## **The Methodist Church**
# **Wolverhampton and Shrewsbury District**
Registered Charity Number 1134902
## **Trustees’ Annual Report and Financial Statements**
**for the year ended 31st August 2023**
## **The Methodist Church**
## **Wolverhampton and Shrewsbury District**
## **Trustees’ Annual Report and Financial Statements for the year ended 31st August 2023**
## **CONTENTS**
||**Pages**|
|---|---|
|Trustees' Annual Report|2 - 9|
|Report of the Independent Auditors|10 - 12|
|Statement of Financial Activities|13|
|Balance Sheet|14|
|Statement of Cash Flows|15|
|Notes to the Accounts|16 - 27|
- 1 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Trustees' Annual Report for the year ended 31st August 2023**
## **Reference and administrative information**
**Registered charity name**
Wolverhampton and Shrewsbury Methodist District
**Registered charity number**
1134902
## **Trustees (members of the District Policy Committee)**
The members of the District Policy Committee at the date of this report and those who served during the year ended 31st August 2023 are as follows:
Rev Rachel Parkinson - Chair Rev Alan Combes - Deputy Chair (until 9/9/23) Rev Joanne Cox-Darling - Deputy Chair (from 9/9/23) Mr Andrew Beattie - Synod Secretary (until 17/9/22) Rev Margaret Eales - Synod Secretary (from 17/9/22) Mr Christopher Reed - District Treasurer
Rev David Alford Rev Roger Hides (until 31/8/23) Ms Helen Allen Rev Jimione Kaci (until 31/8/23) Ms Stella Dede Cofie (from 17/11/22) Rev David Lavender Rev Nicholas Collison Rev Susan Levitt (until 31/8/23) Mrs Lesley Cook Dr Susan McCready-Shea (from 31/10/23) Deacon Susan Culver (from 31/10/23) Mr Brian Oakley Rev Elizabeth Dunning Mrs Elaine Panchal Mrs Angela Evans Rev Hendry Ponniah (until 31/8/23) Mrs Claire Evans (from 11/11/22) Rev Stuart Reed (from 1/9/23) Rev John Hartley (from 1/9/23) Rev Teddy Siwila Mr David Hemingway (until 31/8/23) Rev Julia Skitt Mr Keith Walton
**Principal address** District Office Beckminster Methodist Church Birches Barn Road Wolverhampton WV3 7BQ **Telephone** 01902 658383 **Website** wsmethodist.org.uk **Auditors** Crombies Accountants Limited 34 Waterloo Road Wolverhampton WV1 4DG **Bankers** The Co-operative Bank PLC Central Finance Board of the PO Box 250 Methodist Church Delf House 9 Bonhill Street Southway London EC2A 4PE Skelmersdale WN8 6WT
- 2 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Trustees' Annual Report for the year ended 31st August 2023**
## **Objectives and activities**
The purpose of the Wolverhampton and Shrewsbury District is laid out in Standing Order 400A of the Constitutional Practice and Discipline of the Methodist Church, namely that: “the District is constituted to advance the mission of the Church in the region, by providing opportunities for Circuits to work together and support each other, by offering them resources of finance, personnel and expertise which may not be available locally and by enabling them to engage with the wider society of the region as a whole and address its concerns.” The central priorities of the Methodist Church are Worship, Learning and Caring, Service and Evangelism.
The District comprises around 175 local Methodist churches grouped into 12 circuits. This year two of those Circuits - Brownhills & Willenhall and Walsall - received the permission of Conference to amalgamate from September 2024. The District is served by a team of around 41 active ministers, 34 of whom are presbyters and 7 of whom are deacons, together with a significant number of lay people mostly employed by Circuits and churches. A number of Supernumerary (retired) ministers also offer very significant support. The District itself supports eight lay employment posts, some of these being jointly shared with the Birmingham District.
The failure of a significant number of churches in some Circuits to submit membership statistics this year means that reliable numbers are not available. (Considerable effort is being put into ensuring that accurate statistics are collected in time for the next report.) However it is expected that numbers will once again have fallen in line with previous years and trends around the Connexion, leading to a membership figure of around 6,000. This is primarily because the average age of Methodist members has been rising over the years, and we now see significantly more deaths than new members made. Twelve congregations asked the District Synod for permission to close during the year. This is roughly in line with previous years.
The statistics clearly support a narrative of an ageing core membership in numerical decline. This context is undoubtedly leading to pressure at every level of the church in finding volunteers, time and energy to fulfil governance requirements and to maintain previous levels of activity. However it is far from the full picture. Churches in the District touch the lives of very many more people than hold membership, offering a network of spiritual, emotional and physical support which is invaluable in the context of the communities they serve. This has been particularly valuable in the context of a post-pandemic society and a cost-of-living crisis. The District team has worked hard to support, encourage and enable this local outreach.
Alongside the enabling of “traditional” church, the District continues to prioritise the encouragement of new forms of church in line with the Connexional “God for All” initiative for evangelism and growth. Some of this work is covered in the following section.
The proposal to merge this District with the neighbouring Birmingham District from September 2025 gathered momentum. Significant conversations were held throughout this reporting year in preparation for the formal processes in which both Districts are now participating.
The District awarded £555K in grants mainly to Circuits, Churches and local ecumenical organisations during the year. Given the District’s desire to be in “mission” rather than “maintenance” mode, the vast majority of this money supports people-based activities rather than the repair of buildings.
## **Public benefit**
The activities mentioned above were undertaken so as to further the District's purposes for the public benefit and the District Policy Committee has had regard to the guidance on public benefit issued by the Charity Commission when exercising its powers or duties to which the guidance is relevant.
- 3 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Trustees' Annual Report for the year ended 31st August 2023**
## **Achievements and performance**
- There was clear evidence during this year that the continuance of the fortnightly online gathering of Superintendents begun during the pandemic, supplemented by an annual retreat and occasional hospitality at the District Manse, has had a transformative effect on the sense of collegiality and support experienced by these key leaders within the District. This is especially vital given the previously referenced pressures relating to numerical decline.
- Both the Representative Sessions of the District Synod underlined the commitment to evangelism and growth. The Autumn session was addressed by the Rev’d Al Barrett of the Church of England, encouraging us to a Jesus-led approach to how we meet the various crises affecting our communities. The Spring Session featured workshops based on three stories of how Circuits are reaching out beyond the walls of the Church. In March 2023 the District partnered with Birmingham in hosting a Day Conference looking at how we might grow churches in marginal places.
- Substantial work was done, principally by Jo Yair, District Ministry & Missions Co-ordinator, to present the District “God for All” project for Connexional approval. This was successful and a new employee, Emily Donovan, began work in September 2023. Her role is to increase inclusivity across the District, particularly in relation to people with special educational needs and disability.
- A two-year pilot project, shared with the Birmingham District, began to explore how faith-rooted community organising practices can help local churches to move from vision into action. A key development in this was the employment of Eddy Aigbe as Congregational & Community Organiser.
- The employment of Matthew McDade as District Property Consultant at the end of 2020 paid increasing dividends through his assistance of churches with a wide range of property related issues. This post is now firmly established and much valued.
