2022-08-31-accounts

Circuit Accruals Accounts 2021-2022

THE METHODIST CHURCH

ANNUAL REPORT AND ACCOUNTS (ACCRUALS BASIS) for the year ended 31 August 2022

Sutton Methodist Circuit

Registered Charity - Registration number

1135076

	District No / 35/39 Circuit No
Circuit Stewards Ministers Circuit Treasurer	Rev Gill Long Rev Ung Soon Nguang Rev Bethany Lewis Rev Catherine Hutton Deacon Marie Poole Rev Desmond C Williamson Rev Dr David Dickinson Mr Richard Smith Dr David Gooch Mrs Maureen Patel Mr Ka Fai Man Mrs Jane Barden Mr Vijendran Asirwatham
	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 Independent Examiner	20
Appendix A Circuit Meeting membership	21
Movement of Trustees	22
Sutton Methodist Circuit declarations	23
Independent examiner's report	24

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

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

• enable the churches to proclaim the Gospel of Christ and further God's Kingdom.

• be aware of God's presence through the Holy Spirit in all we do in God's name.

• ■ support each Church in its endeavours to fulfil its potential in responding to opportunities of service and growth.

• ■ enable the staff of the Circuit both ministerial and lay to fulfil their potential in a supportive Circuit environment.

• support ecumenical ventures and to encourage further ecumenical work.

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 ■ Review the effects of the Covid 19 pandemic on the circuit churches and develop a support strategy. The churches continued to suffer from reduced income, primarily from reduced congregations and fewer lettings. The circuit budgeted for a deficit for a second year in order to enable church shares to be reduced according to need. The circuit will draw on reserves if required to maintain a satisfactory balance in the General Fund. ■ Review the effect on Circuit Finances with particular reference to circuit ‘shares’. Monitor adherence to the revised 2021/22 budget and produce a budget for 2022/23. Develop a strategy for circuit reserves. A deficit on the General Fund meant that the balance went below the reserves level. This deficit was anticipated in the budget. Attention will be given to drawing from the circuit reserves if required. A budget for 2022/23 has been prepared and this again is showing a deficit, but much smaller. Churches will be approached to increase their share for 2023/24. A strategy for the use of circuit reserves for the circuit and churches will be addressed. Revised guidelines have been agreed for applications for grants from the Circuit Model Trust Fund. ■ Review future circuit staffing and formulate stationing strategy for September 2023. A Deacon was appointed as minister for the Carshalton and Wallington Churches from September 2022, necessitating a review of the provision for Eucharist and church pastoral oversight. A profile has been prepared and submitted for a presbyter for the Sutton Church vacancy for September 2023. The Circuit Superintendency will move to the Epsom Church from that date. ■ Appoint a lay worker and caretaker for the Bandon Hill Methodist Centre. Establish a new management structure for September 2022. Monitor the financial performance and effectiveness of the centre. An advertisement for a lay worker for the proposed centre failed to produce any applicants. The primary user of the buildings ceased to operate during the year, affecting the financial sustainability of the centre. It also became apparent that, as we emerged from the pandemic, the potential volunteer base within the circuit was no longer sufficient. It was therefore concluded that the project was no longer viable and the site was subsequently placed on the market. ■ Discuss and agree the updated Circuit Development Plan with church leaders by July 2022. A Circuit Leadership Team ‘awayday’ was held to review how churches had fared during the pandemic and to identify potential mission opportunities within the circuit. These will be discussed further at the September Circuit Meeting.

Page 1

Sutton Methodist Circuit

TRUSTEES' ANNUAL REPORT (continued)

• Determine the future direction of Wallington Methodist Church by June 2022.

The site has been marketed with a view to contracting with a property developer on a ‘joint venture’ basis. The site would be sold on a leasehold basis to the preferred developer, who would construct their own flats and the new church premises to the church’s specification and at no cost to the church. Six offers to bid for the development have been received and are being assessed. A pre-planning application will shortly be submitted, to be followed by a public consultation.

Financial Review

Budget

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

Income

• The shares have been received from all the churches.

