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← Trustees For Methodist Church Purposes

2023-08-31-accounts

Trustees for Methodist Church Purposes Charity Registration Number 1136358

Trustees Report & Accounts for the year ended 31 August 2023

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Trustees for Methodist Church Purposes

TABLE OF CONTENTS TABLE OF CONTENTS
OFFICE AND ADVISERS
3
BOARD MEMBERSHIP
4
TMCP TEAM
5
AIMS AND PURPOSES OF THE TRUSTEES FOR METHODIST CHURCH PURPOSES
5
PUBLIC BENEFIT REQUIREMENT
7
STRUCTURE AND GOVERNANCE
7
OUTCOMES
9
WHERE TMCP PROVIDE SUPPORT / COLLABORATION WITH THE CONNEXIONAL TEAM
10
MOVING FORWARD
12
REVIEW OF FUNDING
13
FINANCIAL REVIEW
14
RESERVES POLICY AND REVIEW
16
INVESTMENT POLICY AND REVIEW
16
CONNECTED ORGANISATIONS
17
RISK MANAGEMENT AND INTERNAL CONTROLS
18
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
19
RE-APPOINTMENT OF AUDITOR
19
INDEPENDENT AUDITOR’S REPORT
20
STATEMENT OF FINANCIAL ACTIVITIES
23
STATEMENT OF FINANCIAL POSITION
24
STATEMENT OF CASH FLOWS
25
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
26-38

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Office and Advisers

Office

Central Buildings Oldham Street Manchester M1 1JQ

External Auditors

MHA Moore and Smalley Richard House 9 Winckley Square Preston PR1 3HP

Solicitors

Brabners Horton House Exchange Flags Liverpool L2 3YL

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Board Membership

The Revd Rosemarie E G Clarke Mr Gerry Davis OBE The Revd Paul Davis Mr Ian C White (Chair) The Revd Rodney Hill Mr David James The Revd Gillian M Newton Mr John Jefferson The Revd Philip Wagstaff Ms Alethea Siow (Vice Chair) – resigned December 2023

Changes in Office:

Ms Alethea Siow resigned from the Board with effect from the end of December 2023. The Board is grateful for her service as Vice-Chair and for her extensive contributions on the Executive and Grants Committees.

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Trustees for Methodist Church Purposes

TMCP Team

Anne Goodman, as Chief Executive, oversees a professional team of 21 which comprises Finance, Legal and Corporate Support Services sections, who are responsible for ensuring the Board’s functions and responsibilities as trustees are discharged on a day-to-day basis. The Chief Executive also works closely with the Board on strategic and planning issues.

The Senior Management Team comprises:

Martin Attfield - Assistant Chief Executive
Laura Carnall - Legal Manager
Nicola Sivori - Finance Manager

The Chief Executive and Senior Management Team continue to work closely with the Executive Committee and external consultants to implement new systems which are designed to simplify and expedite key processes and assess the effectiveness of workflow and performance.

The Trustees for Methodist Church Purposes (TMCP) works alongside colleagues in the Connexional team, Central Finance Board and the wider Methodist Church. All staff aim to promote a professional relationship between TMCP and any outside agencies with whom the organisation may be in contact.

Staff training and professional development needs are identified by managers through the salary and performance review process. This ensures the team remain up to date in terms of current legislation, enhances skill sets and satisfies the requirements of individual professional bodies. The Board holds a ‘season ticket’ with an industry training provider to help facilitate this.

The Salary and Performance Review Policy, which includes an updated appraisal system, continues to be implemented, when objectives and performance measures can be reviewed and assessed.

There continued to be an increase in the volume of work during 2023, primarily due to a sustained increase in property transactions and development projects. The Board acknowledges the challenges which this has presented and is very grateful for the team continuing to show resilience and commitment in maintaining as effective a service as possible. This is especially relevant given the additional time and effort required from the team as TMCP implements new systems and ways of working. It should also be recognised that the Matter Management System (MMS) continued to take a significant amount of time and resources during the year and the Board congratulates the team on meeting key performance markers while introducing major changes to working practices.

Aims and purposes of the Trustees for Methodist Church Purposes

The purpose of the Board is to service the Methodist Church in the advancement of the Christian faith in accordance with its doctrinal standards and discipline, and any charitable purpose of the Methodist Church or Church organisation.

The Board’s mission is to support and strengthen the Methodist Church, both by providing practical support to Managing Trustees and by working closely and effectively with colleagues in the Methodist Connexional Team.

