West Hertfordshire and Borders Methodist Circuit (Registered Charity 1135094) Trustees Annual Report and Accounts For the Year Ended 31st August 2024
West Hertfordshire and Borders Methodist Circuit Trustees Annual Report and Accounts For the Year Ended 319t August 2024 Contents Page Report of the Trustees Report of the Auditors Methodist Stsndard Form of Accounts Statement of Financial Activities ststement of Financial Position Cash Flow Statement Notes to the accounts ststement of Flnanclal Actlvltles 2017-18 3-14 15-18 19 20 21 22 23-28 29
Trustees Annual Report for the year ended 31st August 2024 The Trustees of the West Hertfordshire and Borders Methodist Circuit present their report, with the financial statements of the charity, for the year ended 31st August 2024. The Trustees have adopted the provisions of 'Accounting and Reporting by Charities: Ststement 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 1st January 2015),. l. Objectives and Activities In setting our objettives and planning our activities, the Circuit Trustees (who meet in September, February and June each year) have given careful consideration to the Charity Commissioners, published guidance on public benefit, and we believe that we conform with the Charities Act 2011, and the Charities (Accounts and Reports) Regulations 2008. Our ststed mission is to, 'encourage, enable and equip the churches, congregations and individuals of the Circuit to draw nearer to God, to proclaim the good news of Christ, and to share the love of God., We aim to achieve this through the provision of ministerial stsff, financial and other support to the seventeen Methodist Churches, one MethodisVAnglican LEP and one Methodi5t/United Reformed Church LEP in our local area (which covers Dacorum, Three Rivers, Watford, Harpenden and parts of Buckinghamshire and Bedfordshire). 2. Achievements and Performance Under the heading 'Collaborative arrangements with connected charities, (3.3 below), there is fvrther Informatlon on how we obtsin our funds. In this paragraph we provide an overview of how they were spent. For more detsil, please see the Churches, own Trustees Annual Reports (where these are required to be prepared). During the year, the principal input into the Circuit was through the work of the Minister5, seven Presbyters and one Deacon, aided by a part-time Lay Outreach Worker. Around 57 % of the revenue budget was spent on stipends and accommodation for the ministerial staff (£361k in 2023-24, £332k in 2022-23). This includes routine manse maintenance but not improvements and renovations. The Circuit appointed a paid Safeguarding Officer with effect from December 2018, with the role of supporting the churches in their safeguarding policies, practices, compliance and training; and a bursar from October 2021, with their work focussed mainly on property matters at the manses (although that post is currently vacant). The Circuit has a sum of money available for grants, principally for mission projects or to support Churches needing to make modifications to their premises to meet health and safety legislation, to enable inclusivity and to encourage eco-friendly improvements to church buildings. Funding is usually matched with what has been raised by the church in question, and is sometimes split three ways with the District. Where funds are required for other purposes, the Circuit may give short-term
or longer-term loans. Requests are invited, to be discussed first by the Circuit Leadership Team with final decisions being made by the full Circuit Meeting, except for smaller grants which can be approved by the Circuit Leadership Team (up to £3,000). Grants totalling £24,569 were paid during the year to 10 churches to support works to upgrade heating systems, repair roofs, replace windows, repair wooden flooring and upgrade sound and AV systems. The Circuit put in place a programme of support for the churches to enable them to meet steep rises in energy bills from April 2022. The impact on churches varied depending on when their fixed price contracts came to an end, with some churches affected almost immediately while others have longer contracts running into 2024 or 2025. The Circuit is funding increases in excess of 5 % per annum for the period from 1st April 2022 to 31 August 2026. The Circuit estimated the cost for the period from 1st September 2023 to 31 August 2026 at £IOO,000 per annum, giving an estimated totsl of £300,000. The actual cost in 2023124 was £61,895. Future estimates depend critically on fvture energy prices and the impact of measures being tsken by churches to reduce their energy consumption, 3. Financlal Review During the year, the Circuit received totsl revenue income of £599k (2022-23: £556k). The main reason for the increase in revenue receipts was higher interest income. Totsl Circuit expenditure was £764k (2022-23: £611k). The main reasons for this were improvement expenditure on the manses and a higher District Advance fund levy, reflecting the increase in the model trust fund following the property sale in the previous year. In terms of revenue expenditure there was a deficit in 2023-24 of £161,560 (2022-23: £57,522). The Trustees have every reason to believe that the Circuit is a going concern, in that they hold free reserves of around £740k, over and al)ove those required to cover six months of revenue expenditure and other specific commitments, even if every Church defaulted on its assessment. The title to the nine properties (manses) in which the Ministers live (including one currently let out) the Cloisters Hall, Markyate Methodist Church and Southdown Methodist Church are held by the Trustees for Methodist Church Purposes, in Manchester. The Circuit acts as Managing Trustee, and is responsible for the day to day management of these properties, having the right and obligations of exercising power or discretion over them. The church buildings of the active churches in the Circuit are the responsibility of their Church Councils, some of which have registered charity status in their own right, and some of which do not. In response to the new accounting standards, the manses have been revalued for these accounts (see note 7 for details). The principal source of funds for the Circuit is the assessment levied on the Churches. In addition, the Circuit received grants to support the work of one minister, who is also the chaplain to the Ghanaian Methodist Fellowship in the UK (this appointment ended in August 2024), and rentsl income from a manse. The churches, income is derived from freewill donations by church members and other5 attending worship, and payments for the use of church halls and rooms by clubs, activity groups and other
