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2021-08-31-accounts

Circuit Accruals Accounts 2020-2021

THE METHODIST CHURCH

ANNUAL REPORT AND ACCOUNTS (ACCRUALS BASIS) for the year ended 31 August 2021

Sutton Methodist Circuit

Registered Charity - Registration number

1135076

District No /
35/39
Circuit No
Circuit Treasurer
Ministers
Circuit Stewards		 Rev Desmond C Williamson
Rev Gill Long
Rev Catherine Hutton
Mr Richard Smith
Dr David Gooch
Mrs Maureen Patel
Mr Ka Fai Man
Mr Vijendran Asirwatham
Rev Dr Philip Richter
Rev Dr David Dickinson
Rev Ung Soon Nguang
Rev Rosemary Richter
Mr Richard Smith

Sutton Methodist Circuit Trustees' Annual Report

Contents
Page
Introduction, Mission and Review 1
Financial review (budget, income, expenditure, conclusions) 2
Financial effect of significant events 2
Fund balances 3
Valuation of properties 3
Reserves policy 3
Reserves in the circuit 3
Volunteers 3
Plans for 2021/22 3
Basis of preparation and legal framework 4
Aims and organisation 5
Public Benefit 5
Structure, Governance and Management 5
Trustee Training 5
Related Parties 5
Risk Management, Safeguarding 6
Statement of Financial Activities (2020-2021) 7
Statement of Financial Activities (2019-2020) 8
Balance Sheet 9
Cash Flow 10
Note 1 Basis of accounting and accounting policies 11
Note 2 Donations and legacies 13
Note 3 Shares from Churches 13
Note 4 Income from other trading activities 13
Note 5 Income from investments and sale of property 13
Note 6 Trust Fund Management Charges 13
Note 7 Salaries and associated costs 14
Note 7a Cost of Superintendent, Presbyters and Trustees 14
Note 8 Invitation expenses 14
Note 9 Property 15
Note 10 Grants to circuit churches 16
Note 11 Office expenses 16
Note 12 Transfers 16
Note 13 Trust funds 17
Note BS1 Manses & Other Property 18
Note BS2 Investment Assets (and Trustees for Methodist Church Purposes) 18
Note BS3 Debtors and Prepayments 18
Note BS4 Analysis of cash at bank 18
Note BS5 Creditors, Accruals and Income in Advance 19
Note BS6.1 General fund 19
Note BS6.2 Circuit Model Trust Fund, Manse Fund and Bandon Hill Methodist Centre Fund 19
Note BS7 Restricted Funds (Chinese Ministry) 20
Note BS8 Related Parties 20
Note BS9 Agency Collections and Payments 20
Note BS10 Auditor 20
Appendix A Circuit Meeting membership 21
Movement of Trustees 22
Sutton Methodist Circuit declarations 23
Independent auditor's report 24

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

Introduction

Sutton Methodist Circuit covers an area in north east Surrey. It is part of the London District. It is registered with the Charity Commission, number 1135076, and its affairs are governed by Deed of Union (1932) and Methodist Church Act (1976). It has been registered at Charities Commission as Sutton Methodist Circuit.

The Mission of the Circuit

The Mission statement of the Sutton Circuit

The ministers concentrate on the mission of their local churches but support each other through monthly staff planning and support meetings. The work of the ministers and lay members is supported with prayer. The Circuit Leadership Team (staff and stewards) meet formally at least twice a year to plan and agree policy, and also meet socially on occasions. The Circuit Stewards meet 5 times a year, with the Circuit Superintendent Minister, to oversee the ongoing work of the Circuit and to address the needs of the Circuit and the staff.

Review of the year

■ Monitor the effects of the Covid 19 pandemic on the circuit churches and develop a support strategy.

The attendance at worship at all the churches in the circuit either did not take place or was severely curtailed by the restriction imposed due to Covid-19. Consequently giving was reduced and the finances of all the churches was affected. The circuit decided to allow the churches to reduce their share offers so that they could manage their finances. The circuit agreed to provide an extra £53,000 from reserves to support this loss of income.

■ Review the effects of the Covid 19 pandemic on Church and Circuit Finances. Monitor adherence to the revised 2020/21 budget and produce a budget for 2021/22.

Because of the loss of income, there was a deficit on the circuit general fund of £44,338. This was taken from the general fund reserves. With the continuation of the restrictions caused by the pandemic, the circuit agreed to allow this reduction to continue for a further year into 2021/22.

■ Review future circuit staffing and formulate stationing strategy for September 2022. The circuit is losing Revd Rosemary Richter (full time) and Revd Philip Richter (part time) when Rosemary ‘sits down’ in August 2022. An appointment profile for a presbyter to minister to the Carshalton, Wallington and Banstead churches from September 2022 has been produced and will be submitted to the September Circuit Meeting for approval and forwarding to the Stationing Committee.

Revd Ung Soon Nguang has indicated a wish to extend his ministry for a further two years from September 2022. A recommendation to approve this will be submitted to the September Circuit Meeting.

■ Discuss and agree the updated Circuit Development Plan with church leaders by July 2022.

It was not possible for the leaders to meet in July 2021 due to the pandemic. The Circuit Development Plan will be addressed in the summer of 2022.

■ Determine the future direction of Wallington Methodist Church by June 2021.

Due to further options being proposed concerning the use of the Wallington church site, discussions have continued and it is hoped to have a formal plan during 2022.

Page 1

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

Financial Review

Budget

Each year the circuit sets a budget for income and expenditure which is approved by the Circuit Meeting.

Income

Expenditure

Conclusions

All items in the accounts were close to budget. There was an expected deficit on expenditure on budgeted items in the General Fund of £44,338. A further £50,000 deficit is expected in 2021/22.

Financial effect of significant events

The advent of Covid-19 has had a significant effect on the circuit's finances. This had been expected and allowance made for a deficit of over £50,000. This enable all the churches to reduce their share offers to help them in their own finances. Many of the churches have not had full collections each Sunday and have also lost letting income. The shortfall on the budget is being met from circuit reserves. It is fortunate that there are sufficient funds to enable this and still to leave the expected balance at 31st August 2021 above the reserves level (£165,214 over £130,000). This does indicate that the circuit could support the churches for a further year if the Covid-19 pandemic continues for longer than expected.

Page 2

Sutton Methodist Circuit

TRUSTEES' ANNUAL REPORT (continued)

Fund balances

General Fund

As at 31st August 2021 the net current assets of the Circuit were £162,264, giving more than 6 months cover for expenditure not including funds in the CMTF.

Circuit Model Trust Fund

This is an unrestricted fund and can be applied to for appropriate capital items or projects.

Factors affecting the financial future of the circuit are mainly the guarantee of income from the shares from each church. Whereas the circuit seeks to be able to be self-sufficient from these shares, in the event that there is a shortfall which cannot be recovered from, it is permitted to seek approval to raise funds from the Model Trust Fund. Due to the income from St George's and the sale of 7 Waverley Way, the Model Trust Fund has enough funds to be able to support the circuit.

