ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 Charity No. 1134972 ## ORPINGTON AND CHISLEHURST METHODIST CIRCUIT Report of the Trustees and Unaudited Financial Statements For the year ended 31 August 2023 Page **1** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## CONTENTS PAGE For the year ended 31 August 2023 |Report of the Trustees|3 to 11| |---|---| |Independent Examiner's Report to the Trustees|12 to 13| |Statement of Financial Activities|14| |Statement of Financial Position|15| |Notes to the Financial Statements|16 to 30| |Detailed Statement of Financial Activities|31 to 32| Page **2** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## REPORT OF THE TRUSTEES The Trustees present their report and financial statements for the year ended 31 August 2023. The accounts have been prepared in accordance with 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). Page **3** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## 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. The Circuit reviews its human and financial resources to maximise mission in the area. Page **4** of **31** ## ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 As of September 2022 staffing level was two full-time Presbyterial Ministers and a Deacon. The Deacon retired on 31 August 2023 and there is no replacement. Additionally, the Circuit has agreed to an arrangement with the United Reformed Church, to provide part-time pastoral support to one church which is a joint Methodist/URC, Local Ecumenical Project. The post was filled by a URC minister during July 2023. There will be implication relating to costs during the next financial year. The Circuit also has an Administrator, to provide support to the Ministers, the Deacon and the Churches that made up the Circuit. Page **5** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## REPORT OF THE TRUSTEES CONTINUED ## **Achievements and performance** The Trustees have established 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. Throughout 2022-23 written services continued to be available to access on line as well as being posted to people without internet facilities. This has been much appreciated by those who are unable to get to church. The Circuit has responsibility for six residential properties. Two of these are occupied by clergy. The other four are leased to tenants, though one has been unoccupied for several months due to refurbishment. 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 realizing equity from a sale. Page **6** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## REPORT OF THE TRUSTEES CONTINUED ## **Financial review and significant events** The Trustees report an unrestricted deficit of £12,709 fund for the reporting year (2022 – surplus of £11,391). Utilising Trustees for Methodist Church Purposes funds earmarked for refurbishment projects, held at TMCP results in an overall deficit of £12,671 of (2022 – surplus £11,128) 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 2023 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 sources cost effective contracts for utilities and other services. Churches in the Circuit also benefit as details of contractors are shared. 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 resource 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 Page **7** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## 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: Revd Duncan MacBean Deacon Maureen Spinks (Resigned 31/8/2023) Revd Janet Verrier Mr Jim Jefferies Ms Sharon Wallis Mrs Dorrance Palmer Mrs Joan Mayes Ms Deborah Spinks (Resigned 31/8/2023) Mr Michael Killpack Mr Ralph Bradhorst Mr Rodney Carder Mr John Crowther Mr Paul Crowther Mr Eddie Green Mrs Ruth Henschel (Resigned 31/8/2022) Mr Chris Field Mr Kevin Doig Mr Paul Ticknel Mrs Jennifer Willson Mrs Judith Howard Mrs Janet Hailey (Resigned 31/8/2023) Mr John Dodrell (Resigned 31/8/2023) Mr Ben Aysis (Resigned 31/8/2023) Ms Gillian Tompkins Mr Peter Lake Rev Robert Selvakumar Mr Thomas Cowie 31/03/2023) Mrs Pauline Lyon (Appointed 05/9/2023 Rev Rodolphe Blanchard-Kowal (to be Appointed Mach 2024) Ms Nanna Addo (to be Appointed March 2024) There have been two new Trustees appointed since September 1, 2022 - Thomas Cowie and Pauline Lyon and a further two are due to be appointed in March 2024. Page **8** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## REPORT OF THE TRUSTEES