**Draft Financial Statements at 09 September 2025 at 09:13:14**
**Charity registration number 1135516**
## **BEDE METHODIST CIRCUIT**
**ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2024**
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 8|
|Statement of trustees' responsibilities|9|
|Independent auditor's report||
|Statement of financial activities|10 - 11|
|Statement of financial position|12|
|Statement of cash flows|13|
|Notes to the financial statements|14 - 30|
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
The trustees present their annual report and financial statements for the year ended 31 August 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
The charity’s objects is to act as a Resource provider within Gateshead South Tyneside and Sunderland.
The purposes of the Methodist Church are and shall be deemed to have been since the date of the Union the advancement of –
- 1 the Christian Faith in accordance with the doctrinal standards and the discipline of the Methodist Church
any charitable purpose for the time being of any Connexional District circuit local or other organisation of the Methodist Church
any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church
- 1 any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church
The strategies employed to achieve the circuit’s aims and objectives are to
organisation and resourcing of regular public acts of worship open to members of the church and nonmembers alike
teaching of Christianity through sermons courses and small groups promotion of Christianity through the staging of events and services
providing financial grants to assist circuit churches and associated bodies
## _Public benefit_
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **Achievements and performance**
## _Significant activities and achievements against objectives_
During the year the churches and circuit have continued to work hard within the communities and have continued the work and mission of the church. The circuit has set aside monies from the sale of buildings to help local churches start new mission work. Some have already seen the benefit of the grants received.
Due to the growth of the welcome/warm spaces we were successful in our supplication for a diaconal appointment to look at how we can enable these groups to grow and to link with the Town Councils in the circuit. Gateshead, Sunderland and South Tyneside.
The mission project at Kibblesworth sadly came to an end due to lack of volunteers and the building now closed for sale.
The circuit project, Grace Place. continues to grow in numbers and we are always looking for more help from the local churches and wider circuit. Grace Place offers a warm welcome to all who come.
We continue, as we are able to, to serve our communities and to share the gospel of Jesus Christ.
## **Financial review**
The circuit suffered a deficit (before the effect of transfers) of £91,914 (2023 – deficit £124,336) on unrestricted funds and a surplus of £836,297 on restricted funds (2023 – surplus £411,409). Cash resources remain healthy with bank balances of £154,481 (2023 - £153,625).
## _Reserves policy_
Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned expenditure. The trustees in line with Charity Commission guidance seek to have a minimum of six months expenditure in reserves. The trustees do not believe going concern is an issue in the next twelve months given the careful financial management employed by the charity and level of monies held in the bank.
Total reserves held at 31 August 2024 were £2,026,427. Restricted reserves amounted to £1,931,245 leaving unrestricted reserves of £95,182.
## Restricted reserves comprise of
|Advance fund|held for one-off larger costs|
|---|---|
|Benevolent|to alleviate poverty and distress|
|Mission|to assist spreading the word of the church|
Included as part of the Advance Fund is a £100,000 Mission Fund (a designated fund). During the 2024 financial year, £5,000 was paid out of the Mission Fund in relation to the St. Andrew's Project (Repair costs).
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
During the 2024 financial year, the Circuit disposed of three unused former Methodist Churches resulting in a Net Gain on disposal of tangible fixed assets of £1,055,177. In the 2023 financial year the Circuit disposed of two residential properties that had previously used as Manses, resulting in a Net Gain on disposal of tangible fixed assets of £596,376.
Associated related levies payable on the sale proceeds of such properties are included under Connexional Levy within expenditure on Charitable Activities.
The Net Assets b/fwd. from the 2023 financial year has been uplifted by the effect of the Prior Year Adjustment which represents the identified historical costs previously incurred by the Circuit when such properties were acquired for use by the Circuit.
## _Investment policy_
To comply with Methodist Standing Orders, monies for long-term investment are lodged with the Trustees for Methodist Church Purposes (TMCP). TMCP acts as custodian trustee for all real estate held by Circuits and for all large (over £20k) bequests and for the proceeds of sale of any property formerly owned by the Circuit.
