2021-08-31-accounts - Widmore Methodist Circuit

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

Charity No. 1134972

ORPINGTON AND CHISLEHURST METHODIST CIRCUIT

Report of the Trustees and Unaudited Financial Statements

For the year ended 31 August 2021

Page 1 of 34

ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

CONTENTS PAGE

For the year ended 31 August 2021

Report of the Trustees	3 to 12
Independent Examiner's Report to the Trustees	13 to 14
Statement of Financial Activities	15
Statement of Financial Position	16
Notes to the Financial Statements	17 to 32
Detailed Statement of Financial Activities	33 to 34

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

REPORT OF THE TRUSTEES

The Trustees present their report and financial statements for the year ended 31 August 2021.

The accounts have been prepared in accordance with the The Constitutional Practice and Discipline of The Methodist Church (2017 edition) volumes 1 and 2, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2019).

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

REPORT OF THE TRUSTEES CONTINUED

OBJECTIVES AND ACTIVITIES

The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of:

The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church.
Any charitable purpose for the time being of any Connexional, District, Circuit and local or other organisation of The Methodist Church.
Any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church.
Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church.
The organisation and resourcing of regular public acts of worship open to members of the church and non-members alike.
The teaching of Christianity through sermons, courses and small groups.
The resourcing of pastoral work including visiting the sick and bereaved.
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.

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.
There is a regular training programme for Local Preachers, Worship Leaders and church stewards.
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.

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

REPORT OF THE TRUSTEES CONTINUED

The Circuit reviews its human and financial resources to maximise mission in the area. From September 2020, staffing levels have been two full-time Presbyterial Ministers and a Deacon. There is provision for part-time support from the United Reform Church, for one church which is a joint Methodist/URC, Local Ecumenical Project. This post terminated on 31 August 2020, and due to the shortage of presbyters has not been filled. For the time being responsibility will remain with the URC though it 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. Due to added responsibilities the administrator's hours were increased.

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

REPORT OF THE TRUSTEES CONTINUED

Achievements and performance

The Circuit reported that financial commitments made to Churches to assist them with building developments has significantly reduced the funds held in the circuit model trust. A moratorium has been declared on future grant allocations. However, the Trustees have agreed to establish 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, though there has been minimum activity during the current period, due to the pandemic.

Inevitably, several planned events, training sessions and meetings have been curtailed in recent months, due to the Covid 19 pandemic, though some have been facilitated via zoom. 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 continue to be circulated by email and post. Online services were provided until the end of July 2021, by which time churches were again meeting 'in-person'. Printed material continued to be circulated by post and email for the benefit of people who are unable to attend church services.

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.

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

REPORT OF THE TRUSTEES CONTINUED

Financial review and significant events

The Trustees report a surplus of £34,095 for the reporting year (2020 - deficit £45,557. Utilising Trustees for Methodist Church Purposes funds earmarked for refurbishment projects, held at TMCP results in an overall surplus of £33,820 (2020 - deficit of £221,467).

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 expenditure on manses and be able to continue short term in the event of an unexpected circumstance or inability to raise the full Circuit assessments 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 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 licences, 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.

Significant events

The Trustees report an unrestricted fund surplus of £33,695 for the reporting year (2020 - deficit £45,557). Utilising Trustees for Methodist Church Purposes Funds earmarked for refurbishment projects results in an overall surplus of £33,420 for the reporting year (2020 – deficit £221,467.)

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 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 2021 the level of reserves was in excess of the 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.

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

REPORT OF THE TRUSTEES CONTINUED

As part of forward planning Church Treasurers meet annually to consider the assessment required from each church to cover budget requirements, obtain information and share experiences. The Circuit administrator sources cost effective contracts for utilities and other services.

Income to the Circuit has not been adversely affected by the pandemic.

The Trustees are satisfied that systems are in place to mitigate exposure to the major risks of 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.

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

REPORT OF THE TRUSTEES CONTINUED

Structure, governance and management

The charity is established under the Deed of Union 1932, the Methodist Church Act 1976 and by Standing Orders of the Methodist Church.

Day to day management of the Circuit is undertaken by the Circuit Leadership Team ably assisted by the Circuit Administrator.

