and church sanctuary at Bethnal Green, seeking to improve energy efficiency where possible. It will continue to review its provision of manses for the ministers who are appointed to the circuit. In particular the Circuit will sell 25 Campbell Road and consider buying a more manageable, energy efficient manse in the area. 2025-2026 will be the first year when Bethnal Green, Bow Road and Poplar congregations come together as one church meeting on 3 sites. The new Church Council will look to see how we can work more closely together and develop our worship and mission. The Circuit looks to work with the Trustees of the Whitechapel Mission as it moves from being a local church, to new governance arrangements which more fully recognise that it is so much more than a local church and Page 10 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **for the year ended 31 August 2025 (continued)** enable it to continue to meet the needs of the homeless in a challenging context. Once this has happened, the church will become a one church circuit and will take advantage of simplified governance arrangements. The Circuit has set up a sustainable futures group in order to review its life and mission more fully and looks to present options to the Circuit Meeting in 2026. ## **Disclosure of information to auditors** In so far as the Trustees are aware: - there is no relevant audit information of which the charity’s auditors are unaware; and - the Trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. ## **Auditors** The auditors, Clay Ratnage Strevens & Hills, were This report has been prepared by the Trustees with support of Circuit Staff, the Ministers and Circuit Stewards. They can be contacted at Bow Road Methodist Church, 1 Merchant Street, London, E3 4LY. ## 18th March ## **Approved by the Trustees on the 2026 and signed on their behalf by:** **Revd Jenny Impey Circuit Superintendent Minister** Page 11 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **responsibilities for the year ended 31 August 2025** The T United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year, which give a true and fair view of the state of affairs of the Circuit and of the incoming resources and application of resources of the Circuit for that year. In preparing these accounts, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP 2019 (FRS 102); - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts, and - prepare the accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Circuit and enable them to ensure that the accounts comply with the Standing Orders of the Methodist Church, the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and other relevant regulations. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities. Page 12 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Independent Auditor's Report to the Trustees of The Methodist Church in Tower Hamlets** ## **Opinion** We have audited the accounts of The Methodist Churc Charity or the year ended 31 August 2025, which comprise the Statement of Financial Activities, the Balance Sheet, Cash Flow Statement and the notes to the accounts, 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). The report is made solely to the matters we are required to state to them in an audi for our audit work, for this report, or for the opinions we have formed. In our opinion, the accounts: - give a true and fair view of the state of the Charity affairs as at 31 August 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our accounts section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the accounts 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 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 and described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the trustees' annual report, other than the financial financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 this give rise to a material misstatement in the accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 13 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Independent Auditor's Report to the Trustees of The Methodist Church in Tower Hamlets (continued)** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the is inconsistent in any material respect with the accounts; or - sufficient accounting records have not been kept; or - the accounts are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Trustees** As explained more fully in the set out on page 12, the Trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation 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 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. ## **accounts** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material 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 accounts. indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: - Obtaining an understanding of the legal and regulatory frameworks applicable to the charity and the sector in which they operate. - Obtained an understanding of how the charity are complying with those legal and regulatory frameworks by - irregularities were assessed with the following procedures: - Identifying and assessing the design effectiveness of controls which management have in place to prevent and detect fraud - Understanding how those charged with governance considered and addressed the potential for override of controls and management biases - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations - Assessing the extent of compliance with the relevant laws and regulations - Assessing the extent to which pressures existed which may have increased the risk of fraudulent - revenue recognition Page 14 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Independent Auditor's Report to the Trustees of The Methodist Church in Tower Hamlets (continued)** Potential fraud risks that had been identified throughout the planning and commencement of the audit were communicated to the audit team. The inherent limitations 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 duties as auditors. Equally, there remains a risk of the non-detection of fraud which could involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. The audit procedures carried out are designed to detect material