These sums are held on deposit. The deposit income mirrors the deposit rates available elsewhere.
The Circuit Trustees’ investment policy is aligned with that of the Central Finance Board of the Methodist Church (CFB) and TMCP because these organisations take onto consideration the social, environmental and ethical issues (both positively and negatively) that make investments suitable for the Methodist Church.
## _Major risks_
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **Safeguarding**
Every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. Christians see this potential as fulfilled by God’s re-creation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protect them from harm.
Methodist Connexional practice outlines commitment to the following principles –
the care and nurture of and respectful pastoral ministry with all children young people and adults the safeguarding and protection of all children young people and adults when they are vulnerable the establishing of safe caring communities which provide a loving environment where there is informed vigilance as to the dangers of abuse
we will carefully select and train all those with any responsibility within the church in line with safer recruitment principles including the use of criminal records disclosure and registration with the relevant vetting and barring schemes
we will respond without delay to every complaint made which suggests that an adult child or young person may have been harmed cooperating with the police and local authority in any investigation we will seek to work with anyone who has suffered abuse developing with them an appropriate ministry of informed pastoral care
we will seek to challenge any abuse of power especially by anyone in a position of trust
we will seek to offer pastoral care and support including supervision and referral to the proper authorities to any member of our church community known to have offended against any child young person or vulnerable adult
In all these principles we will follow legislation guidance and good practice.
The Bede Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy government legislation guidance and safe practice in the Circuit and in the churches.
The Bede Circuit commits itself to the provision of support advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who maybe vulnerable.
## **Plans for future periods**
As a circuit we will continue to assess how can we utilise, employ, operate and develop the gifts and talents of our existing staff and make the effective and effectual use of their contributions as we assist our communities where God has intentionally and intellectually planted us to serve Him and his people.
In future we are realistically and wisely looking at how we can reduce expenditure on simply just maintaining buildings and we are committed to continue increasing energies and endeavours to be a more visible vibrant and missional church and to be good and accountable stewards towards all circuit moneys and belongings.
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **Structure, governance and management**
The governing document for the circuit is the Deed of Union (1932) and the Methodist Church Act (1976). Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual Methodist Conference. Managing trusteeship and overall governance responsibility rests with the Circuit Meeting which meets at least twice a year. Day to day management of the circuit is undertaken by the Superintendent Minister Circuit Stewards and Circuit Leadership Team in partnership with other officers and committees as appropriate.
The trustees who served during the year and up to the date of signature of the financial statements were:
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
Rev Jane Carter (Superintendent) Rev Matt Sheard Rev Huw Sperring Rev Deborah Wainwright Rev Judith Oldroyd Rev Paul Worsnop Mr W Lee Dr A Lishman Mrs T Wood Mrs C Worth (Resigned 21/04/2024) Mr M Glass Mrs I Milburn Mrs J Bissett Mrs A Redhead Miss H Newman Mrs B Rowell Dr L Wales Mrs L Gaddes Mrs I Morgan Mr I Smith (Resigned 21/04/2024) Mr A Pitchers Mrs J Latimer Mr Mla Nkomo Mrs E Lawrence Mrs V Codling (Resigned 21/04/2024) Mrs B Wallace Mrs S Black Mrs J Lloyd Mrs S Dixon Mr D Patrick Mr D Milne Mr M Glass Mrs J Burns Mrs M Hornby Mrs D Snowball Mrs P Robinson (Resigned 21/04/2024) Mrs E Cable (Resigned 21/04/2024) Mrs L Harland (Resigned 21/04/2024) Mr D Haygarth Mr A Bell Mrs J Peacock Mr P Beal Mr S Phipps Mrs M Cartwright (Resigned 21/04/2024) Mrs J Edwards Mr I Edwards Mrs A Bell Mrs S Booth (Resigned 21/04/2024) Mrs E Bell Mrs E Addison (Resigned 21/04/2024) Mrs B Wallace Rev Cynthia Hardiman (Resigned 21/04/2024)
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
Mrs B Coates Miss C Thompson Mrs S Norman (Resigned 21/04/2024) Mrs F Hurst (Resigned 21/04/2024) Mrs M Gibson (Resigned 21/04/2024) Mrs C Robinson (Resigned 21/04/2024) Mrs P Dixon Mr R Tilley Mr K Reader Mrs S Cassidy Mr D Parker Mr R Simpson (Resigned 21/04/2024) Mrs B Donaldson Miss K Cresswell C Aspinall (Appointed 21/01/2024) G Booth (Appointed 21/01/2024) J Young (Appointed 21/01/2024) V Redhead (Appointed 21/01/2024) M Bell (Appointed 21/01/2024)
- Overall control rests with the Methodist Conference.