It aims at all times to:

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

The governing documents are the Methodist Church Act 1939, the Trust Deed of 1939 and the Methodist Church Act 1976.

TMCP is the custodian trustee of all property held on the Model Trusts of the Methodist Church Act 1976, except for that in the Channel Islands and the Isle of Man which are held by the Trustees for Jersey Methodist Church Purposes, the Trustees for Guernsey Methodist Church Purposes or the Trustees for Manx Methodist Church Purposes. This includes nearly all the property held by the 3,710 or so local Churches, 333 Circuits and 30 Districts, together with a number of properties used for Connexional purposes.

The Board is also custodian of the funds held in 5,410 separate trusts. These funds are held for Methodist purposes for the Managing Trustees who may be local Church Councils, Circuit Meetings or other bodies of trustees. Some trusts, such as Circuit Model Trust Funds, are held on the Model Trusts. The trusts of other Funds, such as Permanent Endowments, are determined by the terms of the will or other settlement.

These trusts are segregated from the Charity’s individual assets, being each identified as separately labelled funds. Any instructions for actions in respect of those funds are given by the Managing Trustees responsible for the funds and only acted upon when this authority is given. Regular reconciliations of these funds and investments held are performed and all processes are subject to scrutiny.

Activities of the Board include: -

The Board performs a number of other activities, details of which are outlined on the TMCP website at https://www.tmcp.org.uk/about/what-we-do

The Board is full trustee of a small number of trusts where it has discretion over the use of income and, in some cases the capital, and is responsible for the investment of the funds. For a number of the trusts, the purposes for which grants may be made are specified in the trust documents, and for others the Board is able to make grants for any Methodist charitable purpose. The Board works closely with others within the Connexion to publicise these funds and to ensure they are utilised. These grants have supported some key projects across the Connexion and have been greatly appreciated.

The Board is pleased that, due to increased publicity across the Connexion and through the Property Development Committee, it paid grants totaling £569,762 for property and other projects from these trusts during the last financial year.

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Public Benefit Requirement

In accordance with Section 4 of the Charities Act 2011, the Board has complied with its duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising its powers or duties.

This guidance sets out two key principles:

  1. The organisation must have an identifiable benefit.

  2. The benefit must be to the public or a section of the public.

The Board meets its charitable objects by performing key duties as the custodian trustee of all Methodist Model Trust property, facilitating all related legal and financial transactions. It provides practical support to Managing Trustees in local Churches, Circuits and Districts and works closely and effectively with colleagues in the Methodist Connexional Team.

Structure and Governance

These accounts reflect only the state of affairs and income and expenditure of the Board in relation to its own direct affairs. The Board also acts as custodian trustee in respect of all property held on the Model Trusts and full trustee of a number of other trusts. The accounts included in this report do not include these funds or any amounts in respect of local Church, Circuit, District and connexional accounts.

The Board is a corporate body and was incorporated by the Methodist Church Act 1939. The Trustees for Methodist Church Purposes is a registered charity (1136358 – “Trustees for Methodist Church Purposes”).

Board members are appointed by the Methodist Conference on the nomination of the Board, which seeks to maintain a balance of appropriate professional experience, Methodist experience and Connexional representation. A detailed Skills Matrix is updated annually by the Chair in consultation with Board members. This is used as a reference point when any Board vacancies arise.

Further to Section 4(3) of the 1939 Act the Board aims to consist of equal numbers of “ministers and laymen” (sic) and the Conference has currently set the total number of members at 16.

Once appointed a member is a trustee for life unless any of the conditions set out in section 5 of the 1939 Act occurs. In summary these are if a member shall:

*In the Act the “Secretary” means “the Secretary of the Conference”.

It should be noted that, despite these criteria, there is a regular refreshing of Board membership.

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

The Board, which met on 19[th] October 2022, 23[rd] February 2023, 28[th] March 2023 and 10[th] May 2023, is responsible for all the functions of the Trustees for Methodist Church Purposes. In practice, much of the work of the Board is discharged through committees and by its staff. As well as meeting to discuss operational issues, the Board holds an annual strategy day to review policy and set goals for each year.

The Board occupies offices at Central Buildings, Manchester which is a Model Trust property used also by the Connexional Team, the Manchester Circuit and the Methodist Centre (a local church in the Circuit). The property is managed under a Joint Trusteeship Agreement to which the Methodist Council is party.

