Circuit Number 2801 Wolverhampton Methodist Circult REPORT AND FINANCIAL STATEMENTS For the year ended 31 August 2024 (Charlty Number 1135146) Muras Baker Jones Limited Chartered Accountants Wolverhampton
Wolverhampton Methodist Circuit Contents For the year Ended 31 August 2024 Administrative Information Trustees, Annual Report Statement of Trustees, Responsibilities 13 Auditors, report 14 Statement of Flnanclal Actlvltles 18 statement of Flnanclal Position 19 Cash Flow Statement 20 Notes to the financial statements 21
Wolverhampton Methodist Circuit Administrative Information Registered Charity Number 1135146 Superintendent Minister: Revd. Dr Joanne Cox-Darling Ministers in the active work: Revd. Steve Jackson Revd. Christopher Parkes Revd. Rosemary Nash Revd. Paul Nzacahayo Revd. Teddy Siwila Deacon Linda Gilson Senlor Steward; David Crook Clrcult Stewards: Denls Beaumont Andre Burns Alan Eccles Gabrlel Gidi Lesley Cook. Edward Bridgwood Clrcult Treasurer: Rob Turton FCA Other Trustees: Revd. Glennys Bamford Revd. Steve Singleton Revd. Robert Readshaw Revd. Trevor Pratt Together with 51 other Trustees Revd. Donald Ryan Revd. Margaret Helm Revd. Ivor Sperring Registered Office: Beckminster Methodist Church Birches Barn Road Penn Fields Wolverhampton West Mldlands WV3 7BQ Charity: 1135146 Auditors Muras Baker Jones Limited Regent House Bath Avenue Wolverhampton West Midlands WVI 4EG Bankers; Lloyds Bank PIC Queen Square Wolverhampton West Midlands WVI ITF Barclays Bank PIC Queen Square Wolverhampton West Midlands HSBC Bank PIC Queen Square Wolverhampton West Midlands
Wolverhampton Methodist Circuit Administrative Information Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE Investment advisors: Trustees for Methodist Church Purposes (TMCP) Central Buildings Oldham Street Manchester Ml IJQ Solicitors: Anthony Collins LLP 134 Edmund Street Birmingham B3 2ES
Wolverhampton Methodist Circuit Trustees Report For the year ended 31 August 2024 Objects and Activities of the Circuit The purposes of the Methodist Church are and shall be deemed to have been since the date of Union the advancement of: The Christian falth in accordance with the doctrinal standards and the discipllne of the Methodist Church; Any charitable purpose for the time being of any Connexional, distrlct, circuit, local or other organisation of the Methodist Church; Any charitable purpose for the tlme being of any society or Institution subsidiary or ancillary to the Methodist Church. Any purpose for the tlme belng of any charity belng a charity subsidiary or anclllary to the Methodist Church. b) d) The objectives outlined above are achleved through the strategic direction of the Circult Leadership team and the Circuit meeting. The Leadershlp team meet at least 6 times a year and the Circuit meeting at least 3 times a year to revSew and implement objectives, monitor our discipleship and to recelve regulatory Information either from the Methodlst Church or other means. Public Benefit We conflrm the trustees have had regard to the Charity Commission's guldance on public benefit. The work which we carry out with our Churches and the Communities in whlch they are situated is deslgned for the benefit of all. It not only supports our Church members but also provides the resources required to deliver mission and outreach to the most needy In our Society. This Is achleved in various ways through the use of our Church buildings to work with people and organisations, through support of local food bank and homelessness projects and also through other forms of partnership working within our Local Communlties. Structure, Governance and Management The governlng document for the circuit is the Deed of Unlon (1932) and Methodlst Church Act (1976). Detalled governance arrangements are outlined within the Constltut5onal Practice and Dlsclpline (CPD) of the Methodist Church by order of the annual conference. These are updated annually. Day to day management of the clrcuit Is undertaken by the Clrcult Leadership team, whlch comprlses of the Superlntendent Minister, the Mlnisterial Team, the Circult Stewards and the Honorary Treasurer. Together they represent the key management team. They are supported by the Local Preachers meetlng. The Clrcuit Leadership team is accountable to the Members of the Circuit meeting who are also Trustees of the Circuit. Trustee Training A range of guidance is produced by the 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.
Wolverhampton Methodist Circuit Trustees Report For the year ended 31 August 2024 Related Parties The Circuit is part of the Wolverhampton and Shrewsbury District of the Methodist Church and is also accountable to the Methodist Conference. The following Methodist Churches are members of the circuit: Beckmlnster Bradley Brewood Codsall Cranmer Coven East Park Fallings Park Hurst Hill Lanesfield Rakegate Springdale st Johns stratton Street Upper Ettingshall Wombourne Further to thls the Clrcuit managed two Churches for part of the year ,these being Wednesfield Methodist Church ,whose congregation ceased to meet several years ago, and Stowlawn Methodist Church, whose congregation ceased to meet in 2022.These properties were disposed of durSng the years further detailed in Note 7 to the Financial Statements. In addition to the above St Andrews United Reformed/Methodist Church based In Sedgley remains part of the Clrcuit under a sharlng arrangement with the United Reformed Church. Revlew of Activities In designlng and monltorlng the actlvitles of the Charityi the Trustees have paid due regard to the Charity Commissions guidance on public benefit as further detailed on page 4. The review of activities In the followlng sections demonstrates how the Charlty has provided benefit directly to the churches which comprise the Circuit and thereby to the local congregations and wider local communities Involved with those churches. General Revlew The Clrcuit continues to be an active and major member of the Wolverhampton and Shrewsbury District. Locallyi and within our own Circult boundaries, the Circuit has continued to support the congregations and communities that our Churches serve. It has achieved this with the support of 7 ordained Presbyters who received stipends for their roles. The Circuit also employs several key lay support workers who are paid for from Church contributions, donations and Circuit funds. Additional support continued to be provided by retired ministers who continued to have closer day to day involvement with several of our smaller congregations. The local churches continue to provlde programmes of worship, pastoral care and community involvement under the leadership of Ministers, lay employees and local Church Trustees.