CONTINUED ## **Principal address:** The Superintendent Orpington and Chislehurst Methodist Circuit Office Petts Wood Methodist Church Queensway Petts Wood Kent BR5 1LH **Independent examiner** Nadine Crawford-Piper FCCA 30 Vine Square Eastbourne BN22 7QD ## **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 Trustees of the Orpington and Chislehurst Methodist Circuit at their meeting on 14 March 2024 …………………………………………….. Signed: Chair of Meeting – Revd Duncan MacBean Date 14 March 2024 Page **9** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## REPORT OF THE TRUSTEES CONTINUED ## **Trustees** The trustees and officers serving during the year and since the year end were as follows: Revd Duncan MacBean Deacon Maureen Spinks (Resigned 31/8/2023) Revd Janet Verrier Mr Jim Jefferies Ms Sharon Wallis Mrs Dorrance Palmer Mrs Joan Mayes Ms Deborah Spinks (Resigned 31/8/2023) Mr Michael Killpack Mr Ralph Bradhorst Mr Rodney Carder Mr John Crowther Mr Paul Crowther Mr Eddie Green Mrs Ruth Henschel (Resigned 31/8/2022) Mr Chris Field Mr Kevin Doig Mr Paul Ticknel Mrs Jennifer Willson Mrs Judith Howard Mrs Janet Hailey (Resigned 31/8/2023) Mr John Dodrell (Resigned 31/8/2023) Mr Ben Aysis (Resigned 31/8/2023) Ms Gillian Tompkins Mr Peter Lake Rev Robert Selvakumar Mr Thomas Cowie 31/03/2023) Mrs Pauline Lyon (Appointed 05/9/2023) Rev Rodolphe Blanchard-Kowal (to be Appointed Mach 2024) Ms Nanna Addo (to be Appointed March 2024) Page **10** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## 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 2023. ## **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: 1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or 2. the financial statements do not accord with those records; or 3. 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. Page **11** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES CONTINUED ## **Independent examiners statement** Since the Charity’s gross income was up to and over £250,000 (2022 comparative), 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). **==> picture [132 x 37] intentionally omitted <==** ……………………………………………………………….. Nadine Crawford-Piper 30 Vine Square Eastbourne East Sussex BN22 7QD 15 March 2024 Page **12** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## Statement of Financial Activities For the year ended 31 August 2023 ||||||**2023**|**2022**| |---|---|---|---|---|---|---| |||**2023**|**2023**||**Total**|**Total**| |||**£**|**£**||**£**|**£**| |**Income and Donations**
**from:**|notes|Unrestricted|Restricted||Total|| |Donations|2|80||0|80|839| |Charitable activities||||||| |(Church Assessment and|
3|236,115||0|236,115|249,935| |letting income)||||||| |Interest Income|
4|5,066|346||5,412|653| |**Total**||**241,261**||**346**|**241,607**|**251,427**| |**Expenditure on:**||||||| |Ministerial and
Administrative Costs|5|191,416||308|191,724|185,674| |Charitable activities –
Property Maintenance|6|62,554||0|62,554|54,625| |**Total**||**253,970**||**308**|**254,278**|**240,299**| |**Net income/expenditure**||**-12,709**||**38**|**-12,671**|**11,128**| |**Reconciliation of funds**||||||| |Total funds brought
forward||138,411|11,058||**149,469**|138,341| |**Total funds carried**
**forward**||**125,702**|**11,096**||**136,798**|**149,469**| Page **13** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## Statement of Financial Position As at 31 August 2023 |**Notes**
**Fixed assets**
Tangible assets
13
**Current Assets**
Cash at bank and in hand
**TOTAL ASSETS**
**Creditors: amounts falling due within one**
**year**
14
**Net current assets (current assets less current**
**liabilities)**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**The funds of the charity**
Restricted income funds
15
Unrestricted income funds
Revaluation reserve
**TOTAL FUNDS**|**2023**
**£**
3,198,941||**2022**
**£**
2,679,168| |---|---|---|---| ||3,198,941||2,679,168| ||138,748
**3,337,689**
-1,950
136,798||151,701
**2,830,869**
-2,232
149,469| ||**3,335,739**||**2,828,637**| ||11,096
125,702
3,198,941||11,058
138,411
2,679,168| ||**3,335,739**||**2,828,637**| The financial statements were approved and authorised for issue by the Board and signed on its behalf by: Rev Duncan McBean Trustee 14 March 2024 Page **14** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## 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 Charity Act 2011. 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. Page **15** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## 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. ## **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). Page **16** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## 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** |Donations received|**Unrestricted**