Valuation of Properties

The manses were included in the balance sheet at historical cost for the first time in 2015/16. The original total of £270,450 was reduced to £132,950 with the sale of 7 Waverley Way (value £137,500). Hence their value of £132,950 will be used in future. No comparison with previous years is required.

Reserves Policy

The Reserves Policy for the Circuit is to hold a minimum sum equivalent to 6 months’ average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and/or to be able to continue, in the short term, funding planned activities in the event of any inability to raise the full Circuit Assessment from churches.

Reserves of the Circuit

The balance of funds in the circuit at the end of the year was £1,497,017. Of this £132,950 is now the historical value of the manses. The balance comprises £167,958 in the general fund, £708,591 in the Model Trust Fund, £78,908 in the manse fund and £413,793 in the Bandon Hill Methodist Centre fund. A further £511 is held in a restricted fund (total £1,497,017). Though the manses have been valued at historical level, their sale in the current climate would probably realise over £2m.

Volunteers

The Church is heavily reliant on volunteers who contribute their skills, time and money in the furtherance of the work of the Church. In the Circuit the principal contribution is by serving on committees of the Circuit that deal with mission, manses, finance, policy, grants, training, safeguarding and risk. We are grateful to all of them for their help and commitment. No attempt has been made by the Circuit to value the non-monetary contributions to the Circuit in monetary terms.

Plans for 2021/22

Circuit financial plans for the coming year have been prepared on the basis that there remain 4 full time ordained staff and one lay pastor in the English and Chinese speaking congregations with anticipated cost of living stipend increases combined with an increase in the assessment paid to the district. It is anticipated that there will be a shortfall on the annual costs of about £50,000 and it has been agreed that the reserves in the general fund can be drawn upon to enable this.

The following issues will be focused upon during the 2021-2022 year.

Page 3

Sutton Methodist Circuit

TRUSTEES' ANNUAL REPORT (continued)

Basis of preparation and legal framework

The Charity’s annual report and accounts for the year ended 31 August 2021 have been prepared in accordance with the Charities Act 2011 and the Charities: Statement of Recommended Practice 2019 as applicable to the Financial Reporting Standard (FRS 102).

Full Name of Charity Sutton Methodist Circuit Registration Charity Number 1135076 Date of registration 22nd March 2010 Main communication address Dr David Gooch c/o Circuit Administrator, Sutton Trinity Church, Cheam Road, Sutton, Surrey, SM1 1DZ

The members of the Sutton Methodist Circuit meeting are the Charity Trustees, membership being made up of circuit office holders, ministers and representatives appointed by the local churches.

Full membership is shown in Appendix A to this report.

Circuit Ministers and officers Active Circuit Ministers Rev Dr David Dickinson Rev Catherine Hutton Rev Gill Long Rev Ung Soon Nguang Rev Rosemary Richter Rev Dr Philip Richter Rev Desmond Williamson Circuit Lay Worker Mr Chris Shaw Circuit Stewards Dr David Gooch Mrs Maureen Patel Mr Ka Fai Man Mr Vijendran Asirwatham Administrator Mr Paul Gotts

Mr Richard T Smith acted as the principal officer overseeing the day to day financial management and accounting for the circuit during the year.

Auditor Jacob, Cavenagh & Skeet 5 Robin Hood Lane, Sutton, SM1 2SW Investment Bankers Central Finance Board of the Methodist Church 9 Bonhill Street, London EC2A 4PE Trustees for Methodist Church Purposes Central Buildings, Oldham Street, Manchester M1 1JQ CAF Bank Ltd

25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ

Page 4

Sutton Methodist Circuit

TRUSTEES' ANNUAL REPORT (continued)

Aims and organisation

Charity objective is to act as a resource provider within the area around the London Borough of Sutton and the Epsom & Ewell Borough Council for the Methodist Church:

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

a) The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church;

b) Any charitable purpose for the time being of any Connexional, District, Circuit, local or other organisation of The Methodist Church; c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church; d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church.

The Sutton Circuit shall seek to:

Advance the Christian faith by supporting individual churches in the circuit.

Provide facilities for public acts of worship open to members and non-members alike.

Enable pastoral care throughout the circuit for the benefit of members and non-members alike with respect to the teaching of Christianity and visiting the needy by appointing ministers, organising preaching, appointing and guiding lay leaders.

Public Benefit

We confirm the trustees have had regard to the Charity Commission’s guidance on public benefit.

Structure, Governance and Management

The governing document for the circuit is the Deed of Union (1932) and Methodist Church Act (1976)

Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD).

Day to day management of the circuit is undertaken by the Circuit Leadership team along with the Local Preachers meeting and the Circuit Stewards.

Trustee Training

A range of guidance produced by Methodist Connexion to support the effective running of the circuit, specifically the leaflet ‘The Role of a Trustee in The Methodist Church’ is given to all new Circuit meeting members as induction to their role as trustees.

Related Parties

The Circuit is part of the London District and is also accountable to the Methodist Conference.

The following Methodist Churches are linked to the circuit:

Sutton Trinity (Methodist/URC LEP)

Wallington Carshalton Banstead Epsom Cheam St John's (Anglican/Methodist LEP) St Mark's (Anglican/Methodist LEP)

Page 5

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

Risk Management

There is a regular annual review process undertaken and recorded of risks identified within the circuit. This is carried out by an independent Risk Assessment Group which reports to the Trustees.

The following are the major risks in the circuit:

  1. Church closures

  2. Not enough lay staff to take on circuit responsibilities. Staff and volunteers who leave cannot easily be replaced.

  3. There is a reduction in presbyters.

  4. Circuit expenditure consistently exceeds income, leading to inadequate reserve levels.

  5. Circuit Churches are unable to meet the budget with their shares, leading to shortfall in income to circuit.

Arising from these identified risks, the circuit is aware of them all and takes them into consideration when the circuit stewards meet as a managing group and the full circuit leadership team meets to discuss policy and the future.

Factors affecting the financial future of the circuit are mainly the guarantee of income from the shares from each church. Whereas the circuit seeks to be able to be self-sufficient from these shares, in the event that there is a shortfall which cannot be recovered from, it is permitted to seek approval to raise funds from the Model Trust Fund. This has been enhanced by the sale of 7 Waverley Way.

Safeguarding

Every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. Christians see this potential as fulfilled by God’s re-creation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protect them from harm.

Methodist Connexional practice outlines commitment to the following principles:

• We will carefully select and train all those with any responsibility within the Church, in line with Safer Recruitment principles, including the use of criminal records disclosures and registration with the relevant vetting and barring schemes.

• We will seek to offer pastoral care and support, including supervision and referral to the proper authorities, to any member of our church community known to have offended against a child, young person or vulnerable adult.

The Sutton Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the circuit and in the churches.