- The Connexional Office implements decisions made by Conference and is also responsible for the stationing of ministers in individual Circuits.
- Connexional decisions are passed to the Chair of the District and the appropriate Officers of the District for regional implementation.
- The District passes the control down to Circuit level for local implementation by the Superintendent Minister(s), ministerial staff and Circuit Stewards via the medium of the Circuit Meeting.
- The membership of the Circuit Meeting is laid down in the Constitutional Practices and Discipline of the Methodist Church. In simple terms the Circuit Meeting is made up of representatives from the churches within the Circuit
- Certain matters, principally those relating to property issues, need to be referred to the District (and the Connexional office - through the Trustees for Methodist Church Purposes [TMCP], acting as Custodian Trustees), but most matters are determined by the Circuit Meeting itself.
## _Other matters_
The Circuit's primary bankers were the Charities Aid Foundation (& Nat West Bank plc for the first month of the financial year.
The Circuit's Investment Managers were the Trustees for Methodist Church Purposes.
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
The trustees' report was approved by the Board of Trustees.
..............................
## **Trustee**
Date: .............................................
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
|**Unrestricted Unrestricted**
**funds**
**funds**
**general Grace Place**
**2024**
**2024**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
277,974
37,500
Investments
**4**
-
-
Other income
**5**
7,907
-
**Total income**
285,881
37,500
**Expenditure on:**
Charitable activities
**6**
368,416
46,879
**Total expenditure**
368,416
46,879
Net gains/(losses) on investments
**11**
-
-
**Net income/(expenditure)**
(82,535)
(9,379)
Transfers between funds
80,000
-
**Net movement in funds**
**8**
(2,535)
(9,379)|**Restricted**
**funds**
**2024**
**£**
-
56,741
1,210,177
1,266,918
430,621
430,621
-
836,297
(80,000)
756,297|**Total**
**Unrestricted Unrestricted**
**funds**
**funds**
**general Grace Place**
**2024**
**2023**
**2023**
**£**
**£**
**£**
315,474
294,427
43,500
56,741
-
-
1,218,084
4,967
-
1,590,299
299,394
43,500
845,916
422,959
44,271
845,916
422,959
44,271
-
-
-
744,383
(123,565)
(771)
-
100,000
-
744,383
(23,565)
(771)|**Restricted**
**funds**
**2023**
**£**
-
16,505
596,376
612,881
201,456
201,456
(16)
411,409
(100,000)
311,409|**Total**
**2023**
**£**
337,927
16,505
601,343
955,775
668,686
668,686
(16)
287,073
-
287,073|
|---|---|---|---|---|
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
|**Unrestricted Unrestricted**
**funds**
**funds**
**general Grace Place**
**2024**
**2024**
**Notes**
**£**
**£**
**Reconciliation of funds:**
Fund balances at 1 September 2023
43,812
63,284
**Fund balances at 31 August 2024**
41,277
53,905|**Restricted**
**funds**
**2024**
**£**
1,174,948
1,931,245|**Total**
**Unrestricted Unrestricted**
**funds**
**funds**
**general Grace Place**
**2024**
**2023**
**2023**
**£**
**£**
**£**
1,282,044
67,377
64,055
2,026,427
43,812
63,284|**Restricted**
**funds**
**2023**
**£**
863,539
1,174,948|**Total**
**2023**
**£**
994,971|
|---|---|---|---|---|
|||||1,282,044|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **STATEMENT OF FINANCIAL POSITION**
## _**AS AT 31 AUGUST 2024**_
|**Notes**
**Fixed assets**
Property, plant and equipment
**13**
Investments
**14**
**Current assets**
Trade and other receivables
**15**
Cash at bank and in hand
**Current liabilities**
**16**
**Net current assets**
**Total assets less current liabilities**
**Net assets excluding pension liability**
**The funds of the charity**
Restricted income funds
**17**
Unrestricted funds - general
Unrestricted funds - Grace Place
**18**|**2024**
**£**
**£**
709,366
1,198,106
1,907,472
31,950
154,481
186,431
(67,476)
118,955
2,026,427
2,026,427
1,931,245
41,277
53,905
2,026,427|**2023**
**£**
**£**
595,210
567,041
1,162,251
21,630