**funds**|**Restricted**
**funds**|**2023**||**2022**| |---|---|---|---|---|---| ||**£**|**£**|**£**||**£**| ||80||80||839| ||**80**||**80**||**839**| Page **17** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## NOTES TO THE ACCOUNTS CONTINUED ## **3. Income from charitable activities** |Circuit and Church
Assessments
Charitable Activity - Letting
Income
Donation and Other income
Investment income|**Unrestricted**
**funds**|**Restricted**
**funds**|**2023**
**TOTAL**||**2022**
**TOTAL**| |---|---|---|---|---|---| ||**£**|**£**|**£**||**£**| ||172,000||172,000||172,000| ||64,115||64,115||77,935| ||80||80||839| ||5,066|346|5,412||653| ||**241,261**|**346**|**241,607**||**251,427**| ## **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** |**4. Investment income**||||| |---|---|---|---|---| ||**2023**
**Unrestricted**|**2023**
**Restricted**|
**2023**
**TOTAL**|**2022**
**TOTAL**| ||**£**|**£**|**£**|**£**| |Bank interest receivable|5,066|346|5,412|653| |Other interest receivable||||| ||**5,066**|**346**|**5,412**|**653**| Page **18** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## NOTES TO THE ACCOUNTS CONTINUED ## **5. Expenditure on charitable activities** |**5. Expenditure on charitable activities**||||| |---|---|---|---|---| ||**Unrestricted**
**Funds**|**Restricted**
**Funds**|**2023**|**2022**| ||**£**|**£**|**£**|**£**| |Minister’s and URC Stipends|111,880||111,880|107,671| |Ministers' Expenses (Telephone, Travel,
other)|7,448||7,448|5,161| |Charitable Activities – District Assessments
and related costs|47,756||47,756|48,544| |Training Costs||||1,019| |URC Ministers' Expenses||||720| |**Total Stipends and district Assessments**|**167,084**||**167,084**|**163,115**| |Support costs – admin wages|20,036||20,036|18,654| |Support costs - office costs|2,629|308|2,937|3,589| |Independent Examination Fee|1,950||1,950|1,950| |Adjustment to prior year Accrual|-283||-283|-1,634| |**Total Admin and Support Costs**|**24,332**|**308**|**24,640**|**22,559**| |||||| |**TOTAL Ministry and Admin Costs**|**191,416**|**308**|**191,724**|**185,674**| Page **19** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## NOTES TO THE ACCOUNTS CONTINUED ## **Note 6. Charitable Activities** |**Charitable Activities**|**2023**
**Unrestricted**|**2023**
**Restricted**|**2023**
**TOTAL**|**2022**
**TOTAL**| |---|---|---|---|---| |Insurance and Utilities|12,250|0|12,250|11,530| |**Total Insurance**|**12,250**|**0**|**12,250**|**11,530**| |Maintenance and Refurbishment -
Manses|**6,321**|0|**6,321**|16,185| |Maintenance and Refurbishment -
Property Let|25,631|0|25,631|8,270| |Bromley Manse - Costs|6,237|0|6,237|5,193| |**Total Property Maintenance**|**38,189**|**0**|**38,189**|**29,648**| |Manse Letting Agent Fee|9,517|0|**9,517**|9,481| |URC Expenses|2,475||**2,475**|2,064| |Donations and LP Expenses|123|0|**123**|1,902| |**Total Letting fee and URC**|**12,115**|**0**|**12,115**|**13,447**| |**TOTAL CHARITABLE COSTS**|**62,554**|**0**|**62,554**|**54,625**| Page **20** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## NOTES TO THE ACCOUNTS CONTINUED ## **7. Costs of Charitable Activities by activity type** ||**Activities**
**Undertaken**
**Directly**|**Grant**
**Funding of**
**Activities**|**2023**|**2022**| |---|---|---|---|---| |**Charitable Activities**|**£**|**£**|**£**|**£**| |Costs related to charitable
activities|**62,544**|**-**|**62,544**|**54,625**| ## **8. Analysis of support costs** ||**2023**|**2022**| |---|---|---| ||**£**|**£**| |**Ministerial Costs:**||| |Admin Wages|20,036|18,654| ||**20,036**|**18,654**| |**Administrative Costs:**||| |TMCP Other Expenses - Restricted|**308**|**315**| |**Ofce Expense:**||| |Ofce Expense|2,629|3,274| |**Governance costs:**||| |Independent Examination Fee|1,950|1,950| |**Total Office Expense and Governance Costs**|**4,579**|**5,224**| |**Total Support Costs including restricted costs**
**(see note 5 for prior year**
**adjustments/reallocation)**|**24,923**|**24,193**| Page **21** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## NOTES TO THE ACCOUNTS CONTINUED ## **9. Net income/(expenditure) for the year** This is stated after charging/(crediting): **2023 2022** |**£**
|**£**