The Sutton Circuit commits itself to the provision of support, advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable.

Trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with 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).

The law applicable to charities in England & 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 income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements, and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for maintaining proper accounting records which 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 constitution. 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.

The Trustees' Annual Report was approved by the Circuit Meeting on 3rd February 2022 and signed on behalf of the trustees by:

Rev Dr David Dickinson Circuit Meeting Chairman

Page 6

35/39

Name of Circuit

Sutton Methodist Circuit

Number

Statement of Financial Activities (SOFA) for the year ended 31 August 2021

Notes to the
accounts		 Unrestricted funds
(General Fund)		 CMTF, Manses
BHMC
(Unrestricted)		 Restricted Funds
(Chinese Ministry)		 Total
2020-21		 Total
2019-20
£ £ £ £ £
Income and endowments from:
Donations and legacies
Donations and legacies 2 61,502 61,502 62,073
Shares from churches 3 175,845 175,845 243,815
Bandon Hill Methodist Church funds 2 59,343 59,343
Bandon Hill Methodist Church valuation 365,000 365,000
Other trading activities
Lettings 4 410 23,378 23,788 1,092
Investments
Interest 5 377 1,039 1,416 4,469
Other income
Net surplus on disposal of 7 WaverleyWay 551,903 551,903
Total income 176,632 1,000,663 61,502 1,238,797 311,449
Expenditure on:
Raising funds
Trust fund management charges 6 896 896 913
Levyon sale of 7 WaverleyWay 5 255,761 255,761 -
Charitable activities
Ministerial stipends and expenses 7 8 188,601 37,724 226,325 220,759
Ministerial invitations 8 - - 5,269
Manse maintenance and servicing 9 24,240 49,914 3,199 77,353 49,313
Grants to circuit churches 10 - 21,500 21,500 -
Administration 11 8,129 503 8,632 4,442
Total 220,970 328,574 40,923 590,467 280,696
Netgains/(losses)on investments - - - - -
Net income/(expenditure) (44,338) 672,089 20,579 648,330 30,753
Transfers between funds 12 (154,000) 175,000 (21,000) - -
Other recognisedgains/(losses)
Gains/(losses)on revaluation of fixed - - -
Actuarial gains/(losses) on defined benefit
pension schemes
Othergains/(losses) - -
Net movement in funds (198,338) 847,089 (421) 648,330 30,753
Reconciliation of funds
Total funds brought forward 493,552 354,203 932 848,687 817,934
Total funds carried forward 295,214 1,201,292 511 1,497,017 848,687
Balance brought forward from last year
Offerings/Gifts - received for External Organisation
Offerings/Gifts - passed to External Organisations
Balance carried forward
Page 7		 -
8,959
8,959
-
- -
8,959 10,442
8,959 10,442
- -

35/39

Sutton Methodist Circuit

Number

Name of Circuit

Statement of Financial Activities (SOFA) for the year ended 31 August 2020

Notes to the
accounts		 Unrestricted funds
(General Fund)		 CMTF & Manses
(Unrestricted)		 Restricted Funds
(Chinese Ministry)		 Total
2019-20
Total
2018-19
£ £ £ £ £
Income and endowments from:
Donations and legacies
Donations and legacies 2 62,073 62,073 309,102
Shares from churches 3 243,815 243,815 271,948
Other trading activities
Lettingof manse(s) 4 1,092 1,092 -
Investments
Interest 5 1,984 2,485 4,469 4,852
Total income 246,891 2,485 62,073 311,449 585,902
Expenditure on:
Raising funds
Trust fund management charges 6 913 913 930
Charitable activities
Ministerial stipends and expenses 7 8 183,378 37,381 220,759 245,326
Ministerial invitations 8 5,269 5,269 -
Manse maintenance 9 22,946 23,274 3,093 49,313 47,859
Grants to circuit churches 10 - 15,000
Administration 11 2,810 1,632 4,442 7,699
Total 214,403 25,819 40,474 280,696 316,814
Netgains/(losses)on investments - - - - -
Net income/(expenditure) 32,488 (23,334) 21,599 30,753 269,088
Transfers between funds 12 (16,500) 37,500 (21,000) - -
Other recognisedgains/(losses)
assets
benefitpension schemes
Othergains/(losses)
Net movement in funds 15,988 14,166 599 30,753 269,088
Reconciliation of funds
Total funds brought forward 477,564 340,037 333 817,934 548,846
Total funds carried forward 493,552 354,203 932 848,687 817,934
Balance brought forward from last year
Offerings/Gifts - received for External Organisatio
Offerings/Gifts - passed to External Organisations
Balance carried forward
- -
10,442 10,259
10,442 10,259
- -

Page 8

Balance Sheet as at 31 August 2021
Tangible Fixed Assets
Notes*		 Balance Sheet as at 31 August 2021
Tangible Fixed Assets
Notes*		 **Sutton ** Methodist Circuit
Totals this
year
Totals last
year
£
£
132,950
270,450
365,000
-
-
497,950
270,450
17,759
17,991
684,268
251,370
309,722
367,565
49,723
3,705
1,061,472
640,631
62,405
62,394
999,067
578,237
1,497,017
848,687
-
1,497,017
848,687
295,214
493,552
1,201,292
354,203
511
932
1,497,017
848,687		 Methodist Circuit
Totals this
year
Totals last
year
£
£
132,950
270,450
365,000
-
-
497,950
270,450
17,759
17,991
684,268
251,370
309,722
367,565
49,723
3,705
1,061,472
640,631
62,405
62,394
999,067
578,237
1,497,017
848,687
-
1,497,017
848,687
295,214
493,552
1,201,292
354,203
511
932
1,497,017
848,687
Unrestricted
(General Fund)
£		 CMTF, Manses
BHMC
(Unrestricted)		 Restricted
(Chinese
Ministry)
£		 Totals this
year
£		 Totals last
year
£
£
Circuit Manses & Equipment BS1 132,950 132,950 270,450
Bandon Hill Methodist Centre 365,000 365,000
Investments BS2 - -
Totalfixed assets 132,950 365,000 - 497,950 270,450
Current Assets
Debtors BS3 17,759 17,759 17,991
Loans bythe Circuit
Trustees for Methodist Church Purposes BS2 684,268 684,268 251,370
Central Finance Board Deposits BS4 195,432 113,779 511 309,722 367,565
Cash at Bank and in hand BS4 11,478 38,245 49,723 3,705
Total current assets 224,669 836,292 511 1,061,472 640,631
Current liabilities
Creditors(due in under 1year) BS5 62,405 62,405 62,394
Net current assets (liabilities) 162,264 836,292 511 999,067 578,237
Total assets less current liabilities 295,214 1,201,292 511 1,497,017 848,687
Creditors and Accruals including any loans
(due after more than 1 year)		 -
Net assets 295,214 1,201,292 511 1,497,017 848,687
Funds of the Circuit
General Fund(Unrestricted) BS6.1 295,214 295,214 493,552
Circuit Model Trust Fund(Unrestricted) BS6.2 1,201,292 1,201,292 354,203
Restricted funds BS7 511 511 932
Total Funds 295,214 1,201,292 511 1,497,017 848,687
*Details - see Note 11
Summary of the Internal Organisations reporting to the Circuit Meeting. Note that the funds of an Internal Organisation would
normally be Restricted funds unless it could be clearly shown that they could be used for any Methodist purpose.

