Charity number: 1134972
ORPINGTON AND CHISLEHURST METHODIST CIRCUIT
Report of the Trustees and Unaudited Financial Statements
For the year ended 31 August 2020
ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Contents Page For the year ended 31 August 2020
| Report of the Trustees | 1 to 8 |
|---|---|
| Independent Examiner's Report to the Trustees | 9 to 10 |
| Statement of Financial Activities | 11 |
| Statement of Financial Position | 12 |
| Notes to the Financial Statements | 13 to 24 |
| Detailed Statement of Financial Activities | 25 to 26 |
ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Report of the Trustees For the year ended 31 August 2020
The Trustees have pleasure in presenting their report and the financial statements for the charity for the year ended 31 August 2020. The Trustees have adopted the provisions of 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 the Republic of Ireland (FRS 102) (effective 1 January 2019).
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Report of the Trustees Continued For the year ended 31 August 2020
OBJECTIVES AND ACTIVITIES Objectives and aims
The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of:
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The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church.
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Any charitable purpose for the time being of any Connexional, District, Circuit and local or other organisation of The Methodist Church.
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Any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church.
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Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church.
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The organisation and resourcing of regular public acts of worship open to members of the church and nonmembers alike.
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The teaching of Christianity through sermons, courses and small groups.
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The resourcing of pastoral work including visiting the sick and bereaved.
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Promotion of Christianity through the staging of events and services.
The Trustees have paid due regard to guidance issued by the Charity Commission on public benefit in deciding what activities the charity should undertake, and, in particular, the specific guidance on charities for the advancement of religion. The charity undertakes a number of activities in order to achieve these objectives, which are summarised below.
(a) The Circuit provides oversight for churches, manses and ministers in its area of responsibility. Through this and the delivery of services by the churches it is providing public benefit.
(b) There is a regular training programme for Local Preachers, Worship Leaders and church stewards.
(c) The Circuit has adopted a Safeguarding Policy - covering children and vulnerable adults - and has ensured all relevant members of local churches receive appropriate training which is an ongoing process.
As of September2019 staffing levels continued to be two full-time Presbyterial Ministers and a Deacon. Additionally, the Circuit has agreed to an arrangement with the United Reform Church, who provide part-time pastoral support to one church which is a joint Methodist/URC, Local Ecumenical Project. This post terminated on 31 August 2020, though for the time being responsibility will remain with the URC through this will result in the church receiving less pastoral support and oversight.
The Circuit also has an Administrator, to provide support to the Ministers, the Deacon and the Churches that make up the Circuit. The establishment will remain the same for 2020-21, though the administrator's hours will increase due to added responsibilities.
The trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'.
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Report of the Trustees Continued For the year ended 31 August 2020
ACHIEVEMENTS AND PERFORMANCE Significant activities
The Circuit reported that financial commitments made to Churches to assist them with building developments would leave the circuit model trust depleted. Majority of these funds have been disbursed during the year as follows: Orpington Methodist Church - £200,000 and Bromley Common Methodist Church - £45,000. Total £245,000. A moratorium has been declared on future grant allocations. The Trustees plan to build up a reserve to facilitate small grants or loans to churches for mission outreach or redevelopment projects.
The Circuit continues to explore its mission and ministry, by improving the facilities they provide, enhancing the worship experience and engaging with the local community through a diverse range of activities. This is achieved through consultations, conferences and training sessions.
Inevitably, some planned events, training sessions and meetings have been curtailed in recent months, due to the Covid 19 pandemic. During the period when church services could not take place, the Circuit made provision for virtual services online. This was expanded to include the neighbouring Bromley Methodist Circuit and is also accessed by people further afield. For those without internet access, printable meditations have been circulated by email and post. These are judged to be very successful and will continue until at least the end of February 2021
The Circuit has responsibility for six residential properties. Two of these are occupied by clergy. The other four are leased to tenants. One Presbyter resides outside the Circuit, occupying a manse in a neighbouring Circuit, where his wife is a Deacon.