153,625
175,255
(55,462)
119,793
1,282,044
1,282,044
1,174,948
43,812
63,284
1,282,044|**2023**
**£**
**£**
595,210
567,041
1,162,251
21,630
153,625
175,255
(55,462)
119,793
1,282,044
1,282,044
1,174,948
43,812
63,284
1,282,044|
|---|---|---|---|
||||1,162,251
119,793|
||||1,282,044|
||||1,282,044|
||||1,174,948
43,812
63,284|
||||1,282,044|
The financial statements were approved by the trustees on .........................
..............................
## **Trustee**
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
|**Notes**
**Cash flows from operating activities**
Cash absorbed by operations
**24**
**Investing activities**
Purchase of property, plant and equipment
Proceeds on disposal of property, plant and
equipment
Proceeds on disposal of investments
Investment income received
**Net cash generated from investing**
**activities**
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2024**
**£**
**£**
(365,598)
(114,415)
1,055,177
(631,049)
56,741
366,454
-
856
153,625
154,481|**2023**
**£**
**£**
(329,944)
-
596,376
(307,542)
16,505
305,339
-
(24,605)
178,230
153,625|
|---|---|---|
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **1 Accounting policies**
## **Charity information**
Bede Methodist Circuit was constituted by Deed of Union (1932) and the Methodist Church Act (1976) as amended by resolution dated 8 June 2011. The Circuit was registered as a charity (registration number 1135516) on 14 April 2010 having previously been excepted from registration. The Circuit meets the definition of a public benefit entity under FRS 102.
The Circuit office is located at St. Lukes Methodist Church, Burn Heads Road, Hebburn, Tyne and Wear NE31 2TD.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the expected net sales proceeds for closed churches (following the Circuit becoming Managing Trustees for such property following closure) and to include certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The Circuit has denominational regulatory oversight in respect of the work of the Churches within the Circuit but has no legal or operation control of those Churches and their governing bodies except in extreme circumstances. For this reason, the financial statements of Churches within the Circuit are not consolidated into these financial statements.
## **1.2 Prior period adjustment**
The monetary effect of the Prior Period Adjustment is included at Note 25, whilst related narrative comment is included at Note 13.
## **1.3 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **1 Accounting policies**
**(Continued)**
## **1.4 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.5 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised.
## **1.6 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **1 Accounting policies**
**(Continued)**
## **1.7 Property, plant and equipment**
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Items of equipment are capitalised if they can be used for more than one year, and individually cost at least £1,000.
Freehold property is included in the financial statements at identified values at the time when the properties were purchased. No depreciation is provided on the building costs because the trustees consider the current residual fair value of both church and manse buildings to be not less than its current value (on the assumption that such properties had reached the end of their useful economic life by the year-end). In such circumstances, any depreciation would not be material. No indications of impairment have been identified.
Freehold land and buildings No depreciation is provided Plant and equipment Straight line over 5 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
From time to time the Circuit may be required to assume responsibility for Church premises following closure and cessation of worship. This results in the Circuit becoming Managing Trustees for the property. At that time the property is recognised as an asset at its anticipated net sale price and after taking into consideration the levy to be charged by the Connexion.