- The District awarded 11 grants of £500 each to “Warm Spaces” opened in churches in response to the cost-of-living crisis. More Warm Spaces were established overall across the District, but not all applied for funding. The District was able to offer help and advice, particularly in relation to safeguarding.
- Children and young people received District support to attend the Connexional 3Generate event at the NEC in Birmingham, and also the regionally-organised “Amplify” event at the Pioneer Centre in Cleobury Mortimer.
- Ecumenical relationships were strengthened during the year. The District Chair was made an Ecumenical Canon of Lichfield Cathedral and attended a residential gathering of 21 senior leaders across a wide ecumenical spectrum, resulting in a joint statement of common purpose and intent. The District organised an ecumenical day pilgrimage around parts of the Black Country, looking at the Methodist history and legacy in the area, concluding at the Black Country Living Museum.
- The fourth District Pilgrimage held in Easter week showed real growth in participation and has become highly valued by those who take part. This year the route was in the Golden Valley in Herefordshire, accepting hospitality from ancient Anglican churches. The Pilgrimage is now shared with the Birmingham District.
- Sufficient numbers of churches achieved Eco Awards under the A Rocha scheme to allow the District to make an application to become a Bronze Eco District (result pending). A new criterion for grant applications was established to encourage Circuits to take action to improve the energy efficiency of manses.
- The District supported the Connexional Advent & Christmas “There is Room” Campaign by making available small grants for community outreach, totalling £1,542.
- 4 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Trustees' Annual Report for the year ended 31st August 2023**
## **Financial review**
The above activities and achievements illustrate the work of the District and the attached accounts show how the financial resources necessary for that work have been raised and expended. The accounts are also the means by which members of the District Policy Committee, as trustees, account for their stewardship of those funds to the circuits, the membership of the churches within the District and the wider community.
The finances of the District are held in eight different funds to account properly for the different purposes for which money comes into the District. Most of the income comes from other parts of the Methodist Church: assessments are received from the Circuits in the District to fund the work done directly and the payment to the Connexion of a contribution to the Methodist Church Fund, and distributions are received via the Connexional structure of the Methodist Church to fund grant-making activities, as explained more fully in Note 2 to the accounts.
The income of the District for the year ended 31st August 2023 was £1,009,148 and expenditure was £1,368,783. The resulting deficit of £359,635 was drawn from reserves leaving £600,779 (2022 £960,414) of which £268,600 represented fixed assets (including the District Chair's manse). Free reserves therefore amounted to £332,179 across all eight funds. A review of significant matters affecting District finances is as follows:
The income of the District was down by £279,487 on the previous year. The reduction reflected principally a one-off grant of £302,919 received in the previous year from the sale of a city centre church in Wolverhampton. Standing orders require this money to be used to continue the work of the church in the city centre and Synod on 17th September 2022 approved the transfer of that sum plus accrued interest to a restricted fund of Wolverhampton Circuit.
Expenditure was up by £459,465 reflecting the payment of the one-off grant to Wolverhampton Circuit mentioned in the previous paragraph. Expenditure also reflected the employment of a Congregational & Community Organiser from September 2022 in a joint pilot project with Birmingham District.
The net result was an overall deficit of £359,635. This outcome resulted in reductions in reserves in six of the eight funds. Modest increases in reserves were recorded in the District Expenses Fund and the Manse Fund. All funds have adequate reserves carried forward to enable them to continue their activities. A review of significant matters affecting the finances of each fund is as follows:
- 5 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Trustees' Annual Report for the year ended 31st August 2023**
## **Financial review (continued)**
## **District Expenses Fund (unrestricted)**
District expenses (net of external funding for District activities) were some £15K below budget, but £13K of that represented unspent external funding for activities starting or continuing after the year-end. Staff costs reflected high rates of inflation and the cost of living crisis and, along with auditor's remuneration, were over-budget but these variances were offset by continuing cost savings from the effects of the pandemic (e.g. less travel, more Zoom) and higher interest rates. Although the net result was a surplus of £8,546, it still left free reserves at £60,598 very close to the target level set in the budget.
## **District Training Fund (designated)**
Training activities continued at a modest level post-pandemic and expenditure of £3,552 was taken from reserves, leaving £8,180 to carry forward.
## **Manse Fund (designated)**
Manse repairs and maintenance (charged to the District Expenses Fund) were underspent compared to budget and the saving of £3,000 was transferred to the Manse Fund.
## **District Advance Fund (restricted)**
The activities of the District Advance Fund were disproportionately affected by the one-off grant to Wolverhampton Circuit from the city centre property sale mentioned above. Other grants awarded from the fund were significantly greater than in the previous year while grants received from Connexional funds were a little lower. The outcome was therefore an excess of expenditure over income of £340,619 and its total reserves at 31st August 2023 stood at £187,016.
## **Agricultural Chaplaincy Fund (restricted)**
The Agricultural Chaplaincy Fund incurred another year of deficit as costs increased with inflation while income was stagnant. By 31st August 2023 its reserves were down to £30,989 and, following the yearend, a refinancing agreement was reached with the three principal funding bodies, the District, the Diocese of Hereford and Shropshire and the Marches Circuit, that resulted in a significant increase in their funding commitments, which should enable its reserves to be rebuilt.
## **Children Support Fund (restricted)**
The money in this fund is left over from the annual children's holiday that ceased after 2018 and, with the consent of the donors, it has been used to offer grants to churches who want to work with children in deprived circumstances. During the year grants of £4,580 were made, leaving a balance of £801 which has subsequently been used to make a further grant. The District Policy Committee has committed the District to continuing to support such work with children and in future funding for these grants will come directly from the District Advance Fund.
## **Chair's Benevolent Fund (restricted)**
This fund continues with modest receipts and payments and a balance of £1,053 is carried forward.
## **Komera Partnership Fund (restricted)**
Further donations were received during the year and grants of £6,500 were paid to the Free Methodist Church of Rwanda, including £2,500 collected across the District to support victims of the heavy rain and landslides that devastated parts of Rwanda on 2nd May 2023. Many people were left homeless and the church has been providing emergency support to 128 families in four areas of the country. At 31st August 2023 the fund has a balance of £2,177 carried forward.
- 6 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Trustees' Annual Report for the year ended 31st August 2023**
## **Reserves policies**
The reserves policy for the District Expenses Fund is based on a free reserves target of 10% of total circuit assessments, to reflect the risk that a circuit may not be able to meet their assessment in full. For 2023/24 circuit assessments are £619,604, giving a reserves target of £61,960. The actual level of free reserves at 31st August 2023 was £60,598 or 9.8% of circuit assessments (2022 11.0%).
The District Training Fund does not have a specific reserve requirement. It has excess funds at present and no further income will be sought for the time being.
The Manse Fund reserve requirement is £40,000, to cover major repairs to the Chair's manse in excess of the annual budget, and the current fund balance is £31,585.
The reserves in the District Advance Fund are already stated after taking into account future commitments and as the annual tranche of funding is received in September/October this fund does not need more than a nominal balance of reserves at the year-end.