organisations. Despite significant reductions in these sources of income since March 2020 the majority of the circuit assessment payments by churches have continued to be made. However, some churches have reduced their assessment payments and others have indicated that they will need to do so as their income has not recovered sufficiently Sin churches were able to reopen for worship and for lettings use by local groups. As reported below the Circuit holds reserves of £740k over and above the baseline of 50 % of annual expenditure of annual expenditure and other specific commitments. The Trustees, view is that the Circuit's reseNes are sufficient to meet the likely shortfalls at present. A plan is being drawn up to address the future financial position in the light of these developments. From September 2016, staffing was dUCed by one Minister, leaving a vacant manse. A decision was made to rent out this manse for an initial period of two years, giving the Circuit the opportunity to assess whether the stsffing reduction was permanent or whether there were other Circuit (charitable) purposes to which the property can be put. During this period, the rentsl monies received will not be used for general revenue purposes, but to support transitions in the assessment process, to fund specific projects (currently the Circuit safeguarding Officer) and to add to the funds available for grants. Since this is not deemed to be a long-term use of the property, it has not been categorised as an investment property in the accounts. Future decisions about how we use the property may cause us to review this. The propety has been rented out for a further three-year period from September 2021. The rentsl income from the surplus manse has been unaffected by the coronavirus restrittions and the Trustees have no indication that there will be any significant impact on this income for the foreseeable future. Another manse fell vacant in August 2024 with the departure of the minister who was not replaced. A retired minister is living there temporarily and is supporting the work of the servi. The Southdown Methodist Church formally ceased to meet for worship in October 2023. A project is currently in development to develop the Southdown Methodist church building as a Christian performing arts centre (SPACe). The project is currently at the feasibility stage. The building was tsken into the managing trusteeship of the Circuit Meeting on 31 August 2024. 3.1 Investment Policy and Performance To comply with Methodist Standing Orders, monies for long term investment are lodged with the Trustees for Methodist Church Purposes (TMCP). As ststed above, TMCP acts as custodian trustee for all real estate held by the Circuit, for all large (over £20k) bequests, and for the proceeds of the sale of properties. These sums are invested in unitised investments or held on deposit. The investment returns are close to tracking the movements of the sE100 index. The deposit income reflects rates available elsewhere, but additionally the Circuit can be assured that the underlying investments take account of the social, environmentsl and ethical concerns of the Methodist Church. Short term deposits are lodged dirertly with the Central Finance Board of the Methodist Church (CFB) and attract a rate of interest in line with other market rates. Again, the CFB aim to utilise the monies held with them, alongside other denominats-ons, to engage with companies in which they
hold investments, to bring about change in line with our ethical concerns regarding poverty and unsafe working practices, etc. There are no other benchmarks for the expected returns on investments with the TMCP and CFB. The objective is a rate of return reflecting the market rate, but which fits with the Trustees, low appetite for risk. The Central Finance Board now have a number of accounts for funds not immediately required, and which attract slightly higher rates, which meeting the same ethical aims. These will bear further examination going forwards.
3.2 Reserves Level and Policy The Circuit has a reserves policy covering all of its unrestricted funds which is reviewed annually. The Charity Commission's recommended minimum policy level for free reserves is such as to pay for six months of revenue expenditure, although there continues to be conversation as to whether the Circuit should take Church and District reserves into account to avoid over provision along the chain of payments between the three tiers. The recommended amount equates to fifty percent of lines 9 - 16 of the Stsndard Form of Accounts (general fund), net of expenditure met by grants received, which in 2023-24 amounted to £279k (2022-23: £268k). The Circuit sets aside a sum each year from the revenue budget to meet maintenance expenditure on the manses, quinquennial inspections, and costs incurred when ministers move into the Circuit. Expenditure is allocated against that reserve for budget and financial planning purposes. The amount allocated in 2023-24 was £35,000. £20,432 was spent from this reserve during the year on manse maintenance, together with £4,122 on quinquennial inspections. There were no costs for removal and relocation of a new minister. The reserve stood at £32,043 at 31 August 2024. More substantial renovations and improvements to the manses are charged directly to reserves and not to the manse maintenance reserve. £121,200 was spent during the year, the main items being an extension to the kitchen and study at one of the manses, replacement of a heating system and works to improve insulation and damp-proofing. The Circult has set aside the rental income from the surplus manse as a special reserve with two purposes firstly to support churches who would suffer financial difficulties if they met their full allocated assessment. and secondly to support specific projects or appointments - the Circuit has appointed a paid safeguarding officer. The costs of this post will be met from this source. The total reserves held at the end of the year were as follows - Unrestritted fvnds General Fund TMCP Funds 9,031,359 823,342 9,854,701 Less.. invested in buildings (8,801,054) Uncommitted reserves 1,053,647 Less.. Sum set aside under Reserves Policy Less.. allocated to manses reserve Less.. reserye derived from surplus manse (278,733) (32,043) (3,331) Available for Grants 739,540