For the time being, the Circuit has decided to retain all manses as a source of income, rather than realising equity from a sale.
FINANCIAL REVIEW
The trustees report an unrestricted fund deficit of £45,557 for the year (2019 - surplus £19,867). Utilising of accumulated restricted fund reserves, the overall result was a deficit of £221,467 (2019- deficit of £12,408).
The reserves policy for the Circuit is to hold a sum in general fund net current assets equivalent to four months average general fund expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and be able to continue short term, in the event of an unexpected circumstance or inability to raise the full Circuit assessment from churches.
It is necessary to hold sufficient working capital to meet the payment of stipends and business expenses for three full-time ministers and other support staff.
As part of forward planning Church Treasurers continue to meet annually to consider the assessment required from each church to meet budget requirements, obtain information and share experiences. The Circuit administrator is in the process of sourcing cost effective contracts for utilities and other services.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Report of the Trustees Continued For the year ended 31 August 2020
Significant events
The Trustees report an unrestricted fund deficit of £45,557 for the reporting year (2019 - surplus of £19,867). Utilising Trustees for Methodist Church Purposes funds earmarked for refurbishment projects, held at TMCP results in an overall deficit of £221,467 (2019 - deficit of £12,408).
The reserves policy for the Circuit is to hold a sum in general fund net current assets, equivalent to four months average general fund expenditure. This is deemed to be sufficient to meet any unforeseen item of major expenditure or loss of income due to a let property becoming vacant or inability to raise the full Circuit assessment from churches. As at 31 August 2020 the level of reserves was in excess of this requirement.
It is necessary to hold sufficient working capital to meet the payment of stipends and business expenses for three full-time ministers and the administrator.
As part of forward planning Church Treasurers meet annually to consider the assessment required from each church to meet budget requirements, obtain information and share experiences. The Circuit administrator is in the process of sourcing cost effective contracts for utilities and other services.
Income to the Circuit has not been adversely affected by the pandemic. There are some additional costs relating to streaming licenses, printing and postage, offset by savings elsewhere.
The Trustees are satisfied that systems are in place to mitigate exposure to the major risks to the charity.
Going concern
The trustees have considered the charity's day to day cash flow requirements and have a reasonable expectation that the charity has adequate resources to continue in operational existence for at least a further 12 months. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity was established under the Deed of Union 1932, the Methodist Church Act 1976 and by Standing Orders of the Methodist Church.
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Report of the Trustees Continued For the year ended 31 August 2020
Recruitment and appointment of trustees
The trustees who served during the year and up to the date of signature of the financial statements were:
Rev Jongikaya Zihle
Revd Duncan MacBean Revd Terry Wright Deacon Maureen Spinks Revd Alison Davis (URC) Appointed 1/9/2019 Resigned 31/8/2020 Revd Janet Verrier Appointed 1/9/2019 Mr Jim Jefferies Ms Sharon Wallis Mrs Dorrance Palmer Mrs Marianne Outteridge Resigned 4/3/2020 Mrs Joan Mayes Ms Deborah Spinks Mr Michael Killpack Mr Gordon Chapman Resigned 31/10/2019 Mr Ralph Brandhorst Mr Rodney Carder Mr John Crowther Mrs Helen VanTeutem Mr Paul Crowther Mr Eddie Green Mrs Ruth Henschel Mr Graham Bunce Mr Chris Field Mr Kevin Doig Mrs Jennifer Wilson Mrs Judith Howard Mrs Marion Parfitt Mrs Janet Hailey Miss Margaret Sanderson Mr John Doddrell Mr Ben Ayisi Appointed 4/3/2020 Mrs Jane Cowie Resigned 5/4/2020 Ms Nadia Mensah Appointed 17/9/2020
There have been two new Trustees appointed since 1/9/2019 - Ben Ayisi and Nadia Mensah
Eligible trustees are proposed by local Methodist Churches within the Circuit and appointed by existing trustees. Ministers of Methodist Churches within the Circuit are automatically appointed as trustees. The Circuit is part of the London Methodist District which is accountable to the Methodist Conference.
