Charity registration number 1134972
WIDMORE METHODIST CIRCUIT
(PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
L MacBean T Farmer R G Meissner M E C Jackson H Cheverton J Bayes N A Brehene S Young R Kowal H Jones E Owusu J Cummins F Brew D E Jackson B Pykes Rev K M George C Thomas S T Chown P J Lake G Tompkins R Brandhorst Mrs D Palmer S Wallis J M Howard R J Carder J A Jeffries J A Willson J Mayes Mr C Field K M J Doig E Green P A Crowther J N Crowther Reverend D MacBean (Chair)
Charity number
Principal address
Website
1134972 Widmore Circuit Petts Wood Methodist Church Queensway Petts Wood BR5 1BJ widmorecircuit.com
WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) LEGAL AND ADMINISTRATIVE INFORMATION
Auditor Price & Company 30-32 Gildredge Road Eastbourne East Sussex BN21 4SH Bankers HSBC 184 High Street Bromley Kent BR1 1HE Central Finance Board of the Methodist Church Methodist Church House 25 Tavistock Place London WC1H 9SF
WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 5 |
| Statement of Trustees' responsibilities | 6 |
| Independent auditor's report | 7 - 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Notes to the financial statements | 13 - 25 |
WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2024
The Trustees present their annual report and financial statements for the year ended 31 August 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and 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)" (effective 1 January 2019).
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:
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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 non-members 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.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake, and in particular, the specific guidance on charities for the advancement of religion. The charity undertakes several activities in order to achieve these objectives, which are summarised below:
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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.
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There is a regular training programme for Local Preachers, Worship Leaders and church stewards.
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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.
As of September 2023, staffing level was two full-time Presbyterial Ministers. Additionally, the Circuit has agreed to an arrangement with the United Reform Church, to provide part-time pastoral support to one church which is a joint Methodist/URC, Local Ecumenical Project. This post is filled by a URC minister. The Circuit also has an Administrator, to provide support to the Ministers and the Churches that make up the Circuit.
Achievements and performance
The Trustees have established a reserve to facilitate small grants or loans to churches for mission outreach or redevelopment projects. There has been no call on these funds during the year.
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 2023/24 written services continued to be available to access online. This is much appreciated by those who are unable to get to church.
The Circuit has responsibility for six residential properties. During most of 2023/24 five of these were leased to tenants. During July 2023, one of the manses was recommission for an incoming presbyter, who commenced service in the Circuit on 1 September 2024. 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.
During the year the Orpington and Chislehurst Circuit has been in consultation with the Bromley Circuit, with a view to merging the two circuits. Having passed the necessary approvals, the two Circuits merged on 1 September 2024. The name of the new Circuit is Widmore. This will be the final report for the Orpington and Chislehurst Circuit.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
Financial review and significant events
The Trustees report an unrestricted surplus of £312,083 for the reporting year (2023 – surplus of £2,138,123), excluding the property revaluations this is a surplus of £42,083 (2023 - deficit of £12,709). Utilising Trustees for Methodist Church Purposes funds earmarked for refurbishment projects, held at TMCP results in an overall surplus of £312,360 (2023 – surplus of £2,138,161).
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 2024 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 two 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 as the merger takes effect. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
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 name of the charity changed to Widmore Methodist Circuit on 1 September 2024 due to Orpington and Chislehurst Methodist Circuit merging with Bromley Methodist Circuit.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
The Trustees who served during the year and up to the date of signature of the financial statements were: L MacBean
T Farmer
R G Meissner
M E C Jackson
H Cheverton
J Bayes
N A Brehene
S Young
R Kowal
H Jones
E Owusu
J Cummins
F Brew
D E Jackson
B Pykes Rev K M George C Thomas S T Chown P J Lake G Tompkins R Brandhorst Mrs D Palmer S Wallis J M Howard
R J Carder J A Jeffries J A Willson J Mayes Mr C Field K M J Doig E Green P A Crowther J N Crowther Reverend D MacBean (Chair)
The regulations of the Charity provide that the Board of Trustee's may appoint a Trustee and that this appointment is confirmed at an Annual General Meeting.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
The Trustees' report was approved by the Board of Trustees.
.............................. Reverend D MacBean (Chair)
Trustee
Date: .............................................
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2024
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WIDMORE METHODIST CIRCUIT
Opinion
We have audited the financial statements of Widmore Methodist Circuit (the ‘Charity’) for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 31 August 2024 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WIDMORE METHODIST CIRCUIT
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the statement of Trustees' responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WIDMORE METHODIST CIRCUIT
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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In planning our audit we assess the risks of material misstatement, including fraud, based on our discussion with trustees, evaluation of the internal controls in place, and identify critical laws and regulations.