The scale and scope of the work funded by the Agricultural Chaplaincy Fund is significant and its funding is dependent on grants from various sources, many of which are under financial pressure. In these circumstances, reserves of up to one year's expenditure are considered appropriate to ensure the resilience of the project.
The Children Support Fund has been fully utilised since the year-end and grants for work with children are now coming from the District Advance Fund.
The Chair's Benevolent Fund and the Komera Partnership Fund are there to make grants to beneficiaries from the funds that have been raised for those purposes and thus do not require any specific target levels of reserves.
## **Investment policy**
Surplus monies of the District’s Funds (other than the District Advance Fund) are held in an interest-bearing deposit account with the Central Finance Board of the Methodist Church, which is a common deposit fund reporting directly to Conference. The District Advance Fund is held by the Trustees for Methodist Church Purposes as custodian trustees on behalf of the District, and this fund is also invested in an interest-bearing account with the Central Finance Board.
- 7 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Trustees' Annual Report for the year ended 31st August 2023**
## **Plans for the future**
This will be a critical year in deciding whether or not this District will become part of a larger West Midlands entity from September 2025. After indicative votes in favour at the September 2023 Synods of both Districts, there will be a substantial consultation exercise involving every Circuit meeting in Spring 2024 leading to further Synod votes after Easter. A final decision will be made by the Conference in June 2024.
With the District “God for All” project now funded and a new employee in place, we expect to see first indications of how this much-anticipated project will unfold. We hope for greater inclusivity in existing and newly-created congregations.
With a number of Superintendent appointments coming to an end in September 2025, the District is addressing how this situation might best be approached against a background of a critical shortage of both numbers of ministers and, sometimes, depth of experience required to fulfil demanding roles. There is a significant potential challenge here to the functioning of the Circuits from September 2025.
The District anticipates being awarded Bronze Eco-District status and will begin working towards Silver.
## **Structure, governance and management**
The District, as part of the Methodist Church, is constituted under the terms of the Deed of Union of 1932, which was promulgated under the authority of legislation that is now found in the Methodist Church Act 1976. This Act provides the foundation on which all the remainder of the constitutional structure of the Church is raised.
The governing body of the Methodist Church in Great Britain is the Conference. Under the authority of the Act and the Deed of Union, Conference makes and amends Standing Orders, which are published annually in the Constitutional Practice and Discipline of the Methodist Church. This is the basis for governance of the Church as a connexion of local churches, circuits and districts working together within the one framework.
The District Synod is the principal body responsible for the affairs of the District and is constituted in accordance with the Deed of Union and Standing Orders. It is the church court for the District, serving as a link between the Conference and the Connexional Team on the one hand and the Circuits and Local Churches on the other. It has oversight of all District affairs.
The Synod annually appoints the members of the District Policy Committee whose responsibilities include the formulation and promotion of policy and the supervision of the use of resources of personnel, property and finance. Under charity law the members of the District Policy Committee are treated as the Trustees of the Charity and the names of the Trustees who served during the year or have been appointed since are shown above.
The District Policy Committee nominates persons to the Synod for appointment as district officers and as members of the District Policy Committee and other district committees. In addition, the Chair of the District, the Secretary of the Synod and any member of the Methodist Council nominated by the Synod are ex-officio members of the District Policy Committee.
The District is one of thirty-one Districts of the Methodist Church in Great Britain. The Wolverhampton and Shrewsbury District brings together twelve Circuits, based in the City of Wolverhampton, two West Midlands Metropolitan Boroughs, parts of Staffordshire and Worcestershire, most of Shropshire, about half of Herefordshire and parts of Wales. The structure of the District and its constituent Circuits and Churches, and their inter-relationships with each other, is explained more fully in Note 2 to the accounts.
- 8 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Trustees' Annual Report for the year ended 31st August 2023**
## **Statement of trustees’ responsibilities**
Charity law requires the District Policy Committee (as Trustees) to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of its financial activities for that period, together with its assets and liabilities at the end of the period, and adequately distinguish any material special trust or other restricted fund of the Charity. In preparing those financial statements the District Policy Committee is required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- **-** state whether the policies adopted are in accordance with the appropriate SORP and the Accounting Regulations and with applicable Accounting Standards, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The District Policy Committee also has overall responsibility for ensuring that there is in place an appropriate system of controls, financial and otherwise, to provide reasonable confidence and assurance that:
- the District’s administration is operating effectively and efficiently;
- the assets of the District are properly safeguarded against unauthorised loss or damage;
- proper records are maintained and information produced for management control, fiscal and statutory reasons; and
- the District complies with the relevant laws and guidelines.
This report was approved by the District Policy Committee as Trustees on 21st March 2024 and is signed on their behalf by:
R Parkinson REV R.E. PARKINSON District Chair J.C. REED District Treasurer J Christopher Reed
_Trustees_
- 9 -
**REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF WOLVERHAMPTON AND SHREWSBURY METHODIST DISTRICT**
## **Opinion**
We have audited the financial statements of Wolverhampton and Shrewsbury Methodist District for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the District’s affairs as at 31 August 2023 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 responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the District in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the District’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
- 10 -
**REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF WOLVERHAMPTON AND SHREWSBURY METHODIST DISTRICT**
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements 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.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified any material misstatements in the trustees’ report.