The Trustees consider that the level of reserves is sufficient to meet known risks, in particular the potential loss of assessment income from the churches in the light of the reductions in the churches, income, described above. Collaborative arrangements with Connected Charities The Circuit's main source of funding is the assessments paid by each of the Churches, amounting to £475k (2022-23: £461k). The West Hertfordshire and Borders Circuit came into being in 2012, formed from the merger of the Harpenden, Hemel Hempstead & Berkhamsted and Watford Circuits. Initially, the assessments charged to each Church reflected historical circumstsnces, being increased by small percentages, primarily to reflect pay increases. During 2015-16 the Circuit and Church Treasurers continued to work on an assessment formula which would reflect more closely the current position of each Church. Proposals were brought to the June 2016 Circuit Meeting reflecting ministerial input, Church membership and the ability of the Church to pay (measured in terms of their income over the previous three years). These were agreed, and have formed the basis of assessments for years from 2016-17, subject to a series of caps on the increases arising from the move to the new amounts, The Circuit is part of the Bedfordshire, Essex and Hertfordshire Methodist District, which in turn is part of the Methodist Connexion in Great Britsin. The District tskes a levy on Circuit reserves (above set limits) held with TMCP and credits these to the District Advance Fund, from which grants can be made. In 2022-23, this levy amounted to £7.5k. The levy in September 2023 was £71k, reflecting the significant amounts received on the sale of the Southdown Church Halls. In addition, the Distrirt collects an assessment from the Circuits, on behalf of the Connexion, based on staffing and membership numbers. The Circuit's contribution in 2023-24 was £101.6k (2022-23: £102.7k). As reported last year, the managing trusteeship of the Cloisters Hall in Rickmansworth was transferred to the Circuit with effect from 1st April 2021, following the dissolution of the Local Ecumenical Partnership (LEP) between Rickmansworth Methodist Church and St Mary's Church of England. The Trustees have concluded that it is uneconomic to continue to operate the hall and decided to close the hall on 31 December 2022, with a view to its disposal. The accounts of the Cloisters Hall have been consolidated Into these accounts but shown separately. Markyate Methodlst Church closed for worshlp on 31st August 2022. The Clrcult Meetlng became the managing trustees of the land and buildings on 30th June 2022. The land and buildings were transferred into these accounts on that date. Bank and CFB balances were transferred to the Circuit on 31st August 2022, and the trust funds held at TMCP were transferred on 1st September 2022. The money in those trust funds (£2,257) was withdrawn during the year to meet some of the ongoing costs of the Markyate chapel pending its sale, and the trusts were closed. The trustees, intention is to sell the building. Southdown Methodist Church closed for worship in October 2023. The church building was transferred to the Circuit on 31st August 2024 and work is in hand to develop the building as a Christian Performing Arts Centre C'SPACe'?. The church's financial resources, together with the lease on the Southdown Ha115 building, were transferred to High Street Methodist Church, Harpenden. An amount continues to be paid to the Circuit from the annual rental income of the property.
4 Trustees. Responsibilities The Trustees are responsible for preparing the Trustees, Report, and the financial ststements, in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Prattice). For each financial year (ending the 31st August), the Trustees are required to prepare financial statements that give a true and fair view of the Circuit's financial attivities during the year, and of its financial position at the end of the year. In preparing these statements, the Trustees must - select suitsble accounting policies and apply them consistently; obseNe the methods and principles in the Charities, SORP; make judgements and estimates that are reasonable and prudent,. follow applicable accounting stsndards, subject to any material departures being both disclosed and explained; prepare the financial ststements on the going concern basis, unless it is inappropriate to assume that the Circuit will continue in operation. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position of the Circuit, and enables them to ensure that the financial ststements comply with the law. They are also responsible for safeguarding the assets of the Circuit, and ensuring their proper application under charity law, and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. 4.1 Rlsk Managemen¢ Safeguardlng & Property As well as ensuring that the Circuit follows policies which minimise financial risk, the Trustees undertake to promote good practice in financial practices within the individual Churches, compatible with their size and resources available. Every person has a value and dignity which arise directly from our creation in God's own Image and likeness. This implies a duty to protett them from harm. The Trustees, on behalf of the West Hertfordshire and Borders Methodist Circuit, commit themselves to ensuring the implementstion of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the Circuit and in the Churches. They are committed 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. The Trustees have recently appointed a paid Circuit Safeguarding Officer to give these issues appropriate oversight. The Trustees, aim is to care prattically and appropriately for the Circuit's staff by providing and maintsining suitable and good quality housing which, as far as possible, will be in an appropriate location; enable the Circuit's staff to live in dignity and comfort and to carry out their Circuit responsibilities whilst respecting their independence and privacy; be adaptable to meet their needs.