• The interest received of £661 is reported in the SOFA. This is below budget due to the continued low level of interest in the money markets.

• The use of 37 Tattenham Way by the Chinese presbyter has continued to provided an income of £21,000.

• The closure of Bandon Hill Methodist Church released their funds to be under circuit control. Their use has not been decided, but they will continue to be available for Bandon Hill's expenses while the future of the church is decided.

Expenditure

• Stipend expenditure has increased each financial year in line with conference approved increases. £61,464 (29.4%) of expenditure is the Circuit contribution to the District and Connexion, of which a significant part is used to fund the work of the wider Methodist Church. The Manse Fund shows that £38,552 was spent on manse repairs of which the main cost was refurbishment of the second Epsom manse following Chris Shaw's move to Oswestry and Ung Soon Nguang's move into it. The current balance is £71,855.

• All other items of expenditure were within budget.

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 £53,752. A further £20,000 deficit is expected in 2022/23.

Financial effect of significant events

The further effect of Covid-19 has continued to have a significant effect on the circuit's finances. This had been expected and allowance had been made for a deficit of over £50,000. This enabled all the churches to maintain their reduced level of share offers to help them in their own finances. Many of the churches still have not had full collections each Sunday and have also lost letting income. The shortfall on the budget is again being met from circuit reserves. The circuit recognises that the current balance in the general fund of £108,511 is below the reserves level. However, there are sufficient funds on deposit and a draw-down on these may be taken if required in 2022/23.

Page 2

Sutton Methodist Circuit

TRUSTEES' ANNUAL REPORT (continued)

Fund balances

General Fund

As at 31st August 2022 the net current assets of the Circuit were £108,512. This is below the required reserves policy level of £140,000 and will be addressed during the year 2022/23.

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 previous income from previous sales, 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 current total is £132,950.

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 £1,343,360. Of this £132,950 is now the historical value of the manses and £365,000 is the value of Bandon Hill Methodist Centre. The balance comprises £108,512 in the general fund, £578,422 in the Model Trust Fund, £71,856 in the manse fund and £86,427 in the Bandon Hill Methodist Centre fund. A further £193 is held in a restricted fund.. 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 2022/23

Circuit financial plans for the coming year have been prepared on the basis that there remain 3 full time staff (2 ordained, one deacon) and one 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 £20,000 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 2022-2023 year.

• Mission: Continue encouragement and support, financial or otherwise, of circuit churches to enable mission opportunities to be identified and progressed. Hold a further consultation with church leaders

• Youth work: Explore means of sustaining and increasing active involvement of young people and young adults across the circuit. Consider the case for a circuit youth worker.

• ■ Wallington Church Development. Progress the development. Support the Wallington leadership and congregation, with special emphasis on sustaining youth work.

• Diaconal Ministry: Recognise and support the particular strengths of the diaconal ministry at Carshalton and Wallington.

• Property: Complete the sale of the Bandon Hill site. Establish the condition of the Tattenham Way property and refurbish either to sell or to let. Prepare the Cheam manse for the incoming minister.

• Staffing: Appoint a part time presbyter to the Banstead church and for pastoral support at Epsom. Fill the forthcoming vacancy at the Sutton church either through the stationing process or by other means. Move the Superintendency to the Epsom church.

• Energy Costs: Establish a strategy for targeted emergency support of circuit churches, including the role of the Model Trust Fund.

• Budget: Produce a balanced budget for 2023/24

• Long Term Strategy: Commence discussions on the long-term scenarios for the smaller congregations, including the Methodist congregations in the Anglican – Methodist LEPs.

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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 2022 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 Deacon Marie Poole Rev Desmond Williamson Circuit Stewards Dr David Gooch Mrs Maureen Patel Mr Ka Fai Man Mr Vijendran Asirwatham Mrs Jane Barden 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.

Independent Examiner 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

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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)

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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.

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:

• the care and nurture of, and respectful pastoral ministry with, all children, young people and adults

• the safeguarding and protection of all children, young people and adults when they are vulnerable

• the establishing of safe, caring communities which provide a loving environment where there is informed vigilance as to the dangers of abuse.