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the trustees’ report is inconsistent in any material respect
- with the financial statements;or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit;
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements 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 financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Our responsibilities for the audit of the financial statements**
We have been appointed auditor under s144 of the Charities Act 2011 and report to you in accordance with regulations made under s154 of that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
- 11 -
## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF WOLVERHAMPTON AND SHREWSBURY METHODIST DISTRICT**
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- -agreeing financial statement disclosures to underlying supporting documentation; -reading the minutes of meetings of those charged with governance;
- -enquiring of management as to actual and potential litigation and claims
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships - tested journal entries to identify unusual transactions
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
## **Use of our report**
This report is made solely to the charity's trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## I Cattell
Ian Cattell FCA (Senior Statutory Auditor) for and on behalf of Crombies Accountants Limited Chartered Accountants and Statutory Auditor 34 Waterloo Road Wolverhampton West Midlands WV1 4DG
21st March 2024
- 12 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Statement of Financial Activities for the year ended 31st August 2023**
|**_Note_**
**Income from:**
Donations and grants
Grants from connexional funds
**_3_**
Other grants and donations
**_4_**
_Total donations and grants_
Charitable activities
Assessments on circuits
**_5_**
Levies on circuit model
trust funds
Distribution from Connexional
Priority Fund
Other charitable activities
**_6_**
_Total charitable activities_
Other trading activities
Investments
**_7_**
_Total income_
**Expenditure on:**
Raising funds
**_11_**
Charitable activities
Contribution to Methodist Church Fund
Other charitable activities
undertaken directly
**_12_**
Grant funding of charitable
activities
**_13_**
Support costs
**_14_**
_Total charitable activities_
_Total expenditure_
**Net income/(expenditure)**
Transfers between funds
**_15_**
**Net movement in funds**
Total funds brought forward
**Total funds carried forward**|**District**
**Expenses**
**Fund**
**(unrestricted)**
**£**
34,907
12,500
47,407
593,351
-
-
1,642
594,993
-
4,719
**647,119**
-
536,353
149,422
1,923
41,670
729,368
**729,368**
**(82,249)**
90,795
**8,546**
330,432
**338,978**|**Desig-**
**nated**
**Funds**
**(unrestricted)**
**£**
-
-
-
-
-
-
-
-
-
-
**-**
-
-
3,552
-
-
3,552
**3,552**
**(3,552)**
3,000
**(552)**
40,317
**39,765**|**District**
**Advance**
**Fund**
**(restricted)**
**£**
11,423
-
11,423
-
132,472
145,959
-
278,431
-
20,272
**310,126**
2,256
-
585
541,639
-
542,224
**544,480**
**(234,354)**
(106,265)
**(340,619)**
527,635
**187,016**|**Other**
**Restrict-**
**ed Funds**
**(restricted)**
**£**
-
50,361
50,361
-
-
-
-
-
-
1,542
**51,903**
-
-
80,249
11,134
-
91,383
**91,383**
**(39,480)**
12,470
**(27,010)**
62,030
**35,020**|**Total**
**Funds**
**2022/23**
**£**
46,330
62,861
109,191
593,351
132,472
145,959
1,642
873,424
-
26,533
**1,009,148**
2,256
536,353
233,808
554,696
41,670
1,366,527
**1,368,783**
**(359,635)**
-
**(359,635)**
960,414
**600,779**|**Total**
**Funds**
**2021/22**
**£**
339,816
46,284|
|---|---|---|---|---|---|---|
|||||||386,100|
|||||||593,910
95,932
196,774
11,240|
|||||||897,856|
|||||||390
4,289|
|||||||**1,288,635**|
|||||||1,120
538,881
172,683
150,219
46,415|
|||||||908,198|
||||||||
|||||||**909,318**|
|||||||**379,317**
-|
|||||||**379,317**
581,097|
|||||||**960,414**|
- 13 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Balance Sheet as at 31st August 2023**
|**_Note_**
**Fixed assets**
Tangible assets
**_16_**
**Current assets**
Debtors
**_17_**
Cash on deposit:
Trustees for Methodist Church Purposes
Central Finance Board
Cash at bank
Prepaid currency cards
_Total current assets_
**Liabilities**
Creditors due within 1 year:
Creditors
**_18_**
Grants payable
**_19_**
_Net current assets_
Creditors due after 1 year:
Grants payable
**_19_**
**_Total net assets_**
**Represented by**
**_20_**
Unrestricted Funds:
District Expenses Fund
Designated Funds:
District Training Fund
Manse Fund
Restricted Funds:
District Advance Fund
Agricultural Chaplaincy Fund
Children Support Fund
Chair's Benevolent Fund
Komera Partnership Rwanda
**_Total funds_**
_Total assets less current liabilities_|**District**
**Expenses**
**Fund**
**(unrestricted)**
**£**
265,000
2,342
-
78,171
4,014
400
84,927
10,949
-
10,949
73,978
338,978
-
**338,978**
338,978
-
-
-
-
-
-
-
**338,978**|**Desig-**
**nated**
**Funds**
**(unrestricted)**
**£**
-
300
-
38,575
890
-
39,765
-
-
-
39,765
39,765
-
**39,765**
-
8,180
31,585
-
-
-
-
-
**39,765**|**District**
**Advance**
**Fund**
**(restricted)**
**£**
-
-
569,028
-
-
-
569,028
-
139,924
139,924
429,104
429,104
242,088
**187,016**
-
-
-
187,016
-
-
-
-
**187,016**|**Other**
**Restrict-**
**ed Funds**
**(restricted)**
**£**
3,600
387
-
25,929
5,567
-
31,883
463
-
463
31,420
35,020
-
**35,020**
-
-
-
-
30,989
801
1,053
2,177
**35,020**|**Total**
**Funds at**
**31 Aug 23**
**£**
268,600
3,029
569,028
142,675
10,471
400
725,603
11,412
139,924
151,336
574,267
842,867
242,088
**600,779**
338,978
8,180
31,585
187,016
30,989
801
1,053
2,177
**600,779**|**Total**
**Funds at**
**31 Aug 22**
**£**
265,000
374
791,634
185,157
9,055
600|
|---|---|---|---|---|---|---|
|||||||986,820|
|||||||14,907
143,888|
|||||||158,795|
|||||||828,025
1,093,025
132,611|
|||||||**960,414**|
|||||||330,432
11,732
28,585
527,635
51,791
5,296
1,633
3,310|
|||||||**960,414**|
The notes on pages 15 to 27 form part of these accounts
The accounts were approved by the District Policy Committee as Trustees on 21st March 2024 and are signed on their behalf by:
R Parkinson REV R.E. PARKINSON
District Chair
- 14 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Statement of Cash Flows for the year ended 31st August 2023**
|**Total**
**Funds**
**2022/23**
**_Note_**
**£**
**Cash flows from operating activities**
Net cash provided by/(used in) operating activities
**_See below_**
(285,605)
**Cash flows from investing activities**
Interest receivable
26,533
Purchase of equipment
(4,800)
(263,872)
986,446
**722,574**
**Represented by**
Cash on deposit:
Trustees for Methodist Church Purposes
569,028
Central Finance Board
142,675
Cash at bank
10,471
Prepaid currency cards
400
**722,574**
**Reconciliation of net income/(expenditure) to net cash flow from operating activities**
**_Page 13_**
(359,635)
Add back depreciation charge
1,200
Deduct interest receivable (investing activity)
(26,533)
Decrease/(increase) in debtors
**_Note 17_**
(2,655)
Increase/(decrease) in creditors
**_Notes 18, 19_**
102,018
**(285,605)**
Net income/(expenditure) for the year as per
Statement of Financial Activities
**Net cash provided by/(used in) operating**
**activities**
**Increase/(decrease) in cash and cash equivalents in the year**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**Total**
**Funds**
**2021/22**
**£**
346,286
4,289
-|
|---|---|
||350,575
635,871|
||**986,446**|
||791,634
185,157
9,055
600|
||**986,446**|
||379,317
-
(4,289)
350
(29,092)|
||**346,286**|
- 15 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
## **1 Basis of accounting and accounting policies**
## **(a) Basis of preparation**
The accounts have been prepared in accordance with the following:
- i) The Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015),
- ii) FRS 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland (as above), and
- iii) The Charities Act 2011.
The Charities SORP (FRS 102) has been used, despite the relevant 2008 accounting regulations still requiring use of the Charities SORP 2005, on the grounds that it is necessary to use the newer SORP in order to comply with the legal obligation to give a true and fair view.
The accounts have been prepared under the historical cost convention except for the use of an historical insured value as the deemed cost of the District manse. The accruals basis has been used to show a true and fair view of the District's financial position and activities.
## **(b) Public benefit entity**
The Wolverhampton and Shrewsbury Methodist District (the "District") meets the definition of a public benefit entity in FRS 102 as its primary objectives require it to act so as to provide public, community or social benefit rather than to provide economic benefit to its members or participants.