The Board is served by four committees:

The Executive Committee

There is currently a committee of five Board members which comprises the Chair and Vice Chair of the Board together with the Chairs of each sub-committee together with a ministerial representative. The committee met on 12[th] September 2022, 12[th] October 2022, 13[th] December 2022, 16[th] February 2023 and 26[th] April 2023. There were also sub-committee meetings for various key projects. The Executive Committee reports to the Board and:

The Audit and Risk Committee

This is a committee of three Board members, which met on 7[th] February 2023, 26[th] April 2023 (Joint meeting with the Executive) and 31[st] July 2023 to review:

The committee also:-

The Investment Committee

This is a committee of two members plus the Chief Executive and Finance Manager which meets annually with representatives from the Central Finance Board. It met on 30[th] January 2023 to review:

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There is an intention to increase the Board membership of this committee which had reduced due to Board changes.

The Grants Committee

This committee comprises five members including three Board members, the Chief Executive and the Finance Manager, supported by other staff as needed. The committee met on 16[th] November 2022, 7[th] December 2022 and 16[th] June 2023 and allocates grants from the discretionary grant funds under delegated authority from the Board. The meeting dates are publicised in advance on the TMCP website.

Board Recruitment

The Board continues to revise its process for recruitment. Vacancies, where they arise, are assessed in terms of experience, skills and expertise. The Chair of the Board is co-ordinating a recruitment drive in Spring 2024 to ensure there continues to be an appropriately constituted Board to meet the governance requirements of the organisation.

Board Training

All new trustees undergo a induction to familiarise themselves with the aims and work of the charity, and to ensure they understand fully their responsibilities as Board members and the organisational expectations in terms of their commitment. As part of the induction programme, trustees are provided with constitutional, governance, financial and organisational documentation. Trustees also receive regular governance updates and are made aware of relevant events and training opportunities.

Outcomes

In order to provide an overview of the work performed by TMCP, included below is an outline of some of the tasks undertaken since the last Report.

Finance

The Finance section supports the Board’s role as custodian trustee by planning and performing all financial operations relating to the receipts and payments of Model Trust monies as well as the investment of funds as instructed by Managing Trustees. This section also works closely with colleagues in the Central Finance Board and the Connexional team in order to fulfill some of these duties.

Some of the highlights of activities undertaken during the Connexional Year 2022/23 are as follows:

• Property proceeds received £64.2m
• Payment requests processed £67.6m
• Investments purchased £4.2m
• Investments sold £16m
• Payment requestsprocessed via the Consents system 498

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

The Trust Information System, an online system which provides online access to trust statements, balances and other information, had 3,142 users registered as at the year ended 31[st] August 2023 (2022 – 2,898 users).

Legal

TMCP works with Managing Trustees, the Connexional Team and their professional advisers to enable them to pursue mission in a number of different ways. This work includes the legal aspects of reimagining use of existing buildings, including partnerships for multi-purpose worship space and community activities. The Legal section enables Managing Trustees to advance these projects in compliance with the requirements of Charity Law and Methodist Law and policy.

In the Connexional Year 2022/23 the Legal section:

The Legal section continues to help Managing Trustees across the Connexion to secure income from their property to fund Mission.

The work which the Legal team performed in respect of TMCP’s role as Data Controller is considered separately in this report as is the management of the Panel Solicitors.

Where TMCP Provide Support / Collaboration with the Connexional Team

General Data Protection Regulations (GDPR)

TMCP continues to act as the Data Controller for all Local Churches, Circuits and Districts (who are deemed to be the “Data Processors” i.e. the people who deal with data/ information on behalf of the Methodist Church).

The Connexional Team have a separate Notification with the Information Commissioners Office (‘ICO’). The separate registration ensures that the Connexional Team is a data controller for ICO to cover those data processing activities which fall outside TMCP’s registration and for which they are solely responsible.

TMCP and the Connexional Team continue to work together to provide data protection resources to the wider Connexion, including precedent documents, policies, practical guidance and frequently asked questions.

In the year to 31[st] August 2023 TMCP organised 2 online forums for District Data Champions to outline fully all current developments in Data Protection and to provide support and guidance as needed. As Data Controller, TMCP requires assurance from the Local Churches, Circuits and Districts that all necessary GDPR processes are being adhered to. In order to obtain such assurances, and on the recommendation of its Internal Auditors, TMCP introduced an Annual Checklist. This is

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

completed by local Managing Trustees and reported back via the Circuit and District who have collated the returns to confirm that they are fulfilling their responsibilities with regard to GDPR.