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During our detailed audit work we review transactions and documentation relevant to the inherent and specific risks we identified at the planning stage and which could indicate fraud or non-compliance with laws and regulations.
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During our audit procedures we extend the scope of our testing where our planning indicated there was an increased risk of fraud including management override of controls.
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We also considered and reviewed the procedures which trustees have in place to detect and identify any instances of fraud or non-compliance with fraud and regulations. The procedures in place were discussed in detail with management and walkthrough tests were undertaken where appropriate.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters
We were appointed by the Charity to audit the financial statements for the year ending 31 August 2024. The previous financial year ending 31 August 2023 had not been audited by virtue of falling beneath the statutory limits. Additional checks were done on the transactions and closing balances in that period. Material errors were found and have been amended and disclosed in notes 20 and 21.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WIDMORE METHODIST CIRCUIT
Mr Michael Neilan BSc FCA CTA (Senior Statutory Auditor) for and on behalf of Price & Company
.........................
Chartered Accountants Statutory Auditor
30-32 Gildredge Road Eastbourne East Sussex BN21 4SH
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
| Unrestricted funds 2024 Notes £ Income from: Donations and legacies 3 - Charitable activities 4 266,450 Investments 5 7,889 Total income 274,339 Expenditure on: Charitable activities 6 232,256 Total expenditure 232,256 Net gains/(losses) on investments 270,000 Net income and movement in funds 312,083 Reconciliation of funds: Fund balances at 1 September 2023 4,955,702 Fund balances at 31 August 2024 5,267,785 |
Restricted funds 2024 £ - - 634 634 357 357 - 277 11,096 11,373 |
Total Unrestricted funds 2024 2023 £ £ - 80 266,450 236,115 8,523 5,066 274,973 241,261 232,613 253,970 232,613 253,970 270,000 2,150,832 312,360 2,138,123 4,966,798 2,817,579 5,279,158 4,955,702 |
Restricted funds 2023 £ - - 346 346 308 308 - 38 11,058 11,096 |
Total 2023 £ 80 236,115 5,412 |
|---|---|---|---|---|
| 241,607 254,278 |
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| 254,278 | ||||
| 2,150,832 | ||||
| 2,138,161 2,828,637 |
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| 4,966,798 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) BALANCE SHEET AS AT 31 AUGUST 2024
| Notes Fixed assets Tangible assets 11 Investment property 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Net assets The funds of the Charity Restricted income funds 16 Unrestricted funds |
2024 £ £ 950,000 4,150,000 5,100,000 3,567 183,540 187,107 (7,949) 179,158 5,279,158 5,279,158 11,373 5,267,785 5,279,158 |
2023 £ £ 900,000 3,930,000 4,830,000 - 138,748 138,748 (1,950) 136,798 4,966,798 4,966,798 11,096 4,955,702 4,966,798 |
2023 £ £ 900,000 3,930,000 4,830,000 - 138,748 138,748 (1,950) 136,798 4,966,798 4,966,798 11,096 4,955,702 4,966,798 |
|---|---|---|---|
| 4,830,000 136,798 |
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| 4,966,798 | |||
| 4,966,798 | |||
| 11,096 4,955,702 |
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| 4,966,798 |
The financial statements were approved by the Trustees on .........................
.............................. Reverend D MacBean (Chair) Trustee
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
1 Accounting policies
Charity information
Widmore Methodist Circuit (previously known as Orpington and Chislehurst Methodist Circuit) is a charity and the principal address is Orpington and Chislehurst Methodist Circuit Office, Petts Wood Methodist Church, Queensway, Petts Wood, Kent, BR5 1LH.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Charity's Constitutional Practice and Discipline of The Methodist Church (2017 edition) volumes 1 and 2, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The 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 financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
1 Accounting policies (Continued)
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.
1.4 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.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings No depreciation
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other recognised gains and losses and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in net income/(expenditure) or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in net income/(expenditure) for the year.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
1 Accounting policies (Continued)
1.7 Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
1.8 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).
1.9 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.
1.10 Financial instruments
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
1 Accounting policies (Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
1.11 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 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.