The Circuit is committed to keeping all its property in a good stsndard of repair and will continue to strive to meet the Dent Homes Standard. It dS this by having a planned maintenan programme and by the provision of a responsive repair and maintenance service. Both the planned maintenance programme and the responsive repair and maintenance service are carried out so as to ensure that good value for money is obtained at all times. The Trustees will promote within their property, and within individual Churches, due attention to health and safety legislation and procedures. Physical safety is important. Information and advice will be shared with regard to, for example, Lone Working and Working at Height. Churches should have appropriate risk assessments in place. 5 Structure, Governance and Management The West Hertfordshire and Borders Methodist Circuit is an unincorporated charitable association governed by the Methodist Church Act 1976, the Deed of Union (1932), and the Model Trust Deeds of the Methodist Church. Detsiled governan arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD). It was registered with the Charity Commission on its formation in 2012, adopting the charity number of the preceding Watford Circuit. 5.1 Structure Clrcuits are the co-ordinating charities for local groups of Churches, in this case covering Dacorum, Harpenden, Watford, Three Rivers and parts of Bedfordshire (Studham) and Buckinghamshire (Ley Hill). Circuits pay the stipends of the Ministers and employ lay stsff to serve the Churches in the Circuit. The Circuit is part of the Bedfordshire, Essex & Hertfordshire District. Districts are the co-ordinating charities for a group of circuits and make their decisions at half yearly synods. The Methodist Conference meets once each year as the supreme denominational body for all the Methodist Churches. Overall regulatory authority rests with the Methodist Conference. 5.2 Purpose of the Circuit The Circuit is an expression, over a wider geographical area than any individual Church, of the connexional character of the Methodist Church. The purposes of the Methodist Church are and shall be deemed to have been since the date of the union the advancement of - the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church, and any charitable purposes for the time being of any Connexional, District, Circuit, local or other organisation of the Methodist Church, and any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church, and any purpose for the time being of any charity being a charity subsidiary or ancillary of the Methodist Church. 10
The primary purpose of this Circuit is to advance the mission of the Church as we, 'encourage, enable and equip the churches, congregations and individuals of the Circuit to draw nearer to God, to proclaim the good news of Christ, and to share the love of God, by placing at their disposal resources of finance, personnel and expertise. 5.3 Governance The Circuit operates within a ststutory framework of regulation and seeks to ensure that it follows Methodist Standing Orders. It relies on the Connexional Office at 25 Tavistock Place, London WCIH 9SF, and on District stsff to provide guidance on changes that could affect the Circuit. The Trustees comprise the Circuit Stsff (with the exception of the Circuit Administrator), other Methodist Ministers resident in the area, Circuit Officers, and representstives of each of the Churches, elected by their Church Councils. The number of representatives is relative to the size of the Churches, membership. The Circuit Leadership Team meets on a bi-monthly basis, but major decisions, including those of expenditure are subject to agreement or ratification by the Circuit meeting, which meets three times a year (and at other times if necessary for urgent decisions). In turn, the Circuit Meeting appoints representatives to the Distritt Synod, the Distritt's decision-making body. 6 Reference and Admlnlstratlve Detalls 6.1 Name of the Charity The West Hertfordshire and Borders Methodist Circuit 6.2 Charity Registration Number 1135094, registered in England and Wales 6.3 Clrcult Office Circuit Office Harpenden Methodist Church High Street Harpenden Hertfordshire AL5 2RU 01582 713056 westhertsandb ir ui mail. 6.4 Superintendent Ministsr Rev. Rachael Hawkins li
6.5 Secretary of the Circuit Meeting Lyndsay Campbell 6.6 Circuit Treasurer David Edney 6.7 Circuit Administrator Jennifer Frith (non-Trustee) 6.8 Circult Staff Rev Quophie Anochie Ababio (left the Circuit 31st August 2024) Rev Andrew Brazier Rev Dr Donna Fowler-marchant Rev Mark Hammond Rev Rachael Hawkins (Superintendent) Rev Joyce Mayisiri Rev Helen Roberts (appointed to the Circuit 1st September 2023) Deacon Sarah Wickett Jennifer Frith (Administrator.. non-trustee) Pauline Jackson (Safeguarding OITicer.' non-trustee) Robin McEwen (Lay Outreach Worker) - to 31 December 2023 6.9 Circuit Officers Linda Black ( Circuit Stewara) David Edney (Circuit Steward and Circuit freasurer) Janet Gilfoyle (Circuit Steward) Mike Lees (Circuit Steward) Lorraine Pearce ( Circuit Stewar£fj David Noble (Circuit Property Secretary) - to June 2024 Lyndsay Campbell (Circuit Meeting Secretary) Linda Hillier (Secretary of the Local Preachers'meeting) - to June 2024 6.10 Names of Trustees Circuit Stsff and Officers are automatically members of the Circuit Meeting (unless noted otherwise). Supernumerary Ministers, or other Methodist Ministers resident in the area, also have a right to be part of the Circuit Meeting. Other Trustees are appointed by the Circuit's Church Councils, the number being dependent on the size of the individual Church. 12