The Trustees who served during this reporting year and up to the date of signature of the final accounts were:

Rev Jongikaya Zihle Terminated 31/8/2021 Revd Duncan MacBean Revd Terry Wright Terminated 31/12/2021 Deacon Maureen Spinks Revd Janet Verrier Mr Jim Jefferies Ms Sharon Wallis Mrs Dorrance Palmer Mrs Joan Mayes Ms Deborah Spinks Mr Michael Killpack Mr Ralph Bradhorst Mr Rodney Carder Mr John Crowther Mrs Helen VanTeutem Mr Paul Crowther Mr Eddie Green Mrs Ruth Henschel Mr Graham Bunce Resigned 3/3/2021 Mr Chris Field Mr Kevin Doig Mrs Jennifer Willson Mrs Judith Howard Mrs Marion Parfitt Mrs Janet Hailey Miss Margaret Sanderson Mr John Dodrell Mr Ben Aysis Ms Nadia Mensah Appointed 17/9/2020 Mr Paul Tickell Appointed 3/3/2021

Approved by the Trustees of the Orpington and Chislehurst Methodist Circuit at their meeting on 8th March 2022

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

REPORT OF THE TRUSTEES CONTINUED

……………………………………………..

Signed: Chair of Meeting – Revd Duncan MacBean

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

REPORT OF THE TRUSTEES CONTINUED

Trustees

The trustees and officers serving during the year and since the year end were as follows:

Rev Jongikaya Zihle Terminated 31/8/2021 Revd Duncan MacBean Revd Terry Wright Deacon Maureen Spinks Revd Janet Verrier Mr Jim Jefferies Ms Sharon Wallis Mrs Dorrance Palmer Mrs Joan Mayes Ms Deborah Spinks Mr Michael Killpack Mr Ralph Bradhorst Mr Rodney Carder Mr John Crowther Mrs Helen VanTeutem Mr Paul Crowther Mr Eddie Green Mrs Ruth Henschel Mr Graham Bunce Resigned 3/3/2021 Mr Chris Field Mr Kevin Doig Mrs Jennifer Willson Mrs Judith Howard Mrs Marion Parfitt Mrs Janet Hailey Miss Margaret Sanderson Mr John Dodrell Mr Ben Aysis Ms Nadia Mensah Appointed17/9/2020 Mr Paul Tickell Appointed 3/3/2021

Independent examiners

Nadine Crawford-Piper 1 Bromley Lane Chislehurst Kent BR7 6LH

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

REPORT OF THE TRUSTEES CONTINUED

Bankers

HSBC 184 High Street Bromley Kent BR1 1HE Central Finance Board of the Methodist Church 9 Bonlhill Street London EC2A 4PE Approved by the Board of Trustees and signed on its behalf by

08 March 2022

Revd Duncan MacBean

.............................................................................

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES

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 2021.

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:

accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
the financial statements do not accord with those records; or
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.

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES CONTINUED

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).

………………………………………………………………..

Nadine Crawford-Piper 1 Bromley Lane Chislehurst Kent

BR7 6LH

…………………………………………………

8 March 2022

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

Statement of Financial Activities For the year ended 31 August 2021

Notes Income and endowments from: Donations 2 Charitable activities 3 Interest Income 3/4 Total Expenditure on: Ministerial and Administrative Costs Charitable activities – Property Maintenance 6 Total 5 Net income/expenditure Reconciliation of funds Total funds brought forward Total funds carried forward	Unrestricted funds Restricted funds £ £ - 250,646 - 151 38 250,797 38 (183,455) (313) (33,647) - (217,102) (313) 33,695 (275) 93,325 11,596 127,020 11,321	2021 £ - 250,646 189 250,835 (183,768) (33,647) (217,415) 33,420 104,921 138,341	2020 £ 89 282,845 1,341
			284,275
			(233,170) (272,571)
			(505,741)
			(221,466) 326,386
			104,920

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

Statement of Financial Position As at 31 August 2021

Notes Fixed assets Tangible assets 13 Cash at bank and in hand TOTAL ASSETS Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities The funds of the charity Restricted income funds 15 Unrestricted income funds Revaluation reserve Total funds	2021 £ 2,460,218 2,460,218 140,691 2,600,909 (1,950) 138,741 2,598,959 11,321 127,420 2,460,218 2,598,959	2020 £ 2,327,576
		2,327,576

		107,270
		2,434,846

		(2,350) 104,920
		2,432,496
		11,595 93,325 2,327,576
		2,432,496

The financial statements were approved and authorised for issue by the Board and signed on its behalf by:

Rev Duncan McBean Trustee 08 March 2022

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS

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.

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

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.

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.

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

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).

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

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 charged in the accounts as they become payable in accordance with the rules of the scheme.