• 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 respond without delay to every complaint made which suggests that an adult, child or young person may have been harmed, cooperating with the police and local authority in any investigation.

• We will seek to work with anyone who has suffered abuse, developing with them an appropriate ministry of informed pastoral care.

• We will seek to challenge any abuse of power, especially by anyone in a position of trust.

• 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.

• In all these principles we will follow legislation, guidance and recognised good practice

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:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent;

• 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 2nd February 2023 and signed on behalf of the trustees by:

Rev Dr David Dickinson Circuit Meeting Chairman

Page 6

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

Statement of Financial Activities (SOFA) for the year ended 31 August 2022

	Notes to the accounts	Unrestricted funds (General Fund)	Designted Funds	Restricted Funds (Chinese Ministry)	Total 2021-22	Total 2020-21
		£	£	£	£	£
Income and endowments from:
Donations and legacies
Donations and legacies	2		8,034	63,028	71,062	61,502
Shares from churches	3	165,280			165,280	175,845
Bandon Hill Methodist Church funds					-	59,343
Bandon Hill Methodist Church valuation			-		-	365,000
Other trading activities
Lettings	4	-	55,934		55,934	23,788
Investments
Interest	5	661	3,193		3,854	1,416
Other income
Net surplus on disposal of 7 WaverleyWay			-		-	551,903
Total income		165,941	67,161	63,028	296,130	1,238,797
Expenditure on:
Raising funds
Trust fund management charges	6		26,405		26,405	896
Levyon sale of 7 WaverleyWay	5		-		-	255,761
Charitable activities
Ministerial stipends and expenses	7 8	182,034		39,189	221,223	226,325
Ministerial invitations	8	2,171			2,171	-
Manse maintenance and servicing	9	20,711	56,908	3,157	80,776	77,353
Grants to circuit churches	10	-	105,000		105,000	21,500
Administration	11	4,277	9,935		14,212	8,632
Total		209,193	198,248	42,346	449,787	590,467
Netgains/(losses)on investments		-	-	-	-	-
Net income/(expenditure)		(43,252)	(131,087)	20,682	(153,657)	648,330
Transfers between funds	12	(10,500)	31,500	(21,000)	-	-
Other recognisedgains/(losses)
Gains/(losses)on revaluation of fixed		-			-	-
Actuarialgains/(losses)on defined benefit
Othergains/(losses)					-	-
Net movement in funds		(53,752)	(99,587)	(318)	(153,657)	648,330
Reconciliation of funds
Total funds brought forward		295,214	1,201,292	511	1,497,017	848,687
Total funds carried forward		241,462	1,101,705	193	1,343,360	1,497,017
Offerings/Gifts - received for External Organisations Offerings/Gifts - passed to External Organisations Balance brought forward from last year Balance carried forward
			-			-
			7,984			8,959
			7,984			8,959
			-			-

Page 7

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

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
Offerings/Gifts - received for External Organisations Offerings/Gifts - passed to External Organisations Balance brought forward from last year Balance carried forward Page 8			- 8,959 8,959 -
			-			-
			8,959			10,442
			8,959			10,442
			-			-

Sutton Methodist Circuit

TRUSTEES' ANNUAL REPORT (continued)

Balance Sheet as at 31 August 2022

Balance Sheet as at 31 August 2022	Balance Sheet as at 31 August 2022
Tangible Fixed Assets Notes*		Unrestricted (General Fund) £	Designated Funds	Restricted (Chinese Ministry) £	Totals this year £
			£
Circuit Manses & Equipment	BS1	132,950			132,950
Bandon Hill Methodist Centre			365,000		365,000
Investments	BS2				-
Totalfixed assets		132,950	365,000	-	497,950
Current Assets
Debtors	BS3	16,528			16,528
Loans bythe Circuit
Trustees for Methodist Church Purposes	BS2		607,008		607,008
Central Finance Board Deposits	BS4	145,781	128,824	193	274,798
Cash at Bank and in hand	BS4	5,199	75,873		81,072
Total current assets		167,508	811,705	193	979,406
Current liabilities
Creditors(due in under 1year)	BS5	58,996	30,000		88,996
Net current assets (liabilities)		108,512	781,705	193	890,410
Total assets less current liabilities		241,462	1,146,705	193	1,388,360
Creditors and Accruals including any loans (due after more than 1 year)			45,000		45,000
Net assets		241,462	1,101,705	193	1,343,360
Funds of the Circuit
General Fund(Unrestricted)	BS6.1	241,462			241,462
Circuit Model Trust Fund(Unrestricted)	BS6.2		1,101,705		1,101,705
Restricted funds	BS7			193	193
Total Funds		241,462	1,101,705	193	1,343,360