In addition to those named above, the followlng seNed as Trustees at some point during the year 2023-24, or are Trustees as of the date of the approval of this report. One Minister who is resident in the area, but not artive in Trustee decision making, has requested that their details do not appear in any publications. Rlchard Atklns Jeni Bowman Susan Pyce Paul Creasey (from Feb 2023) Margaret Faulkner Celia Grn Michael Hill Miranda Kowalczyk (from May 2023) David McGuire Ann Matthews Paullne Rogers Chrystyna Smith Debra Sutherland Esther Wane (from September 2023) Rev Brian Tebbutt (Supemumera Rev Caroline Weaver (Supemun7era Shireen Wickham Margaret Woods Rosemary Berdlnner Alison Brain Rev John Fellows (Surnun¥ary) Jenny Harris Paul Johnston Janice Lewis Lesley Markham-jones (from Aug 2023) Linda Morgan (from May 2024) Penny OY4elll (to Feb 2024) David North (to Aug 2024) Davld Paln Rosemary Rhodes Ann Shepherd Kathryn Spall Trevor Wadcock (from Aug 2024) Clive Wickham Suzanne Wood 6.11 Bankers Unlty Trust Bank PLC Nine Brindleyplace Birmingham. BI 2HB Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE 6.12 Investment Managers and Custodian Trustees Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester Ml IJQ 6.13 Audltors Hicks and Company Chartered Accountants & Ststutory Audltors Vaughan Chambers Vaughan Road Harpenden Hertfordshire AL5 4EE 13
6.14 Churches maklng up the Circuit Abbots Langley Methodist Church All Saints,, Berkhamsted (Angllcanlmethodist Local Ecumenical Partnership) Batford Methodist Church Berry Lane Methodist Church Bushey & Oxhey Methodist Church Carpenders Park and South Oxhey Methodist Church Croxley Green Methodist Church Gaddesden Row Methodist Church Harpenden (High Street) Methodist Church Hemel Hempstead Methodist Church (HHMC) Kings Langley Methodist Church Ley Hill Methodlst Church Markyate Methodist Church ** The Scroll Church (MethodlsVURC LEP) Redboum Methodist Church St Andrew's (Bushey Heath) Methodlst Church St Martha's (Tring) Methodlst Church Southdown Methodist Church (ceased to meet for worshlp October 2023) ++ Studham Methodist Church Trlnlty (Watford) Methodist Church Trowley Hlll (Flamstead) Methodist Church ** Markyate Methodist Church formally closed on 3 1st August 2022. The land and bulldings were transferred to the managing trusteeship of the Circuit on 30th June 2022. The balances at the Central Finance Board were transferred to the Circuit on 31st August 2022; and trusts held by the Trustees For Methodist Church Purposes for the benefit of the church were transferred to the Circuit on 1st September 2022. ++ Southdown Methodist Church closed for worship in October 2023. The chapel buildlng was transferred to the Clrcult on 3 1st August 2024. The financial resources together wlth the resldual freehold of, and the benefit of the lea* on, the Southdown Halls building were transferred to High Street Methodist Church, Harpenden. An amount continues to be paid to the Clrcuit from the annual nts1 Income of the propety. Statement of disclosures to the Audltor (a) So frdr as the Trustees are aware, there is no relevant audit informatlon of which the Auditors are unaware, and; (b) We have tsken all the steps we ought to have taken as Trustees in order to make ourselves aware of any relevant audit information and to establish that the Auditors are aware of that information; Approved by the Trustees on the 21st May 2025 Rev Rachael Hawkins (Superintendent Minister) 14
WEsf HERTFORDSHIRE AND BORDERS METHODIST CIRCUIT INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31st AUGUST 2024 Oplnion We have audited the financial statements of The West Hertfordshire and Borders Methodist Circuit Cthe charity,) for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Statement of Financial Position 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 Stsndards (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial ststements: give a true and fair view of the state of the charity's affairs as at 31 August 2024 and of its incoming resources and application of resources, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those stsndards are further described in the Auditors, 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 ststements 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 relatlng to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial ststements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sertions of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 15
In connection with our audit of the financial ststements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or sufficient accounting records have not been kept; or the financial ststements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Ststement, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial ststements that are free from material misstatement, whether due to fraud or error. In preparing the financial ststements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Our responsibilities for the audit of the financial statements We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulatlons made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial ststements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit condutted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users tsken on the basis of these financial ststements. Irregularities, including fraud, are inStanS of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misststements in respect of irregularities, including fraud. The extent to which our prOdureS are capable of detecting irregularities, including fraud is detsiled below: 16