## **(c) Going concern**
The trustees consider there are no material uncertainties that would cast significant doubt on the District's ability to continue as a going concern for the foreseeable future, being a period of more than 12 months from the date these accounts are approved. They reached their view having taken into account the financial position of the District shown in these accounts, budgets for the next two years, and the connexional structure of the Methodist Church of Great Britain of which the District forms an integral part.
## **(d) Funds**
The District operates a District Expenses Fund, which is the general unrestricted fund that can be used for any District purposes and holds cash, other current assets and fixed assets. In addition there are designated funds holding cash and current assets designated for particular purposes but which may be used for other District purposes at the discretion of the trustees. There are also several restricted funds holding cash and current and fixed assets which can only be used for the specified purpose because of the terms on which their funding was received whether by grant, donation or fundraising.
## **(e) Income recognition**
Income is recognised when the District becomes entitled to the economic benefit of the income, it is probable (i.e. more likely than not) that it will be received, and its monetary value can be measured reliably. No attempt is made to measure the considerable value of services or time donated by volunteers.
The District acts as agent in the following matters:
- i) collections taken at Synod for various charities, which are paid over to the respective charities shortly afterwards; and
- ii) payments received from the Methodist Church Fund to reimburse the District for the expenses of District representatives attending the Methodist Conference.
The receipts and payments for the above matters are not income or expenditure of the District and are therefore not reflected in the Statement of Financial Activities.
- 16 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
## **1 Basis of accounting and accounting policies (continued)**
## **(f) Expenditure recognition**
Expenditure is recognised when there is a legal or constructive obligation committing the District to pay out resources, it is probable (i.e. more likely than not) that settlement will be required, and the amount of the obligation can be measured reliably.
## **(g) Grants payable**
The District makes a significant number of grants to third parties in furtherance of its objects, sometimes as oneoff payments and sometimes as a series of periodic payments that may cover several years. As soon as a grant is awarded to a third party they have a valid expectation that the District will discharge its obligation to make the payments whenever they are to become due. This creates a constructive obligation in respect of the total value of the award. Even though multi-year grant awards are subject to annual monitoring, no specific conditions are imposed that would make the awards conditional and payment of the full amount is therefore probable. Accordingly all awards are immediately recognised as expenditure and a liability for future payments is recorded.
## **(h) Value added tax**
Since the District is not registered for value added tax ("VAT"), all input VAT is charged with the expense to which it relates.
## **(i) Pensions**
All employees of the District are either auto-enrolled in or invited to join the TPT Retirement Solutions Flexible Retirement Plan, a defined contribution pension scheme. The District's contribution is set at 6% of salary and the District has no liability beyond making its contributions and paying over the deductions for the employees' contributions. There were no contributions outstanding at the year-end.
## **(j) Tangible fixed assets**
Tangible fixed assets are capitalised if they can be used for more than one year, and individually cost more than £1,000. They are valued at historical cost, except for the District Chair's manse, which is stated at deemed cost, being its insured value in 2011, and it is assessed each year for any indication of impairment.
## **(k) Depreciation**
Depreciation is provided to write-off the cost of a fixed asset, less its residual value, over its useful economic life. In the case of the manse, its residual value is estimated and provided it is not less than cost no depreciation is required. Equipment is depreciated at 25% pa on the reducing balance.
## **(l) Debtors and creditors**
Debtors are stated at the amount the District expects to receive or the amount it has paid in advance for goods or services. Creditors are stated at the amount the District expects to pay or the amount it has received as an advance payment for goods or services.
- 17 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
## **2 Controlling body, connected organisations and glossary of terms**
The ultimate controlling body of the District is the Conference of the Methodist Church in Great Britain.
The "Conference" is a representative body drawn from across the Connexion, and is the policy-making and governing body of the Church. It makes and amends Standing Orders, which are published annually in the Constitutional Practice and Discipline of the Methodist Church, as the basis for governance of the Church throughout the Connexion.
The "Connexion" is the larger connected community of the Methodist Chuch in Great Britain, comprising the Conference, the central team of Connexional Officers and support systems directed by the Methodist Council, and the regional organisation of Districts, Circuits and Churches.
"Districts" are regional bodies comprising a number of Circuits.
"Circuits" are local groupings of churches.
"Churches" are the local places to which Methodists belong.
Each of the entities in these layers of the church community is a separate charity with its own trustees and many of the District's trustees are also trustees of some of these. However, the District has no significant influence over any of these entities nor, with the exception of the Conference, do they have significant influence over the District. The District is bound by the Standing Orders laid down by Conference as law and policy but within that framework it is able to determine for itself how to fulfill its role. All the entities within the Connexion are therefore connected organsations in relation to the District but, because of the lack of significant influence, they are not considered related parties for accounting purposes.
The District receives grants from Connexional funds to support certain aspects of its work. It also receives the proceeds of an annual levy set by Conference charged on money held in trust funds by its Circuits. Conference has also set a levy to be charged on most property sales within the Connexion for the Connexional Priority Fund. Part of the proceeds of this fund is distributed annually to the Districts.
Conference has established the Methodist Church Fund as a major source of finance for the activities of the Church and it determines an assessment to be paid into the fund each year, which is allocated between the Districts. The Districts in turn make an assessment on their Circuits to collect the Methodist Church Fund assessment together with a contribution to District expenses.
Many Circuits and Churches make grants and donations and provide personnel to support District activities. The District in turn makes grants to Circuits and Churches for personnel and property projects.
The "Trustees for Methodist Church Purposes" is the legal owner and custodian trustee of all property held on Methodist model trusts.
The "Central Finance Board of the Methodist Church" manages a common deposit fund and a series of pooled investment funds for Methodist entities.
Insurance cover is provided to the District by Methodist Insurance PLC.
- 18 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
|**3 Grants from connexional funds**
**2022/23**
**2021/22**
City centre property grant (see below)
Mission alongside the poor grant
For the work of the Ministry & Mission Co-
ordinator
Exploratory funding for evangelism and
growth
Church at the Margins funding
Mission alongside the poor grant
Exploratory funding for evangelism and
growth
New Places for New People funding|**£**
-
22,975
3,000
4,850
5,057
34,907
25,975
25,000
**District**
**Expenses**
**Fund**
**(unrestricted)**|**£**
-
-
-
-
-
-
-
-
-
-
**Desig-**
**nated**
**Funds**
**(unrestricted)**|**£**
302,919
10,922
-
-
-
11,423
313,841
-
11,423
-
**District**
**Advance**
**Fund**
**(restricted)**|**£**
-
-
-
-
-
-
-
-
-
-
**Other**
**Restrict-**
**ed Funds**
**(restricted)**|**£**
4,850
25,000
11,423
5,057
**Total**
**Funds**|
|---|---|---|---|---|---|
||||||46,330|
||||||302,919
10,922
22,975
3,000|
||||||339,816|
The city centre property grant arose from the sale of Darlington Street Methodist Church, Wolverhampton by Wolverhampton Circuit. Under standing orders of the Methodist Church, such sale proceeds are to be transferred to the Trustees for Methodist Church Purposes who are then to give the funds to the district in which the sold church was located for the purpose of continuing the work in that city. The District Policy Committee resolved that the best way to achieve that purpose was to transfer the money to Wolverhampton Circuit who were already engaged in that work by employing a deacon to work exclusively in the city centre. Standing orders require the use of the fund to be approved by the Synod, which was duly done at its meeting on 17th September 2022. Following that approval, the fund was transferred to a restricted fund of Wolverhampton Circuit.