Summary of the Internal Organisations reporting to the Circuit Meeting. Note that the funds of an Internal Organisation would normally be Restricted funds unless it could be clearly shown that they could be used for any Methodist purpose.

Internal Organisations Opening
balance		 Receipts Payments 2021 2020
Chinese MinistryFund BS7 932 61,502 61,923 511 932
Bandon Hill Methodist Centre - 82,750 33,957 48,793 -
Total 932 144,252 95,880 49,304 932

The financial statements were approved by the trustees on 3rd February 2022 and were signed on their behalf

Rev Dr David Dickinson

Page 9

Sutton Methodist Circuit

Statement of Cash Flows for year ended 31st August 2021

2021 2020
£ £
Cashflows from operating activities
Net cash (used in)/provided by operating activities (269,746) 4,568
Cashflows from investing activities
Interest receivable 1,416 4,468
Proceeds on sale of freehold property 689,403 -
Net cash provided by investing activities 690,819 4,468
Change in cash & cash equivalents in the reporting period 421,073 9,036
Cash and cash equivalents at the beginning of the reporting period 622,640 613,604
Cash & cash equivalents at the end of the reporting period 1,043,713 622,640
Classified on the Balance Sheet as:-
Investments with TMCP 684,268 251,370
Central Finance Board Deposits 309,722 367,565
Cash at bank and in hand 49,723 3,705
1,043,713 622,640
Reconciliation of net income/(expenditure) to net cashflow
from operating activities
Net income/(expenditure) from reporting activities (as per the
Statement of Financial Activities) 648,330 30,753
Adjustments for:-
Non-cash donations (365,000) -
(Gains)/losses on sale of freehold property (551,903) -
Interest receivable (1,416) (4,468)
(Increase)/decrease in debtors 232 (1,205)
Increase/(decrease) in creditors 11 (20,512)
Net cash(used in)/provided by operating activities (269,746) 4,568

Page 10

Sutton Methodist Circuit

Notes to the Accounts

1 Basis of accounting and accounting policies

i Basis: SORP and Standards

The financial statements have been prepared 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) effective 1 January 2019, SORP(FRS102), and the Financial Reporting Standard applicable in the UK and Republic of Ireland, FRS 102.

ii Public benefit entity

The Sutton Methodist Circuit meets the definition of a public benefit entity under FRS 102. The Circuit is an unincorporated charity and its official address is Sutton Trinity Church, Cheam Road, Sutton, SM1 1DZ. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) below.

iii Basis

These accounts have been prepared on the basis of historical cost. The accruals basis has been used and trustees present accounts that show a true and fair view of the Circuit's financial position and activities. The accounts are prepared in pounds sterling rounded to the nearest pound.

iv FRS102 SORP2019 (applies to 2016-17 onwards)

These accounts are compliant with FRS102 and with the FRS102 SORP 2019. The financial statements have been prepared under the Charities Act 2011 and the 2008 accounting and reporting regulations made thereunder, based on the current version of the Charities SORP (SORP(FRS102)), as disclosed above, in order to be able to show a true and fair view, as permitted by the regulations.

v Going concern

Based on the monetary assets and human resources available at 31 August 2021, the trustees believe that the Circuit is a going concern and there are no material uncertainties affecting this conclusion.

vi Consolidation

The Circuit has denominational regulatory oversight in respect of the work of the Churches within the Circuit but has no legal or operational control of those Churches and their governing bodies except in extreme circumstances. For this reason, the financial statements of Churches within the Circuit are not consolidated into these financial statements.

vii Income recognition

Income is brought into account when there is entitlement and the amount is reliably measurable once it is more likely than not that the economic benefit of the income will be forthcoming.

The Circuit acts as agent in three matters:

The collection from Churches and payment over of their contributions to various Funds controlled and administered by The Methodist Church - "Connexional Funds"

The administration of a payroll service for employees in Churches in the Circuit. The Circuit will carry out the payroll duties in accordance with HMRC requirements and will pay the employees from Circuit funds. This payment will be reimbursed to the Circuit during the same Connexional year so that payment of salaries, NIC and tax to HMRC will be reimbursed in the same accounting period. The amount paid and received, an equal amount, will be recorded in the SOFA as equal income and expenditure.

The administration (application, collection and disbursement) of grants requested by Churches within the circuit from, but not limited to, the District and Connexion.

In all these matters the transactions are not reflected in the SOFA because they are the income of either the Connexion or Churches as appropriate. Instead the transactions are disclosed in the Notes to the Accounts as required by SORP(FRS102).

In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised. Further information on this matter is provided in the Trustees' Annual Report.

viii

Expenditure

This is recognised when a liability is incurred, or a constructive obligation arises, where the amount is reliably measurable and it is considered more likely than not that there will be an outflow of economic benefit.

ix Grants

Grants made by the Circuit from its own funds are recognised in full at the time of agreement to make a grant without performance conditions or as and when the Circuit accepts that there is a legal or operational obligation to make the payment if it is subject to performance conditions. When the grant to be accrued is recurrent over more than one year the balance payable in future years, discounted to net present value where the difference is material, is treated as a provision for future commitments in the balance sheet against the appropriate fund, the provision being released in future years in accordance with the originally agreed terms.

x VAT

Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.

Page 11

Sutton Methodist Circuit

Notes to the Accounts

xi Tangible fixed assets

These are capitalised if they can be used for more than one year, and individually cost at least £1,000.

The freehold and/or long leasehold residential property is shown in the accounts at deemed historical cost representing each property's gross carrying value at time of being built or purchased. No depreciation is provided because the trustees consider the residual value of the property in its present condition to be not less than its insurance cost and, in the absence of any evidence of impairment, any depreciation provision for the buildings component of the property would be immaterial.

xii Monetary Investments

The Circuit's investments are deposited with TMCP as custodian trustees. The valuations, at market value, are those provided by TMCP.

xiii Receivables and Payables; Bank and Cash

Debtors are stated at the amounts owed to the Circuit or prepaid. Creditors are recognised at the amount expected to be settled.

xiv Methodist Connexional Funds

The Methodist Church Connexion raises assessments against Circuits and these are paid quarterly to their Districts. The Circuits raise assessments against Churches in the Circuit. The District quarterly remits to The Methodist Church Fund most of the sum received from the Circuits. A small sum is retained by the District to meet its own costs. The Circuit may act as agent for ad hoc collections for various funds controlled and administered by the Methodist Church. These are detailed in Note BS9 below.

xv Minister's manse costs

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-inkind for ministers as HMRC does not seek to tax these receipts in the hands of ministers.