*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.

Internal Organisations		Opening balance	Receipts	Payments	2022		2021
Chinese MinistryFund	BS7	511	63,028	63,346	193		511
Bandon Hill Methodist Centre		48,793	55,989	18,356	86,426		48,793
Total		49,304	119,017	81,702	86,619		49,304

The financial statements were approved by the trustees on 2nd February 2023 and were signed on their behalf

Rev Dr David Dickinson

Page 9

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

Statement of Cash Flows for year ended 31st August 2022

	2022	2021
	£	£
Cashflows from operating activities
Net cash (used in)/provided by operating activities	(84,689)	(269,746)
Cashflows from investing activities
Interest receivable	3,854	1,416
Proceeds on sale of freehold property	-	689,403
Net cash provided by investing activities	3,854	690,819
Change in cash & cash equivalents in the reporting period	(80,835)	421,073
Cash and cash equivalents at the beginning of the reporting period	1,043,713	622,640
Cash & cash equivalents at the end of the reporting period	962,878	1,043,713
Classified on the Balance Sheet as:-
Investments with TMCP	607,008	684,268
Central Finance Board Deposits	274,798	309,722
Cash at bank and in hand	81,072	49,723
	962,878	1,043,713
Reconciliation of net income/(expenditure) to net cashflow
from operating activities
Net income/(expenditure) from reporting activities (as per the
Statement of Financial Activities)	(153,657)	648,330
Adjustments for:-
Non-cash donations	-	(365,000)
(Gains)/losses on sale of freehold property	-	(551,903)
Interest receivable	(3,854)	(1,416)
(Increase)/decrease in debtors	1,231	232
Increase/(decrease) in creditors	71,591	11
Net cash(used in)/provided by operating activities	(84,689)	(269,746)

Page 10

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

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 2022, 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 TRUSTEES' ANNUAL REPORT (continued)

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

Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

Notes to the Accounts

**2 **	Donations and legacies	General	Unrestricted	Designated	Restricted	2022	2021
	Donations	-	-	50	63,028	63,078	61,502
	Balance of BHMC account transferred to Sutton Circuit	-	-	-		-	59,343
	Valuation of BHMC		-				365,000
	Connexional Funds			7,984		7,984	-
	Legacies	-	-	-	-	-	-
	Total	-	-	8,034	63,028	71,062	485,845

The Chinese ministry was supported by the Malaysian Conference (£6,028) and donations from the Chinese Congregation (£57,000). These total £63,028.

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 2021/22 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 (£165,280) is the total share income (£226,744) less the assessment paid to and through the district (£7,676 and £53,788).

Church	2022	2021			2022	2021
Sutton Trinity	45,000	45,000		Assessment	226,744	237,309
Wallington	28,000	28,000		Deduct for:
Bandon Hill	-	-		District	7,676	7,676
Carshalton	28,000	28,000		Connexion	53,788	53,788
Banstead	20,000	20,000		Net income	165,280	175,845
Epsom	93,400	104,000
Cheam	9,750	9,750
St John's	1,195	1,160
St Mark's	1,399	1,399
Total	226,744	237,309

• 4 Income from other trading activities

	General	Designated	Restricted	Transfers	2022	2021
Rental income	-			21,000	21,000	21,000
BHMC Lettings		55,934			55,934	23,788
Total rental income	-	55,934	-	21,000	76,934	44,788

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.

5 Income from investments

£3,854 (2020/21 £1,416) was received as interest from TMCP trusts and CFB funds.