## **1.8 Non-current investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
## **1.9 Impairment of non-current assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.10 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **1 Accounting policies**
## **(Continued)**
## **1.11 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.12 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
- 17 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Assessments and TMCP**
|**Unrestricted Unrestricted**
**funds**
**funds**
**General**
**Grace Place**
**2024**
**2024**
**£**
**£**
Assessments and TMCP
277,974
37,500
Grants
-
-
277,974
37,500
Assessments and TMCP
Assessments on
Churches
263,021
-
Connexion and District
6,000
37,500
Donations
-
-
Harton Methodist
Church balance
8,953
-
277,974
37,500|**Total** Unrestricted Unrestricted
funds
funds
General
Grace Place
**2024**
2023
2023
**£**
£
£
315,474
294,427
38,500
-
-
5,000
315,474
294,427
43,500
263,021
269,223
-
43,500
-
37,500
-
25,204
1,000
8,953
-
-
315,474
294,427
38,500|Total
2023
£
332,927
5,000|
|---|---|---|
|||337,927|
|||269,223
37,500
26,204
-|
|||332,927|
- 18 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **4 Income from investments**
|Dividends
Interest receivable|**Restricted**
**funds**
**2024**
**£**
41
56,700
56,741|**Restricted**
**funds**
**2023**
**£**
42
16,463|
|---|---|---|
|||16,505|
The main element of interest receivable shown above is £53,706 (2023 £15,581) arising from monies held in the TMCP Trustees Interest Fund.
## **5 Other income**
|**Unrestricted**
**funds**
**2024**
**£**
Net gain on disposal of
tangible fixed assets
-
Other income
7,907
Capital Receipts
-
7,907|**Restricted**
**funds**
**2024**
**£**
1,055,177
-
155,000
155,000|**Total**
**Unrestricted**
**funds**
**2024**
**2023**
**£**
**£**
1,055,177
-
7,907
4,967
155,000
-
162,907
4,967|**Restricted**
**funds**
**2023**
**£**
596,376
-
-
-|**Total**
**2023**
**£**
596,376
4,967
-|
|---|---|---|---|---|
|||||4,967|
The above net gains on disposal of tangible fixed assets arose in 2024 from the sale of three previously closed Methodist Churches and in 2023 from the sale of two Manses. Associated related levies payable on the sale proceeds of such properties are included under Connexional levy within Expenditure on Charitable Activities.
Capital Receipts relate to Kibblesworth Church representing the expected sale proceeds (net of an allowance for related costs of disposal). Completion is scheduled in Autumn 2025; any variance between the August 2024 book value and the actual amount will be accounted for in the 2026 financial year.
- 19 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **6 Expenditure on charitable activities**
||**Charitable**|**Charitable**|
|---|---|---|
||**Expenditure**|**Expenditure**|
||**2024**|**2023**|
||**£**|**£**|
|**Direct costs**|||
|Depreciation and impairment|259|-|
|District assessment|110,037|79,005|
|District levy|390,348|190,354|
|Minister allowances|169,442|153,381|
|Lay workers|76,117|95,388|
|Pension costs|4,096|5,419|
|Travel|9,258|10,759|
|Telephone and postage|5,729|6,087|
|Training and books|3,672|5,068|
|Quinnquennials|3,210|7,920|
|Repairs|5,904|14,568|
|Insurance rent and utilities|16,397|49,012|
|Council tax|6,367|9,684|
|Sundry|388|1,827|
|Management charges|-|724|
|Shop costs - Grace Place|18,890|17,179|
|Other charitable expenditure|5,000|-|
||825,114|646,375|
|Grant funding of activities (see note )|6,752|10,976|
|**Share of support and governance costs (see note 7)**|||
|Support and governance|14,050|11,335|
||845,916|668,686|
|**Analysis by fund**|||
|Unrestricted funds - general|368,416|422,959|
|Unrestricted funds - Grace Place|46,879|44,271|
|Restricted funds|430,621|201,456|
||845,916|668,686|
- 20 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **6 Expenditure on charitable activities**
## **(Continued)**
The above amounts for Connexional Levy £390,348 (2023 £190,354) relate in 2024 to the levies applicable to the 3 Churches sold during that year together with the expected levy arising on Kibblesworth closed church. In 2023, the levies arose on the two Manses sold during that year.