TMCP continues to act as a point of reference on matters arising in respect of both registrations and also co-ordinated four Data Subject Access Requests (DSAR’s) in the Connexional year 2022/23. Of these four DSARs, TMCP dealt with two of these and helped/co-ordinated with the Connexional Team on the others. The DSARs are recorded in TMCP’s DSAR Register.

News Hub Articles

Articles are regularly published on the TMCP website ‘News Hub’, providing information to Managing Trustees and their professional advisers on updates to the website, guidance on changes in legislation, training events, data protection, availability of trust statements and other relevant information. During the year there have been 15 articles published. Managing Trustees are encouraged to sign up for the News Hub emails to be kept informed of current developments. The number of subscribers is currently in excess of 1,000.

Panel Solicitors

The Panel of Solicitors was established in 2018 to provide a cost-effective and consistent service to Managing Trustees in respect of legal matters. They have been trained and are regularly updated in respect of Methodist requirements and work very closely with the TMCP Legal team.

The Framework Agreement between TMCP and the Panel firms sets out the overarching principles for the performance and management of the Panel. In its capacity as the Church’s corporate body TMCP is party to the Framework Agreement meaning we have responsibility for ensuring the terms of the Framework Agreement are complied with.

Feedback questionnaires continue to be sent at the end of a transaction to all Managing Trustees who use the Panel. Feedback is an important part of the monitoring process and ensures that Managing Trustees are receiving a high level of service and advice. TMCP summarise statistics relating to use of the Panel for monitoring, reporting, management and addressing feedback and complaints.

TMCP hold quarterly face to face monitoring meetings with each firm on the Panel. Training events regularly take place.

A full re-tender of the Panel was undertaken in 2023. This resulted in 4 firms being appointed to the Panel under new Framework Agreements. These firms include the three existing panel members being - Anthony Collins, Blake Morgan and Sintons, and now the inclusion of HCR law. A new rollout of the panel is commencing in early 2024 to re-establish the importance of using the Panel and the benefits it can bring to the wider Connexion. It will be a good opportunity to promote the services of the new firm to the Connexion and encourage use of the Panel in wider areas of the Connexion given HCR law has 10 offices across England and Wales. Work has been completed on streamlining procedures for sales and will be implemented in 2024 for leases and purchases to assist with streamlining of more types of transactions for the benefit of Managing Trustees. The streamlining procedure and the introduction of precedent documents for these types of matters are helping to make sure that TMCP can limit its involvement in transactions when at time critical stages and ultimately transactions proceed much quicker.

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Trustees for Methodist Church Purposes

Copyright

The TMCP Board is the corporate body which holds copyright on behalf of the Conference and its subsidiary bodies because copyright is to be held either by an individual person or a corporate legal person. It will be noted that all publications such as the Constitutional Practice and Discipline of the Methodist Church (CPD), the Minutes of Conference and Singing the Faith and the works held in the Art Collection, to give but a few examples, name TMCP as the holder of the copyright.

However, all management responsibilities relating to these publications and their copyright are in the hands of the Methodist Council leaving the Board to be the mere holder of copyright. The Council delegates to others the power to grant permissions to use copyright material and to set any fees in respect of such use. Any fees paid to the Board for the use of copyright material are held to be used as directed by the Methodist Council.

Moving Forward

A number of key strategies have been rolled out in recent years in respect of the work performed by TMCP, a number of which are being finalised in the next Connexional year. Delivery of these strategies will result in the complete streamlining of all internal processes and continue to lead to efficiencies which will positively impact performance. The Board and team invest resources to achieve these outcomes. The current status of these strategies is outlined below:

Matter Management System Implementation

Legal Strategy (In progress)

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Finance Strategy (In progress)

Workforce Strategy (In progress)

Review of Funding

During 2023, the Board reviewed its current funding model which is based on a charge, calculated as a percentage of the assets TMCP holds under its management. The review had concluded that a more sustainable and appropriate model was needed, separating the charge made in respect of the management of funds from the funding of all the other duties performed by the Board.

The Board decided on a preferred option and after initial discussions with the Connexional Team held at operational level, the Board will be seeking strategic high-level discussions to ensure that a new funding model, which will sustain the work of TMCP for the next decade, is agreed upon.

In Summary

In summary, the following observations should be noted:

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Financial Review

Total income for the year was £1,380,909 while total expenditure for the year was £1,460,238 and this resulted in a net operating loss of £79,329 (2022 net operating gain: £165,580). Losses on investment assets of £22,940 were then added against this loss, which led to a net decrease in funds of £102,269 (2022: net increase in funds £61,832).