Safeguarding: The Methodist Church has adopted a safeguarding policy covering children and vulnerable adults. The Circuit ensures relevant members of the local churches receive appropriate training which is an ongoing process.
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Report of the Trustees Continued For the year ended 31 August 2020
Reference and administrative information is provided on the page following the cover sheet.
REFERENCE AND ADMINISTRATIVE INFORMATION
Name of Charity ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Charity registration number 1134972 Principal address Petts Wood Methodist Church Queens Way Orpington BR5 1LH
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Report of the Trustees Continued For the year ended 31 August 2020
Trustees
The trustees and officers serving during the year and since the year end were as follows:
Rev Jongikaya Zihle Revd Duncan MacBean Revd Terry Wright Deacon Maureen Spinks Revd Alison Davis (URC) (Appointed: 01 September 2019) (Resigned: 31 August 2020) Revd Janet Verrier (Appointed: 01 September 2019) Mr Jim Jefferies Ms Sharon Wallis Mrs Dorrance Palmer Mrs Marianne Outteridge (Resigned: 04 March 2020) Mrs Joan Mayes Ms Deborah Spinks Mr Michael Killpack Mr Gordon Chapman (Resigned: 31 October 2019) Mr Ralph Brandhorst Mr Rodney Carder Mr John Crowther Mrs Helen VanTeutem Mr Paul Crowther Mr Eddie Green Mrs Ruth Henschel Mr Graham Bunce Mr Chris Field Mr Kevin Doig Mrs Jennifer Wilson Mrs Judith Howard Mrs Marion Parfitt Mrs Janet Hailey Miss Margaret Sanderson Mr John Doddrell Mr Ben Ayisi (Appointed: 04 March 2020) Mrs Jane Cowie (Resigned: 05 April 2020) Ms Nadia Mensah
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Report of the Trustees Continued For the year ended 31 August 2020
Independent examiners Nadine Crawford-Piper 1 Bromley Lane Chislehurst Kent BR7 6LH Bankers HSBC 184 High Street Bromley Kent BR1 1HE Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE
Approved by the Board of Trustees and signed on its behalf by
……………………………………………………………………………………………… Revd Duncan MacBean
31 March 2021
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Independent Examiners Report to the Trustees For the year ended 31 August 2020
Responsibilities and basis of report
As the charity trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').
I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
I report to the trustees on my examination of the financial statements of Orpington and Chislehurst Methodist Circuit (the charity) for the year ended 31 August 2020.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act). I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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the financial statements do not accord with those records; or
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the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Independent examiners statement
Since the Charity’s gross income exceeded £250,000, your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination by virtue of my membership of the Association of Chartered Certified Accountants (ACCA).
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Independent Examiners Report to the Trustees For the year ended 31 August 2020
………………………………………………………………..
Nadine Crawford-Piper
FASN Accountancy & Business Solutions Ltd 1 Bromley Lane Chislehurst
Kent
BR7 6LH
5 April 2021
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Statement of Financial Activities For the year ended 31 August 2020
| Notes Income and endowments from: Donations 2 Charitable activities 3/4 Investments 3/4 Total Expenditure on: Ministerial and Administrative Costs 5 Charitable activities – Property Maintenance 6/7 Total Net income/expenditure Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted funds Restricted funds £ £ 89 282,845 - 1,341 282,934 1,341 (225,920) (7,250) (102,571) (170,000) (328,491) (177,250) (45,557) (175,909) 138,882 187,504 93,325 11,595 |
2020 £ 89 282,845 1,341 284,275 (233,170) (272,571) (505,741) (221,466) 326,386 104,920 |
2019 £ 251 243,881 2,330 |
|---|---|---|---|
| 246,462 | |||
| (186,684) (72,186) |
|||
| (258,870) | |||
| (12,408) 338,794 |
|||
| 326,386 |
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Statement of Financial Position As at 31 August 2020
| Notes Fixed assets Tangible assets 13 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Creditors: Accruals and deferred income 16 Net assets The funds of the charity Restricted income funds 18 Unrestricted income funds Revaluation reserve Total funds |
2020 £ 2,327,576 2,327,576 107,270 107,270 - 107,270 2,434,846 (2,350) 2,432,496 11,595 93,325 2,327,576 2,432,496 |
2019 £ 2,109,485 2,109,485 10,741 360,398 371,139 (306) 370,833 2,480,318 (44,447) 2,435,871 187,504 138,882 2,109,485 2,435,871 |
|---|---|---|
The financial statements were approved and authorised for issue by the Board and signed on its behalf by:
………………………………………………………. Revd Duncan MacBean Trustee
31 March 2021
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements For the year ended 31 August 2020
1. Accounting Policies
Basis of accounting
The financial statements have been prepared under the historical cost convention, except for investments which are included at market value and the revaluation of certain fixed assets and in accordance with 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 2019)’, Financial Reporting Standard 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the (2011or 2006 Act).