Employers National Insurance of £3,174 (2023 £4,943) is included in Lay Workers/Shop Expenses above.
Ministers allowances includes Employers National Insurance of £12,009 (2023 £10,305) and Employers Pension Contributions of £31,228 (2023 £29,164).
## **7 Support and governance costs allocated to activities**
|**2024**
**£**
Legal and professional
950
Administration costs
3,560
Accountancy
1,140
Governance costs
8,400
14,050
**Analysed between:**
Unrestricted funds General
14,050
**8**
**Net movement in funds**
**2024**
**£**
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
8,400
Depreciation of owned property, plant and equipment
259
Profit on disposal of property, plant and equipment
(1,055,177)|**2023**
**£**
6,243
3,952
1,140
-
11,335
11,335
**2023**
**£**
-
-
(596,376)|
|---|---|
## **9 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year in their capacity as acting as trustees.
10 trustees received reimbursement following approval of their expenses claims during the 2024 financial year.
- 21 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **10 Employees**
The average monthly number of employees during the year was:
|**2024**|**2023**|
|---|---|
|**Number**|**Number**|
|5|7|
There were no employees whose annual remuneration was more than £60,000.
## **11 Gains and losses on investments**
||**Restricted**|**Restricted**|
|---|---|---|
||**funds**|**funds**|
||**2024**|**2023**|
|Gains/(losses) arising on:|**£**|**£**|
|Revaluation of investments|-|(16)|
## **12 Taxation**
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
- 22 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
|**13**
**Property, plant and equipment**
**Freehold land**
**and buildings**
**£**
**Cost**
At 1 September 2023
595,210
Additions
113,000
At 31 August 2024
708,210
**Depreciation and impairment**
Depreciation charged in the year
-
At 31 August 2024
-
**Carrying amount**
At 31 August 2024
708,210
At 31 August 2023
595,210|**Plant and**
**equipment**
**£**
-
1,415
1,415
259
259
1,156
-|**Total**
**£**
595,210
114,415|
|---|---|---|
|||709,625|
|||259|
|||259|
|||709,366|
|||595,210|
- 23 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **13 Property, plant and equipment**
## **(Continued)**
The carrying value of land included in land and buildings comprises:
||**£**||
|---|---|---|
|Land - Churches||78,510|
|Buildings - Churches||122,831|
|Land - Manses||339,602|
|Buildings - Manses||167,267|
|**Land and Buildings - Total**||**708,210**|
Churches comprise 13 properties, one of which (Kibblesworth) was awaiting disposal at 31 August 2024, following the last service being held In August 2024. Additionally, the cost of a one-third share in an additional Methodist Church is included in the above figures.
The value attributed to Kibblesworth Church equates to £113,500 representing the expected sale proceeds (net of an allowance for related costs of disposal) less the expected related levy payable. Completion is scheduled in Autumn 2025; any variance between the August 2024 book value and the actual amount will be accounted for in the 2026 financial year.
The rationale for including Kibblesworth Church in these financial statements at the above value is explained in the final paragraph of the Tangible fixed assets accounting policy.
Manses comprise 4 residential properties.
Included in the above total of Land and Buildings are the following elements existing at 1 August 2022, which have now been included in financial statements of the Circuit by a Prior Period Adjustment (see note at the end of the Notes to these financial statements):
|Churches - cost of land|3,176|
|---|---|
|Churches - cost of buildings|85,165|
|Manses - cost of land|122,838|
|Manses - cost of buildings|60,502|
|**Total included via Prior Period Adjustment**|**271,681**|
The amount of £271,681 now included in the Statement of Financial position represents the identified historical costs previously incurred by the Circuit when such properties were acquired for use by the Circuit. Some elements of identified costs date back to Victorian times, whilst other elements were incurred more recently (but prior to time when the Circuit was required to prepare financial statements).
Plant and Equipment consists of equipment used by the Circuit.