The Statement of Financial Activities shows grant income of £131,126 received from the Dore Trust and Crossfield Trust and this is matched against the second phase costs of the Matter Management Project which will lead to increases in efficiency and effectiveness. This restricted income and expenditure is shown separately in order to distinguish it from the unrestricted income and expenditure streams.

The operational deficit arises primarily as a result of further interim Board investment in staffing costs. This was required to underpin a consistent service to Managing Trustees during the year while the team was developing and implementing the Matter Management System.

Under the Service Level Partnership Agreement currently in place both the Board and Methodist Council are keenly aware of the need for TMCP to continue to provide efficient and effective services over the longer term. As outlined previously, discussions will be held with the Methodist Council in the forthcoming year to address the situation regarding TMCP’s ongoing financial viability.

Charitable Income

The main sources of charitable income are the management charges, the contribution from the Methodist Council and the dividends arising on funds held with the Central Finance Board. The charity does not carry out significant fundraising activities.

Income from charitable activities decreased by 4.76% to £1,198,276 (2022: £1,258,174) . Investment Income increased by 80% to £51,507 (2022: £28,596). Methodist Council income includes recovery of costs incurred in respect of Support Services staff accommodated in Manchester.

Restricted income is from Dore and Crossfield Trusts £131,126 (as noted in the overview above).

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Incoming Resources for the Year to 31 August 2023
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Management Charge - £1,011,841
Methodist Council - £185,715
Other-£720
Investment - £51507
Restricted Income - £131,126
Grant Income - £0
Total £1,380,909
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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Charitable Expenditure

The main categories of charitable expenditure are staffing and support costs. Resources expended in respect of charitable activities increased to £1,434,580 (2022: £1,198,913). This included expenditure incurred in respect of the second phase of the digital transformation project.

Over the last five years, since 2018/19, there has been an aggregate deficit of £178,033. This is after adjusting for investment appreciation and exceptional items. Allowing for these items the level of reserves has moved over that period from £1,511,188 to £1,333,155.

To ensure continual improvement in performance and the development of ongoing tools to assist the Connexion, TMCP has over the last five years further invested in staff and infrastructure.

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Outgoing Resources for the Year to 31 August 2023
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Staff Costs - £1,062,598
Support Costs - £371,982
Governance - £25,658
Total £1,460,238
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Utilisation of Reserves

2022/23 2021/22 2020/21 2019/20 2018/19
Opening
Balance		 £1,435,424 £1,373,592 £1,270,031 £1,511,188 £ 1,754,133
Funds
(utilised
from)/
added to		 £ (102,269) £61,832 £103,561) £ (241,157) £ (242,945)
reserves in
the year
Closing
Balance £		 £1,333,155 £1,435,424 £1,373,592 £1,270,031 £ 1,511,188

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Reserves Policy and Review

The current reserves policy was agreed in 2020. Quantified target reserves per the policy are £1.4m compared to actual free reserves of £1,333,155 (excluding tangible and intangible fixed assets).

The Audit and Risk Committee looks at the Reserves Policy annually, in the context of the forthcoming budget and the final accounts, as a matter of good practice. A full review of the Reserves Policy is undertaken every three years by the Board. The next review is to be completed, in conjunction with the Funding Model discussions, in Spring 2024.

When the Annual Budget is prepared, the Reserves Policy will be reviewed to decide if any allocation of the Administration Fund is possible for the forthcoming year. In the first instance the level of reserves needs to be restored to the required level as noted above. If this is the case any excess on an annual basis could then be budgeted to be utilised.

The Reserves could be used to:

It would be preferable if the Reserves were not used to:

Investment Policy and Review

The Board has agreed investment objectives for each of the trusts for which it is full trustee and reviews annually the criteria for the investment of the Trustees Interest Fund in collaboration with the Methodist Church’s in-house investment manager, the Central Finance Board (CFB) of the Methodist Church, whose mission is to:

To ensure that the CFB is working to the highest ethical standards, the Joint Advisory Committee for the Ethics of Investment (JACEI), which is made up of five people nominated by the CFB and five by the Methodist Council, monitors the activities of the CFB to ensure that it complies with the ethics of the Church.

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Trustees for Methodist Church Purposes

This policy is reviewed annually, and the responsibility is delegated by the Board to the Investment Committee. This committee also recommends the investment parameters for the Board to adopt.