ORPINGTON AND CHISLEHURST METHODIST CIRCUIT meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
Going concern
The trustees have considered the charity's day to day cash flow requirements and have a reasonable expectation that the charity has adequate resources to continue in operational existence for at least a further 12 months. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
Funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.
Incoming resources
All incoming resources are included in the statement of financial activities when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Where income, relating to specific accounting periods, is received in advance, this is deferred on an accruals basis to the period to which it relates. Such deferrals are included in current liabilities.
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
Resources expended
Liabilities are recognised as resources expended when there is a legal or constructive obligation committing the Charity to the expenditure:
Expenditure, including any VAT which cannot be recovered, is accounted for on an accruals basis and allocated to the appropriate heading in the accounts. Grants and donations payable are taken into account at the earlier of when they are paid or become legally enforceable.
Other than the normal commitments under contracts of employment there are no contractual or constructive obligations to future expenditure at the balance sheet date. Where the trustees have authorised expenditure which is not yet legally enforceable or become constructive obligations amounts are set aside into funds designated for the purpose.
Tangible fixed assets
Freehold manses and land and buildings are shown at insurance valuation and reviewed five yearly.
No provision is made for depreciation of freehold land and buildings as it is the policy of the trustees to revalue them every five years and carry out a review for any impairment in intervening years. The trustees have concluded that the estimated residual value is not materially different from the carrying amount of the asset.
Impairment of fixed assets
At each reporting end date, the charity 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 (if any).
Pensions
All Methodist Ministers in the Circuit are members of the Methodist Ministers' Pension Scheme which is a defined benefit scheme.
The charity is unable to identify its share of the underlying assets and liabilities of the scheme and therefore contributions are accounted for as if it were a defined contribution scheme and therefore contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
Critical Accounting Estimates and Judgements
In the application of the charity’s accounting policies, the 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.
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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Financial Instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
| 2. Other donations and charity activities Donations received |
Unrestricted funds Restricted funds £ £ 89 - 89 |
2020 £ 89 89 |
2019 £ 251 |
|---|---|---|---|
| 251 |
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
3. Income from charitable activities
| Charitable Income Circuit and Church Assessments Charitable Activity - Letting Income Income from Church Assessment Bank |
Unrestricted funds Restricted funds £ £ 206,445 1,341 72,800 - 3,600 282,845 1,341 282,845 1,341 |
2020 £ 207,786 72,800 3,600 284,186 284,186 |
2019 £ 171,656 72,225 - 243,881 243,881 |
|---|---|---|---|
Church Assessment income for 2020 includes accrued income of £40,825 received in 2019 (2019 £0)
Assessments on Churches
The Circuit comprises eight churches and each is assessed for a contribution to meet the overall net costs of the Circuit. An Assessments on Churches is determined annually by the Circuit using a formulaic method which takes into account the number of members in each church and its relative income.