Wolverhampton Methodist Circuit Trustees Report For the year ended 31 August 2024 On I September 2023 we welcomed Rev Christopher Parkes to the Circuit on a reduced hour's basis. Activities and Future Plans As part of the on-going development of the Misslon of the Circuit and of its objectives, the Clrcult conducted a structural review several years ago. The Circuit Leadership Team have taken this forward during the year and have developed a circuit vision for the future which has been shared with our Clrcuit meeting and Churches. The aim being to Improve our use of resources, to provide missional leadershlp to support growth and to ease the current burden on our Presbyters and Leadership Team, all of this whilst acknowledging that our problems are the same as those the Church faces generally in the light of a general lack of people able to carry out the roles that Church Trusteeship requires in the modern world, A 3 hub structure for Churches was agreed upon by the Circult meetlng during the year. The Clty Centre missional work remains outside the hub structure as a beacon of outreach. The CLT and Circuit meeting are now planning for the new the structure to be operational from I September 2025.The creatSon of this structure will see a further Investment of model trust monies into the Clrcult as 5t develops and Increases outreach, As an LEP St Andrews will remaln as part of the Circuit but wlll not be part of a hub. The hub structures wlll eventually see each hub registered as a Charity wlth their own Trustee body who wlll oversee the runnlng and finances of the Churches In the hub. Bllston Methodlst Church ceased to meet in November 2023 and since then the protection and management of the Church buildings has been undertaken by the Circuit. The Leadershlp team are actively pursuing opportunities forthe ongoing use of the building and currently they are being utilised by the Zimbabwean Methodlst Fellowship and by a local homeless charity. In addition a number of smaller lettings take place from time to time. The empty manse at Lewls Street, Bllston was sold by auction during the year. The disposal of properties referred to above has taken a considerable burden away from the Circuit finances and leadership team and also reduced the outgoings of the Circuit whilst increasing our model trust reserves for use in future missional activity. The Ministers, Trustees and senlor leadershlp team continue to believe that the implementatlon of the strategic Vlsion for the Circuit as described above will leave it better placed to react to areas of need In the future across an area where there are significant dlfferences in wealth with many of our Communities located in areas of significant deprivation and diverse beliefs where currently the cost of living crisis is further exacerbating matters. 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 t17em 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 protertion of all children, young people and adults when they are vulnerable.
Wolverhampton Methodist Circuit Trustees Report For the year ended 31 August 2024 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 responslbility within the Church, in line with Safer Recruitment principles, including the use of criminal records disclosures and registration wlth the relevant vetting and barring schemes" We will respond wlthout delay to every complaint made whlch 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 wlll 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 prlnclples we wlll follow legislationi guidance and recognlsed good practice. Safeguarding continues to be an important area of conslderation for the Church and we contlnue to work with the Wolverhampton and Shrewsbury District and the wider connectlon in order to ensure that our pollcies, training and practices meet all of the statutory and legal requirements in this area. Major Actlvltles The year to 31 August 2024 continued to present significant financial challenges operationally which the Circuit has had to deal with. The effects of some of these, some of which are being caused by the cost of livlng and energy crisis, are still being felt withln our Communities and we continue to carry out work to help in these areas. As already referred to one of our Churches, Bilston Methodist Church, took the decision during the year to cease to meet and Its final service was held on 30 November 2023. The responsibility for the Church has accordingly now transferred to the Circuit meeting. As explained above potential uses of the Church buildings are currently under consideratlon and, as yet, no firm decision has been taken on retention or disposal of the buildings. This will be done In the coming months. Further to the above there continue to be several other Churches within the Circuit who are struggllng to cope flnancially and the Clrcult continues to work wlth those churches, both through short term support and longer term plannlng (through our vision work), in order to flnd sustainable solutions for the future which further the objects that we have as a Methodist Circuit whilst continuing to help our local congregations and communitles. Our City Centre Mission work, led by Deacon Linda Gllson, continues to develop and grow. The minlstry operates as part of the Missional work being undertaken by Deacon Llnda Gilson. Funding for thls comes from the Model Trust monies held following the sale of Darlington Street together with the balance of the monies held within WPM at the point of the transfer of responsibility. These amounted to just over £33000.This is an exciting development for the Circuit and its Mission and we are already seeing signs of how this mlsslonal work is benefiting the City. Risk Management The major risks have been identified and recorded by the Circuit Leadership Team and Circuit meeting with professional advice taken as required. These centre around, the effects of Covid-19 (where risk assessments and opening protocols for each property have been put in place by local Trustees after approval by the Circuit leadership team) property (Manses and Churches) maintenance costs and finally the need to stay up to date with safeguarding protocols and procedures and with GDPR legislation.
Wolverhampton Methodist Circuit Trustees Report For the year ended 31 August 2024 Income and Expenditure continues to be monltored throughout the year both in total and in detall and is compared with the approved annual budget on a half yearly basis to detect trends as part of the rlsk management process and to avoid unplanned calls upon reserves. The Wolverhampton Methodist Circuit has committed itself to ensurlng the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the circuit and in the churches. It has also committed itself to the provlsion of support, advice and tralning 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.