The carrying value of Land included in Land & Buildings is as follows:
**2024 2023 £ £**
- 24 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
**(Continued)**
|**13**
**Property, plant and equipment**
**(C**
Freehold
418,112
**14**
**Fixed asset investments**
**CFB Managed**
**Mixed Fund**
**Elizabeth**
**Griggs Bequest**
**TMCP Trustees**
**Interest Fund**
**£**
**£**
**£**
**Cost or valuation**
At 1 September 2023
1,358
1,550
564,133
Interest and dividends
105
79
48,632
Sale of property
-
-
702,523
Disposals
-
-
(120,274)
At 31 August 2024
1,463
1,629
1,195,014
**Carrying amount**
At 31 August 2024
1,463
1,629
1,195,014
At 31 August 2023
1,358
1,550
564,133
**15**
**Trade and other receivables**
**2024**
**Amounts falling due within one year:**
**£**
Assessment due
21,632
Prepayments and accrued income
10,318
31,950|**ontinued)**
342,779
**Total**
**£**
567,041
48,816
702,523
(120,274)
1,198,106
1,198,106
567,041
**2023**
**£**
21,630
-
21,630|
|---|---|
- 25 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **16 Current liabilities**
|Assessments in advance
Other payables
Accruals and deferred income|**2024**
**£**
54,871
3,065
9,540
67,476|**2023**
**£**
51,257
3,065
1,140|
|---|---|---|
|||55,462|
Included above are Assessments in advance. Such assessment monies received towards the end of each financial year relate to assessment monies due in respect of the following financial year.
## **17 Restricted funds**
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
|**At 1**
**September**
**2023**
**£**
Advance fund
891,044
Advance fund
arising from PYA
271,681
Benevolent
6,138
Mission
6,085
1,174,948
**Previous year:**
**At 1**
**September**
**2022**
**£**
Advance fund
580,045
Benevolent
5,932
Mission
5,881
591,858|**Incoming**
**resources**
**£**
1,266,277
-
322
319
1,266,918
**Incoming**
**resources**
**£**
612,471
206
204
612,881|**Resources**
**expended**
**£**
(430,621)
-
-
-
(430,621)
**Resources**
**expended**
**£**
(201,456)
-
-
(201,456)|**Transfers**
**£**
(80,000)
-
-
-
(80,000)
**Transfers**
**£**
(100,000)
-
-
(100,000)|**Gains and**
**losses**
**At**
**£**
-
-
-
-
-
**Gains and**
**losses**
**At**
**£**
(16)
-
-
(16)|**31 August**
**2024**
**£**
1,646,700
271,681
6,460
6,404|
|---|---|---|---|---|---|
||||||1,931,245|
||||||**31 August**
**2023**
**£**
891,044
6,138
6,085|
||||||903,267|
- 26 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **17 Restricted funds**
**(Continued)**
During the 2024 financial year, 80,000 (2023 £100,000) was transferred from the Advance Fund to Unrestricted General Funds. Such transfers are planned at the time of determining the level of each year's assessment due from the Churches within the Circuit.
## **18 Unrestricted funds - Grace Place**
These are unrestricted funds which are material to the charity's activities.