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 shortterm 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. Income from other donations

Unrestricted funds	Restricted funds	2021	2020
£	£	£	£
-		-	89
-		-	89

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

3. Income from charitable activities

Unrestricted funds	Restricted funds	2021	2020
£	£	£	£
177,700	38	177,700	206,445
72,946	-	72,946	72,800
-			3,600
250,646	38	250,684	282,845
250,646	38	250,684	282,845

The Church Assessment income for 2021 includes accrued income of £0 (2020 £40,825)

Assessments on Churches

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	Unrestricted	Restricted Total	Restricted Total	Restricted Total
Restricted funds	2021 £	2021 £	2021 £	2020 £
Bank interest receivable	151	-	151	-
Other interest receivable		38	38	1,341
	151	38	189	1,341

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

5. Expenditure on charitable activities	Unrestricted Funds	Restricted Funds	2021	2020
	£	£	£	£
Minister’s Stipends	108,305	-	108,305	114,234
Charitable Activities – District Assessments and related costs	86,769	-	86,769	67,977
Support costs – admin	22,028	313	23,041	50,959
	217,102	313	217,415	233,170

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

6. Costs of charitable activities by fund type Unrestricted Restricted 2021 2020 funds funds £ £ £ £

Direct cost

Insurance and Utilities	11,264	-	11,264	11,051
Maintenance and Refurbishment - Manses	5,611	-	5,611	4,873
Maintenance and Refurbishment - Property Let	6,341	-	6,341	3,058
Manse Letting Agent Fee	9,087	-	9,087	8,589
Grants
URC Trustee Expenses	1,344	-	1,344	-
Grants and Donations CMTF – Restricted (including £75,000 from CFB)	-	-	-	245,000
Total	33,647	-	33,647	272,571

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

7. Costs of Charitable Activities by activity type

	Activities Undertaken Directly	Grant Funding of Activities	2021	2020
Charitable Activities	£	£	£	£
Costs related to charitable activities	33,367	-	33,347	272,571

8. Analysis of support costs

Analysis of support costs
	2021	2020
	£	£
Ministerial Costs:
Admin Wages	17,031	45,926
	17,031	45,926
Administrative Costs:
CMTC Other Expenses - Restricted	313	375
Ofce Expense:
Ofce Expense	3,047	2,798
Governance costs:
Independent Examination Fee	1,950	1,860
Total Office Expense and Governance Costs	4,997	4,658
Total Support Costs including restricted costs	22,341	50,959

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

9. Net income/(expenditure) for the year

This is stated after charging/(crediting):

	2021 £	2020 £
Independent Examination Fee	1,950	1,860
URC Minsters’ Expenses and Preachers’ Fee	3,691	4,297
Property Let Maintenance and Manse Refurbishments	13,014	12,684
District Assessment - TMCP	-	6,875

10. Total staff costs for the year ended 31 August 2021 were:

	2021 £	2020 £
Salaries and wages	111,234	133,232
Social security costs	20,618	10,466
Pension costs	7,977	23,825
	139,829	167,523

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

NOTES TO THE ACCOUNTS CONTINUED
	2021	2020
Administrative	1	1
Ministerial	3	3
	4	4

There were no employees whose annual remuneration was £60,000 or more.

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 2021 when contributions payable will be reviewed.

Following the Methodist conference in July 2021, it was unanimously agreed at trustees meeting held on 8[th] September 2021 to contribute 15% of bank balances held at TMCP, CFB, and HSBC on 31[st] August 2021 as a resolution to the pension deficit.

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

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 £28,272 and £6,872 respectively (2020 £27,751 and £6,685); Maureen Spinks stipend and pension contributions of £25,718 and £6,873 respectively (2020-£24,852 and £6,685); Rev Terry Wright stipend and pensions contributions of £25,718 and £6,872.65 respectively (2020 £24,852 and £6,685).

Rev Duncan Macbean's stipend includes Superintendent Allowance of £2,554 (2020 £2,899).

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 YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

12. Comparative for the Statement of Financial Activities	Unrestricted	Restricted	2020
	funds	funds
Income and assessments from:	£	£	£
Donations – SundryAmounts	89		89
Charitable activities – Assessments and property rental	282,845		282,845
Investments(bank interest)		1,341	1,341
Total	282,934	1,341	284,275

Ministerial and Admin Costs	(225,920)	(7,250)	(233,170)
Charitable activities –propertymaintenance	(102,571)	(170,000)	(272,571)
Total	(328,491)	(177,250)	(505,741)
Net income/expenditure	(45,557)	(175,909)	(221,466)
Reconciliation of funds
Total funds brought forward	138,882	187,504	326,386
Total funds carried forward	93,325	11,595	104,920

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

13. Tangible fixed assets

Cost or valuation – Land and Buildings

As at 31 August 2020	2,327,576
Revaluations	132,642
At 31 August 2021	2,460,218

Net Book Value at 31 August 2021	2,460,218

At 31 August 2020	2,327,576

Land and buildings with a carrying amount of £2,460,218 (2020 £2,327,576) were revalued at insurance value per February 2021 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 2023.