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	Designated	2022	2021
District Expenses	7,676		7,676	896
Methodist Church Fund(MCF)	53,788		53,788	53,788
Levyon CMTF Funds	13	26,405	26,418	25,418
Levyon sale of 7 WaverleyWa	y -	-	-	255,761
Totals	61,477	26,405	87,882	310,445

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 TRUSTEES' ANNUAL REPORT (continued)

7 Salaries and associated costs

Stipends were paid to 3 English presbyters, 1 Chinese presbyter and 1 lay pastor (for 9 months).

Circuitpresbyters & lay pastor	2022	2021
Stipends	140,505	147,453
National Insurance Contributions	12,791	13,680
Pension Fund Contributions	29,238	28,966
URC Levy	11,016	11,016
Computers for ministry	684	676
Travelling	3,932	2,195
Telephone	4,817	4,375
ApprenticeshipLevy	1,381	547
SundryExpenses	1,151	2,458
Supernumerariespreaching	340	101
Total	205,855	211,467
Circuit administrator -part time
Salary	14,280	14,124
National Insurance Contributions	763	734
Pension Fund Contributions	-	-
ApprenticeshipLevy	325
Total	15,368	14,858
Total for all staff	221,223	226,325

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.

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	2022	2021
Travel and associated expenses		1,735	1,735	-
Removals		436	436	-
Total		2,171	2,171	-

Page 14

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

9 Property

The Circuit is managing trustee for 5 manses of which 4 are occupied by ministers stationed in the circuit. The Circuit is responsible for the payment of Council Tax, Water charges and Insurance. One manse (116 Manor Green Road) is now occupied by the minister of the Chinese Congregation and they pay for his occupation, the council tax and water rates.

The cost of ongoing maintenance and improvements to all properties is funded through a manse repairs budget and £31,500 is set aside each year from the General Fund. The level of the budget is reviewed by the trustees each year. For the year 2022/23 it has been agreed that the manse repairs budget of £31,500 will not be paid into the Manse Fund. This is to alleviate the cost to the churches and also reflects the fact that there is sufficient in the Manse Fund to pay for expected charges during the year.

Expenditure on Manses

Manse	Maintenance Contracts	Repairs Maintenance Improvements	2022	2021
35 Arundel Road	1,080	6,496	7,576	1,992
29 West Hill Avenue	1,080	3,432	4,512	9,858
16 Hall Road	1,080	6,230	7,310	2,396
7 WaverleyWay	-	-	-	966
116 Manor Green Road	1,080	12,013	13,093	6,549
37 Tattenham Way	1,080	401	1,481	1,511
Bandon Hill Methodist Centre		22,936	22,936
Total	5,400	51,508	56,908	23,272

Council tax, insurance and utilities

Manse	Council Tax	Insurance	Water Supply	2022	2021
35 Arundel Road	3,148	1,437	533	5,118	4,957
29 West Hill Avenue	3,469	1,580	812	5,861	5,704
16 Hall Road	3,148	1,294	322	4,764	4,643
7 WaverleyWay	-	-	-	-	2,704
116 Manor Green Road	2,082	1,008	640	3,730	4,512
37 Tattenham Way	3,049	1,066	108	4,223	4,252
Bandon Hill Methodist Centre		-		-	3,127
Unallocated		172		172	667
Total	14,896	6,557	2,415	23,868	30,566
From Maintenance				56,908	46,787
Total				80,776	77,353

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. This agreement was transferred to 116 Manor Green Road at the end of August 2022.