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
3 Income from donations and legacies
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Donations and gifts | - | 80 | |
| 4 | Income from charitable activities | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Charitable activities | |||
| Circuit and church assessments | 172,000 | 172,000 | |
| Charitable rental income | 94,450 | 64,115 | |
| 266,450 | 236,115 |
5 Income from investments
| Unrestricted | Restricted | **Total ** | Unrestricted | Restricted | Total | |
|---|---|---|---|---|---|---|
| funds | funds | funds | funds | |||
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
| £ | £ | £ | £ | £ | £ | |
| Interest receivable | 7,889 | 634 | 8,523 | 5,066 | 346 | 5,412 |
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
6 Expenditure on charitable activities
| Charitable | Charitable | |
|---|---|---|
| activities | activities | |
| 2024 | 2023 | |
| £ | £ | |
| Direct costs | ||
| Staff costs | 86,447 | 111,880 |
| Ministers' expenses | 4,250 | 7,448 |
| District assessments and related costs | 49,192 | 47,756 |
| Accountancy | 2,050 | 1,667 |
| TMCP other expenses | 357 | 308 |
| Insurance and utilities | 7,493 | 12,250 |
| Maintenance - manses | 11,012 | 6,321 |
| Maintenance - property lettings | 25,016 | 25,631 |
| Bromley manse costs | 5,729 | 6,237 |
| Manse letting agent fees | 10,350 | 9,517 |
| URC expenses | 3,092 | 2,475 |
| Donations and LP expenses | 205 | 123 |
| Projects/training | 796 | - |
| 205,989 | 231,613 | |
| Share of support and governance costs (see note 7) | ||
| Support | 26,624 | 22,665 |
| 232,613 | 254,278 | |
| Analysis by fund | ||
| Unrestricted funds | 232,256 | 253,970 |
| Restricted funds | 357 | 308 |
| 232,613 | 254,278 |
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
7 Support costs allocated to activities
| Staff costs Office costs Audit fees Analysed between: Charitable activities |
2024 £ 20,618 1,806 4,200 26,624 26,624 |
2023 £ 20,036 2,629 - |
|---|---|---|
| 22,665 | ||
| 22,665 |
8 Trustees
Three ministers, who are also trustees of the charity, received the following remuneration during the year:
Rev Duncan Macbean stipend and pension contributions of £32,320 and £7,678 respectively (2023: £29,990 and £7,291). Rev Robert Selvakumar stipend and pension contributions of £29,399 and £7,678 respectively (2023: £27,104 and £7,291 respectively). Rev Hannah Faal-Heim was appointed during the year and received £2,585 and £0.
Rev Duncan Macbean's stipend includes Superintendent Allowance of £2,921 (2023: £2,710).
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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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
9 Employees
The average monthly number of employees during the year was:
| Administrative Ministerial Total Employment costs Wages and salaries |
2024 Number 1 3 4 2024 £ 107,065 |
2023 Number 1 3 |
|---|---|---|
| 4 | ||
| 2023 £ 131,916 |
There were no employees whose annual remuneration was more than £60,000.
10 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
11 Tangible fixed assets
| Tangible fixed assets | |
|---|---|
| Freehold land | |
| and buildings | |
| £ | |
| Cost or valuation | |
| At 1 September 2023 | 900,000 |
| Revaluation | 50,000 |
| At 31 August 2024 | 950,000 |
| Carrying amount | |
| At 31 August 2024 | 950,000 |
| At 31 August 2023 | 900,000 |
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
11 Tangible fixed assets (Continued)
Land and buildings with a carrying amount of £950,000 were revalued at 31 August 2024 by Glenn Crane of Edmund Estate Agents, independent valuers not connected with the Charity on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
12 Investment property
| Investment property | |
|---|---|
| Fair value At 1 September 2023 Net gains or losses through fair value adjustments At 31 August 2024 |
2024 £ 3,930,000 220,000 |
| 4,150,000 |
Investment property is comprised of five properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out by Glenn Crane of Edmund Estate Agents, who are not connected with the Charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
13 Debtors
| Debtors | ||
|---|---|---|
| 2024 | 2023 | |
| Amounts falling due within one year: | £ | £ |
| Prepayments and accrued income | 3,567 | - |
14 Creditors: amounts falling due within one year
| Other creditors Accruals and deferred income |
2024 £ 1,700 6,249 7,949 |
2023 £ - 1,950 |
|---|---|---|
| 1,950 |
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
15 Retirement benefit schemes
assets of the scheme are held separately from those of the charity, being invested with the Methodist Ministers' Pension Scheme.
most recent valuation was at 1 September 2023 which has been updated to reflect conditions at the balance sheet date.
The pension charge for the year is £18,439 (2023 - £22,664). The contributions of the charity and employees from 1 September 2023 were set at 24.9% and 9.3% of earnings respectively.