Wolverhampton Methodist Circuit Trustees Report For the year ended 31 August 2024 Flnancial Report The result for the year shows an overall surplus of £149,772 (2023 surplus split across funds as follows: £571,205). The result is General fund Circuit Model Trust Fund Designated Funds Restricted Fu nds £(163,964) £310,487 £(2,024) £5,273 (2023 - £16,258) (2023 - £565,249) (2023 - £(1,635)) (2023 - £(8,667)) Surplus Surplus Deficit for both years Surplus / (Deficlt) The princlpal elements affectlng the result for the year are as follows: A) The General Fund produced a deficit for the year of £163,964 (2023 surplus £16,258) after transfers from other Funds. Before transfers the fund was In deficlt by £186,524 (2023 £58,080). The pre-transfer result Is after depreclation of £26,782 (2023 - £27,200) has been charged. The actual result before depreclatlon was a deficit of £159,742 (2023 - £30,880 surplus). This is explained by the decision the Circuit took in previous years to fund a deficit budget and to fund the City Centre mission from the proceeds of sale of Darllngton Street. Thls Is the case in the current year too. In total net transfers of £22,560 (2023 - £74,338) were made from other funds. These were largely monles withdrawn from Model Trust Funds to support the ongoing work of the Circuit and the City Centre Mission post. At the end of the year the General reserves stood at £1,415,303 (2023 - £1,579,267) and principally comprised Flxed assets (being manses and related costs) and net current assets held for working capital purposes. B) The Circuit Model Trust fund produced an operating surplus before transfers of £327,660 (2023 -£565,249) principally as a result of the receipt of monies from the sales of Wednesfield and Stowlawn churches, and the disposal of the Lewis Street manse. These amounts were received after deduction of the levy taken on sale proceeds and the annual levy on the value of the funds held at TMCP. The prlnclpal transfers during the year were to cover the ongoing expenditure referred to above. At the year end the Model Trust Fund stood at £1,220,415 (2023 £909,928). These monies are held on behalf of the Clrcult by TMCP within investment and deposlt accounts and are administered by them. c) The deslgnated funds relate to Wednesfield Methodist Church. Actlvltles at Wednesfield produced a deficit of £2,024 (2023 - £1,635). This arose largely as a result of ongoing routine expenditure prior to disposal. During the year net transfers out were made of £618 (2023 £9,382) D) The restricted fund produced a surplus (2023 Deficit) after transfers of £5,273 (2023 £8,667). Income for the year arose largely due to the receipt of interest and dividends on monies held within TMCP and losses arose largely as result of investment gains (2023 - Deficits) on endowed Funds and transfers of £2,473 (£ 7,950) made to other funds
Wolverhampton Methodist Circuit Trustees Report For the year ended 31 August 2024 Financial Report (Cont.) The Circuit Trustees are satisfied with the overall result achieved for the year against the backdrop of the economic constraints which affect us all. The Budget set for 2024/25 is once again for a deficit position as Churches continue to struggle to meet the levels of assessment that the Circult requires. Trustees continue to monitor this. Going Concern The Trustees have prepared detailed forecasts through to 31 August 2025. These have been reviewed, and stress tested, particularly for a fall in Income during that period resultlng from the Inablllty of Churches to meet assessments fully In the year ended 31 August 2025. Based upon the forecasts and their review the Trustees believe that the Clrcuit has adequate flnanclal resou rces available to enable It to carry on operatlng as a Going concern for the foreseeable future. Investment Pollcy and Performance To comply with Methodist Standing Orders, monies for short and long term Investment are lodged with the Trustees for Methodist Church Purposes (TMCP). In addltion TMCP acts as custodlan trustee for all real estate held by Circults and for all large (Individually over £20k) bequests and for the proceeds of sale of any property formerly owned by the Circuit. These sums are invested in unitised Investments or held on deposit. The capital returns are close to tracking the movements in the SEIOO Index. The income mirrors the deposit rates available elsewhere. Both the Central Finance Board (CFB) and TMCP take into consideration social, envlronmental and ethical consideratlons, both negatively and positivelyi in establishlng investment policy. Short term deposits are lodged dlrectly with the CFB and attract good rates of Interest. There are no benchmarks for the expected returns or appreciation on investments at TMCP and CFB. It Is the Circuit's policy to manage the cash and investment resources of the Circuit so that a rate of return on investment - both by way of dividend and capital appreciation is obtained at least as good as market rate consldering our low appetite for rlsk, 10
Wolverhampton Methodist Circuit Trustees Report For the year ended 31 August 2024 Reserves pollcy The Circuit has a reserves policy covering Its unrestricted funds which is reviewed annually. Our policy is to ensure that there are sufficient free reserves avallable to maintain and secure the viability and future of the Circuit whilst ensurlng through openness and transparency that its resources are being used for its charitable purposes. The Trustees are of the view that at 31 August 2024 free reserves meet these criteria. The reserves held at the end of the year were as follows: Unrestricted funds General Fund Model Trust Fund 1,415,303 1,220,415 2,635,718 Deslgnated funds Wednesfield Methodlst Church Funds Total unrestricted funds 2,635,718 Surplus Funds Endowed Funds from Wednesfield Methodist Church 4,876 60,416 Total restrlcted funds 65,292 Total funds 2,701,010 Less.. Tled up In freehold property and fixtures Restricted Funds (1,244,001 (65,292) (1,309,293) Total readily available reserves 1,391,717 All funds are separately Invested either with CFB or TMCP. No money is directly invested in property, securities or other forms of investment. 11
Wolverhampton Methodist Circuit Trustees Report For the year ended 31 August 2024 Reserves policy (continued) The financial position of the Circuit remains healthy in that its resources are not only sufficient to meet future known liabilitles but also sufficient for the Circuit to carry out its plans for the following year. Purposes of the funds General Fund: this provides the worklng capital necessary for the day to day operatlon of the Circult. Model Trust Fund: this money Is held in reserve to support capital and revenue projects within the Circuit Including the purchase of and major items of maintenance within manse propertles. Monies can only be used wlth the agreement of Trustees of the Circuit through TMCP. Deslgnated reserves: these reserves are held to support the mlssion work assoclated with Wednesfield Methodist Church. Restrlcted Funds: are held for use on specific projects related to those funds and they can only be used for these purposes with the approval of Trustees and TMCP. statement of Disclosure to Auditors So far as the Trustees believe there Is no relevant audit Informatlon of which the charlty's auditors have not been made aware. The Trustees have taken all the steps they ought to have taken as Trustees In order to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that informatlon. Thls report is signed on behalf of the Trustees. Reverend Dr Joanne Cox-Darling Superlntendent Minister Date: 2713 | ?J L 12