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

	2022	2021
Openingbalance	1,073,591	296,841
Donations	-	(21,500)
Interest income	3,185	1,010
Sale of 7 WaverleyWay	-	689,403
Levyon sale of 7 WaverleyWay	-	(255,761)
Valuation of Bandon Hill Methodist church	-	365,000
District levy	(26,404)	(506)
TMCP administration	(1,950)	(896)
Balance of Epsomgrant	(105,000)	-
Closingbalance	943,422	1,073,591
Manse Maintenance Fund
	2022	2021
Openingbalance	78,908	57,362
Transfer from General Fund(budget)	31,500	37,500
Expenditure on manses	38,552	15,954
Balance of manse maintenance fund	71,856	78,908

Page 15

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

Bandon Hill Methodist Centre

Bandon Hill Methodist Centre
Openingbalance	48,793	48,793
Donations(funds included alongside MTF)	50
Lettings	55,934
Gift aid	-
Interest	6
Sundry	-
Total income		55,990
Maintenance	(2,207)
Caretaker	(968)
Cleaning	(5,205)
Utilities	(3,701)
Insurance	-
Building project	(6,077)
Sundry	(198)
Total expenditure		(18,356)
Closingbalance		86,427

During 2022 it was realised that it was not going to be possible to open the Bandon Hill church as a community centre. It had not been possible to recruit a part time pastor and there had not been a significant interest locally to use the premises. Therefore it was decided to sell the church and at the end of August 2022 this was progressing satisfactorily. It is hoped that it will be sold during the 2022/23 year.

Mr Michael Patel, the husband of the trustee Mrs Maureen Patel, received employee benefits of £585 during the year for his role as caretaker of Bandon Hill Methodist Centre.

Designated Funds

Designated Funds
	2022	2021
Manse Maintenance Fund	71,856	78,908
Circuit Model Trust Fund	578,422	571,091
Sale of 7 WaverleyWay		137,500
Bandon Hill Methodist Centre transfer of funds	86,427	48,793
Bandon Hill Methodist Centre valuation	365,000	365,000
Closingbalance	1,101,705	1,201,292

10 Grants to circuit churches

There was one grant of £105,000 to Epsom Methodist Church spread over 5 years. £30,000 was paid in this year and £75,000 carried forward to the remaining 4 years (£30,000, £25,000, £15,000, £5,000)

11 Office expenses

Office expenses
	General	CMTF	2022	2021
Local Preacher expenses	-		-	-
Quinquennial inspections	-		-	950
Training	468		468	-
Independent Examiner/Auditor	1,260		1,260	4,836
Conference Minutes,CPD & Membershiptickets	364		364	641
Administrator's expenses(travel and stationery)	456		456	209
Laptopfor Circuit Administrator	-		-	170
Circuit service expenses	1,499		1,499	1,104
Website	149		149	135
Banking	81		81	84
TMCP Admin/investment Management Fees	-	1,951	1,951	503
Value of Connexional Funds donations	-	7,984	7,984	-
Total	4,277	9,935	14,212	8,632
Transfers The followingtransfers were made in the SOFA. 21,000 31,500 Rent for manse for Chinese minister Budget for manse repairs
Rent for manse for Chinese minister		21,000
Budget for manse repairs		31,500

12 Transfers

Page 16

Sutton Methodist Circuit

TRUSTEES' ANNUAL REPORT (continued)

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 2022 these totalled £578,423. These funds are held in a CFB fund and 3 trust funds as detailed below.

Circuit CFB Fund 02647030	2022	2021
Balance at 1st September 2021	24,323	45,471
Interest	194	60
Interest from trusts 13141 and 16141	399	292
Grant to Epsom was received andpaid	-	-
Grant to St Marks	21,500	(21,500)
Balance in circuit CFB Fund 02647030 at 31st August 2022	46,416	24,323
Trust fund 13141
Balance at 1st September 2021	202,325	201,354
Interest	732	1,729
Transfer taxipayment from 16141 to 13141		971
TMCP administration	(577)	(403)
Transfer of interest	(155)	(1,326)
Balance in trust fund 13141 at 31st August 2022	202,325	202,325
Trust fund 16141
Balance at 1st September 2021	13,208	13,208
Interest	48	44
Taxi to and from Carshalton each Sundayforpreviousyear from 13141
Taxi to and from Carshalton each Sundayfor currentyear
TMCP administration	(37)	(26)
Transfer of interest	(11)	(16)
Balance in trust fund 16141 at 31st August 2022	13,208	13,210
Circuit Model Trust Fund 8744
Balance at 1st September 2021	468,733	35,837
Interest	1,982	223
Sale of 7 WaverleyWay		689,403
TMCP administration	(1,336)	(73)
District levy	(26,405)	(896)
Grants to St Marks and Epsom	(51,500)	(255,761)
Outstanding payments for 4years on Epsomgrant	(75,000)
Balance in trust fund 8744 at 31st August 2022	316,474	468,733
Total amount available forgrants
Circuit CFB Fund 02647030	46,416	24,323
Trust fund 13141	202,325	202,325
Trust fund 16141	13,208	13,210
Circuit Model Trust Fund 8744	316,474	468,733
Total of funds available forgrants at 31st August 2022	578,423	708,591