Page 12

Sutton Methodist Circuit

Notes to the Accounts

**2 ** Donations and legacies General Unrestricted Model Trust &
Manse Fund		 Restricted 2021 2020
Donations - - - 61,502 61,502 62,073
Balance of BHMC account
transferred to Sutton Circuit		 - 59,343 - 59,343 -
Valuation of BHMC 365,000
Legacies - - - - - -
Total - 424,343 - 61,502 120,845 62,073

The Chinese ministry was supported by grants from the Methodist Connexion (£20,000), the Malaysian Conference (£6,002) and donations from the Chinese Congregation (£35,500). These total £61,502.

The Bandon Hill Methodist Centre was incorporated into the Sutton Methodist Circuit accounts with a balance of £59,343. It was valued at £365,000, £244,550 for the building and £120,450 for the land.

3 Shares from Churches

The circuit is comprised of 8 churches. Each church is invited to offer a share towards the stated budget of the circuit to meet the overall costs. In making its share requirement, budgeted income from investment income, (including property letting) is taken into account. The circuit aims to cover its net core costs from the total of the shares offered. For 2020/21 this has not been possible because every church's finances has been affected by Covid-19. The circuit has agreed to underwrite reduced share offers from the churches by £53,000 by drawing on its general fund reserves.

Shares from churches are made quarterly in advance and are treated as a prepayment on a receivable basis. If any church has not paid its share by the due date the sum in question is treated as a debtor.

Share monies contributing to the district assessment paid from church to district via circuit are not recognised as income/expenditure in the accounts of the circuit. The circuit is acting as agent and monies passing through are netted off. The reported figure (£175,845) is the total share income (£237,309) less the assessment paid to and through the district (£7,676 and £53,788).

Church 2021 2020 2021 2020
Sutton Trinity 45,000 60,000 Assessment 237,309 302,599
Wallington 28,000 34,943 Deduct for:
Bandon Hill - 12,000 District 7,676 10,580
Carshalton 28,000 35,000 Connexion 53,788 48,204
Banstead 20,000 24,000 Net income 175,845 243,815
Epsom 104,000 124,000
Cheam 9,750 9,750
St John's 1,160 1,160
St Mark's 1,399 1,746
Total 237,309 302,599

4 Income from other trading activities

General CMTF & Manse Restricted Transfers 2021 2020
Rental income 410 21,000 21,410 22,092
BHMC Lettings 23,378 23,378 -
Total rental income 410 23,378 - 21,000 44,788 22,092

The trustees have determined that the property at 37 Tattenham Way is to be made available as a manse for the minister of the Chinese Congregation. Since the Chinese Congregation's finances are separated because of identifying and separating grant income, the contribution from the Chinese Congregation is considered as a rent totalling £21,000 for the year. In addition, the supernumerary minister originally residing at 7 Waverley Way paid a lower rent for the manse until his retirement home was ready for occupation.

5 Income from investments and sale of property

£1,416 (2019/20 £4,459) was received as interest from TMCP trusts and CFB funds.

7 Waverley Way was sold for its asking price of £700,000. The costs were estate agents (£7,560), solicitors (£2,557), survey (£480), a net receipt of £689,403. There was a levy of £255,761 by TMCP on the sale leaving a net surplus of £433,642.

6 Trust Fund Management Charges District Assessment & Levy

The District Assessment is calculated relative to the proportion of church members and staffing (Presbyters and lay staff graded by hours worked per week) of all Circuits in the London District. 65% of the overall cost is calculated using relative membership proportions, 25% using relative staff proportions and 10% using each circuit's reserves.

The Levy is calculated on a sliding scale as a percentage of the Circuit's CMTF account balance as at 31 August the previous accounting year. It is taken by the Trust for Methodist Church Purposes and paid to the district in which the circuit resides for the District Advance Fund for making grants to churches in the district.

for making grants to churches in the district.
General CMTF & Manse 2021 2020
District Expenses 7,676 7,676 10,588
Methodist Church Fund(MCF) 53,788 53,788 48,204
Levyon CMTF Funds 13 896 909 913
Totals 61,477 896 62,373 59,705

The charges listed above are taken by the Trust for Methodist Church Purposes and are paid to the district in which the circuit resides for the District Advance Fund for making grants to churches in the district.

Page 13

Sutton

Methodist Circuit

7 Salaries and associated costs

Stipends were paid to 3 English presbyters, 1 Chinese presbyter and 1 lay pastor.

Circuitpresbyters & lay pastor 2021 2020
Stipends 147,453 141,077
National Insurance Contributions 13,680 13,428
Pension Fund Contributions 28,966 28,556
URC Levy 11,016 10,856
Computers for ministry 676 495
Travelling 2,195 3,639
Telephone 4,375 4,927
Removal, Stationing & Relocation
Costs		 - 5,269
ApprenticeshipLevy 547 493
SundryExpenses 2,458 2,148
Supernumerariespreaching 101 266
Total 211,467 211,154
Circuit administrator -part time
Salary 14,124 14,124
National Insurance Contributions 734 750
Pension Fund Contributions - -
Total 14,858 14,874
Total for all staff 226,325 226,028

In addition, the circuit employs an active supernumerary and a circuit administrator, a total of 7 employees.

Pensions

Most ordained presbyters and deacons are members of the Methodist Ministers' Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers (which term includes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National Insurance Contributions and pension contributions, the terms 'employer' and 'employee' are used as they would be in an employing body.

On the other hand lay employees are contractually employees and have the option of joining a pension scheme which the circuit has arranged with in this case Scottish Widows. This is a defined contribution scheme and the Circuit contributes as employer to this scheme.

The Connexion accounts for both pension schemes and shows the figures in the annual Methodist Church in Great Britain accounts. The MMPS is in deficit but a plan for removal of the deficit has been proposed and is being implemented. No employees received benefits over £60,000 in the year.

7a Cost of Superintendent, Presbyters and Trustees

The Superintendent of the Circuit, the other Presbyters and the remaining members of the Circuit Leadership Team (CLT) are considered as Key Management Personnel. The Superintendent chairs meetings of the CLT and Circuit Meetings. The members of the Circuit Meeting are trustees of the Circuit. The stipends, employer's NIC and employer's pension contributions and other expenses of the Presbyters of the Circuit are paid by the Connexion but funded by the circuit.

The manses are provided by the Circuit and the Circuit maintains the property. The value of the council tax and water charges paid by the circuit is not disclosed here as HMRC does not regard this as a benefit-in-kind in the hands of the minister.

Each Presbyter is entitled to a 3 month sabbatical every 7 years and the expenses incurred by the Presbyter are met by the Connexion with the Circuit continuing to pay the stipend. During the year there have been no sabbaticals. The Circuit does not accrue for holiday pay cover as the remaining staff cover the holidays as needed without extra pay. Had additional cover been required the cost of this is met by the Circuit.