misstatements within the financial statements, and as such we take no responsibility for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Clay Ratnage Strevens & Hills Chartered Accountants & Statutory Auditors Suite D, The Business Centre Faringdon Avenue Romford Essex RM3 8EN Clay Ratnage Strevens & Hills is eligible to act as auditor in terms of section 1212 of the Companies Act 2006. Page 15 ## **THE METHODIST CHURCH IN TOWER HAMLETS** Page 16 ## **THE METHODIST CHURCH IN TOWER HAMLETS** Page 17 ## **THE METHODIST CHURCH IN TOWER HAMLETS** Page 18 ## **THE METHODIST CHURCH IN TOWER HAMLETS** The notes on pages 20 to 31 form an integral part of these accounts. Page 19 **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the accounts for the year ended 31 August 2025** **1. Accounting policies** ## **a) Circuit information** The Methodist Church in Tower Hamlets is an unincorporated Charity in England and Wales. The principal correspondence address is given on page 3 of these accounts. s operations and principal activities are set out in the T ## **b) Accounting convention** The accounts have been prepared in accordance with the Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). The Circuit is a Public Benefit Entity as defined by FRS 102. The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The accounts are prepared in sterling, which is the functional currency of the Circuit. Monetary amounts in these accounts are rounded to the nearest pound. The accounts have been prepared under the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies are set out below. - **c) Going concern** At the time of approving the accounts, the Trustees have a reasonable expectation that the Circuit has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the accounts. ## **d) Funds** ## Unrestricted funds Unrestricted funds are held for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. ## Restricted funds Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors and grantors. The aim and use of the major restricted funds are set out in the notes to the accounts. ## **e) Incoming resources** ## Church assessment The church assessment is accounted for on a receivable basis. ## Church offerings Church offerings are accounted for on a receipts basis. Page 20 **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** **1. Accounting policies (continued)** ## Benevolence Benevolence funds have been historically contributed by the four churches from their general funds and are accounted for on a receipts basis in accordance with Standing Order 527 of the Constitution of the Methodist Church. ## Grants and donations received Grants from third parties are included when the relevant conditions for the grant have been met. Voluntary income comprises donations and contributions and is accounted for when entitlement has been confirmed, the amount can be measured and receipt is probable. ## Rental income Rental income from investment properties is accounted for on a receivable basis. ## Other income Other income is accounted for on a receivable basis. ## Internal Organisations Internal organisations comprise two projects of the Methodist Church in Tower Hamlets Circuit. The income is either derived from voluntary income, grants and donations by way of charitable activities. ## Investment income and interest Interest on deposits and investments is accounted on a receivable basis. ## **f) Expenditure recognition** All expenditure is accounted for on an accruals basis when an obligation that can be measured or reliably estimated exists at the reporting date. Grants awarded are provided in the Statement of Financial Activities in the year in which they are approved by Trustees and the offer is communicated to the recipient. Grants awarded but not paid are recorded as a liability within the Balance Sheet. Grants awarded subject to conditions being met by the recipient before payments are made are not accrued until such conditions have been met. Such commitments are disclosed in the accounts as contingent liabilities. ## **g) Tangible fixed assets** Properties are stated at cost or in the case of donated assets at valuation at the date that the assets are gifted to the Circuit. The Trustees consider that the lives of the properties are so long and their residual values so high based on prices prevailing at the time of acquisition that any annual depreciation charge would not be material. Accordingly, no depreciation is provided on freehold properties used for charitable activities. Any material impairment in the value of such properties, following an annual review, would be chargeable to the Statement of Financial Activities. Assets having an initial cost of £1,000 or less are written off on acquisition. Fixtures and fittings, office and computer equipment having an initial cost greater than £1,000 are capitalised and are stated at cost less depreciation. Depreciation rates calculated to write off the cost less estimated residual value of each asset over its expected useful life are as follows: - Fixtures, fittings and equipment: 10% - 20% on a straight line basis - `-` Office equipment: 20% on a straight line basis The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the Statement of Financial Activities for the year. Page 21 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** **1. Accounting policies (continued)** ## **h) Investment properties** Investment properties, which are properties held to earn rentals and/or for capital appreciation, are initially measured at cost and subsequently fair valuation at the year-end, based on an index of property prices in the relevant areas. Any surplus or deficit on revaluation is recognised in the Statement of Financial Activities. ## **i) Non-current investments** Fixed assets investments, which are held in units in the Trustees Methodist for Church Purposes (TMCP), are stated at valuations at the year-end. Realised and unrealised gains and losses on investments are recognised in the Statement of Financial Activities. ## **j) Impairment of non-current investments** At each reporting end date, the Circuit reviews the carrying 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 determine the extent of