Page 17

Sutton Methodist Circuit

TRUSTEES' ANNUAL REPORT (continued)

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 2022	Insurance Value 2021
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 497,500 - - 497,500
	Opening cost	Additions	**Disposals **	Closing cost
Freeholdproperty	497,500	-	-	497,500

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 (£316,474), 13141 (£202,325) and 16141 (£13,208). £46,416 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 £578,423.

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	2022	2021
Water Insurance	1,090	1,486
Council Tax & Water Rates	1,506	1,457
Minutes of Conference etc	459	411
Other Debtors	(27)	(302)
Prepayments
Stipends,Pension,NI	13,500	14,707
Total	16,528	17,759

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	2022	2021
Central Finance Board	145,781	128,824	193	274,798	309,722
CAF Bank	5,199	75,873	-	81,072	49,723
Total	150,980	204,697	193	355,870	359,445

Page 18

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

BS5 Creditors, Accruals and Income in Advance

	2022	2021
Income in Advance
Contributions from churches	56,688	56,540
Creditors and Accruals
Grant to Epsom	75,000	-
Ministers' expenses	740	723
Auditor/Independent Examiner	1,260	4,800
Other expenses	308	342
Total	133,996	62,405

BS6 Unrestricted Funds BS6.1 General Fund

Opening	Income	Expenditure	Transfers	Surplus/Deficit	2022
295,214	165,941	209,193	(10,500)	(53,752)	241,462
Opening	Income	Expenditure	Transfers	Surplus/Deficit	2021
493,552	176,632	220,970	(154,000)	(198,338)	295,214

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	Surplus/Deficit	2022
Circuit(Model)Trust Funds	708,591	3,187	133,356	-	(130,169)	578,422
Manse Fund	78,908	-	38,552	31,500	(7,052)	71,856
Bandon Hill Methodist Centre	413,793	55,990	18,356		37,634	451,427
Connexional Funds	-	7,984	7,984	-	-	-
	1,201,292	67,161	198,248	31,500	(99,587)	1,101,705
	Opening	Income	Expenditure	Transfers	Surplus/Deficit	2021
Circuit(Model)Trust Funds	296,841	552,913	278,663	137,500	411,750	708,591
Manse Fund	57,362	-	15,954	37,500	21,546	78,908
Bandon Hill Methodist Centre	-	447,750	33,957	-	413,793	413,793
	354,203	1,000,663	328,574	175,000		1,201,292

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)

stry)
Opening	Income	Expenditure	Transfers	2022
511	63,028	42,346	(21,000)	193
Opening	Income	Expenditure	Transfers	2021
932	61,502	40,923	(21,000)	511

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. Currently a £100,000 grant from the Methodist Connexion ended in August 2021. The leaders of the Chinese Congregation are investigating further grants.

Page 19

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

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.

Analysis of investment

Analysis of investment
	2022	2021
Investments listed on a recognised Stock Exchange		-
Investments held in common investment funds,	655,719	816,699
Securities not listed on a recognised Stock Exchange		-
Other investments		-
Total	655,719	816,699
Change in investment values
Carrying (market)value at beginningofyear	993,989	618,934
Add: additions to investments at cost	329,781	1,065,516
Less: disposals at carryingvalue	(441,965)	(690,461)
Netgain/(loss)on revaluation		-
Carrying (market)value at end ofyear	881,805	993,989

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 £33,415 (2021: £32,461).