Based on our understanding of the entity and sector in which it operates, we identified the principal risks of non-compliance with laws and regulations relating to the charity. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtsining an understanding of how fraud may occur, by making enquiries of the trustees and management as to where they considered there was susceptibility to fraud and considering the intemal controls in place to mitigate fraud risks and non-compliance with laws and regulations. In response to the risk of fraud through management bias (including the risk of override of controls) and the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: perfomiing analytical procedures to identify unusual or unexpected transactions assessing whether judgements and assumptions made in determining accounting estimates were indicative of potential bias reviewed a sample of transactions from the charity's records performing completeness of income tests test checking the appropriateness of journal entries agreeing financial statement disclosures to the underlying supporting documentstion checking for correspondence with the Charity Commission reading the minutes of board of trustees, meetings checking for any actual and potential litigation and claims There are inherent limitations in our audit procedures outlined above, The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misststements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. We are not responsible for preventing non-compliance and cannot be experted to detect non-compliance with all laws and regulations. A further description of our responsibilities for the audit of the financial ststements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. 17
Use of our report This report is made solely to the charity'5 trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Philip n BA, FCA (Senior Statutory Auditor) Hicks an Company Chartered Accountants and Statutory Auditors Vaughan Chambers Vaughan Road Harpenden Hertfordshire AL5 4EE Date: 22 ffl¢Y 2Jaf . 18
THE METHODIST CHURCH TRUSTEES ANNUAL REPORT AND ACCOUNTS (ACCRUALS BASIS) For the year ended 31st August 2024 West Hertfordshire and Borders Methodist Circuit Registered Charity - Registration number 1135094 Districvcircuit No: 34114 Ministers: Rev Rachael Hawkin5 (Superintendent) Rev Quophie Anochie Ababio (to 31st August 2024) Rev Andrew Brazier Rev Dr Donna Fowler-marchant Rev Mark Hammond Rev Joyce Mayisiri Rev Helen Roberts (from 1st September 2023) Deacon Sarah Wickett Clrcult Stewards: Linda Black David Edney Janet Gilfoyle Mike Lees Lorraine Pearce Circuit Treasurer: David Edney 19
West Hertfordshire and Borders Methodist Circuit 34114 ststement of Financial Activities (SOFA) for the year ended 31 August 2024 Plotes to General Fui (Vnrestricted) Circuit Model Trust (Unrertrlcted) Cloisters Hall Totsl 2023-24 Total 2022-23 accounts Income and Endowments from: l Donations and legacies 2 Income from mc¥*tary investments 7,920 51,947 59,867 34,108 3 Income from Investment properties 1,075 4 Assessments on Churches 474,776 474,776 461,264 5 Capltsl Reipts 941,553 6 Grants received 20,779 20,779 17,OlXI 7 Other charitsble income 43,631 43,631 42,862 8 Total Income 547,106 51,947 599,053 1,497,862 Expendlture ON: 9 Grants and dOnaon5 86,464 86h64 56,131 10 Salaries and associated costs 333,862 333,862 305,232 I I Property malntenance 73,093 73,093 49,149 12 Connexional assessment & model trust I 13 Dlstrlrt Assessment & L 101,612 71,381 172,993 110,183 14 Depreciation 15 Offlce expen5e5 365 365 1,246 16 Other outgolngs 93,954 3,140 97,094 89,151 16b Sale of land 17 Total charltable expendlture 689,350 74,521 763,871 611,092 18 Galns1{losses) on monetary Investments 3,258 3,258 -1739 19 Galn51(10sses) on investment propertles 20 Net Incomel(expendlture) -141244 -19,316 -161,560 884,031 21 Transfers btheen funds 259,082 -259,082 22 Other gainsl(losses) -293,730 -293,730 113,000 22a Propety introduced 561,446 561,446 23 Net movement In funds 384,554 -278,398 106,156 997,031 24 Totsl funds brought forward 7,764,452 1,101,740 882.353 9.748.545 8,751.514 25 Total funds carrled fornvard 8.149,006 8Z3,342 882,353 9,854,701 9,748,545 20
West Hertfordshire and Borders Methodlst Clrcuit ,tatement of nanCIal Position as at 31 August 2024 34114 GÈneral Fund (Unrestiicted) ayallt Mod Tri Fund (Unr¢sbiLtsd) Totals 2024 Totals 2023 Hall Cinit Marses Bulldi 7 918 701 7 918 701 7 575 QOO [nve5tsnt 882 353 Invrthts 701 Debtors aThJ Pr ents Invtstsnents wth TMCP 1053 199 C01 Fmwl Pgjard De Cath at Bank and In hand 107 CuTr•it Ilabllltles Ikn In under I io ants able wlthln 2023-24 66 19 19 so 00 701 Loars and ue1lt0 due aftw l year li 353 Funds of th• artult General nd 5 119 790 353 62143 5 961291 Ckojlt Mcdel TnLSt FK1 1101740 UnrestrlLtsJ 2 685 514 IntrodLKed 13 701 Cwcuit Mcthl Trust Fund (Unrestrl nated Endowrnent Funds 149 06 701 The financial statements were approved by the Board of Trustees on 21st May 2025 and signed on their behalf by: Rev Rachael Hawkins Superintendent Mlnlster 21