||**At 1**|**Incoming**|**Resources**|**At 31 August**|
|---|---|---|---|---|
||**September**|**resources**|**expended**|**2024**|
||**2023**||||
||**£**|**£**|**£**|**£**|
|Grace Place Drop in Centre|63,284|37,500|(46,879)|53,905|
|**Previous year:**|**At 1**|**Incoming**|**Resources**|**At 31 August**|
||**September**|**resources**|**expended**|**2023**|
||**2022**||||
||**£**|**£**|**£**|**£**|
|Shop|64,055|43,500|(44,271)|63,284|
## **19 Unrestricted funds**
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
||**At 1**|**Incoming**|**Resources**|**Transfers**|**At 31 August**|
|---|---|---|---|---|---|
||**September**|**resources**|**expended**||**2024**|
||**2023**|||||
||**£**|**£**|**£**|**£**|**£**|
|General funds|43,812|285,881|(368,416)|80,000|41,277|
|**Previous year:**|**At 1**|**Incoming**|**Resources**|**Transfers**|**At 31 August**|
||**September**|**resources**|**expended**||**2023**|
||**2022**|||||
||**£**|**£**|**£**|**£**|**£**|
|General funds|67,377|299,394|(422,959)|100,000|43,812|
- 27 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
## **20 Analysis of net assets between funds**
|**Unrestricted**
**Unrestricted**
**funds**
**funds**
**general**
**Grace Place**
**2024**
**2024**
**£**
**£**
**At 31 August 2024:**
Property, plant and equipment
5,000
1,156
Investments
-
-
Current assets/(liabilities)
36,277
52,749
41,277
53,905
**Unrestricted**
**Unrestricted**
**funds**
**funds**
**general**
**Grace Place**
**2023**
**2023**
**£**
**£**
**At 31 August 2023:**
Property, plant and equipment
7,390
-
Investments
-
-
Current assets/(liabilities)
43,812
63,284
51,202
63,284|**Restricted**
**Endowment**
**funds**
**funds**
**2024**
**2024**
**£**
**£**
703,210
-
1,198,106
-
29,929
-
1,931,245
-
**Restricted**
**Endowment**
**funds**
**funds**
**2023**
**2023**
**£**
**£**
587,820
-
567,041
-
12,697
-
1,167,558
-|**Total**
**2024**
**£**
709,366
1,198,106
118,955|
|---|---|---|
|||2,026,427|
|||**Total**
**2023**
**£**
595,210
567,041
119,793|
|||1,282,044|
The above value of £587,820 for Property, plant and equipment at 2023 is inclusive of the effect of the Prior Year Adjustment of £271,681 (referred to in Note that follows).
Restricted Funds included a £100,000 Mission Fund out of which £5,000 was spent during the 2024 financial year, leaving a balance of £95,000 remaining at 31 August 2024.
## **21 Events after the reporting date**
As referred to in Note 5 - Other Income, it is expected that the sale of Kibblesworth Church will go through in Autumn 2025.
## **22 Related party transactions**
There were no disclosable related party transactions during the year (2023 - none).
- 28 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
|**23**
**Analysis of changes in net funds**
The charity had no material debt during the year.
**24**
**Cash generated from operations**
**2024**
**£**
Surplus for the year
744,383
Adjustments for:
Investment income recognised in statement of financial activities
(56,741)
Gain on disposal of property, plant and equipment
(1,055,177)
Fair value gains and losses on investments
(16)
Depreciation and impairment of property, plant and equipment
259
Movements in working capital:
(Increase)/decrease in trade and other receivables
(10,320)
Increase/(decrease) in trade and other payables
12,014
**Cash absorbed by operations**
(365,598)
**25**
**Prior period adjustment**
**Changes to the statement of financial position**
**At 31 August 2023**
**As previously**
**reported**
**Adjustment**
**£**
**£**
**Fixed assets**
Property, plant and equipment
323,529
271,681
Capital funds
Income funds
Restricted funds
903,267
271,681
Grace Place
63,284
-
Unrestricted funds
43,812
-
**Total equity**
1,010,363
271,681|**2023**
**£**
287,072
(16,505)
(596,376)
16
-
3,000
(7,151)
(329,944)
**As restated**
**£**
595,210
1,174,948
63,284
43,812
1,282,044|
|---|---|
- 29 -
**Draft Financial Statements at 09 September 2025 at 09:13:14 BEDE METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2024**_
|**25**|**Prior period adjustment**|||**(Continued)**|
|---|---|---|---|---|
|||**At 31 August 2023**|||
|||**As previously**|**Adjustment**|**As restated**|
|||**reported**|||
|||**£**|**£**|**£**|
||**Fixed assets**||||
||**Changes to the income statement**||||
|||**Period ended 31 August**||**2023**|
|||**As previously**|**Adjustment**|**As restated**|
|||**reported**|||
|||**£**|**£**|**£**|
||||||
||||||
||Net movement in funds|287,073|-|287,073|
- 30 -
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