|**£**| |---|---|---| |Independent Examination Fee|1,950
|1,950| |URC Minsters’ Expenses and Preachers’ Fee|1,091
|2,064| |Property Let Maintenance and Manse Refurbishments (see
note 6 for details)|
38,189
|29,648| ## **10.** ## **Total staff costs for the year ended 31 August 2023 were:** ||**2023**
**£**||**2022**
**£**| |---|---|---|---| |Salaries and wages|99,502||100,712| |Social security costs|9,750||7,945| |Pension costs|22,664||17,668| ||**131,916**||**126,325**| During the year, Deacon Maureen Spinks left the Circuit on 31 August 2023. She was not replaced. Page **22** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## NOTES TO THE ACCOUNTS CONTINUED ## Note 10 - continued |NOTES TO THE ACCOUNTS CONTINUED
te 10 - continued||| |---|---|---| ||2023|2022| |Administrative|1|1| |Ministerial|3|4| ||4|5| 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 2022 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 2021 the actual assets of the scheme were £574.3 million and liabilities £498.5 million with a surplus of £75.8 million. These figures compare to 2020 – assets £487.5 million, liabilities £501.7 million with a deficit of £14.2 million. In its 2021 Summary Funding Statement, the Methodist Ministers Pension scheme indicates that the shortfall of 2020 could potentially be eliminated by excess investment returns, the result of which is that no core contributions were required, except for conditional transfer of £2.61 million from Pension Reserve, if required. 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. Page **23** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## 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 £29,990 and £7,291 respectively (2022 £28,2678 and £6,971); Maureen Spinks resigned at the end of August 2023. Her stipend and pension contributions during the year were £24,860 and £6,640 respectively (2022 £26,087 and £6,971); Rev Terry Wright £0 stipend and pensions contributions (2022 £6,627 and £1,737 respectively). Rev Robert Selvakumar stipend and pension contributions of £27,104 and £7,291 respectively (2022 £0 respectively). Rev Duncan Macbean's stipend includes Superintendent Allowance of £2,710 (2022 £2,591). ## **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. Page **24** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## NOTES TO THE ACCOUNTS CONTINUED ## **12. Comparative for the Statement of Financial Activities** ||**2022**
**Unrestricted**
**funds**
**£**|**2022**
**Restricted**
**funds**
**£**|**2022**
**Total**
**£**|**2021**
**Total**
**£**| |---|---|---|---|---| |**Income and endowments**
from:
Donations
Charitable activities
Interest Income
Total
**Expenditure on:**
Ministerial and Administrative Costs
Charitable activities – Property
Maintenance
**Total**
Net income/expenditure
Reconciliation of funds
Total funds brought forward|839
249,935
601
251,375
-185,359
-54,625|-
52
52
-315
-|839
249,935
653
251,427
-
185,674
-54,625|-
250,646
189
250,835
-183,768
-33,647| ||**-239,984**|**-315**|**-**
**240,299**
|**-217,415**| ||11,391
127,020|-263
11,321|11,128
138,341|33,420
104,921
**138,341**| |**Total funds carried forward**|**138,411**|**11,058**
|**149,469**
|| Page **25** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## NOTES TO THE ACCOUNTS CONTINUED ## **13. Tangible fixed assets** ## **Cost or valuation – Land and Buildings** ## **£** |As at 31 August 2022|**2,679,168**| |---|---| |Revaluations|519,773| |At 31 August 2023|**3,198,941**| ||| |Net Book Value at 31 August 2023|**3,198,941**| ||| |At 31 August 2023|**3,198,941**| Land and buildings with a carrying amount of £3,198,941 (2022 £2,679,168) were revalued at insurance value per February 2023 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 2024. Page **26** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## NOTES TO THE ACCOUNTS CONTINUED ## **14. Creditors: amounts falling due within one year** |**4. Creditors: amounts falling due within one year**|||| |---|---|---|---| ||||| ||**2023**