4. Investment income
| Restricted funds Bank interest receivable Other interest receivable Expenditure on charitable activities Minister’s Stipends Charitable Activities – Church Assessments Support costs – admin |
Unrestricted Restricted funds funds £ £ 114,234 - 61,102 6,875 50,584 375 225,920 7,250 |
2020 £ - 1,341 1,341 2020 £ 114,234 67,977 50,959 233,170 |
2019 £ 677 1,653 2,330 2019 £ 108,204 59,192 19,288 186,684 |
|---|---|---|---|
5. Expenditure on charitable activities
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
6. Costs of charitable activities by fund type
| Unrestricted funds Restricted funds £ £ Direct cost Insurance and Utilities 11,051 - Maintenance and Refurbishment - Manses 4,873 - Maintenance and Refurbishment - Property Let 3,058 - Manse Letting Agent Fee 8,589 - Grants Grants and Donations Bromley Circuit - - Grants and Donations CMTF – Restricted (including £75,000 from CFB) 75,000 170,000 102,571 170,000 102,571 170,000 Costs of charitable activities by activity type Activities undertaken Grant funding of directly activities £ £ Charitable Activities Costs related to charitable activities 102,571 170,000 |
2020 £ 11,051 4,873 3,058 8,589 - 245,000 272,571 272,571 2020 £ 272,571 |
2019 £ 10,900 4,420 18,388 9,001 4,477 25,000 72,186 72,186 2019 £ 72,186 |
|---|---|---|
7. Costs of charitable activities by activity type
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
8. Analysis of support costs
| Analysis of support costs | ||||||
|---|---|---|---|---|---|---|
| Ministerial Costs Admin Wages Other Admin Staf Costs Administrative Costs CMTC Other Expenses - Restricted Ofce Expense Ofce Expense Governance costs Accountancy fees Independent Examination Fee |
2020 £ 45,926 - 45,926 375 2,798 - 1,860 1,860 50,959 |
2019 £ 12,050 1,285 |
||||
| 13,335 440 837 1,916 2,760 |
||||||
| 4,676 | ||||||
| 19,288 |
9. Net income/(expenditure) for theyear
This is stated after charging/(crediting):
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Accountancy fees | - | 1,916 |
| Independent Examination Fee | 1,860 | 2,760 |
| URC Minsters’ Expenses and Preachers’ Fee | 4,297 | 1,597 |
| Property Let Maintenance and Refurbishments | 9,626 | 15,910 |
| District Assessment - TMCP | 6,875 | 8,489 |
| Manse Maintenance and Refurbishments | 3,058 | 18,388 |
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
10.
Total staff costs for the year ended 31 August 2020 were:
| Salaries and wages Social security costs Pension costs |
2020 £ 133,232 10,466 23,825 167,523 |
2019 £ 86,445 7,235 19,504 |
|---|---|---|
| 113,184 |
The charity participates in a pension scheme providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the charity, being invested with the Methodist Ministers' Pension Scheme.
The contributions are determined by a qualified actuary on the basis of triennial valuations and the most recent valuation was at 1 September 2017 which has been updated to reflect conditions at the balance sheet date.
The pension charge for the year is shown in note 10. The contributions of the charity and employees from 1 September 2017 were set at 26.9% and 9.3% of earnings respectively.
At 1 September 2017 the actual assets of the scheme were £469.3 million and liabilities £449.7 million with a surplus of £19.6 million. An interim funding statement at 1 September 2018 shows actual assets of the scheme were £487.4 million and liabilities £443.2 with a surplus of £44.2 million.
The next formal triennial valuation is due as at 1 September 2020 when contributions payable will be reviewed.
| Administrative Ministerial |
2020 1 3 4 |
2019 1 3 |
|---|---|---|
| 4 |
There were no employees whose annual remuneration was £60,000 or more.
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
11. Trustee remuneration and related party transactions
Three ministers, who are also trustees of the charity, received the following remuneration during the year:
Rev Duncan Macbean stipend and pension contributions of £27,751 and £6,685 respectively (2019 £24,168 and £6,501); Maureen Spinks stipend and pension contributions of £24,852 and £6,685 respectively (2019£24,168 and £6,501); Rev Terry Wright stipend and pensions contributions of £24,852 and £6,685 respectively (2019 £24,168 and £6,501).