Wolverhampton Methodist Circuit Statement of Circuit Members. Responsibilities For the year ended 31 August 2024 The members are responsible for preparing a trustees, annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales requires the members to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that perlod. In preparing these financial statements, the members are required to: Select suitable accounting policies and then apply them consistently; Observe the methods and principles in the Charitles SORP. Make Judgments and estlmates that are reasonable and prudent; State whether applicable accountlng standards have been followed, subject to any material departures disclosed and explained in the financial statements; Prepare the flnanclal statements on the going concern basls unless It Is Inapproprlate to presume that the charity will contlnue In operatlon. The members are responsible for keeping accounting records that dlsclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements cornply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial informatlon Included on the charity's website. Legislation in the Unlted Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 13
Wolverhampton Methodist Circuit Independent Auditors, Report to the members of Wolverhampton Methodist Circuit For the year ended 31 August 2024 Opinion We have audited the financial statements of Wolverhampton Methodist Circuit for the year ended 31 August 2024 which comprise of the Statement of Financial Activities, including Income and Expenditure Account, the Statement of Financial Position, the Cash Flow Statement and the related notes, Including a summary of significant accounting policies. The financial reporting framework that has been applled to their preparation Is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting standard applicable in the UK and Republic of Ireland" Thls report is made solely to the Clrcuit Members, as a bodyi in accordance with regulations made under section 154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them In an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a bodyi for our audit work, for this report, or for the oplnlons we have formed. In our opinion the financlal statements: give a true and fair vlew of the state of the charity's affairs as at 31 August 2024, and of Its Incoming resources and appllcation of resources, for the year then ended. have been properly prepared In accordance with Unlted Kingdom Generally Accepted Accounting Practice; and have been prepared In accordance with the requirements of the Charities Act 2011. Basis for oplnlon We conducted our audit In accordance with Internatlonal Standards on Auditing (UK) (ISAS (UK)) and appllcable law. Our responsibilitles under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are Independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responslbllities In accordance with these requirements. We believe that the audlt evidence we have obtained is sufficlent and appropriate to provlde a basis for our oplnlon. Concluslons relatlng to going concern We have nothing to report In respect of the following matters in relation to which the ISAS (UK) requlre us to report to you where: the trustees use of the golng concern basis of accounting in the preparation of the financial statements is not appropriate. or the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least 12 months from the date when the financial statements are authorised for issue. 14
Wolverhampton Methodist Circuit Independent Auditors, Report to the members of Wolverhampton Methodist Circuit For the year ended 31 August 2024 other information The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. 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. In connection with our audit of the financial statements, 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 otherwlse appears to be materially mlsstated. If we identify such material inconsistencies or apparent material mlsstatements, we are required to determine whether there is a material mlsstatement in the financial statements or a material mlsstatement of the other information. 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 nothlng to report in this regard. Matters on whlch we are requlred to report by exception We have nothlng to report in respect of the following matters where the Charities Act 2011 requires us to report to you If, In our oplnlon: the Information given in the Trustees, Annual Report Is Inconsistent in any materlal respect with the financial statements; or sufficient accounting records have not been kept. or the financial statements are not in agreement wlth the accounting records and returns; or certaln dlsclosures of Trustees, remuneration specified by law are not made; or we have not received all the Informatlon and explanations we requlre for our audlt. Responsibilities of Clrcuit Members As explained more fully in the Circuit Members, Responslbilities Statement, the members are responsible for the preparatlon of the financial statements and for belng satisfied that they give a true and fair view, and for such Internal control as the members determlne Is necessary to enable the preparation of financial statements that are free from materlal misstatement, whether due to fraud or error. In preparing the financial statements, the members are responsible for assesslng the charlty's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basls of accounting unless the directors either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 15
Wolverhampton Methodist Circuit Independent Auditors. Report to the members of Wolverhampton Methodist Circuit For the year ended 31 August 2024 Audltor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materlal misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance wlth ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basls of these financlal statements. Irregularltles, Includlng fraud, are Instances of non-compliance wlth laws and regulatlons. We design procedures in line wlth our responslbilities, outllned above, to detect materlal mlsstatements in respect of Irregularities, including fraud. The extent to whlch our procedures are capable of detecting Irregularltles, including fraud Is detalled below. In plannlng and designing our audlt tests we identify and assess the risks of materlal mlsstatement within the financial statements, whether due to fraud or error. Our assessment of these risks Includes conslderation of the nature of the industry and sector, the control environment and the charity performance along with the results of our enquiries of management about thelr own Identification and assessment of risks and irregularities. In common with all audits under ISAS (UK), we are also required to perform speclfic procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the charitable company operates in, focusing on provisions of those laws and regulations that had a dlrect effect on the determlnation of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Charities Act, UK tax legislation and other laws and regulations identified as rlsk areas identified from our discussions with management. We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any Indlcations of fraud or non- compllance with laws and regulations throughout the audlt. After consideration of the above rlsks we then carried out audit procedures Including the following: performing analytical procedures to identify any unusual or unexpected relatlonships that may indicate risks of material misstatement due to fraud. reading mlnutes of trustees meetings; reviewing correspondence wlth H M Revenue & Customs. enqulring of management and revlewing any correspondence with legal advlsors concerning actual and potential Iltigation and claims; reviewing the financial statement disclosures and testing to supportlng documentation to assess compliance wlth provisions of relevant laws and regulations described as havlng a dlrect effect on the financial statements. In addressing the risk of fraud through management overrlde of controls, testing the approprlateness of journal entries and other adjustments; assessing whether the Judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. 16