|**4 Other grants and donations**
**2022/23**
Grant from Birmingham District
Donations from churches and circuits
Donations from individuals
Grant from Shropshire & Marches Circuit
Grant from Hereford Diocese
NFU Mutual Agency Giving Fund
The McDonald Trust
Other donations and grants
Gift aid
**2021/22**
Donations from churches
Donations from individuals
Grant from Shropshire & Marches Circuit
Grant from Hereford Diocese
NFU Mutual Agency Giving Fund
The Prince's Countryside Fund
Other donations and grants
Gift aid|**£**
-
-
-
-
-
-
-
**District**
**Expenses**
**Fund**
**(unrestricted)**
12,500
-
-
-
-
-
-
-
12,500
-
-
-|**£**
598
44,782
4,583
150
44,954
16,000
6,379
5,000
**Agric.**
**Chaplain-**
**cy Fund**
**(restricted)**
-
1,766
7,981
165
16,000
10,000
6,443
2,001
1,920
750
10,000|**£**
2,360
1,502
-
167
5,237
-
-
-
**Komera**
**Partner-**
**ship Fund**
**(restricted)**
-
2,322
-
555
-
-
-
-
125
1,210
-|**£**
170
-
-
-
-
-
170
-
-
**(restricted)**
-
-
-
-
-
-
-
**Chair's**
**Benevol-**
**ent Fund**
-
-
-|**£**
3,128
6,443
12,500
4,088
7,981
10,000
16,000
2,001
**Total**
**Funds**
720|
|---|---|---|---|---|---|
||||||62,861|
||||||5,000
4,583
317
16,000
6,379
2,045
1,960
10,000|
||||||46,284|
- 19 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
## **5 Assessments on circuits**
The Methodist Conference levies an annual assessment on the Circuits through the several Districts to finance the Methodist Church Fund ("MCF"). The assessment is payable by the Districts who then collect Circuit assessments to cover the MCF assessment plus a contribution to District expenses and training.
The allocation of the MCF assessment between Districts is based on staffing numbers at Circuit and District level. The allocation of the Circuit assessment between the Circuits is provisionally agreed between the District Treasurer and the Circuit Treasurers, subject to the approval of the District Policy Committee, and is based on a number of factors, including staffing levels and membership and attendance statistics.
The Circuit Treasurers believe this produces a fairer way of allocating the costs between Circuits. Accordingly the District cannot be said to act merely as agent for the collection of the MCF assessment and the full Circuit assessments are therefore shown as income of the District and the MCF assessment paid to the Connexion is shown as expenditure.
|**£**
**2022/23**
For Methodist Church Fund
For District expenses
**2021/22**
For Methodist Church Fund
For District expenses
**6 Other charitable activities**
Charges and fundraising for visit to partners in Rwanda
Charges for District Pilgrimage
**7 Investment income**
**Interest receivable**
**£**
**2022/23**
Trustees for Methodist Church Purposes:
District Advance Fund account
City Centre Properties account
Central Finance Board
**2021/22**
Trustees for Methodist Church Purposes:
District Advance Fund account
City Centre Properties account
Central Finance Board
-
-
556
556
4,719
**District**
**Expenses**
**Fund**
**(unrestricted)**
4,719
-
-
**District**
**Expenses**
**Fund**
**(unrestricted)**
538,881
56,665
55,029
593,910
536,686
593,351
- 20 -|**£**
**£**
-
-
-
-
**Desig-**
**nated**
**Funds**
**(unrestricted)**
-
-
-
-
-
-
-
**Desig-**
**nated**
**Funds**
**(unrestricted)**
-
-
-|**£**
**£**
**£**
1,065
-
**District**
**Advance**
**Fund**
**(restricted)**
1,642
**2022/23**
20,272
18,360
1,912
2,461
3,526
-
1,642
-
**(unrestricted)**
**District**
**Expenses**
**Fund**
-
-
-
**District**
**Advance**
**Fund**
-
-
**(restricted)**
-|**£**
**£**
**£**
-
-
207
**(restricted)**
**Other**
**Restrict-**
**ed Funds**
11,240
**2021/22**
1,542
-
-
207
1,542
740
10,500
**(unrestricted)**
-
**District**
**Expenses**
**Fund**
-
-
-
**Other**
**Restrict-**
**ed Funds**
-
**(restricted)**
-|**£**
**Total**
**Funds**
536,686
56,665|
|---|---|---|---|---|
|||||593,351|
|||||538,881
55,029|
|||||593,910|
|||||**£**
**Total**
**Funds**
6,261
18,360
1,912|
|||||26,533|
|||||2,461
1,065
763|
|||||4,289|
||||||
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
## **8 Payments to trustees**
The members of the District Policy Committee are the trustees of the District and none of them received any remuneration for their role as trustee. One of the trustees, Mrs Margaret Reynolds, was paid under a contract of employment as District Safeguarding Officer, as follows:
|eguarding Officer, as follows:||||
|---|---|---|---|
||**2022/23**||**2021/22**|
||**£**||**£**|
|Safeguarding Officer:||||
|Salary (employment ceased on 24th September 2021)||-|1,022|
|Employer's national insurance contributions||-|39|
The Chair of the District, Rev Rachel Parkinson, is a trustee and is regarded as the sole key management person of the District. Under the authority of the Methodist Conference, the Chair was paid by the Connexion and was required to occupy the manse owned and maintained by the District. Total annual costs were as follows:
|Stipend and chair's allowance
Employer's national insurance contributions
Employer's contributions to defined benefit pension scheme
District manse maintenance and running costs|**£**
**2022/23**
34,836
6,577
52,301
7,244
3,644|**£**
6,947
**2021/22**
32,451
14,943
3,343|
|---|---|---|
|||57,684|
During the year three (2021/22 two) trustees received reimbursement of expenses incurred in carrying out their duties:
|Cost of travel for District purposes
Postage, telephone, stationery, hospitality, conferences and sundries
**9 Auditor's remuneration**
Auditor's remuneration|**£**
**£**
4,400
**2022/23**
134
1,799
**2022/23**
1,665|**£**
689
**2021/22**
1,497|
|---|---|---|
|||2,186|
|||**£**
4,000
**2021/22**|
The auditor did not carry out any other work for the District during the year.
|**10 Staff costs**
Average number of full-time employees during the year
Average number of part-time employees during the year
Average full-time equivalent number of staff during the year
Salaries
Employer's national insurance contributions
Employer's contributions to defined contribution pension scheme
Apprenticeship levy
Charged to:
District Expenses Fund (unrestricted)
Agricultural Chaplaincy Fund (restricted)|**No.**
**£**
175,994
200,085
889
126,842
16,087
73,243
**2022/23**
3.0
4.0
4.8
200,085
7,115
**2022/23**|**No.**
**£**
615
125,052
6,344
10,539
**2021/22**
2.0
5.1
4.3
**2021/22**|
|---|---|---|
|||142,550|
|||79,394
63,156|
|||142,550|
- 21 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
## **10 Staff costs (continued)**
All staff are paid at a rate above the living wage and no employees received emoluments of more than £60,000. Members of staff served as Agricultural Chaplain, Ministry and Mission Co-ordinator, Congregational and Community Organiser and in other support and administrative posts.
|**enditure on raising funds**
Trustees for Methodist Church Purposes investment management fees|**£**
**2022/23**
**(restricted)**
**District**
**Advance**
**Fund**
2,256|**£**
**(restricted)**
**District**
**Advance**
**Fund**
**2021/22**
1,120|
|---|---|---|
## **11 Expenditure on raising funds**
The Trustees for Methodist Church Purposes hold the District Advance Fund as custodian trustees and invest it in a deposit fund at the Central Finance Board of the Methodist Church. The management fee is 0.285%pa of the fund value at the beginning of the year.