Rev Duncan Macbean's stipend includes Superintendent Allowance of £2,899.
Trustees stipends for the year include £8,715 collected in the previous year.
Trustees Expenses
Of the three ministers who are also trustees, one opts to forego entitlement to expenses for travel, telephone or any other claimable expenses incurred during the course of his duties. Expenses incurred by the other two ministers relate to their work. No trustee was in receipt of any expenses or payment for work undertaken on behalf of the Circuit.
Ministers' manse cost
The Circuit is required to provide accommodation for each minister in the Circuit and their families and this is seen as a benefit to the Circuit. Ministers are expected to occupy the manse provided for them. The Circuit bears the cost of repairs, maintenance, buildings insurance, Council Tax and water charges. These figures are not separately disclosed as benefits in kind for ministers as HMRC does not seek to tax these receipts in the hands of ministers.
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
12. Comparative for the Statement of Financial Activities
| Income and assessments from: Donations – Sundry Amounts Charitable activities – Assessments and property rental Investments (bank interest) Total Expenditure on: Ministerial and Admin Costs Charitable activities – property maintenance Total Net income/expenditure Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted Restricted funds funds £ £ 250 243,881 - 677 1,653 244,808 1,653 (173,079) (8,929) (47,186) (25,000) (220,265) (33,929) 24,543 (32,275) 306,519 32,275 331,062 - |
2019 £ 250 243,881 2,330 246,462 (182,008) (72,186) (254,194) (7,732) 338,794 331,062 |
|---|---|---|
13. Tangible fixed assets
| Land and | |
|---|---|
| Cost or valuation | Buildings |
| £ | |
| At 01 September | 2,109,485 |
| 2019 | |
| Revaluations | 218,091 |
| At 31 August 2020 | 2,327,576 |
| Net book values | |
| At 31 August 2020 | 2,327,576 |
| At 31 August 2019 | 2,109,485 |
Land and buildings with a carrying amount of £2,327,576 (2019 £2,109,485) were revalued at insurance value per February 2020 insurance schedule.
The trustees consider this to be a fair reflection of the value of property held after any potential Connexional Priority Fund Levy that would apply should disposal proceeds not be reinvested in qualifying projects. The next revaluation is due in 2022.
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
14. Debtors
| Amounts due within one year: Trade debtors Prepayments and accrued income 15. Creditors: amounts falling due within one year Trade creditors 16. Creditors: amounts falling due after more than one year Accruals and deferred income |
2020 £ - 2020 £ - - 2020 £ 2,350 2,350 |
2019 £ 1,450 9,291 10,741 2019 £ 306 306 2019 £ 44,447 44,447 |
|
|---|---|---|---|
17. Funds received as agent
£31,407 (2019- £29,432) was received as agent in the year from New Eltham, Chelsfield and Chislehurst Methodist Churches and paid over as salary for staff working at these churches. Note 8 details the payment for administrative support during the year related to this income. The circuit remains with one admin staff during the year and facilitated the payment of admin staff for member churches.
18. Movement in funds Restricted Funds
| Restricted Funds – Circuit Model Trust Fund | Balance at Incoming 01/09/2019 resources £ £ 187,504 1,340 |
Outgoing Balance at resources 31/08/2020 £ £ (177,250) 11,594 (177,250) 11,594 |
|---|---|---|
| 187,504 1,340 |
The Circuit Model Trust Fund holds monies for the charity that can be used for a range of purposes including property projects, ministry and mission grants and
other Methodist purposes. Prior approval for expenditure is required from The Trustees for Methodist Church Purposes.