Wolverhampton Methodist Circuit Independent Auditors. Report to the members of Wolverhampton Methodist Circuit For the year ended 31 August 2024 Auditor's responslbllltles for the audit of the financial statements (continued) There are inherent limitations in our audit procedures described above. The more removed that the laws and regulations are from financial transactions the less likely it is that we would be aware on non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enqulry 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 arlse from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsiblllties. Thls descriptlon forms part of our auditor's report. We communlcate wlth those charged with governance regardlngf among other matters, the planned scope and timlng of the audit and significant audlt flndlngs, Including any signlflcant deficiencles In Internal control that we identify during our audit. Muras Baker Jones Limited Chartered Accountants and Statutory Auditor Regent House Bath Avenue Wolverhampton West Midlands WVI 4EG Date: 1fy.120U- 17
Wolverhampton Methodist Circuit Statement of Financial Activities (SOFA) For the year ended 31 August 2024 Circuit Model General Fund Trust Fund Deslgnated (Unrestrlcted) (Unrestricted) Funds Restricted Funds Totals 2024 Totals 2023 Note Income Donatlons and legacies Charitable actlvltles: Assessment or share Grants Other Income Investment Income: Income from monetary investments Property dlsposal 1,850 708 2,558 347,820 17,281 137,034 347,820 17,281 137,034 362,707 305,030 157,608 io 7,012 6,391 55,447 470,588 2,538 64,997 476.979 29,992 507,991 Totsl Income 517,388 526,035 3,246 1,046,669 1,363,328 Expendlture on Charltable actlvltles.. Salarles and assoclated Costs Dlstrlct assessment MTF levy Property Costs Office Expenses Depreclatlon Other outgoings Grants and donatlons 12 432,511 94,967 432,511 94,967 60,431 63,856 13,570 26,782 211,735 382,425 90,737 16,294 61,923 11,763 27,200 196,916 1,000 60,272 159 14 15 62,450 13,570 26,782 73,632 1,406 16, 17 li 138,103 Total Expendlture Net Income/ (expendlture) 703,912 198,375 1,406 159 903,852 788,258 (186,524) 327,660 (1,406) 3087 142,817 575,070 Galns/(deflclts) on investments 2,296 4,659 6,955 (3,865) Transfers between funds 18 22,560 (19,469) (618) (2,473) Net movement In funds {163,964) 310,487 (2.024) 5,273 149,772 571,205 Total fund5 brou9ht forward 1,579,267 909,928 2,024 60,019 2,551,238 1,980,033 Total funds carried forward at end of year 1,415,303 1,220,415 65,292 2,701,010 2,551,238 18
Wolverhampton Methodist Circuit statement of financial position As at 31 August 2024 Clrcult Model Designated General Fund Trust Fund Funds (Unrestricted) (Unrestrlcted) (Unrestricted) Restricted Funds Totals 2024 Totals 2023 Note Fixed Assets Tangible fixed assets Investments with TMCP 19 20 1,244,001 1,244,001 94,206 1,450,771 87,253 34,034 60,172 1,244,001 28,276 34,034 60,172 1,338,207 28,276 1,191,501 Current Assets Debtors Investments wlth TMCP Central Flnance Board Deposlts Cash at Bank and in hand 21 22 65,065 882,694 1,186,381 5,120 22 184,771 184,771 111,454 22 5,533 5,533 7,445 1,066,658 218,580 1,186,381 5,120 1,410,081 Credltors: Amounts falling due wlthln one year 25 47,278 47,278 53,444 Net current assets 171,302 1,186,381 5,120 1,362,803 1,013,214 Total asset5 less current Ilabllltle$ 1,415,303 1,220,415 65,292 2,701,010 2,551,247 Net as$et$ 1,415,303 1,220,415 65,292 2,701,010 2,551,238 Fund$ of the clrcult General Fund (Unrestricted) Clrcult Model Trust Pund (Unrestrlcted) Revaluatlon Fund (Unrestrlrted) Deslgnated Fund {Unrestrlcted) other Funds (Restrlrted) Revaluation Fund (Restrirted) 26,1 1,415,303 1,415,303 1,579,267 26.2 1,213,442 1,213,442 905,251 26.2 6,973 6,973 4,677 26.2 2,024 27 56,365 56,365 55,751 27 8,927 8,927 4,268 Total Funds 28 1,415,303 1,220,415 65,292 2,701,010 2,551,238 The financial statements were approved by the Trustees on 27.biu and signed on their behalf by: Mr R Turton - Treasurer 19
Wolverhampton Methodist Circuit Cash flow statement For the year ended 31 August 2024 2024 2023 Notes Cash from operating activities Surplus(Deficit) for the year 142,817 575,070 Adjustments for.. Depreciation Decrease/(increase) In debtors Increase/(decrease) in creditors Surplus on Fixed Asset disposal 26,782 36,789 (6,166) (476,979) 27,200 (33,548) {4,243) (507,991) (419,574) (518,581) Net cash generated by (used In )operatlng activities (276,757) 56,489 Cash flows from investing activltles Purchase of tanglble assets Purchase of fixed asset Investments Proceeds from Fixed Asset disposal (1,990) (745) (236) 507,991 658,959 Net cash (used in)/f rom investlng activitles 656,969 507,010 Change in cash and cash equivalents in the perlod Cash and cash equivalents at start of perlod 380,212 1,001,593 563,499 438,094 Cash and cash equivalents at the end of the period 22 1,381,805 1,001,593 20
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 Statement of compliance These financial statements have been prepared in compliance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective from l January 2015)- (the Charities SORP (FRS 102). The Wolverhampton Methodist Circuit meets the definition of a public benefit entity under FRS 102. Accounting policies Basls of preparlng the flnanclal statements The Financlal Statements have been prepared in accordance with appllcable Accounting Standards and the Statement of Recommended Practlce, Accounting and Reporting by Charities Charities SORP (FRS102). These accounts have been prepared on the accruals basls and on the basls of historical cost except that Investments are shown at their market value at the end of the year in order to show a true and falr vlew of the Circuit's financial posltion and activities. Content The financial Information presented is relevant, reliable, comparable and complete. Where estimates are used these are based on experience, research and judgement. The accounts are expressed in £ Sterllngi rounded to the nearest pound. Funds The funds held constitute General Funds held for any purpose of the Circuit which are unrestricted. The Circuit Model Trust Fund has wide purposes defined in standing orders and Is categorized as unrestricted. Restricted funds are held for a narrower purpose and Include Endowment funds which represent gifts, the capital normally being unavailable for spending and the income from which is either Restricted or Unrestricted. Details of each material fund are disclosed in note 28 to these accounts. Any funds may be represented by more than just cash. Taxatlon The charlty, Is a registered charity and has no taxable actlvltles. Pension costs The Circuit Is a member of the Connexlonal pension scheme (MMPS) which covers presbyters and deacons of the Methodist Church. The contribution rates are set each year by the Methodist Conference. The MMPS is a multi-employer scheme and in accordance with the guidance issued by the Charity Commission, the Circuit accounts for these contributions as if it were a defined contribution scheme. The Circuit also has two lay employees enrolled in a defined contribution pension scheme administered by Nest Pension. Employer contributions are made at a rate of 60/0 to this scheme on behalf of employees who are members. 21