**£**||**2022**
**£**| |Accruals|1,950||2,232| |TOTAL|**1,950**||**2,232**| ## **Funds received on behalf of member churches** During the year the Circuit received funds from member churches for payment of administrative salaries. The amount of administrative wages £20,036 is the net total after amounts collected and includes repayments of £777 paid to the Circuit from member churches for church administration and £861 for projects/training. Monies received for administrative salaries were £29,655 (2022 £25,324) and salaries paid out £48,054 made up as follows: |New Eltham|£9,012| |---|---| |Chislehurst|£15,368| |Circuit|£18,813| |Orpington|£3,316| |Admin fee|£1,545| |**TOTAL**|**48,054**| Page **27** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## NOTES TO THE ACCOUNTS CONTINUED ## **15. Movement in funds** ## **– Restricted Funds Current Year** |**Restricted Funds– Current Year**||||| |---|---|---|---|---| ||**Balance at**
|**Incoming**|**Outgoing**|**Balance at**| ||**01/09/2022**|**resources**|**resources **|**31/08/2023**| ||**£**|**£**|**£**|**£**| |Restricted Funds – Circuit Model Trust Fund|11,058|346|(308)|11,096| ||**11,058**|**346**|**(308)**|**11,096**| ## **Note 15 – continued Restricted Funds - Previous year** |**Restricted Funds - Previous year**
Balance at
01/09/2021|**Restricted Funds - Previous year**
Balance at
01/09/2021|Incoming
resources|Outgoing
resources|Balance at
31/08/2022| |---|---|---|---|---| |Restricted Funds – Circuit Model Trust
Fund|
11,321|52|(315)|11,058| |**Total**|**11,321**|**52**|**(315)**|**11,058**| 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. . Page **28** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## NOTES TO THE ACCOUNTS CONTINUED ## **16. Analysis of net assets between funds** ||Unrestricted
Funds|Restricted
Funds|Total
Funds|Unrestricted
Funds|Restricted
Funds|Total| |---|---|---|---|---|---|---| ||**2023**|**2023**|**2023**|**2022**|**2022**|**2022**| ||£|£|£|£|£|£| |**Fund balances at**
**31 August 2023**
**represented by:**||||||| |Tangible Assets|3,198,941|0|3,198,941|2,679,168|0|2,679,168| |Current
assets/(liabilities)|125,702|11,096|136,798|138,411|11,058|149,469| |**Balance at year**
**end**|**3,324,643**|**11,096**|**3,335,739**|**2,817,579**|**11,058**|**2,828,637**| ## **17. Guarantees and contingent assets and liabilities** During the year, the Circuit did not make any awards or grants. There are no outstanding grants authorized and not yet paid out. Page **29** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## **Detailed Statement of Financial Activities** This page does not form part of the Statutory Financial Statements |**Detailed Statement of Financial Activities**|**2023**|**2022**| |---|---|---| ||£|£| |**Charitable activities - INCOME**||| |Circuit and Church Assessments|172,000|172,000| |Charitable Activity – Letting Income|64,115|77,935| |Income – Charitable Donations|80|839| |Total Income|236,195|250,774| |Investments||| |Bank interest receivable|5,066|601| |Other interest receivable – restricted|346|52| |Total Interest Income|5,412|653| |**TOTAL INCOME**|**241,607**|**251,427**| |||| |**EXPENDITURE**||| |Ministers Stipends, Salaries, NIC & Pension|-111,880|-107,671| |URC Expenses||-720| |Telephone, travel and other Ministerial Expenses|-7,448|-5,161| |Training|0|-1,019| |District Assessment|-47,756|-48,544| |||| |**TOTAL STIPENDS, ASSESSMENTS AND MINISTERS’ EXPENSES**|**-167,084**|**-163,115**| |||| Page **30** of **31** ORPINGTON AND CHISLEHURST METHODIST CIRCUIT YEAR ENDED 31 AUGUST 2023 ## **Detailed Statement of Financial Activities (continued)** This page does not form part of the Statutory Financial Statements |Charitable activities
Insurance and Utilities|-12,250|-11,530| |---|---|---| |Maintenance and Refurbishment – Manses|-6,321|-16,185| |Maintenance and Refurbishment Property Lettings
Bromley Manse - Costs|-25,631|-8,270| ||-6,237|-5,193| |Manse Letting Agent Fee|-9,517|-9,481| |URC Trust|-1,091|-1,344| |URC Assessment, Stipends|-1,384|-1,634| |||| |Donations and LP Expenses|-123|-988| |**TOTAL CHARITABLE ACTIVITIES**|**-62,554**|**-54,625**| |||| |Admin Wages|-20,036|-18,654| |**TOTAL ADMINISTRATIVE WAGES**|**-20,036**|**-18,654**| |Administrative Costs - Restricted|-308|-315| |**Total Restricted Costs**|**-308**|**-315**| |||| |Ofce Expense|-2,629|-3,274| |**Total Office Expenses**|**-2,629**|**-3,274**| |Independent Examination Fee|-1,950|-1,950| |Independent Examination Fee Prior year adjustment|283|| |**Total Governance Costs**|**-1,667**|**-1,950**| |Other reallocation adjustments (see URC Stipends above)||1,634| |**TOTAL ADMIN**|**-24,641**|**-24,193**| |Total resources expended|**-254,278**|**-241,933**| |Net Expenditure|**-12,671**|**11,128**| Page **31** of **31**