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
Restricted Funds - Previous year
| Restricted Funds – Circuit Model Trust Fund |
Balance at Incoming Outgoing Balance at 01/09/2018 resources resources 31/08/2019 £ £ £ £ 219,779 1,654 (33,929) 187,504 219,779 1,654 (33,929) 187,504 |
|---|---|
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
19. Analysis of net assets between funds
| 19. Analysis of net assets | between funds | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Total |
Unrestricted |
Restricted | Total | ||||
| funds | funds | funds | funds |
funds | |||||
| 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | ||||
| £ | £ | £ | £ | £ | £ | £ | |||
| Fund balances at | |||||||||
| 31 August 2020 | |||||||||
| represented by: | |||||||||
| Tangible Assets | 2,327,576 | - |
2,327,576 | 2,109,485 |
- | 2,109,485 | |||
| Current assets/(liabilities) | 93,325 | 11,595 | 104,920 | 138,882 |
187,504 | 326,386 | |||
| 2,420,901 | 11,595 | 2,432,496 | 2,248,367 |
187,504 | 2,435,871 |
The Circuit Model Trust Fund holds monies for the charity that can be used for a range of purposes including property projects, ministry and mission grants and other Methodist purposes. Prior approval for expenditure is required from the Trustees for Methodist Church Purposes.
20. Guarantees and contingent assets and liabilities
The Circuit awarded a grant of up to £200,000 to Orpington Methodist Church in March 2016 from the Circuit Model Trust Fund the payment of which depends on the church obtaining consent from the London District of the Methodist Church.
The Circuit awarded a grant of up to £25,000 to Emmanuel Sidcup Church in March 2016 from the Circuit Model Trust Fund the payment of which £15,000 has been paid.
The Circuit awarded a grant of up to £45,000 to Bromley Common Methodist Church in March 2017 from the Circuit Model Trust Fund the payment of which depends on the church obtaining consent from the London District of the Methodist Church.
The Circuit disbursed financial commitments to churches to assist them with building developments during 2020 as follows: Orpington Methodist Church - £200,000 and Bromley Common Methodist Church - £45,000. Total £245,000.
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Notes to the Financial Statements Continued For the year ended 31 August 2020
| This page does not form part of thestatutory fnancial statements INCOME Donations Sundry Donations Charitable activities Circuit and Church Assessments Charitable Activity - Letting Income Income from charitable activities – Church Assessment Bank Investments Bank interest receivable Other interest receivable - restricted Total incoming resources EXPENDITURE Ministers Stipends, Salaries, NIC & Pension Telephone, travel and other Ministerial Expenses Training District Assessment Circuit Model Trust Assessment - Restricted URC Assessment URC Ministers Expenses Charitable activities Insurance and Utilities Maintenance and Refurbishment - Manses Maintenance and Refurbishment - Property Let Manse Letting Agent Fee Grants and Donations Bromley Circuit Grants and Donations CMTF - Restricted Grants - Unrestricted SUPPORT COSTS Ministerial Costs Admin Wages Other Admin Staf Costs |
2020 £ 89 89 206,445 72,800 3,600 282,845 - 1,341 1,341 284,275 (114,234) (3,299) (1,037) (47,584) (6,875) (8,184) (1,068) (182,211) (11,051) (4,873) (3,058) (8,589) - (170,000) (75,000) (272,571) (45,926) - (45,926) |
2019 £ 251 |
||
|---|---|---|---|---|
| 251 171,656 72,225 - |
||||
| 243,881 677 1,653 |
||||
| 2,330 246,462 (101,294) (6,910) - (40,922) (8,489) (8,184) (1,597) |
2,330 | |||
| (167,396) (10,900) (4,420) (18,388) (9,001) (4,477) (25,000) |
||||
| (72,186) (12,050) (1,285) |
||||
| (13,335) |
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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Detailed Statement of Financial Activities For the year ended 31 August 2020
This page does not form part of the statutory financial statements
| age does not form part of the statutory fnancial statements | ||||
|---|---|---|---|---|
| Administrative Costs CMTC Other Expenses - Restricted Ofce Expense Ofce Expense Governance costs Accountancy fees Independent Examination Fee Total resources expended Net Expenditure |
(375) (375) (2,798) (2,798) - (1,860) (1,860) (505,741) (221,467) |
(440) (440) (837) (837) (1,916) (2,760) (4,676) (258,870) (12,408) |
||
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