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 Accounting policies (contlnued) Going concern Based upon operational budgets and cash flow projections together with the close monitoring of the continuing effect of Covid-19 restrictions upon the Income raising ability of Churches, the trustees belleve that the Circuit has adequate financial resources available to continue in operational existence for the foreseeable future. The Financial Statements therefore continue to be prepared using the going concern basis of accounting. Consolidation The Clrcult oversees the work of minlsters and lay workers In Churches within the Clrcult but does not have control over those Churches, Mlnlsters or lay workers except in extreme clrcumstances, none of whlch were applicable. For thls reason, the financlal statements of the Churches wlthin the Circuit are not consolldated into these flnancial statements. Income recognition Income Is brought into account when It Is more likely than not that the economlc benefit of the income will accrue to the Clrcuit. No attempt Is made to measure the value of services donated by volunteers. Individual amounts categorlsed as Other Income in the SOFA are shown separately if they are considered to be materlal. Donations are recognised in the statement of financial artivitles when they are receivable. Interest on funds held on deposlt Is Included upon notification of the interest paid or payable by the Bank. The Circult arts as agent in one matter: the collection from churches and payment over of thelr contributions to varlous funds admlnlstered and controlled by The Methodist Church In England and Wales. In these circumstances the transactions are not reflected in the SOFA because there is no obligation on the Clrcult. Expenditure Thls Is recognised when a Ilablllty Is Incurred, or a constructive obligatlon arlses, that results In the payment being unavoidable. All expenditure Is accounted for on an accruals basls. All costs are allocated or apportioned to the appllcable expendItU headings in the statement of financial activlties as approprlate. Liabilities are recognised as soon as an outflow of economic benefit Is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources, Grants Grants are recognised in full when the award is made and once the Circuit accepts that there is an obligation to make the payment and that payment is probable. VAT Since the Circuit is not VAT registered, all input VAT is charged within the expense headings upon which it was paid. 22
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 Accounting policies (continued) Tangible fixed assets Tangible fixed assets are capitalised if they can be used for more than one year, and individually cost at least £1,000. The freehold property, being church manses, is shown in the accounts at Its deemed historical cost at I September 2015, being the properties insurance reinstatement value as calculated by the Clrcuit's Insurers, Methodist Insurance Llmited, less any subsequent depreciation. No depreciation is provided on the land element of the manses whilst the building element Is depreciated straight line over a useful economic life of 75 years. There Is one exception to this where the cost of Improvement works to a manse is being wrltten off over a 5 year period to accord with its estimated useful life. All properties have been revlewed for Impalrment. Depreciation is provided on fixtures and fittings at the rate of 200/0 per annum from the date that the fixtures are brought Into use by the CircuSt. Investments The Investments of the Clrcult are held by the Trustees for Methodlst Church Purposes (TMCP) as custodlan trustees. The valuations, at market value, are those provlded by TMCP. The unrealised gains and deficits arising on investments at the end of the year are shown In the SOFA. Receivables and Payables. Bank and Cash Debtors are stated at the amounts owed to the Circuit or the amount prepaid. Creditors are initially recognised at settlement amount after any related discounts, where normal credit terms applyi or the amount advanced to the Circuit. Subsequently credltors that are current liabilities are measured at the cash or other consideration expected to be paid. The Ilquld funds comprislng of bank balances and deposit account balances are shown at their realisable values. Glossary of terms CFB: Central Finance Board of the Methodlst Church manages a Common Deposit Fund and a series of pooled Investment funds for Methodlst entities In Great Britaln and provldes Investment advlce to those bodles. Church: a group of members from fewer than 10 to more than 300. Circuit: a group of Methodist Churches near each other, typically between 10 and 30. MTF: Clrcult Model Trust Fund. Connexion: The Methodist Church in GB which includes the Head Office at Methodist Church House, all Methodist Districts, Circuits and Churches in Great Britain. District: a group of contiguous Circuits, usually between 15 and 30. SOFA: Statement of Financial Activities. SORP: Statement of Recommended Practlce. TMCP: Trustees for Methodist Church Purposes, the legal owner and Custodian Trustee of all Methodist Model Trust propertyi including Legacies, Endowments and Accumulated Funds. 23
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 Payment to Trustees None of the Trustees received any remuneration during the year (2023 - £nil). Trustees were reimbursed expenses during the year, consisting of reimbursement of travel and sundry office costs. 2024 2023 Number of trustees who were pald expenses 2024 2023 Total amount paid 195 202 Fees for examlnatlon or audit of the accounts 2024 2023 Included wlthin 'other expendlture, are the followlng: Audltors, fee for reporting on the accounts 3,222 2,460 Assessments on Churches The Clrcuit comprises the Churches referred to wlthln the Trustees report. Church Assessments are determined annually and approved by the Circuit meeting using formulaic methodology which takes into account the size of the Church, the ability of the Church to pay, Its income and the ministerial input to it. In additlon, St Andrews MethodlsVURC church In Sedgley is also part of the Circuit but untll 31 August 2021 was under the responsibility of the URC under a sharing Agreement. From I September 2021 the Church has been the responsibility of the Methodist Circuit under the same sharing agreement. Under this agreement it paid £43,092 (2023 - £39,672) which is included in the total assessments of £347,820 (2023 £362,707) Included wlthln these accounts. At the year end, amounts totalling £nil (2023 - £796) were owed to the Circuit in respect of assessments. Profit on Sale of Fixed Assets During the year the Clrcuit disposed of 2 (2023 - 1) empty Churches and one manse realising a total surplus over book value of £476,979 (2023 £507,991). TMCP also took a levy on sale proceeds of £189,451 (2023 £179,197). Under Methodist convention the net proceeds of sale were placed into the Circuit Model Trust Fund for future use. 24