At 1 September 2023 the actual assets of the scheme were £395.8 million and liabilities £362.1 million with a surplus of £33.7 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 indicated 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 the trustees meeting held on 8th September 2021 to contribute 15% of bank balances held at TMCP, CFB, and HSBC on 31st August 2021 as a resolution to the pension deficit.
16 Restricted funds
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
| At 1 September 2023 Incoming resources Resources expended At 31 £ £ £ Circuit Model Trust Fund 11,096 634 (357) Previous year: At 1 September 2022 Incoming resources Resources expended At 31 £ £ £ Circuit Model Trust Fund 11,058 346 (308) |
August 2024 £ 11,373 |
|---|---|
| August 2023 £ 11,096 |
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
17 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At 1 September 2023 £ Revaluation reserve 4,830,000 General funds 125,702 4,955,702 Previous year: At 1 September 2022 £ Revaluation reserve 2,679,168 General funds 138,411 2,817,579 Analysis of net assets between funds At 31 August 2024: Tangible assets Investment properties Current assets/(liabilities) |
Incoming resources Resources expended £ £ - - 274,339 (232,256) 274,339 (232,256) Incoming resources Resources expended £ £ - - 241,261 (253,970) 241,261 (253,970) Unrestricted funds 2024 £ 950,000 4,150,000 167,785 5,267,785 |
Gains and losses At £ 270,000 - 270,000 Gains and losses At £ 2,150,832 - 2,150,832 Restricted funds 2024 £ - - 11,373 11,373 |
31 August 2024 £ 5,100,000 167,785 |
|---|---|---|---|
| 5,267,785 | |||
| 31 August 2023 £ 4,830,000 125,702 |
|||
| 4,955,702 | |||
| Total 2024 £ 950,000 4,150,000 179,158 |
|||
| 5,279,158 |
18 Analysis of net assets between funds
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
18 Analysis of net assets between funds (Continued)
| Unrestricted funds 2023 £ At 31 August 2023: Tangible assets 900,000 Investment properties 3,930,000 Current assets/(liabilities) 125,702 4,955,702 |
Restricted funds 2023 £ - - 11,096 11,096 |
Total 2023 £ 900,000 3,930,000 136,798 |
|---|---|---|
| 4,966,798 |
19 Related party transactions
There were no disclosable related party transactions during the year (2023 - none).
20 Prior period adjustment
Changes to the balance sheet
| Changes to the balance sheet | |||
|---|---|---|---|
| At | 31 August 2023 | ||
| As previously | Adjustment | As restated | |
| reported | |||
| £ | £ | £ | |
| Fixed assets | |||
| Tangible assets | 3,198,941 | (2,298,941) | 900,000 |
| Investment properties | - | 3,930,000 | 3,930,000 |
| Net assets | 3,335,739 | 1,631,059 | 4,966,798 |
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WIDMORE METHODIST CIRCUIT (PREVIOUSLY KNOWN AS ORPINGTON AND CHISLEHURST METHODIST CIRCUIT) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
20 Prior period adjustment
| At | 31 August 2023 | |||
|---|---|---|---|---|
| As previously | Adjustment | As restated | ||
| reported | ||||
| £ | £ | £ | ||
| Fixed assets (Continued) | ||||
| Capital funds | ||||
| Income funds | ||||
| Restricted funds | 11,096 | - | 11,096 | |
| Unrestricted funds | 3,324,643 | 1,631,059 | 4,955,702 | |
| Total equity | 3,335,739 | 1,631,059 | 4,966,798 | |
| Changes to the profit and loss account | ||||
| Period ended 31 August | 2023 | |||
| As previously | Adjustment | As restated | ||
| reported | ||||
| £ | £ | £ | ||
| Total income | 241,607 | - | 241,607 | |
| Total expenditure | (254,278) | - | (254,278) | |
| Net gains on investments | 519,773 | 1,631,059 | 2,150,832 | |
| Net movement in funds | 507,102 | 1,631,059 | 2,138,161 |
21 Prior period adjustment
Two prior period adjustments have been made to the accounts to ensure that the accounts are accurate and complete.
The first adjustment was to reclassify five of the six properties as investment properties from tangible assets as these properties are being let out for rental income. The remaining property remains a tangible asset as it is being used by a minister.
The second adjustment was to revalue the properties at the year ending 31 August 2023. The properties have been revalued based on an open market value basis. This has increased the value of the properties by £1,631,059 in the prior year.
These two adjustments in total have decreased tangible assets to £900,000 and investment properties are now £3,930,000 for the year ending 31 August 2023.
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