West Hertfordshire and Borders Methodist Circuit Cash How Statement for the year ended 31 August 2024 2024 2023 Cash from operatlng actlvltles Net cash used in operats.ng aLtfivities (199,033) 848,118 Cash flows fr(wn In¥estlng artlvlUe$ Dividends. interest and from investrnents PrCeedS from the sale of property* plant and equipment Purchase of propth, plant and equipment Purchase of Intangiwe assets PreedS from the sale of investments 51.551 43.755 [rChaSe of Investments Other- Thomtsjry extenslon Net cash wovlded by Inve4tlng a¢tlvltl (75,985) (24,434) 43,755 Cash Ilow$ from flnan¢lng a¢tlvltl New borrowing - loan made to North Watford Repayments of borrowlng Net cash used In flnandng artlvltles Cash and Cash Equlvalats- aolsters Hall transferred to the Clrcult on l Aprll 2021 Change In cash and cash equlvalents In the Mportlng perlod Cash and cash equivaknts at the beginning of the reporting period Cash and cash equlvalents at the end of the r¢portlng perfod (223,467) 1,266,599 1,043,132 891,873 374,726 1,266,599 Recondllatlon of net Income to net ca$h flow from o ¢ratln •ctlvltle• Net income the reportlng period {as per statement of flnanclal activitlesl Adjustments lor. DepreCiatn and amortisation charges Profit on the sale of fixed assets (161,560) 884,031 Loss on the sale of fixed assets (Galns)ILosses on investments Dividends, interest and rents from investments Decreasel{increase) in stocks (increase)Idecrease in debtS increase/{decrease) in credltors Net Gish used In operatlng actlvltles (3,258) (51,551) 2,739 (43,755) 1,373 15,963 (199,033) 3,119 848,1 kn)1 b of cash and cash Cash in hand ulvalent 22,586 ,247 Short term deposit {less than 3 months) Total cash and cash equlvalents 1,020,546 1,043,132 1,258,352 1,266,599 22
West Hertfordshire and Borders Methodist Circuit Notes to the Accounts l Basis of accounting The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS102) 'Accounting and Reporting by Charities: ststement of Recommended Prattice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2015),, and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. 2 Funds The funds held constitute: General Funds held for any purpose of the Circuit which are unrestricted. The Circuit Model Trust Funds have wide purposes defined in Standing Orders and are categorised as unrestricted. The Revaluation Reserve (Unrestricted) relates to the revaluation of the freehold properties (manses). Restricted funds are those held for a narrower purpose and endowment funds which represent gifts, the capital normally being unavailable for spending, and the income from which is either restricted or unrestricted. Any funds may be represented by more than just cash. 3 Accounting policies Incomlng resources These are included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, the trustees are virtually certain that they will receive the resources; and the monetary value can be measured with sufficient reliability. Resources expended Expenditure is recognised when a liability is incurred, or a construrtive obligation arises, that results in the payment being unavoidable. Whilst some grants may be agreed in principle for a number of years, they are confirmed on an annual basis. Governance costs amounted to £4,404 comprising audit fees of £4,284 and bank charges and fees of £120. All other expenditure relates to the costs of the charitable activities. Liability recognition Liabilities are recognised as soon as there is a legal or constructive obligation committing the Circuit to pay out resources. 23
Tanglble fixed assets for use by the Circuit Tangible fixed assets are capitalised if they can be used for more than one year, and cost at least £1,000. They are valued at cost or a reasonable value on receipt. Where cost is not available, the Circuit Meeting may provide a reasonable estimate of cost or of the buildings, current value to the circuit. The manses have been revalued to market value, and further details relating to this revaluation can be found in note 7 below. Provision is made for depreciation where appropriate. From September 2016, the stsffing was reduced by one Minister, leaving a vacant manse. A decision was made to rent this out for an initial period of two yearsi giving the Circuit the opportunity to assess whether the stsffing redurtion was permanent or whether there were other Circuit (charitsble) purposes to which the property can be put. The rent received is being used to support some of the Churches who are most financially stretched and to fund specific projects. The manse has been let for a further three-year period from September 2024. Investments Investments are ststed in the statement of financial position at the bid Pri at the year-end. Investment income is included in the accounts when receivable and any gains or losses on revaluation at the year-end are also shown in the SOFA. Taxation The Circuit is exempt from tsx on its charitable activities. Pension costs The ministers are members of the Methodist Church Ministers, Pension Scheme, operated centrally. The Circuit also participates in a defined contribution pension scheme operated by the Pensions Trust. Contributions payable to these pension schemes are charged to the Statement of Financial Activities in the period to which they relate. 4 Payments to Trustees 2024 2023 Payments made to Trustees for additional services provided to the Circuit Number of Trustees who were paid expenses These expenses include travel costs, preaching fees paid to Supernumerary Ministers, and reimbursement of payments made on behalf of the Circuit Total amount paid 1,144 £ 2,633 24