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 Grants The Circuit was in receipt of grants from District Funds totalllng £17,281(2023 £nil). Donations and legacies Donatlons and legacles totalling £1,850 (2023 £nil) were recelved into the General Fund and £708 (2023 - £nil) into the Model Trust Fund during the current year. These monies arose from the cessation to meet of Bilston Methodist Church durlng the year. 10. other Charitable income The Clrcult was In recelpt of the followlng other income: 2024 Total 2023 Total General Deslgnated Church lay contributions Rent from empty manses 66,375 20,172 66,375 20,172 66,725 12,650 Income generated from Bilston Methodist Church after Cessation to meet Shared Costs of Minlster shared with Queens College Donations toward City Centre mission work Sundry Income 5,153 5,153 26,296 26,296 25,024 19,038 19,038 44,673 8,536 137,034 137,034 157,608 11. Grants and donations Durlng the year the Clrcult made grants to Churches and others as follows: 2024 Total 2023 Total Trinity Codsall 1,000 1,000 25
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 12. staff costs 2024 2023 Staff costs paid during the year were: Gross wages, salarles and benefits in kind Employer's National Insurance costs Pension costs other non-payroll costs 330,009 21,080 53,528 27,894 287,484 21,581 51,223 22,137 Total staff costs 432,511 382,425 Average number of full-time equlvalent employees In the year were: 21 18 No employee earned more than £60,000 In the year. The costs can be summarised between ministry and lay worker support as follows: 2024 2023 Ministry Gross cost of lay support 287,831 144,680 283,327 99,098 432,511 382,425 Gross lay support costs are part funded through Church lay and donatlons toward clty centre misslon contributions as detalled In note 10 above totalllng £85,413 (2023 £65,848). In addltlon a connexional grant was recelved In the sum of £15,000 towards the cost of Clty Centre Mission. The Cost of lay support therefore funded directly by the Clrcuit was £44,267 (2023 - £33,250). The presbyters and the Clrcuit Leadership Team (CLT) are also Trustees of the Circuit. other than presbyters no member of the CLT received any payment for work undertaken on behalf of the Circuit although certain travelling and administration costs were reimbursed relating to specific meetings or projects. 13. 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 employlng body. 26
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 On the other hand, lay employees are contractually employees and have the option of Jolning a pension scheme. At the year end, there were 2 (2023 - 1) employees who were members of such a scheme, the scheme being provided by NEST which is a defined contribution scheme. The MMPS is in deficit but a plan for removal of the deficit has been proposed and is being implemented. Detalls of the deficit on the schemes can be found in the Annual Report and Accounts of The Methodist Church at www.methodist.org.uk. 14. Property costs 2024 2023 Property Malntenance Rental of manses Insurance utilltles (prlnclpally rates, light and heat at Bilston, Wednesfleld, Stowlawn and water rates) 12,340 17,397 7,185 8,137 16,581 13,252 26,934 23,953 63,856 61,923 The above Costs include £1,406 (2023 £11,265) incurred in respect of the Wednesfield property and thls has been charged to the Designated Fund. The above costs also include £ 12,807 (2023 - £nil) In respect of the Circult's responsibilities (other than caretaking costs included in laypay) for Bilston Methodist Church after its congregation ceased to meet. The costs also include £ 1,322 (2023 - £3,082) in respect of the Church at stowlawn which was disposed of during the year 15. Office expenses 2024 2023 Prlntlng, postage and statlonery and Use of office and facilities Audit fee Training 10,348 7,903 3,222 3,460 400 13,570 11,763 27
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 16. Other outgoings 2024 2023 Pulpit supply Inspections and legal fees Sundry outgoings Mission and outreach TMCP levies (charged to MTF and Restricted Fund) 2,275 18,150 128 1,731 189,451 5,185 11,716 156 495 179,364 211,735 196,916 The TMCP levy of £189,451 (2023 £179,364) represents amounts paid on the net sale proceeds reallsed upon the sale of manses and churches durlng the year together a small amount of admln charges. 17. Investment management During the year the Circuit pald £2,765 (2023- £1,011) to TMCP, the custodians of the District's Investments within the MTF. 18. Transfers between funds A sum of £2,473 (2023 £6,396) was withdrawn from the Restricted Surplus Funds account to contribute to the mission work of the Circuit and £nil (2023 - £877) to contribute to ongolng Circuits costs. A net sum of £19,469 (2023 -£75,770) was transferred from the Model Trust Fund to the General Fund in respect of monles required to support the work of the City Centre Mission. This represented a £ 152,250 withdrawal from the Methodist Trust Fund for ongolng missional work and £132,781 In respect of the monies realised on the sale of the manse out of the general fund. Those funds have to be plad into the Model Trust Fund. A sum of £ nil (2023 £9,382) was transferred from the General Fund to the designated fund in order to cover the running costs of the Wednesfield Church 28
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 19. Tangible fixed assets Cost or valuation Fixtures, fittings and Equipment Manses Total At I September 2023 Additions Disposals 1,562,660 87,410 1,990 1,650,070 1,990 (197,088) (197,088) At 31 August 2024 1,365,572 89,400 1,454,972 Depreclatlon At I September 2023 Charge for year Dlsposals 121,721 23,062 (15,110) 77,578 3,720 199,299 26,782 (15,110) At 31 August 2024 129,673 81,298 210,971 Net book value At 31 August 2023 1,440,939 9,832 1,450,771 At 31 August 2024 1,235,899 8,102 1,244,001 20. Fixed Asset Investments 2024 2023 Cost brought forward 87,253 90,882 Additions 236 Unrealised (losses)/gains on revaluation 6,953 (3,865) Cost carried forward 94,206 87,253 29
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 21. Debtors 2024 2023 Trade Debtors Prepayments and other debtors Short term loans 796 61,484 2,785 25,491 2,785 28,276 65,065 22. Cash and cash equivalents Cash and cash equlvalents comprise the followlng: 2024 2023 Investments with TMCP Central Flnance Board deposits Cash at bank and In hand 1,191,501 184,771 5,533 882,694 111,454 7,445 1,381,805 1,001,593 23. Trustees for Methodist Church Purposes The funds that support the Model Trust Fund and the Restricted Fund are held by TMCP In Trustees Interest Funds and in CFB mixed funds. Interest is credited to the Trustee interest funds each month and is regarded as a short term investment in these accounts, b) The monies held in the CFB Mlxed funds are regarded as long term Investments and are revalued at mld-market value at each year end, TMCP Is the legal owner and Custodian Trustee of all Methodist Model Trust property, Includlng 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 provldlng guidance and actlng under their direction, the Managing Trustees comply with charity law and Methodist law and policy as determined by the Methodist Conference. 24. Central Flnance Board (CFB) and Cash at Bank The Circuit has three current accounts at Lloyds Bank plc, Barclays Bank PIC and HSBC Bank PIC all of which are authorised institutions. The sums held on these accounts are immediately avallable. In addition the Circuit has a deposit account at CFB, a common deposit fund. Interest is earned on that account and credited monthly. the sums deposited can be withdrawn without notice and without loss of interest. These sums are viewed as being liquld. 30