8 Invitation expenses

Invitation expenses
Unrestricted 2021 2020
Travel and associated expenses - - 649
Removals - - 4,620
Total - - 5,269

Page 14

Sutton Methodist Circuit

9 Property

The Circuit is managing trustee for 5 manses of which 4 are occupied by ministers stationed in the circuit. One manse (116 Manor Green Road) is now occupied by a Lay Pastor at the Epsom church who is considered to be one of the Circuit staff. With the exception of the manse for the Lay Pastor (from September 2017), the Circuit is responsible for the payment of Council Tax, Water charges and Insurance. The Epsom church pays these expenses as part of their support of the Lay Pastor through their Circuit Share.

The cost of ongoing maintenance and improvements to all properties is funded through a manse repairs budget and £37,500 is set aside each year from the General Fund. The level of the budget is reviewed by the trustees each year. This will reduce to £31,500 for 2021/22 with the sale of 7 Waverley Way.

Expenditure on Manses

Expenditure on Manses
Manse Maintenance
Contracts		 Repairs
Maintenance
Improvements		 2021 2020
35 Arundel Road 1,080 1,825 2,905 1,992
29 West Hill Avenue 1,080 4,135 5,215 9,858
16 Hall Road 1,080 310 1,390 2,396
7 WaverleyWay 720 1,050 1,770 966
116 Manor Green Road 1,080 2,374 3,454 6,549
37 Tattenham Way 1,080 143 1,223 1,511
Bandon Hill Methodist Centre 30,830 30,830
Total 6,120 40,667 46,787 23,272

Council tax, insurance and utilities

Manse Council Tax Insurance Water
Supply		 2021 2020
35 Arundel Road 3,001 1,431 525 4,957 4,759
29 West Hill Avenue 3,349 1,576 779 5,704 5,484
16 Hall Road 3,001 1,286 356 4,643 4,268
7 WaverleyWay 1,872 816 16 2,704 2,889
116 Manor Green Road 2,903 995 614 4,512 4,359
37 Tattenham Way 2,944 1,053 255 4,252 4,107
Bandon Hill Methodist Centre 3,127 3,127
Unallocated 667 667 175
Total 17,070 10,951 2,545 30,566 26,041
From Maintenance 46,787 23,272
Total 77,353 49,313

Letting Expenses

37 Tattenham Way was notionally let by the Circuit to the Chinese Congregation at Epsom for £1,750pcm. This realised a total of £21,000 for the Connexional year.

Circuit Model Trust Fund (CMTF) (Trusts 8744 13141 16141 CFB 02647030)

2021 2020
Openingbalance 296,841 296,901
Donations (21,500) -
Interest income 1,010 2,485
Sale of 7 WaverleyWay 689,403 -
Levyon sale of 7 WaverleyWay (255,761) -
Valuation of Bandon Hill Methodist church 365,000
District levy (506) (506)
TMCP administration (896) (913)
St George's taxi - (1,126)
Closingbalance 1,073,591 296,841

Manse Maintenance Fund

Manse Maintenance Fund
2021 2020
Openingbalance 57,362 43,136
Transfer from General Fund(budget) 37,500 37,500
Expenditure on manses 15,954 23,274
Balance of manse maintenance fund 78,908 57,362

Page 15

Sutton

Methodist Circuit

Bandon Hill Methodist Centre

Bandon Hill Methodist Centre
Openingbalance -
Donations(funds included alongside MTF) 57,148
Lettings 22,560
Gift aid 2,197
Interest 29
Sundry 816
Total income 82,750
Maintenance (1,025)
Caretaker (1,301)
Cleaning (6,626)
Utilities (3,117)
Insurance (3,127)
Building project (18,150)
Sundry (611)
Total expenditure (33,957)
Closingbalance 48,793

When Bandon Hill closed, it was decided that it could be reopened as a community centre for the benefit of the neighbourhood. This was followed through and for the first year its work was overseen by a management committee. It was felt that the existing groups using the building should continue and this has taken place. The Bandon Hill church funds were incorporated into the circuit accounts from 1st September 2020. The balance at the start was considered as a donation for accounting purposes. The table above shows that £57,148 was passed into the circuit accounts. Money has been spent during the year in bringing the premises up to a standard for community use - mainly the installation of toilets between the old sanctuary and the remainder of the premises. These have cost (as can be seen) £18,150 to date. There is still a small amount of work to complete. However, excepting this one-off cost, there was a surplus of £9,795 on the accounts.

Mr Michael Patel, the husband of the trustee Mrs Maureen Patel, received employee benefits of £1,301 during the year for his role as caretaker of Bandon Hill Methodist Centre.

Unrestricted Funds

Unrestricted Funds
2021 2020
Manse Maintenance Fund 78,908 57,362
Circuit Model Trust Fund 571,091 296,841
Sale of 7 WaverleyWay 137,500 -
Bandon Hill Methodist Centre transfer of funds 48,793 -
Bandon Hill Methodist Centre valuation 365,000
Closingbalance 1,201,292 354,203

10 Grants to circuit churches

There was one grant of £21,500 to St Mark's church during the year.

11 Office expenses

Office expenses
General CMTF 2021 2020
Local Preacher expenses - - -
Quinquennial inspections 950 950
Administration - 100
Training - - 100
Auditor 4,836 4,836 960
Conference Minutes,CPD & Membershiptickets 641 641 725
Administrator's expenses(travel and stationery) 209 209 744
Laptopfor Circuit Administrator 170 170 -
Circuit service expenses 1,104 1,104 1,307
Website 135 135
Banking 84 84
TMCP Admin/investment Management Fees - 503 503 506
Total 8,129 503 8,632 4,442

12 Transfers

The following transfers were made in the SOFA.

Rent for manse for Chinese minister 21,000
Budget for manse repairs 37,500
Book value of 7 WaverleyWay 137,500

Page 16

13 Trust Funds

Churches are able to seek grant funding for projects within their own church from Circuit Model Trust Fund monies. At 31st August 2021 these totalled £708,591. These funds are held in a CFB fund and 3 trust funds as detailed below.