## **12 Other charitable activities undertaken directly**
|**2022/23**
Ministry & Mission Co-ordinator
Intergenerational Lay Worker
Congregational & Community Organiser
Safeguarding costs
Property Consultant
Agricultural chaplaincy costs
Supervision and other District services
Training
Visit to partners in Rwanda
District pilgrimage
**2021/22**
Ministry & Mission Co-ordinator
Intergenerational Lay Worker
Safeguarding costs
Property Consultant
Agricultural chaplaincy costs
Supervision and other District services
Training
Visit to partners in Rwanda
District pilgrimage|**£**
728
516
21,901
10,794
-
4,371
41,968
100,974
18,572
**District**
**Expenses**
**Fund**
**(unrestricted)**
48,593
276
26,486
22,292
-
1,457
149,422
2,124
45,747
583
-
3,988|**£**
-
4,568
-
-
-
-
-
4,568
-
-
-
**(unrestricted)**
**Desig-**
**nated**
**Funds**
-
-
-
-
3,552
-
3,552
-
-
-|**£**
-
-
-
-
-
-
-
-
-
-
-
**District**
**Advance**
**Fund**
**(restricted)**
-
-
-
-
585
-
-
-
585
-|**£**
-
-
-
-
-
66,781
360
-
67,141
-
-
**Other**
**Restrict-**
**ed Funds**
**(restricted)**
-
-
-
80,249
-
-
79,499
750
-|**£**
**Total**
**Funds**
48,593
276
22,292
-
1,457
45,747
4,135
79,499
5,323
26,486|
|---|---|---|---|---|---|
||||||233,808|
||||||10,794
5,084
66,781
4,731
41,968
728
21,901
18,572
2,124|
||||||172,683|
- 22 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
## **13 Grant funding of charitable activities**
|**2022/23**
Grants paid in year:
Local ecumenical organisations
Grants to circuits and churches
Grants to partners in Rwanda
Other grants
Grants awarded but unpaid at end of year
Grants awarded but unpaid at start of year
**2021/22**
Grants paid in year:
Local ecumenical organisations
Grants to circuits and churches
Grants to partners in Rwanda
Other grants
Grants awarded but unpaid at end of year
Grants awarded but unpaid at start of year|**£**
-
-
6,000
6,000
-
3,000
-
3,000
**District**
**Expenses**
**Fund**
1,923
-
-
1,923
-
**(unrestricted)**
-
1,923
-|**£**
-
-
-
-
-
-
-
-
**Desig-**
**nated**
**Funds**
-
-
-
-
-
**(unrestricted)**
-
-
-|**£**
-
(287,574)
139,565
150,640
276,499
3,140
25,708
121,792
**District**
**Advance**
**Fund**
**(restricted)**
405,348
-
90
436,126
30,688
382,012
(276,499)
541,639|**£**
607
-
4,654
4,654
-
-
-
4,047
**Other**
**Restrict-**
**ed Funds**
**(restricted)**
4,580
6,554
-
11,134
-
-
-
11,134|**£**
**Total**
**Funds**
411,851
6,554
90
30,688|
|---|---|---|---|---|---|
||||||449,183
382,012
(276,499)|
||||||554,696|
||||||607
6,140
25,708
128,839|
||||||(287,574)
161,294
276,499|
||||||150,219|
All these grants were made to projects financed jointly by the District and other parts of the Methodist Church or to other organisations, and none was made to an individual.
The grants awarded during the year from the District Advance Fund are for personnel, ecumenical, outreach or property projects related to ministry and mission, predominantly within circuits or local churches.
|Personnel, ecumenical and outreach projects
Property projects|**2022/23**
541,639
**£**
5,081
536,558|**2021/22**
5,000
134,565
**£**|
|---|---|---|
|||139,565|
There were 44 grants awarded during the year from the District Advance Fund, of which the following grants were the largest and accounted for 89% of the gross amount awarded, each being payable in annual instalments:
|Wolverhampton Circuit - transfer of Connexional grant received in 2021/22 to support continuing work in|£305,030|
|---|---|
|the city centre, as explained fully in Note 3 above.||
|Wolverhampton Circuit - to support the employment of a team leader for Wolverhampton Pioneer|£80,523|
|Ministry for three years from September 2023||
|Ablewell Advice Service, Walsall Central Hall - to support the work of the advice centre for five years|£50,000|
|from September 2023||
|New Places for New People Disability Inclusion Project - to fund the work of an Additional Needs|£49,074|
|Enabler for five years from October 2023 with match funding from the Connexion.||
There are no support costs included in the cost of grant funding as they would not be material. The District Advance Fund is overseen by the Resourcing Mission Committee, the work of which is largely carried out by its officers, predominantly the District Grants Officer, on a voluntary basis.
- 23 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
## **14 Support costs**
|**pport costs**|||
|---|---|---|
|Chair's travel and miscellaneous expenses
Administration staff costs
District office expenses
District manse expenses
Synod expenses
Meeting, travel and other administrative expenses
Governance costs|**£**
41,670
4,451
6,577
210
4,255
23,592
770
**2022/23**
1,815|**£**
14,943
4,000
1,101
4,305
18,917
632
**2021/22**
2,517|
|||46,415|
## **15 Transfers between funds**
|**2022/23 transfers to/(from) funds**
Ministry & Mission Co-ordinator costs
Congregational & Community Organiser costs
District Property Consultant costs
Agricultural chaplaincy costs
Cost of living support
Manse maintenance budget underspend
Surplus on pilgrimage to Komera Fund
**2021/22 transfers to/(from) funds**
Ministry & Mission Co-ordinator costs
Agricultural chaplaincy costs
Manse maintenance budget overspend
District Property Consultant costs
3Generate transport costs
**16 Tangible fixed assets**
**Cost**
At 1 September 2022
Additions
At 31 August 2023
**Depreciation**
At 1 September 2022
Charge for the year
At 31 August 2023
**Net book value**
At 1 September 2022
At 31 August 2023|**£**
12,500
500
42,300
**(unrestricted)**
19,300
(184)
53,500
-
17,500
90,795
-
(3,000)
5,000
5,679
**District**
**Expenses**
**Fund**
22,300|**£**
**£**
-
-
265,000
-
(5,000)
**Desig-**
**nated**
**Funds**
**(unrestricted)**
-
-
-
-
-
3,000
265,000
-
3,000
(5,000)
-
-
**Freehold**
**property**
265,000
265,000
-
-
-|**£**
**£**
(12,500)
4,800
(500)
(47,300)
**(restricted)**
(19,300)
(10,000)
(53,500)
**District**
**Advance**
**Fund**
(10,000)
4,800
(17,500)
(106,265)
-
-
-
(22,300)
**Equipment**
(7,965)
3,600
-
-
1,200
1,200|**£**
**£**
-
-
269,800
-
10,000
-
184
10,000
-
**Other**
**Restrict-**
**ed Funds**
10,000
4,800
12,470
**Total**
265,000
-
-
**(restricted)**
-
2,286
268,600
265,000
-
1,200
1,200|**£**
-
-
-
**Total**
**Funds**
-
-
-
-|
|---|---|---|---|---|---|
||||||-|
||||||-
-
-
-
-|
||||||-|
|||||||
Freehold property represents the Chair's manse, which is stated at deemed cost, being its insured value in 2011. The manse was professionally valued at £370,000 by Jackson Lile & Close on 27th January 2020 and accordingly no depreciation has been provided.