Names of related parties	Party	Receipts 2022	Receipts 2021
Mission in Britain Fund	Connexion	1,100	1,230
TrainingFund	Connexion	1,035	1,155
PropertyFund	Connexion	3,289	3,699
Presbyters & Deacons Fund	Connexion	815	915
Ministers' HousingFund	Connexion	1,745	1,960
World Mission fund	Connexion	-	-
Direct Transfer	Connexion	-	-
Total		7,984	8,959

BS10 Independent Examiner

An accrual has been made for the fee of the independent examiner.

Page 20

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

Appendix A

CIRCUIT MEETING MEMBERSHIP

Ex-Officio:

Circuit Ministers:

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

Deacon

Marie Poole

Chairs of District: Circuit Stewards:

Rev Nigel Cowgill, Rev Jongikaya Zihle

Dr David Gooch

Mrs Maureen Patel, Mr Lyndon Man, Mr Vijendran Asirwatham Mrs Jane Barden, 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		Mr Philip Sandiford
Secretary to Leaders of Worship and Preachers Meeting		Mr Paul Gotts (not a trustee)
Circuit Risk Management Chairman		Mrs Sue Forty
Elected Representatives from Churches:
Sutton	Deacons	Mr Richard Cornwell
	Treasurer	Mr Malcolm Booth
	Elected	Mrs Jacqueline John
St Johns	Steward	Mrs Eleanor Pinfold
	Treasurer	Mr Anthony Woolfenden
	Elected	Mrs Eileen Rice
Wallington	Steward	Miss Judith Yates
	Treasurer	Mrs Christine Asirwatham
	Elected	Mr Stanley Jeyeraj, Mrs Nellie Showers
Epsom	Steward	Mrs Kathryn Thompson
	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	Miss Shirley Breeden
	Treasurer	Mr Vernon Tucker
	Elected	Miss Elaine Bliss
St Marks	Steward	Mr John Miller
	Treasurer	Mr Martin Trenaman
	Elected	Mr Colin Batty

Page 21

Sutton Methodist Circuit TRUSTEES' ANNUAL REPORT (continued)

Appendix B

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.

Mrs Christine Asirwatham Mrs Jane Barden (appointed 07/06/2022) Mr Colin Batty Miss Elaine Bliss Mr Malcolm Booth Miss Shirley Breeden Mrs Caroline Cook Mr Richard Cornwell Rev Nigel Cowgill Rev Dr David Dickinson Mrs Sue Forty Dr David Gooch Mrs Lisa Halstead (resigned 07/06/2022) Rev Catherine Hutton Mrs Val Imms Mr Stanley Jeyeraj Mrs Jacqueline John Mrs Caroline Kingsnorth Mr John Kingsnorth Rev Bethany Lewis Rev Gill Long Mr Lyndon Man Mr John Miller

Rev Ung Soon Nguang Mrs Maureen Patel Mrs Eleanor Pinfold Mrs Eileen Rice Rev Dr Philip Richter (resigned 31/08/2022) Rev Rosemary Richter (resigned 31/08/2022) Rev Anne Rusbridge Mr Philip Sandiford. Mrs Audrey Saunderson Mr Chris Shaw (resigned 07/06/2022) Mrs Nellie Showers Mr Richard Smith Mrs Kathryn Thompson (appointed 07/06/2022) Mr Martin Trenaman Mr Vernon Tucker Miss Jacky Waite Rev Des Williamson Mr Anthony Woolfenden Mr David Worthington Miss Judith Yates 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

----- Start of picture text -----
Signature of Treasurer Date 2nd February 2023
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 2nd February 2023
and were approved.
Signature of the Chair of
the meeting
Name of
Rev Dr David Dickinson
the Chair
Date 2nd February 2023
----- End of picture text -----

Page 23

Sutton Methodist Circuit

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

I report to the charity trustees on my examination of the accounts of the Sutton Methodist Circuit (the Circuit) for the year ended 31 August 2022 set out on pages 7 to 20.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Circuit’s accounts as carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since the Circuit’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the Circuit as required by section 130 of the Act; or 2. the accounts do not accord with those records; or

2. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Report) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Paul Newton FCA Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW

Date: