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2022-08-31-accounts

YORKSHIRE NORTH AND EAST DISTRICT

OF THE METHODIST CHURCH

(registered as a charity - registration number 1136133)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

HPH Chartered Accountants 54 Bootham York YO30 7XZ

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Contents

Page
Trustees' Annual Report 1 - 9
Independent Examiner's Report 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Financial Statements 14 - 23

YORKSHIRE NORTH AND EAST DISTRICT

OF THE METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The Trustees of the Yorkshire North and East District of the Methodist Church submit their annual report and the financial statements for the year ended 31 August 2022.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity’s governing document, the Charities Act 2011 and the relevant version of the 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) and UK Generally Accepted Practice.

The financial statements have been prepared to give a ‘true and fair’ view and 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 relevant version of the 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) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

REFERERENCE AND ADMINISTRATIVE INFORMATION

Name: Yorkshire North and East District of the Methodist Church Charity Number: 1136133 Address of Office: The District Office, 28 The Green, Acomb, York, YO26 5LR 01904 783 013 www.yorkshirenemethodist.org

Trustees who served during the year and up to the date of this report were as follows:

Revd Leslie Newton (Chair) Mrs Emma Crippen (Representative Synod Secretary) Mr Alister McClure (Methodist Council representative) Mr Andrew Brown (Property Secretary) Mr Malcolm Lucas (Treasurer) Revd Nicholas Bentley (Grants Officer) Mrs Beverley Duffy (Lay stationing representative) Miss Naomi Prince (Young person’s representative) Ms Siân Henderson (Administrative Officer) (resigned 31 August 2022) Revd Neville Simpson (Superintendents’ representative and Deputy Chair) Bridget Bennett (Safeguarding representative)

1

YORKSHIRE NORTH AND EAST DISTRICT

OF THE METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

REFERERENCE AND ADMINISTRATIVE INFORMATION – CONTINUED

Names and addresses of advisers:

Bank: CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Investment managers and custodian trustees: Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ Independent Examiner: Sarah B Wearing HPH, Chartered Accountants 54 Bootham York YO30 7XZ

2

YORKSHIRE NORTH AND EAST DISTRICT

OF THE METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Legal and administrative information

The governing body of the District is the Methodist Church and the governing body of the Methodist Church is the Conference. The District’s governing documents are the Deed of Union 1932 and The Methodist Church Act 1976 which give the authority under which the Methodist Church acts. The constitutional practice and discipline of the Methodist Church governs the activities of the District.

The District is a Registered Charity number 1136133.

Trustees

The Trustees who have served during the year are set out on page one. All members of the District Policy Consultation were formerly appointed annually as Trustees by the Representative Synod. With effect from 1 September 2021, the members of the District Leadership Team are now appointed annually as Trustees by the Representative Synod.

The principal address of the District’s Independent Examiner and Bankers are listed on page two.

The Trustees under the direction of the District Treasurer are responsible for the detailed examination of the financial statements and for presenting them to Synod.

Trustees are given a short period of training prior to their first meeting at which they are made aware of their responsibilities.

Decisions within the Methodist Church are reached in accordance with the rules and regulations set out in the document entitled ‘Constitutional Practice and Discipline of the Methodist Church’ and under the direction of the Methodist Conference. It is in accordance with these regulations that decisions are reached by the Synod, District Trustees, and other related committees within the District. Delegated authority is administered in the same way.

In their decision-making, trustees keep in mind ecumenical relationships and also opportunities for collaboration at regional level, seeking to establish a common pattern of working, whenever possible.

Pay and remuneration for key management personnel

The Chair of the District chairs the District Leadership Team (DLT). The stipend, employer’s NIC and employer’s pension contributions of the Chair of District are paid by the Methodist Connexion. The levels of payment are agreed annually by the Methodist Conference. District employees are paid at an agreed level in line with Methodist guidance for the levels of expertise and experience. The Methodist Church has a policy of paying at or above the real living wage and pay levels are increased in line with the incremental rise of the real living wage. No other key management personnel are paid for their services except for the reimbursement of out of pocket expenses.

3

YORKSHIRE NORTH AND EAST DISTRICT

OF THE METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT – CONTINUED

Risk Assessment

The Trustees have examined the major strategic business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to monitor these risks. These are reviewed by the District Leadership Team.

FINANCIAL REVIEW

The District Accounts includes:

The continuing impact of the Covid pandemic was the only significant event during the year which affected the finances within the District, and as noted above, this has not had a significant impact on the District finances.

The trustees of the District have every reason to believe that the District is a going concern, principally because Circuits continue to meet their assessments and the District has adequate reserves to cover a temporary shortfall in anticipated income.

4

YORKSHIRE NORTH AND EAST DISTRICT

OF THE METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

FINANCIAL REVIEW - CONTINUED

Over the last year, the trustees have given a significant amount of attention to the operation of Hull International House, seeking to ensure that the House is able to operate safely and effectively. The DLT remains committed to seeing the House play its part in fulfilling the mission of the District and work is continuing to ensure that a secure and stable position can be established.

The District has the following principal sources of funds:

These sums are used to administer the District and to provide grants to Circuits, Churches and individuals in the District so that they may embark on or continue with projects that fulfil the mission of the District.

Reserves

It is the policy of the charity to hold reserves to provide working capital for its continued operation. At the year end total reserves were £2,132,646 (2021: £2,142,378), of which £685,699 (2021: £680,138) were unrestricted funds and £1,446,947 (2021: £1,462,240) were restricted funds. The level of free unrestricted reserves (i.e. total unrestricted funds excluding the value of tangible fixed assets) is determined at around 6 months of expenditure needs for continued operation. It is considered inappropriate that the District maintains reserves in excess of this when the funds can be used for the work of the organisation. At 31 August 2022 the level of free unrestricted reserves amounted to £92,320 which was short of target, representing around 4 months of expenditure.

Funds held on behalf of others

The Chair’s Benevolent Fund is used to assist ministers and others in difficulty.

Funds held on behalf of others – Agency Transactions Funds are held on behalf of the Joint Public Issues Team for Yorkshire, Racing Chaplaincy and Envoy.

5

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

PUBLIC BENEFIT STATEMENT

The Trustees wish to confirm that they have complied with the duty in section 17 of the 2011 Charities Act to have due regard to guidance published by the Charity Commission in respect of public benefit in exercising their powers and duties. They have done so via a detailed system of checks and balances involving regular feedback to Synod and through ensuring that actions taken, and decisions made are always in accordance with the Constitutional Practice and Discipline of the Methodist Church.

OBJECTIVES AND AIMS

Nature and Purposes

The primary purpose for which the Yorkshire North and East District is constituted is to advance the mission of the Church in the region, by providing opportunities for Circuits to work together and support each other, by offering them resources of finance, personnel and expertise which may not be available locally, and by enabling them to engage with the wider society of the region as a whole. The District serves the Local Churches and Circuits and the Conference in the support, deployment and oversight of the various ministries of the Church, and in programmes of training.

The District has responsibility for the evaluation of applications by Local Churches and Circuits for approval of, or consent to, their proposals, when required, or for assistance from district or connexional bodies or funds. Wherever possible the work of the District is carried out ecumenically. The District is thus an expression, over a wider geographical area than the Circuit, of the connexional nature of the Church.

Objectives

During the year the District continued to develop work around its priorities.

The work of Safeguarding remains a priority with ongoing training of all who are involved in work with young people and vulnerable adults. The District is committed to recognising the place of Safeguarding at the heart of mission at every level.

The implementation of the Property Consents process is working well.

The awarding of Grants through the District Advance Fund continues to work well.

Yearly Objectives

6

YORKSHIRE NORTH AND EAST DISTRICT

OF THE METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

OBJECTIVES AND AIMS - CONTINUED

Long Term Objectives

Strategies for achieving the objectives

The District Leadership Team meets regularly through the year and oversees all aspects of the District’s life, creating opportunities for new ideas to be discussed and debated. Interaction, particularly between the Chair with Connexional bodies ensures that there is considerable contact with national policies and decision making and that those bodies also hear of local views and concerns. This has further been enhanced with advocacy to the Strategies and Resources Committee and the Methodist Council. Communication from Synod and Conference is widely circulated, and the Leadership Team is seeking to further improve the effectiveness of communication within the District.

We believe we have strong financial controls in position.

Grant making policy

The DLT oversees the awarding of grants for the development of Mission and Ministry Projects and for Property Schemes generated by the local churches, circuits and other organisations. A sub-committee is empowered to award seed funding grants up to a maximum of £1,000 each to encourage churches and circuits to try “new things to reach new people”. It is the policy and approach of the District to review requests on a case by case basis taking into consideration the funds available for disbursement, the particular mission and funding needs of each applicant and the overall spread of mission needs across the District.

Extent of the use of volunteers in achieving aims

Volunteers are involved in all aspects of the work of the District from personnel and administration to representational roles as well as providing the income with which the Charity operates. The level of dependence on voluntary workers within the District is extremely high, as it is in any Church organisation.

7

YORKSHIRE NORTH AND EAST DISTRICT

OF THE METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

ACHIEVEMENTS AND PERFORMANCE

Given the ongoing challenges as churches feel the long-term impact of the pandemic, the Trustees are content with this year’s achievements in relation to their objectives. Almost all applications for grants have received funding and safeguarding is now running to plan in the District. There continues to be some closures of churches around the District, but overall there is viability and strength in many parts of the District.

Ecumenical working is still below our hopes and ambitions, but the Trustees remain hopeful of making further progress in this area. There have been some positive and encouraging conversations with the Diocese of Leeds, through Ripon Cathedral, exploring rural mission and ministry. Also, a shared appointment between the Church of England and the Methodist Church is looking likely to come to pass in Ryedale.

A new Circuit, the “Kairos Circuit” was formed on the 1[st] September 2021. It seeks to offer people an opportunity to discover and grow in faith in new ways.

CHALLENGES FOR THE FUTURE

As noted above the Covid pandemic has presented challenges as we look to the future. Reserves continue to be widely used in supporting churches. On the other hand, there have been great strides made in developing online ministry and mission. The District continues to encourage further work in this area, not least through the employment of a Digital Communications Enabler.

Overall, despite some churches experiencing growth, there is a continuing decline in numbers attending and belonging to the church, and that concern is deepened with the recognition of an ageing demographic. The District continues to offer as much help as possible to support circuits and is keen to explore the imaginative work underway through the New Places for New People connexional initiative. It is also committed to ensure that governance structures are able to encourage and support new work, rather than hinder it.

The District is sustaining its priority of responding to the Climate Emergency. Considerable work continues to be undertaken in helping churches respond to the District’s commitment to become a Net Zero Carbon District by at least 2040.

All that said, it is with confidence that we approach these challenges and a trust that with prayer we will fulfil the purposes which God has in mind for us. We believe that the District is as well-equipped as possible to both encompass change and respond to new ideas.

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YORKSHIRE NORTH AND EAST DISTRICT

OF THE METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

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 charity's financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, our responsibility as Trustees requires us to follow best practice and:

The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity at any time and which enable them as Trustees to ensure that the financial statements comply with the Charities Act 2011.

The Trustees are also responsible for safeguarding the assets of the charity and for their proper application, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the District Leadership Team on behalf of the Trustees on 18 May 2023 and signed on their behalf by:

Malcolm Lucas Trustee

9

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

I report to the Trustees on my examination of the financial statements of the Yorkshire North and East District of the Methodist Church (“the Charity”) for the year ended 31 August 2022.

This report is made solely to the Charity's Trustees, as a body, in accordance with Section 154 of the Charities Act 2011. My independent examination work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my independent examination work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the trustees of the Charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

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

Your attention is to drawn to the fact that the charity has prepared the financial statements in accordance with the relevant version of the 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with UK Generally Accepted Accounting Practice.

Independent examiner’s statement

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

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

  1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or

  2. the financial statements do not accord with those records; or

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

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

Sarah Wearing FCA, DChA HPH, Chartered Accountants, 54 Bootham, York, YO30 7XZ

18 May 2023

10

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2022

Notes
Income and endowments from:
Donations and grants
2a
Charitable activities
2b
Other activities
2c
Investments - interest receivable
Total income
Expenditure on:
Raising funds
4
Charitable activities
5
Total
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward at 1 September 2021
Total funds carried forward at 31 August 2022		 Unrestricted
Funds
£
178,899
-
108,198
365
287,462
29,815
252,086
281,901
5,561
-
5,561
680,138
£ 685,699		 Restricted
Funds
£
353,664
16,894
127,122
4,994
502,674
30,710
487,257
517,967
(15,293)
-
(15,293)
1,462,240
£ 1,446,947		 2022
£
532,563
16,894
235,320
5,359
790,136
60,525
739,343
799,868
(9,732)
-
(9,732)
2,142,378
£ 2,132,646		 2021
£
375,014
19,244
281,318
3,171
678,747
40,957
531,974
572,931
105,816
-
105,816
2,036,562
£ 2,142,378

The notes on pages 14 to 23 form part of these financial statements.

11

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

BALANCE SHEET AS AT 31 AUGUST 2022

Notes
Fixed assets:
Tangible assets
8
Total fixed assets
Current assets:
Debtors
9
Cash at Bank and in hand
Total current assets
Liabilities:
Creditors: Amounts falling due
within one year
10
Net current assets
Total net assets
The funds of the charity:
Unrestricted - General fund
14
Restricted - Other funds
13
Total charity funds		 Unrestricted
Funds
593,379
593,379
3,025
105,437
108,462
16,142
92,320
685,699
£
685,699
-
£ 685,699		 Restricted
Funds
250,275
250,275
-
1,199,312
1,199,312
2,640
1,196,672
1,446,947
£
-
1,446,947
£ 1,446,947		 2022
2021
£
£
843,654
847,799
843,654
847,799
3,025
5,129
1,304,749
1,307,907
1,307,774
1,313,036
18,782
18,457
1,288,992
1,294,579
£ 2,132,646
£ 2,142,378
685,699
680,138
1,446,947
1,462,240
£ 2,132,646
£ 2,142,378
Total		 2022
2021
£
£
843,654
847,799
843,654
847,799
3,025
5,129
1,304,749
1,307,907
1,307,774
1,313,036
18,782
18,457
1,288,992
1,294,579
£ 2,132,646
£ 2,142,378
685,699
680,138
1,446,947
1,462,240
£ 2,132,646
£ 2,142,378
Total
847,799
5,129
1,307,907
1,313,036
18,457
1,294,579
£ 2,142,378
680,138
1,462,240
£ 2,142,378

The financial statements were approved by the Trustees on 18 May 2023 and signed on its behalf by:

Malcolm Lucas Trustee

The notes on pages 14 to 23 form part of these financial statements.

12

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 AUGUST 2022

Note
Cash flows from operating activities:
12
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of
the reporting period
Net cash (used in)/provided by operating
activities		 2022
2021
£
£
(3,158)
135,630
(3,158)
135,630
1,307,907
1,172,277
£ 1,304,749
£ 1,307,907

The notes on pages 14 to 23 form part of these financial statements

13

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

1. Accounting policies

(a) Basis of preparation

The financial statements have been prepared in accordance with the relevant version of the 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), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared to give a ‘true and fair’ view and 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 relevant version of the 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) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The registered address is: 28 The Green, Acomb, York, YO26 5LR.

(b) Going concern

The Charity has cash resources and has no requirement for external funding. The coronavirus pandemic has had little effect on the District's finances and it is expected that this will continue to be the case. The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements.

(c) Income recognition

Received from Circuits

Income received from Circuits has been accounted for on the accruals basis.

Circuits contribute funds to the District each quarter, to fund the activities of the Church.

Grants, District development enabler and donations

This income is accounted for on an accruals basis.

Interest received and other income

This income is accounted for on an accruals basis.

Circuit assessment income and expenditure is not included in the District accounts. The District is only used to transfer the resources from the Circuits to the Methodist Church and therefore has no entitlement to the income.

(d) Expenditure recognition and irrecoverable VAT

Cost of generating funds

Cost of generating voluntary income

These represent the costs of the manse and the Chair's travel, administration and secretarial expenses.

Cost of charitable activities

The District's connexion assessment and District Travel Fund payments, and other costs of charitable activities are shown here.

Grants to institutions

Grants are payments made to third parties in the furtherance of the charitable objectives of the Church.

Governance costs

Governance costs include independent examiner's fees and bank charges.

The Charity is not registered for VAT. Irrecoverable VAT is included with the item of expense to which it relates.

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YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 AUGUST 2022

1. Accounting policies - continued

(e) Fixed assets

Tangible fixed assets are capitalised if they can be used for more than one year, and cost at least £1,000. They are valued at cost or a reasonable value on receipt. Where cost is not available, a reasonable estimate of cost or of the buildings current value to the District is used. Where an estimate based on insurance value is used this takes account of the fact that cover will be based on demolition and reinstating the current building and not the original cost less accumulated depreciation. A professional valuation is not required, but if available, that figure is used. Provision is made for depreciation where appropriate, as follows:

Furniture and fittings 15% reducing balance per annum Hull International House - Furniture and equipment over 10 years straight line Website development over 3 years straight line

(f) Investments

Fixed asset investments are included at market value on the balance sheet date. Any gain or loss on investment is taken to the SOFA.

(g) Stock

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks.

(h) Fund accounting

The funds held constitute: General Funds held for any purpose of the District which are Unrestricted, Designated funds comprise unrestricted funds that have been set aside by the Trustees for a particular purpose, the aim and use of each designated fund is set out in the notes to the financial statements, Restricted funds which are held for a narrower purpose and Endowment funds which represent gifts, the capital normally being unavailable for spending, and the income from which is either Restricted or Unrestricted. Details of each material fund are disclosed in notes 13 and 14 to these accounts. Any funds may be held in ways other than in cash.

(i) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(j) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(k) Financial instruments

The Church only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

(l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and any short term deposit accounts with a maturity of three months or less from the date of opening.

15

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 AUGUST 2022

Unrestricted Restricted 2022 2021
£ £ £ £
2a. Donations and grants
Received from Circuits 120,899 - 120,899 126,699
Grants 58,000 353,664 411,664 248,315
£ 178,899 £ 353,664 £ 532,563 £ 375,014
In 2021 the amount of donations and grants which related to restricted funds was £248,315.
2b. Charitable activities
York International House Rents -
 16,894 16,894
 19,244
£ - £ 16,894 £ 16,894 £ 19,244
In 2021 the amount of income from charitable activities which related to restricted funds was £19,244.
2c. Other activities
Hull International House Income -
 118,306 118,306
 132,545
Miscellaneous Other Income 108,198
 8,816 117,014
 148,773
£ 108,198 £ 127,122 £ 235,320 £ 281,318

In 2021 the amount of income from other activities which related to restricted funds was £180,086.

3. Funds received as agent

Balance held at
beginning of year
£
Name of party:
Methodist Church Fund
-
JPIT Yorkshire
4,028
Racing Chaplaincy
761
Envoy
2,863
Total
£ 7,652
penditure on raising funds
Unrestricted
£
Manse costs
5,191
Expenditure on other
District property
1,396
Chair's travel and
secretarial costs
Travel
3,334
Secretarial
12,000
15,334
7,022
Depreciation
Furniture and fittings
872
Total
£ 29,815
Employees'
and
volunteers'
travel
In 2021 the amount received and paid out as agent was		 Amount received
Amount paid out
£
£
576,293
(576,293)
-
-
-
-
-
(175)
£ 576,293
£ (576,468)
Restricted
2022
£
£
-
5,191
25,150
26,546
-
3,334
-
12,000
-
15,334
2,287
9,309
3,273
4,145
£ 30,710
£ 60,525
£584,286 and £581,423 respectively.		 Balance held at
end of year
£
-
4,028
761
2,688
£ 7,477
2021
£
4,999
18,662
496
12,000
12,496
655
4,145
£ 40,957

4. Expenditure on raising funds

In 2021, the expenditure on raising funds which related to restricted funds was £21,838.

16

YORKSHIRE NORTH AND EAST DISTRICT

OF THE METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 AUGUST 2022

5. Expenditure on charitable activities

penditure on charitable activities
Synod, committees and
administration
Salaries and associated costs
Grants and donations
Other expenses
Training, appraisal and development
Work of the District
Safeguarding officer
Governance costs
Independent examiner's fees
Total		 Unrestricted
£
22,330
122,450
5,221
58,802
9,615
218,418
31,148
2,520
£ 252,086		 Restricted
£
4,198
75,660
207,933
198,930
536
487,257
-
-
£ 487,257		 2022
£
26,528
198,110
213,154
257,732
10,151
705,675
31,148
2,520
£ 739,343		 2021
£
7,421
185,884
132,260
164,142
5,791
495,498
33,956
2,520
£ 531,974

In 2021, the amount of expenditure on charitable activities which related to restricted funds was £327,006.

Grants to institutions

Grants to institutions
Grants made to institutions from the District Advance Fund (a restricted fund) included the following grants,
in line with the charity's aims. £
Ministry grants
Yorkshire North & East District - Digital Communications Enabler 30,000
- Circuit Support Team 22,000
- Remodelling Governance Project 6,000
Mosaic Church, Hull - Leadership support 12,000
Clowes Memorial, Hull - Families and children's worker 2,667
Princes Avenue, Hull - Persian Ministry support 15,333
Willerby, Hull - Pastor for older persons 3,640
Driffield-Hornsea Circuit - Family worker 6,000
York Circuit - York University Chaplaincy 24,000
Kairos Circuit - Development support 30,000
£ 151,640
Property grants
Wesley Centre, Harrogate - Refurbishing kitchen and toilets 6,500
Acomb, York - re Garden Room project 15,305
Bransholme, S. Holderness - Vandal proof windows 2,000
£ 23,805
Seed Funding grants
York Circuit - "Walk the Talk York" podcast 650
Wesley Chapel, Harrogate - Christmas shoppers event Christmas shoppers event 200
Queen Street, Scarborough - Noah's Ark library 500
Wetherby - Junior Church mobile library 300
Clowes Memorial, Hull - Youth club resources 500
- Lego church 500
Hedon - Digital hub 1,000
Tadcaster Circuit - Prayer cards 300
Bilton Area, Nidd Valley - Monday Fun Station 500
Brough, Hull - Homes for Ukraine project 400
£ 4,850
Other grants
Connexional Pension Reserve Fund £ 15,375
Total Grants Paid £ 195,670

17

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 AUGUST 2022

2022 2021
£ £
et income before investment gains/(losses)
This is stated after charging:
Depreciation 4,145 4,145
Statutory accounts preparation 1,260 1,260
Independent examiner's fee for reporting on the accounts 1,260 1,260

6. Net income before investment gains/(losses)

Depreciation of £872 relates to unrestricted funds (2021: £872), £3,273 relates to restricted funds (2021: £3,273).

7. Staff costs

Staff working for the Yorkshire North and East District of the Methodist Church are employed by the Yorkshire North and East District.

North and East District.
Gross salaries
Employer's national insurance
Employer's pension contributions		 228,283
15,557
11,282
£ 255,122		 209,557
13,755
8,342
£ 231,654

No employees earned more than £60,000 during the year.

The average monthly head count was 11 (2021: 11).

The key management personnel of the charity comprise of the trustees and the District executives. The total employee benefits of the key management personnel were £25,598 (2021: £36,447).

The Charity also benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with Charities SORP, the economic contribution of general volunteers is not recognised in the accounts.

18

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2022

8. Tangible Fixed Assets

Tangible Fixed Assets
Additions in year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021
Charge for year
Cost
At 1 September 2021
At 31 August 2022
Depreciation
At 1 September 2021		 Freehold
property
£
827,351
-
827,351
-
-
-
£ 827,351
£ 827,351		 Furnitures, fittings
and equipment
£
63,275
-
63,275
42,827
4,145
46,972
£ 16,303
£ 20,448		 Total
£
890,626
-
890,626
42,827
4,145
46,972
£ 843,654
£ 847,799

Assets with a net book value of £250,275 (2021: £253,548) relate to restricted funds.

9. Debtors

Unrestricted
£
Trade debtors
694
Sundry debtors and prepayments
2,331
£ 3,025
In 2021, none of the debtors related to restricted funds.
reditors: amounts falling due within one year
Unrestricted
£
Accruals and deferred income
2,520
Other creditors
6,145
Amounts held as agents
7,477
£ 16,142		 Restricted
£
-
-
£ -
Restricted
£
2,640
-
-
£ 2,640		 2022
£
694
2,331
£ 3,025
2022
£
5,160
6,145
7,477
£ 18,782		 2021
£
2,760
2,369
£ 5,129
2021
£
4,660
6,145
7,652
£ 18,457

10. Creditors: amounts falling due within one year

In 2021, creditors of £2,140 related to restricted funds.

19

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2022

11. Related Party transactions

Funds of £576,293 were received from the circuits on behalf of the Central Methodist Fund during the reporting period of which £576,293 was paid over to the Central Methodist Fund.

During the year out of pocket expenses relating to travel of £3,922 (2021: £545) were paid on behalf of five (2021: two) trustees.

Two trustees received remuneration during the year for their roles within the District: Sian Henderson as District Administrator and PA to the Chair, and Naomi Prince who succeeded her in this role in August 2022. The total amount paid to them, including pension contributions of £1,156, totalled £25,598 (2021: £36,447). The remuneration is arrived at by consideration of similar positions in other parts of the Methodist Church and is allowable under the constitution. The husband of trustee Emma Crippen received £29,328 during the year as Digital Communications Enabler. No trustee (2021: None) received any remuneration in respect of their trusteeship role.

There were no other related party transactions.

12. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH
FLOW FROM OPERATING ACTIVITIES
Net (expenditure)/income for the reporting period
Adjustments for:
Depreciation charges
Decrease in debtors
Increase in creditors
Net cash (used in)/provided by operating activities
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Total cash and cash equivalents
Cash and cash equivalents amounting to £1,199,312 (2021: £1,208,695)
ANALYSIS OF CHANGES IN NET DEBT
At
1 Sept 21
£
Cash
1,307,907		 2022
2021
£
£
(9,732)
105,816
4,145
4,145
2,104
25,180
325
489
(£ 3,158)
£ 135,630
1,304,749
1,307,907
£ 1,304,749
£ 1,307,907
related to restricted funds.
At
Cash-flows
31 Aug 22
£
£
(3,158)
1,304,749		 2021
£
105,816
4,145
25,180
489
£ 135,630
1,307,907
£ 1,307,907

20

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2022

13. Restricted Funds

Current year
Balance at 1 September 2021
Income
Expenditure
Net income/(expenditure)
Transfers between funds
Balance at 31 August 2022
Comparative year
Balance at 1 September 2020
Income
Expenditure
Net income/(expenditure)
Transfers between funds
Balance at 31 August 2021		 Kairos
Fund
£
39,885
28,000
(67,885)
(39,885)
-
£ -
29,342
35,000
(24,457)
10,543
-
£ 39,885		 Chair's
Benevolent
Fund
£
2,560
8,623
(1,780)
6,843
-
£ 9,403
4,494
476
(2,410)
(1,934)
-
£ 2,560		 District
Advance
Fund
£
759,191
330,240
(197,833)
132,407
-
£ 891,598
640,419
251,012
(132,240)
118,772
-
£ 759,191		 York
International
House
£
197,586
17,087
(15,156)
1,931
-
£ 199,517
215,954
19,414
(37,782)
(18,368)
-
£ 197,586		 Hull
International
House
£
140,973
118,312
(165,946)
(47,634)
-
£ 93,339
125,544
132,755
(117,326)
15,429
-
£ 140,973		 York City
Centre
Proceeds
£
154,800
198
(54,367)
(54,169)
-
£ 100,631
179,193		 Hull City
Centre
Proceeds
£
167,245
214
(15,000)
(14,786)
-
£ 152,459
165,342
11,903
(10,000)
1,903
£ 167,245		 Total
£
1,462,240
502,674
(517,967)
(15,293)
-
£ 1,446,947
1,360,288
236
(24,629)		 450,796
(348,844)
(24,393)
-
£ 154,800		 101,952
-
£ 1,462,240

Kairos Fund (formerly Pioneer Nursery Fund)

This fund supports a new single church/circuit for those interested in pioneering new forms of church and is funded by a connexional grant.

Chair's Benevolent Fund

This fund makes small grants to ministers and lay people in need, at the discretion of the chair.

District Advance Fund

This fund makes grants towards projects advancing the mission of the Church, both for people and property.

York International House

This fund provides (primarily) student accommodation in a property owned by the District. Surpluses in the fund are used to fund University chaplaincy work in York.

Hull International House

Hull International House is a property in Hull which offers accommodation for students and those on low incomes with the aim of promoting a community spirit generated by residents and staff.

York City Centre Proceeds

This fund comprises the sale proceeds of former property in York city centre. The fund is available for mission purposes in York city centre and is currently being used to fund the work of a deacon.

Hull City Centre Proceeds

This fund comprises the sale of Hull Central Hall and other property. The fund is available for mission purposes in Hull city centre and is currently funding work at Selby Street Mission in Hull.

21

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2022

14. Unrestricted Funds - General Account

Unrestricted Funds - General Account
Current year
Balance at 1 September 2021
Income
Expenditure
Net income/(expenditure)
Gain/(loss) on investments
Transfers between funds
Balance at 31 August 2022
Comparative year
Balance at 1 September 2020
Income
Expenditure
Net income/(expenditure)
Gain/(loss) on investments
Transfers between funds
Balance at 31 August 2021		 £
£
680,138
287,462
(281,901)
5,561
-
-
£ 685,699
£
£
676,274
227,951
(224,087)
3,864
-
-
£ 680,138
General Account
£ 685,699
£
676,274
3,864
-
-
£ 680,138

22

YORKSHIRE NORTH AND EAST DISTRICT OF THE METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2022

15. Comparative Statement of Financial Activities

Income and endowments from:
Donations and grants
Charitable activities
Other trading activities
Investments
Total
Expenditure on:
Raising funds
Charitable activities
Total
Net income
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward at 1 September 2020
Total funds carried forward at 31 August 2021		 Unrestricted
Funds
£
126,699
-
101,232
20
227,951
19,119
204,968
224,087
3,864
-
3,864
676,274
£ 680,138		 Restricted
Funds
£
248,315
19,244
180,086
3,151
450,796
21,838
327,006
348,844
101,952
-
101,952
1,360,288
£ 1,462,240		 2021
£
375,014
19,244
281,318
3,171
678,747
40,957
531,974
572,931
105,816
-
105,816
2,036,562
£ 2,142,378

23