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 25. Creditors - amounts falling due within one year 2024 2023 Accruals Assessments in advance 14,343 30,306 19,429 30,807 other Creditors 2,629 3,208 47,278 53,444 It is expected that all sums accrued at 31 August 2024 wlll be paid during the year to 31 August 2025. Included wlthln other creditors Is an amount of £2,487 (2023 £3,065) held wlthin the Wolverhampton Methodist Circuit benevolent fund which is used to meet cases of need arising within the Circuit and which is controlled by the Circuit Meeting through the Circuit Leadership Team. An amount of £- (2023 £5,000) is held In respect of a grant made to Stratton Street that Is due for payment in the coming year. 26. Unrestricted Funds 26.1 General Fund - balance of £1,415,303 at 31 August 2024 (2023 - £1,579,267) The purpose of the fund Is for use at the discretion of the trustees In the furtherance of the general objectives of the Circuit and whlch have not been designated for other purposes. About 900/0 of this fund is held as freehold properties for the use of Presbyters. 26.2 Other unrestrlrted Funds £911,952) balance of £1,220,415 at 31 August 2024 (2023 These comprlse the followlng four elements: Model Trust Fund - balance of £1,213,442 at 31 August 2024 (2023 - £905,251) These monies are not restricted in purpose but can only be used for projects that pass through the appropriate Circuit and TMCP authorisations. Included within this fund is £261,158 (2023 £303,179) held for the purposes of supporting the City Centre Mission work within the Circuit Revaluation Fund - balance of £6,973 at 31 August 2024 (2023 - £4,677) These are the unrealised gains on the fixed asset investments held with TMCP. Once realised, these monies will be included as part of the Model Trust Fund and wlll be used in line with the purposes of that fund as outlined above. 31
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 26.2 Unrestricted Funds (Continued) Designated Fund - Monies received on the ceasing to meet of Wednesfield Methodlst Church- balance of £618 at 31 August 2024 (2023 - £2,024) These monies will now be used by the Clrcuit after the disposal of Wednesfield Church. 27. Restricted Funds These comprise the following: a) Surplus Funds £ 4,876 (2023 - £4,166) The restrlcted funds are the resldual surplus funds left after the merger of the three Circuits some years ago. They can only be used for projects within the enlarged Clrcuit at the discretion of the Clrcuit meeting and TMCP. Added thls year has been a small account held at TMCP by Bllston Methodlst Church. b) Endowed funds £ 51,491 (2023 - £51,585) Endowed Funds Revaluatlon Fund £8,925 (2023 - £4,266) The funds at (b) and (c) above were transferred to the Clrcult by the Trustees of Wednesfield Methodist Church when they ceased to meet in the summer of 2017. These monies are currently restricted for use by the Trustees of the Circuit for projects related to the Wednesfield church buildings and surrounding area. 28. Funds Unrestrirted funds - Current year Openlng balance Incomlng resource5 Resources Expended Gains/ (Losses) Transfers Closlng Balance Unrestrfcted Fund Name General Fund Clrcuit Model Trust Fu nd Revaluatlon Fund 1,579,267 905,251 4,677 517,388 526,035 (703,912) (198,375) 22,560 (19,469) 1,415,303 1,213,442 6,973 2,296 Totals 2,489,195 1,043,423 (902,287) 2,296 3,091 2,635,718 Unrestricted funds - Previous year Opening Incomlng balance Resources Resources Expended Galns1 (Losses) Transfers Closlng Balance Unrestrlcted Fund Name General Fu nd Circuit Model Trust Fund Revaluation Fund 1,563,009 338,614 6,065 523,253 837,900 (581,333) (195,493) 74,338 (75,770) 1,579,267 905,251 4,677 (1,388) Tota Is 1,907,688 1,361,153 (776,826) (1,388) (1,432) 2,489,195 32
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 28. Funds (continued) The Circuit Model Trust Fund: this consists of income from legacy churches and property sales. They have wide purposes as defi ned by the Trustees for Methodist Church Purposes (TMCP) and are categorized as unrestricted. Permission must be sought from TMCP to call on money for specific buildi ng projetts or to support the mission in general. Deslgnated funds - Current year Opening balance Incomlng resources Resources Expended Galnsl (Losses) C1051ng Balance Transfers Deslgnated Fund Name Wedne5field Designated Funds 2,024 (1,406) (618) 2,024 (1,406) (618) Designated funds - Previous year Openlng balance Incomlng sources Resources Expended Galns (Losses) Closlng Balance Transfers Deslgnated Fund Name Wednesfleld Deslgnated Fund 3,659 249 (11,266) 9,382 2,024 3,659 249 (11,266) 9,382 2,024 Restricted funds - Current year Openlng balance Encomlng resources Resources Expended Galns/ (Losses) Closing Balance Transfers Réstricted Fund Name Surplus Funds Account Wednesfield Endowed Funds Wednesfleld Endowed Revaluation Fund 4,168 51,585 708 2,538 4,876 51,491 (159) (2,473) 4,266 4,659 8,925 Totals 60,019 3,246 (159) 4,659 {2,473) 65,292 Restricted funds - Previous year Openlng balance Incoming resources Resources Expended Gains/ (Losses) C105ing Balance Transfers Restricted Fund Name Surplu5 Funds Account Wednesfleld Endowed Funds Wednesfield Endowed Revaluation Fund 10,358 51,585 (6,190) (1,760) 4,168 51,585 1,926 (166) 6,743 {2,477) 4,266 Totals 68,686 1,926 (166) {2,477) (7,950) 60,019 33
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 28. Funds (continued) Surplus Funds Account: represents monies invested with TMCP which arose at the point the three Circuits came together to form the Wolverhampton Circuit some years ago. These monies are available for use to support mission and outreach projects within the Circuit. 29. Analysis of net assets between funds Circult Model Deslgnated Restricted Trust Fund Funds Funds (Unrestricted) (Unrestrlcted) {Restricted) General Fund (Unrestrlcted) Totals 2024 Flxed Assets Tang ible fixed assets Flxed asset Investments Current Assets Debtors TMCP Investments Deposlt accounts Cash at Bank and In hand Credltors: Amounts falllng due wlthln one year 1,244,001 1,244,001 94,206 34,034 60,172 28,276 28,276 1,191,501 184,771 5,533 (47,278) 1,186,381 5,120 184,771 5,533 (47,278) Total 1,415,303 1,220,415 65,292 2,701,010 30. Related Party Transactions As part of its normal operational structure, The Clrcult makes contrlbutlons to the District and receives contributions from its member churches (details as per SOFA). All of the Circuit trustees are members of one or another Church wlthln the Circuit and may be Trustees In their own churches. Connected organlsatlons Include the Methodlst Connexion, other Clrcuits and Churches wlthln the Wolverhampton and Shrewsbury District, CFB and TMCP. All of these entltles have their own trustees or dlrectors and autonomous administratlon such that the Clrcult has no significant influence over any of them, nor they over the Clrcult. They are, therefore, not consldered related parties. Transactions wlth con nected parties during the year are as follows: Names of Connected Organisations Receipts Payments Donee.. District Advance Fund Donor.. Churches within the Circuit in respect of assessments Donee: Grants to churches within the Circuit 17,281 347,820 In addition to the above the Circuit paid the District assessment to the Wolverhampton and Shrewsbury District. This is detailed in the face of the statement of financial activities. There were no other related party transactions. 34
Wolverhampton Methodist Circuit Notes to the accounts As at 31 August 2024 31. Volunteer contributions Every entity (Connexion, District, Circuit, and Church) within the Methodist Church in GB is heavily reliant on volunteers who contribute their skills, time and money in the furtherance of the work of the Church. Principally this contribution is by serving on committees of the Circult that deal with mission, manses, finance, policy, grants, training and development. We are grateful to all of them for their help and commitment. 32. Capltal commitments and contlngent Ilabilities There were no capital commltments or contingent liabilities as at 31 August 2024 (2023 - £nll). 35