Circuit CFB Fund 02647030 2021 2020
Balance at 1st September 2020 45,471 43,726
Interest 60 318
Interest from trusts 13141 and 16141 292 1,427
Grant to St Marks (21,500)
Balance in circuit CFB Fund 02647030 at 31st August 2021 24,323 45,471
Trust fund 13141
Balance at 1st September 2020 202,325 201,354
Interest 681 1,729
Transfer taxipayment from 16141 to 13141 971
TMCP administration (405) (403)
Transfer of interest (276) (1,326)
Balance in trust fund 13141 at 31st August 2021 202,325 202,325
Trust fund 16141
Balance at 1st September 2020 13,208 15,305
Interest 44 130
Taxi to and from Carshalton each Sundayforpreviousyear from 13141 (971)
Taxi to and from Carshalton each Sundayfor currentyear (1,126)
TMCP administration (26) (31)
Transfer of interest (16) (99)
Balance in trust fund 16141 at 31st August 2021 13,210 13,208
Circuit Model Trust Fund 8744
Balance at 1st September 2020 35,837 36,516
Interest 223 307
Sale of 7 WaverleyWay 689,403
TMCP administration (73) (73)
District levy (896) (913)
Levyon sale of 7 WaverleyWay (255,761)
Balance in trust fund 8744 at 31st August 2021 468,733 35,837
Total amount available forgrants
Circuit CFB Fund 02647030 24,323 45,471
Trust fund 13141 202,325 202,325
Trust fund 16141 13,210 13,208
Circuit Model Trust Fund 8744 468,733 35,837
Total of funds available forgrants at 31st August 2021 708,591 296,841

Page 17

Sutton

Methodist Circuit

BS1 Manses & Other Property

Buildings comprise 5 manses located in the London Borough of Sutton (2), the Borough of Epsom & Ewell (2) and the Borough of Reigate & Banstead (1). The manse at 37 Tattenham Way was made available to the Chinese Congregation at Epsom for their presbyter. Because of their grant reliance finance structure they are accounted separately from the Circuit General Fund. They make an annual contribution of £21,000 (£1,750pcm) towards the manse.

The manses are valued at historical cost. Also reported for information is the insurance value of each manse.

Property Type Historical
Cost		 Year of
Purchase		 Insurance
Value 2021		 Insurance
Value 2020
35 Arundel Road manse £4,850 1949 £493,971 £481,926
29 West Hill Avenue manse £450 1923 £562,577 £548,859
16 Hall Road manse £2,500 1962 £425,364 £414,992
7 WaverleyWay manse 1991 £0 £428,378
116 Manor Green Road manse £123,000 1994 £288,149 £281,123
37 Tattenham Way manse £2,150 1945 £315,592 £307,897
Bandon Hill Methodist Centre Centre £365,000
Total £497,950 £2,085,653 £2,463,175
Opening
cost
Additions
Disposals Closing cost
Freeholdproperty
270,450
365,000
(137,500)
497,950
Opening
cost		 Additions **Disposals ** Closing cost
Freeholdproperty 270,450 365,000 (137,500) 497,950

From time to time the Circuit may hold residential property (formerly manses) which is surplus to its normal staffing requirements. Where this is the case and it is anticipated that the property is unlikely to be used as a manse within a period of one year, the property is classified as Investment Property (whether let out or not) and any lets are at market rates unless there is a compelling reason not to do so in the furtherance of the Circuit's charitable objectives.

BS2 Investment Assets (and Trustees for Methodist Church Purposes)

The funds that support the Circuit Model Trust Fund and the Circuit's other funds (as listed below) are held by TMCP in Trustees Interest Funds on which interest is credited to the accounts each month. These are regarded as medium and long term investments. The Sutton Circuit holds three trusts at TMCP, numbers with balances 8744 (£468,734), 13141 (£202,325) and 16141 (£13,210). £24,322 is held in CFB fund 02647030 as funds made available for grants to enable payment of such grants and is a part of the CMTF funds held in the Central Finance Board recorded in BS4 below . The total available at 31st August 2021 is £708,591.

TMCP is the legal owner and custodian trustee of all Methodist model trust property, including legacies, endowments and accumulated funds. Trust property is held for and on behalf of local managing trustees who are responsible for the day to day management of trust property. TMCP ensure that, through providing guidance and acting under their direction, the managing trustees comply with charity law and Methodist law and policy as determined by the Methodist Conference.

BS3 Debtors and Prepayments

Debtors and Prepayments
Trade Debtors 2021 2020
Water Insurance 990 1,290
Council Tax & Water Rates 1,457 1,374
Minutes of Conference etc 411 641
Other Debtors 194 -
Prepayments
Stipends,Pension,NI 14,707 14,686
Total 17,759 17,991

BS4 Central Finance Board (CFB) and Bank balances

Monetary balances held at the Central Finance Board of the Methodist Church and at CAF Bank are all available on demand without loss of interest. The split of these balances across General, Designated and Restricted Funds is arbitrary but wherever possible balances are not shown as negative.

wherever possible balances are not shown as negative.
General CMTF Restricted 2021 2020
Central Finance Board 195,432 113,779 511 309,722 367,565
CAF Bank 11,478 38,245 - 49,723 3,705
Total 206,910 152,024 511 359,445 371,270

Page 18

Sutton

Methodist Circuit

BS5 Creditors, Accruals and Income in Advance

2021 2020
Income in Advance
Contributions from churches 56,540 60,290
Creditors and Accruals
Grant to Epsom - -
Ministers' expenses 723 801
Connexionalgrant for officer - -
Auditor 4,800 960
Other expenses 342 343
Total 62,405 62,394

BS6 Unrestricted Funds

BS6.1 General Fund

Opening Income Expenditure Transfers Gain/Loss 2021
493,552 176,632 220,970 (154,000) 295,214
Opening Income Expenditure Transfers Gain/Loss 2020
477,564 246,891 214,403 (16,500) - 493,552

The purpose of the fund is for use at the discretion of the trustees in the furtherance of the general objectives of the Circuit.

The Circuit Meeting is aware that grant applications must demonstrate public benefit and this is true for the fund.

BS6.2 Circuit Model Trust Fund, Manse Fund and Bandon Hill Methodist Centre Fund

Opening Income Expenditure Transfers Gain/Loss 2021
Circuit(Model)Trust Funds 296,841 552,913 278,663 137,500 708,591
Manse Fund 57,362 - 15,954 37,500 78,908
Bandon Hill Methodist Centre - 447,750 33,957 413,793
354,203 1,000,663 328,574 175,000 1,201,292
Opening
Income
Expenditure
Transfer
2020
Circuit(Model)Trust Funds
296,901
2,485
2,545
-
296,841
Manse Fund
43,136
-
23,274
37,500
57,362
340,037
2,485
25,819
37,500
354,203
Opening Income Expenditure Transfer 2020
Circuit(Model)Trust Funds 296,901 2,485 2,545 - 296,841
Manse Fund 43,136 - 23,274 37,500 57,362
340,037 2,485 25,819 37,500 354,203

The purpose of the Model Trust fund is for use at the discretion of the trustees in the furtherance of the general objectives of the Circuit. Its main source of income is legacies and contributions from the sales of manses and churches buildings in the circuit. The funds are being made available for future developments in the circuit. The Manse Fund has sufficient funds available to complete the work at the Wallington manse following the change of presbyter in August 2022.

Although the Model Trust fund is technically an Unrestricted Fund under the control of the Circuit Meeting, prior approval is still required from the District to utilise the Model Trust funds. Methodist Standing Orders 930, 931 and 917(2) are applicable.