- 24 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
## **17 Debtors**
|Prepayments - deposits paid for retreat accommodation
Accrued income - gift aid refund receivable
Other debtors
**18 Creditors**
Accrued expenses
Reimbursement of employees' and volunteers' expenses
Accrued expenses due to third party suppliers
Accrued holiday pay
Other creditors
**19 Liabilities for grants payable in future years**
District Advance Fund grant commitments, payable in future years:
Grants payable within one year:
Grants payable after more than one year:
Payable in -
2023/24
2024/25
2025/26
2026/27
2027/28
Total grant commitments|**£**
**£**
**£**
242,088
382,012
-
-
92,605
**31/8/23**
34,313
11,412
70,619
44,551
139,924
387
300
2,342
10,388
-
**31/8/23**
1,024
3,029
**31/8/23**
11,412|**£**
**31/8/22**
49
325
-|
|---|---|---|
|||374|
|||**£**
10,713
2,124
**31/8/22**
1,790|
|||280
14,627|
|||14,907|
|||**£**
97,514
35,097
**31/8/22**
-
-
-
143,888|
|||132,611|
|||276,499|
- 25 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
## **20 Summary of fund movements**
|**2022/23 Unrestricted fund movements**
District Expenses Fund
District Training Fund
Manse Fund
**2022/23 Restricted fund movements**
District Advance Fund
Agricultural Chaplaincy Fund
Children Support Fund
Chair's Benevolent Fund
Komera Partnership Fund
**2022/23 Total fund movements**
**2021/22 Unrestricted fund movements**
District Expenses Fund
District Training Fund
Manse Fund
**2021/22 Restricted fund movements**
District Advance Fund
Agricultural Chaplaincy Fund
Children Support Fund
Chair's Benevolent Fund
Komera Partnership Fund
**2021/22 Total fund movements**|**Fund**
**balances**
**brought**
**forward**
**Income**
**Expenditure**
**Transfers**
**between**
**funds**
**Fund**
**balances**
**carried**
**forward**
**_(Note 15)_**
**£**
**£**
**£**
**£**
**£**
330,432
647,119
729,368
90,795
338,978
11,732
-
3,552
-
8,180
28,585
-
-
3,000
31,585|
|---|---|
||370,749
647,119
732,920
93,795
378,743|
||527,635
310,126
544,480
(106,265)
187,016
51,791
46,411
79,499
12,286
30,989
5,296
85
4,580
-
801
1,633
170
750
-
1,053
3,310
5,237
6,554
184
2,177|
||589,665
362,029
635,863
(93,795)
222,036|
||**960,414**
**1,009,148**
**1,368,783**
**-**
**600,779**|
||348,721
631,681
692,270
42,300
330,432
16,300
-
4,568
-
11,732
33,585
-
-
(5,000)
28,585|
||398,606
631,681
696,838
37,300
370,749|
||105,547
610,073
140,685
(47,300)
527,635
63,583
44,989
66,781
10,000
51,791
9,343
-
4,047
-
5,296
1,993
-
360
-
1,633
2,025
1,892
607
-
3,310|
||182,491
656,954
212,480
(37,300)
589,665|
||**581,097**
**1,288,635**
**909,318**
**-**
**960,414**|
- 26 -
## **Wolverhampton and Shrewsbury Methodist District**
## **Notes to the Accounts for the year ended 31st August 2023**
## **21 Unrestricted funds**
## **(a) District Expenses Fund**
This is the general fund used for running the District and has no restrictions. It is financed principally by circuit assessments and the fund balance includes the book value of the District manse (£265,000).
## **(b) Designated funds**
These funds are designated for particular purposes by the District Policy Committee but they are not held on terms that prevent their use for other District purposes if the Committee so resolve.
The District Training Fund is used to fund ministerial and lay training. This fund is financed by transfers from the District Advance Fund ("DAF") as and when required. Although the DAF is a restricted fund its purposes include the support of personnel working in the District and transfers to the Training Fund will be made by grants awarded in the usual way in accordance with the DAF policy as long as the Training Fund continues to meet that purpose of the DAF.
The Manse Fund is used as a reserve to cover occasional heavy expenditure on maintenance of the District manse. Manse maintenance is charged to the District Expenses Fund but any underspend compared to budget is transferred to the Manse Fund and any overspend is covered by drawing on the Manse Fund.
## **22 Restricted funds**
## **(a) District Advance Fund**
This fund is set up under Methodist Standing Orders and is funded by a levy on the end-of-year balances of the Circuit Model Trust Funds of the Circuits in the District and by a distribution from the Connexional Priority Fund, as part of the process of moving money around the Connexion to enable it to best be used for the mission of the Church. The fund is administered by the Resourcing Mission Committee who award grants in accordance with the fund policy to support personnel or property projects related to mission and ministry and to support outreach, evangelism and ecumenical work.
## **(b) Other restricted funds**
The Agricultural Chaplaincy Fund finances the work of Borderlands Rural Chaplaincy, a joint Methodist and Anglican initiative among rural communities in the Welsh borders. Its income comes mainly from grants and donations from a range of Methodist and Anglican sources and it employs a full-time chaplain and a part-time area co-ordinator, who are supported by a team of volunteers.
The Children Support Fund is a legacy fund remaining from when the District operated an annual holiday for children and, with the agreement of the orginal donors, it has been used to make grants to churches who are working with children in deprived circumstances. When the fund is exhausted, grants for children's work will continue to be offered from the District Advance Fund.
The Chair's Benevolent Fund provides small grants from donations to allow the Chair to meet cases of personal need in a confidential way.
The Komera Partnership Fund supports the District's partnership with the Free Methodist Church of Rwanda and the Peacebuilding Healing and Reconcilation Programme of Rwanda with funds from donations and fundraising activities.
- 27 -