the impairment loss and any impairments are recognised in the Statements of Financial Activities. - **k) Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less. ## **l) Financial instruments** l instruments. provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the accounts, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## **Basic financial assets** Basic financial assets, which include other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## **Basic financial liabilities** Basic financial liabilities, including other payables are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Page 22 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** **1. Accounting policies (continued)** - **m) Employee benefits** Termination benefits are recognised immediately as an expense when the Circuit is demonstrably committed to terminate the employment of an employee or to provide termination benefits. - **n) Retirement benefits** funded defined benefit scheme maintained by The Methodist Church of Great Britain. As the Circuit is unable to identify its share of the underlying assets and liabilities of the scheme, the Circuit has taken the advantage of the exemption in Financial Reporting Standard 102, Retirement Benefits, and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The pension costs for the scheme represent the contribution payable by the Circuit in the year. The contribution rates are set each year by the Methodist Conference. Access to a stakeholder pension scheme is provided to all eligible lay employees and the Circuit contributes an amount gross salary into this scheme. All employees who were already in pension schemes and new employees who qualify for auto enrolment are enrolled into new pension schemes (The Pension Trust and NEST). ## **o) Ministers' manse costs** The Circuit is required to provide accommodation for each minister and their families, and Ministers are expected to occupy them. The Circuit bears the cost of repairs and maintenance, premises insurance, council tax and water charges. These are not regarded as taxable benefits in kind by HM Revenue & Customs. ## **p) Leases** Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the Statement of Financial Activities for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability. **2. Critical accounting estimates and judgements** Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Page 23 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** Page 24 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** Page 25 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** * Notable grants received during the year from London District (DAF Grants £25,000, Circuit Trust 20520 £30,000), London Borough of Tower Hamlets (Digital Inclusion £10,141, £25,000 out of which £2,083 fall into next financial year included within creditors at year end) and London Cycling £1,400 These maintenance costs relate to Circuit Manses, Bow Road flats, Bow Road Church building, Bethnal Green Church building, and Old Fold Church building. The professional fee includes Circuit Lettings agents fee of £6,502 for Campbell Road, Bow Road flats Lettings agents fee of £8,788 and Surveyors and Consultancy fee of £6,030. Page 26 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the Accounts for the year ended 31 August 2025 (continued)** Page 27 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** -end, based on an index of property prices in the relevant areas. The Trustees consider that these valuations are reasonable at 31 August 2025. Page 28 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** Debtors is £90,773 owed from Newham Circuit, of which £26,399 is being paid over 48 monthly payments, started from August 2023. £64,374 of it including interest of £2,518 will be paid in one lump sum once the Forest Gate Development gets underway. Page 29 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** Page 30 ## **THE METHODIST CHURCH IN TOWER HAMLETS** ## **Notes to the accounts for the year ended 31 August 2025 (continued)** ## **26.Committed Grant Income** During the year the Circuit was awarded several multi-year grants which are subject to time -related conditions. In accordance with the Charities SORP (FRS 102), these sums are not recognised as income in the current year but represent a commitment of future funding: |From The London District of the Methodist Church - District Advance Fund:
**Funds**
Mission Fund (restricted)
Zacchaeus Project (restricted)
From The London District of the Methodist Church - East End Mission Fund
**Funds**
Mission Fund (restricted)
Zacchaeus Project (restricted)
Band for Life (restricted)
From The LB of Tower Hamlets - Mayor's Community Grant Programme
**Funds**
Zacchaeus Project (restricted)|**Receivable**
**Receivable**
**Total Future**
**2025-26**
**2026-27**
**Commitment**
**£**
**£**
**£**
25,000
25,000
50,000
25,000
25,000
50,000
**Receivable**
**Receivable**
**Total Future**
**2025-26**
**2026-27**
**Commitment**
**£**
**£**
**£**
50,000
50,000
100,000
25,000
25,000
50,000
5,000
5,000
10,000
**Receivable**
**Receivable**
**Total Future**
**2025-26**
**2026-27**
**Commitment**
**£**
**£**
**£**
25,000
14,583
39,583| |---|---| ||155,000
144,583
299,583| ## **27. Related party transactions** The Circuit is part of The London District and is also accountable to the Methodist Conference, the ultimate controlling body. Related parties also include Ministers, other Circuit and Churches, Central Finance Board of the Methodist Church Details of the transactions occurring during the year were as follows: During the year, the Circuit received grants of £337,770 (2024: 200,365) from TLDMC. The Circuit also paid assessment of £28,644 to TLDMC. As at 31 August 2025, NMC owed an amount of £90,773 (2024: £105,657) to the Circuit. This amount includes invoices MCTH paid on behalf of NMC, services provided by a Circuit member of staff and interest on the balance of £61,856. accrued during the year was £2,518. ## **Hackney and Stoke SN** During the year, MCTH paid £18,389 (2024: £26,103) to HSNMC for manse used by MCTH Deacon. ## **Poplar Methodist church** During the year, the Circuit received assessment of £7,150 (2024: 6,500) from PMC. Page 31