5 Fees for examination or audit of the accounts 2024 2023 Auditor's fees for reporting on the accounts £4,500 £4,500 Other fees (e.g. advice, accountancy services) paid to the auditor 6 Paid employees 2024 2023 Staff costs paid during the year were: Gross wages, salaries and benefits in kind Employerfs National Insurance costs Pension costs Payroll Bureau Fee Apprenticeship Levy £248,552 £230,687 £ 22,216 £ 20,274 £ 61,379 £ 52,541 480 480 £ 1,234 £ 1,250 Total stsff costs £333,861 £305,232 Average number of staff in the year: (comprising six full time and five part-time staff) 11 11 The use of the word 'stsff should be tsken to include both lay stsff employed directly by the Circuit, and Presbyters and Deacons who are legally not employees, but 'office-holders'. Whilst their relationship is technically with God and the Connexion, their stipends are funded from Circuit funds. 7 Tangible Fixed Assets Cost or Valuation Total Manses & (Restated) Buildings Equipment Balance brought forward Additions 8,457,353 2,919 8,460,272 637,431 637,431 Revaluations -293,730 -293,730 Disposals Transfers Balance carried forward 8,801,054 2,919 8,803,973 25
Maintenance work is taken from revenue expenditure. For internal accounting purposes the trustees have estsblished a reserve policy to even out the annual costs of maintaining manses, which tend to be highest in years when ministers change appointments. Accumulated depreciation Depreciation is provided for in order to write off each asset, e.g. computer equipment, over its estimated useful life. Basis: Rate: straight line Equipment - over 3 years; Manses - over 50 years Balance brought forward 2,919 2,919 Depreciation charge for the year Revaluations Disposals Transfers Balance carried forward 2,919 2,919 Net book value Brought forward Carried forward 8,457,353 8,457,353 8,801,054 8,801,054 The Circuit holds nine properties (manses) on the statement of financial position, which were previously held by the three former Circuits prior to the merger on the 1st September 2012. Methodist guidelines allowed for these to be stated at their cost price, market valuation or insurance value, and all three forms of valuation had been used by the former Circuits. Following the merger, it was decided to include the manses at their inherited value in the Circuit's accounts. When preparing the accounts for the year ended 31 August 2016, the Trustees reviewed this policy in the context of the new accounting statements (SORPS), coming into effect, and decided to account for the manses at their market value. Accordingly, the Trustees have valued the manses and buildings at the 31st August 2024. The overall effect of the revaluation during the year has been a reduction in reserves at 31st August 2024 by £293,730 (2023: increase of £113,000). The value of the buildings as at 31st August 2024 of £8,801,254 is comprised of the totsl inherited amount of £5,771,838 plus the revaluation reserve of £2,467,770 and propety intrOdUd at 311812024 of £561,446. 26
8 Investment assets Analysis of investments Bld Price at year end Investments listed on a recognised Stock Exchange or held in common investment funds, open ended investment companies, unit trusts or other collective investment schemes Securities not listed on a recognised Stock Exchange Cash held as part of the investment portfolio Other investments 51,799 51,799 Total Change in investment values Carrying (market) value at the beginning of the year Add: additions to investments at cost 48,541 Less: disposals at carrying value Add/(deduct): net gain/(loss) on revaluation Carrying (market) value at the end of the year 3,258 51,799 9 Debtors 2024 2023 Sundry debtors & prepayments 25,135 26,508 Principally reflecting ministerial stipends paid in advance. 10 Creditors due within one year 2024 2023 Sundry creditors & deferred income 66,419 50,546 Principally reflecting assessments paid in August for the following year. 27
11 Creditors due after one year 2024 2023 Sundry creditors & accrued income 12 Capital Commitments & Contingent Liabilities 2024 2023 At the 315t August, capital commitments amounted to: 13 Clrcuit Reserves The Circuit's policy 15 to allocate its reserves as follows: General reserve equal to 50 % of annual expenditure: £ 278,733 Manse repair and maintenance reserve: £ 32,043 Reserve from the income from the surplus manse, allocated to support churches with their assessments and to fund specific projects and appointments: £ 3,331 Balance of reserve available to make grants to Circuit churches to support mission projects, necessary work to address health & safety or accessibility, energy efficien rovements, and ener bills: £ 739,540 Totsl Reserves (excluding the value of buildings) £ 1,053,647 28
Name of fjrcuit Circuit No West Hertfordshire and Borders statement of financial Activities (SOFA) for the year ended 31 August 2023 34114 Clrcuit Model General Fund Trust (Unrestrfcted) (Unrestrfrted) Notes to the a¢¢ounts aolste Totsl 2022-23 Income l Donations and legacies 2 IrKcrfne from monetary investments 5,715 28,393 34,108 3 Income from Investment properties 1,075 075 4 Assessments on Churches 458,551 2,713 461,264 5 Capitsl Receipts 941,553 941,553 6 Grants received 17,000 17,1100 7 Other tharitable Income 36,415 5,897 550 42,862 8 Total fncome 517 681 978 556 1497 862 Expendlturn 9 Grants and donations 56,131 56,131 10 Salarfes and a%odated costs 305,232 305,232 11 Propeity malntenance 12 Connexional assessment & model trust le 48,441 49,149 13 District Assessment & Levv 14 Sale of Land 102,676 7,507 110,183 15 Offlce expenses 1,246 16 Oiher outgolngs 75,743 4,612 8,796 89,151 17 Total charltable expandltum 119 18 Gain51110sses) on monetsry investments 19 Gainsll1055e5) on Investment properties -2,739 -2,739 20 Net Incomel(expendlturn) -71,788 963,698 -7,879 884,031 21 Transfers between funds 130,664 -94,586 -36,078 22 Other gain51(1¢)sse5) 113,000 113,01)Q 23 Net movement In fvndg 171876 869 112 997 031 24 Total funds browht foThvard 7,592,576 232,628 926,310 8,751,514 25 Total funds carrled forwanl 7 764 452 1 101740 882 353 9 748 545 29