BS7 Restricted Funds (Chinese Ministry)

istry)
Opening Income Expenditure Transfers 2021
932 61,502 40,923 (21,000) 511
Opening Income Expenditure Transfers 2020
333 62,073 40,474 (21,000) 932

The only Restricted Fund is that for the Chinese Ministry. This fund pays for the stipend, housing and expenses of the minister in pastoral charge of the Chinese Congregation at Epsom. It is supported by occasional grants from the Methodist Connexion, a gift in lieu of a stipend from the Malaysian Conference and an annual contribution from the Chinese Congregation. Each year the Chinese Congregation will make their contribution to maintain a small balance in the fund.

Page 19

Sutton

Methodist Circuit

BS8 Related Parties

All of the trustees are members of one or another Church within the Circuit, other Methodist Districts in Great Britain, CFB and TMCP.

BS9 Agency Collections and Payments

The Circuit acted as agent in collection for facilitation of the monies tabulated below. None of these collections was for related parties as defined in Note BS8 above. The Circuit carries out the payroll for lay employees in churches in the circuit, pays the 1 person and that Church then reimburses the Circuit for the exact amount. For the current year this totalled £32,461 (2020: £34,306).

Names of related parties Party Receipts
2021		 Receipts
2020
Mission in Britain Fund Connexion 1,230 1,163
TrainingFund Connexion 1,155 881
PropertyFund Connexion 3,699 2,380
Presbyters & Deacons Fund Connexion 915 635
Ministers' HousingFund Connexion 1,960 1,361
World Mission fund Connexion - 22
Direct Transfer Connexion - 4,000
Total 8,959 10,442

BS10 Auditor

An accrual has been made for the fee of the auditor.

Page 20

Sutton Methodist Circuit

Appendix A

CIRCUIT MEETING MEMBERSHIP

Ex-Officio:

Circuit Ministers:

Rev Dr David Dickinson (Superintendent), Rev Catherine Hutton, Rev Rosemary Richter Rev Anne Rusbridge, Rev Gill Long Rev Ung Soon Nguang, Rev Dr Philip Richter (active supernumerary)

Lay Pastor

Mr Chris Shaw

Chairs of District:

Rev Nigel Cowgill, Rev Jongikaya Zihle

Circuit Stewards:

Dr David Gooch

Mrs Maureen Patel, Mr Lyndon Man, Mr Vijendran Asirwatham Mr Richard Smith (Treasurer)

Ministers of other denominations authorised by Methodist Conference and serving Methodist people:

Rev Des Williamson, Rev Bethany Lewis

Circuit Meeting Secretary:

Mr Paul Gotts (not a trustee)

Circuit Manse Secretary

Secretary to Leaders of Worship and Preachers Meeting Circuit Risk Management Chairman

Mr Philip Sandiford Mr Paul Gotts (not a trustee) Mrs Sue Forty

Elected Representatives from Churches:

Sutton Deacons Mrs Jacqueline John Treasurer Mr Malcolm Booth Elected Mr Richard Cornwell St Johns Steward Mrs Eleanor Pinfold Treasurer Mr Tony Woolfenden Elected Mrs Eileen Rice Wallington Steward Miss Judith Yates Treasurer Mrs Christine Asirwatham Elected Mr Stanley Jeyeraj, Mrs Nellie Showers Epsom Steward Mrs Lisa Halstead Treasurer Mr Richard Smith Elected Mrs Val Imms Carshalton Steward Mrs Caroline Kingsnorth Treasurer Mrs Caroline Cook Elected Mr John Kingsnorth, Miss Jacky Waite Cheam Steward Mr David Worthington Treasurer Mrs Audrey Saunderson Elected Vacant Banstead Steward Mr Philip Sandiford Treasurer Mr Vernon Tucker Elected Miss Elaine Bliss St Marks Steward Mr John Miller Treasurer Mr Martin Trenaman Elected Mr Colin Batty

Page 21

Appendix B

Sutton Methodist Circuit

The offices of the members of the Circuit Meeting (Managing Trustees) are shown in Appendix A.

The following are the trustees who served during the year and are appointed by the circuit as and when necessary.

Mr Segun Akindele (resigned 10/09/2020) Mrs Christine Asirwatham Mrs Jane Barden (resigned 08/06/2021) Mr Colin Batty Miss Elaine Bliss (appointed 08/06/2021) Mr Malcolm Booth Miss Shirley Breeden (appointed 08/06/2021) Mrs Caroline Cook Mr Richard Cornwell Rev Nigel Cowgill Mr John Dawson (resigned 10/09/2020) Rev Dr David Dickinson Mrs Sue Forty Dr David Gooch Mrs Lisa Halstead (appointed 08/06/2021) Rev Catherine Hutton (appointed 10/09/2020) Mrs Val Imms Mr Alan Jameson (resigned 10/09/2020) Mr Stanley Jeyeraj Mrs Jacqueline John Mrs Margaret Kercher (resigned 08/06/2021) Mrs Caroline Kingsnorth Mr John Kingsnorth Rev Bethany Lewis (appointed 08/06/2021) Rev Gill Long Mr Lyndon Man (appointed 06/02/2020) Mr John Miller

Mr Darren Murton (resigned 08/06/2021) Rev Ung Soon Nguang Mrs Maureen Patel Mrs Eleanor Pinfold Mrs Eileen Rice Rev Dr Philip Richter Rev Rosemary Richter Rev Anne Rusbridge Mr Philip Sandiford. Mr Ravi Saravanamuttu (resigned 09/09/2021) Mrs Audrey Saunderson Mr Chris Shaw Mrs Nellie Showers Mr Richard Smith Mr Martin Trenaman Mr Vernon Tucker Miss Jacky Waite Rev Dr Mark Wakelin (resigned 31/08/2020) Rev Des Williamson Mr Anthony Woolfenden (appointed 08/06/2021) Mr David Worthington Mr John Wroe (resigned 09/09/2021) Miss Judith Yates Rev Michaela Youngson (resigned 09/09/2021) Rev Ernest Yu (resigned 09/09/2021) Rev Dr Jongikaya Zihle

Page 22

Sutton Methodist Circuit DECLARATIONS

Treasurer

I confirm that I have prepared the accounts from the records of the Circuit and that they include all funds under the control of the Circuit Meeting

Signature of Treasurer Date 3rd Feb 2022 Name Richard T Smith Address 13 Hazon Way, Epsom, Surrey, KT19 8HD

Presentation to the Circuit Meeting for approval.

I confirm that the Accounts have been presented to the Circuit Meeting on

----- Start of picture text -----
3rd Feb 2022
----- End of picture text -----

and were approved. Signature of the Chair of the meeting Name of Rev Dr David Dickinson the Chair Date 3rd Feb 2022

Page 23

Sutton Methodist Circuit

Independent auditor’s report to the trustees of Sutton Methodist Circuit

Opinion

We have audited the financial statements of Sutton Methodist Circuit (the “Charity”) for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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:

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 12 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.

Page 24