14. Creditors: amounts falling due within one year
	2021 £	2020 £
Accruals	1,950	2,350
	1,950	2,350

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

Funds received as agent

During the year the Circuit received funds from member churches for payment of administrative salaries. The amount of administrative wages £17,031 is the net amount after amounts collected. Monies received for administrative salaries were £22,070 (2020 £31,407) and salaries paid out £39,101 made up as follows:

----- Start of picture text -----
New Eltham 8,073.00
Chislehurst 14,000.64
Circuit 16,550.85
Admin fee 476.55
TOTAL 39,101.04
----- End of picture text -----

----- Start of picture text -----
15. Movement in funds
Restricted Funds
Balance at Incoming Outgoing Balance at
01/09/2020 resources resources 31/08/2021
£ £ £ £
Restricted Funds – Circuit Model Trust Fund 11,596 38 (313) 11,321
11,596 38 (313) 11,321
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.
----- End of picture text -----

Restricted Funds - Previous year Balance at 01/09/2019 £	Restricted Funds - Previous year Balance at 01/09/2019 £	Incoming resources £	Outgoing resources £	Balance at 31/08/2020 £
Restricted Funds – Circuit Model Trust Fund	187,504	1,341	(177,250)	11,595
Total	187,504	1,341	(177,250)	11,595

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

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.

16. Analysis of net assets between funds

	Unrestricted Funds	Restricted Funds	Total Funds	Unrestricted Funds	Restricted Funds	Total
	2021	2021	2021	2020	2020	2020
	£	£	£	£	£	£
Fund balances at 31 August 2020 represented by:
Tangible Assets	2,460,218	0	2,460,218	2,327,576	0	2,237,576
Current assets/(liabilities)	127,420	11,321	138,741	93,325	11,595	104,920
Balance at year end	2,587,638	11,321	2,598,959	2,420,901	11,595	2,432,496

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

NOTES TO THE ACCOUNTS CONTINUED

17.Guarantees and contingent assets and liabilities

During the year, the Circuit did not make any awards or grants. The following are the grant making and awarding activities of previous years:

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 YEAR ENDED 31 AUGUST 2021

Detailed Statement of Financial Activities

This page does not form part of the Statutory Financial Statements

INCOME 2021 2020	INCOME 2021 2020	INCOME 2021 2020
Donations Sundry Donations	-	89
		89
Charitable activities Circuit and Church Assessments	177,700	206,445
Charitable Activity– LettingIncome	72,946	72,800
Income from charitable activities – Church Assessment Bank	-	3,600
Total Income	250,646	282,845
Investments Bank interest receivable	151	-
Other interest receivable – restricted	38	1,341
Total Interest Income	189	1,341
TOTAL INCOME	250,835	284,275
EXPENDITURE
Ministers Stipends, Salaries, NIC & Pension	(108,305)	(114,234)
Telephone, travel and other Ministerial Expenses	(2,946)	(3,229)
Training	(887)	(1,037)
District Assessment	(48,544)	(47,584)
Circuit Model Trust Assessment – Restricted	-	(6,875)
URC Assessment, Stipends	(745)	(8,184)
URC Ministers Expenses		(1,068)
TOTAL STIPENDS, ASSESSMENTS AND MINISTERS’ EXPENSES	(161,427)	(182,211)
Charitable activities Insurance and Utilities	(11,264)	(11,051)
Maintenance and Refurbishment – Manses	(5,611)	(4,873)
Maintenance and Refurbishment	(6,341)	(3,058)
Manse LettingAgent Fee	(9087)	(8,589)
URC Trust	(1,344)	-
Grants and Donations CMTF – Restricted	-	(170,000)
Grants – Unrestricted	-	(75,000)
TOTAL CHARITABLE ACTIVITIES	(33,647)	(275,571)

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ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2021

Detailed Statement of Financial Activities (continued)

This page does not form part of the Statutory Financial Statements

This page does not form part of the Statutory Financial Statements
	2021		2020
Admin Wages	(17,031)		(45,926)
TOTAL ADMINISTRATIVE WAGES	(17,031)		(45,926)
Administrative Costs - Restricted	(313)		(375)
Total Restricted Costs	(313)		(375)

Ofce Expense		(3,047)		(2,798)
Total Office Expenses		(3,047)		(2,798)
Independent Examination Fee		(1,950)		(1,860)
Total Governance Costs		(1,950)		(1,860)
Total resources expended		(217,415)		(505,741)
Net Expenditure		33,420		(221,467)

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