Connected Organisations

TMCP as a corporate body is a separate legal entity, distinct from the Methodist Church, and is responsible for its own actions. The Board reports annually to the Conference and all members of the Board must be members of the Methodist Church. The Conference has various powers under the 1939 Act (e.g. to change the body’s name) and in particular it appoints the members of the Board.

The various parts of the legal framework within which the Methodist Church is governed allow for the setting up of separate bodies all reporting into the Methodist Conference to handle specific aspects of the Church’s work and/or discharge a specific power of the Church.

Outlined below are two bodies considered to be connected organisations, which alongside TMCP report separately each year to the Methodist Conference:

2023 Income from Purchases from Amount owed by connected connected connected organisation organisation organisation at year-end Methodist Council £185,715 £1,650 £22,228 2022 Income from Purchases from Amount owed by connected connected connected organisation organisation organisation at year-end Methodist Council £189,271 £1,422 £22,288

In addition to this, the connected organisation transactions with the Central Finance Board include the operations in the administration of the Board’s custodian trustee responsibility.

Other Connected Organisation Matters

Anne Goodman, Chief Executive, is a director of Methodist Chapel Aid Ltd.

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

The Board, as full trustee of the MCA Charitable Trust, holds 29.7% (2022: 29.7%) of the share capital of the Company. It holds these shares for the charitable purposes of the Methodist Church generally.

Risk Management and Internal Controls

Risk Management

The Board, through the Audit and Risk Committee, regularly reviews the risks to which its operations are subject and maintains appropriate arrangements to mitigate those risks. The primary risks are funding and investments, loss of key staff, and changes in technology.

The Audit and Risk Committee reviews and assists in the continued development of a refined Risk Matrix. A full statement of the Risk Management policy is available on request.

The risk management policy is designed to identify and analyse operational and other risks facing the organisation and, where at unacceptable levels, to take steps to mitigate the risks. The Board currently maintains a corporate risk register broken down under the following headings:

The matrix summarises the strategies for mitigating and managing the identified risks.

Internal Controls

The principal features of the systems of financial control include:

For the year under review, the Board is satisfied that the major risks to which TMCP is exposed have been assessed and that systems are in place to manage and mitigate exposure to them and residual risks are at acceptable levels.

The risk management policy remains under continual scrutiny. Since the agreement of the Service Level Partnership Agreement (SLPA) with the Connexional Team, the risk management now also encompasses the monitoring of the Key Performance Indicators (KPI’s), a function which will be assisted by the introduction of a Matter Management System during 2023 which will streamline processes and workflow.

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Trustees for Methodist Church Purposes

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper 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, the provisions of the trust deed and the Statement of Recommended Practice Accounting and Reporting by Charities. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Re-Appointment of Auditor

A resolution proposing the re-appointment of Moore and Smalley as auditor to the charity will be put to the Board. Moore and Smalley has indicated its willingness to continue in office.

Approved by the Board on 20[th] February 2024 and signed on its behalf by:

Mr Ian White Date: 27/3/2024 Chair of Trustees

Trustees for Methodist Church Purposes

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Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TRUSTEES FOR METHODIST CHURCH PURPOSES

Opinion

We have audited the financial statements of Trustees for Methodist Church Purposes (the ‘charity’) for the year ended 31 August 2023 which comprise Statement of Financial Activities, Statement of Financial Position, Statement of Cash Flows, and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern.

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 19, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

We have been appointed as auditor under section 1443 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Page 21 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Because of the industry in which the charity operates, we identified the following areas as those most likely to have an impact on the financial statements: compliance with key legislation including the Companies Act 2006, employment legislation and health and safety regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-thefi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

MHA Moore and Smalley Statutory Auditor

9 Winckley Square Preston PR1 3HP

MHA Moore and Smalley is eligible to act as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

27/03/2024

Page 22 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Statement of Financial Activities for the year ended 31st August 2023

Unrestricted Restricted Total Total
Funds Funds Funds Funds
2023 2023 2023 2022
Note £ £ £ £
Income and Endowments from:
Donations and legacies 3 (a) - 131,126 **131,126 ** 106,170
Investment and other income 3 (b) 51,507 - 51,507 28,596
Charitable Activities 3 (c) 1,198,276 - 1,198,276 1,258,174
Total Income 1,249,783 131,126
1,380,909		 1,392,940
Expenditure on:
4(a),
Charitable Activities (b) & (1,329,112) (131,126) **(1,460,238) ** (1,227,360)
(c)
Total Expenditure (1,329,112) (131,126)
(1,460,238)		 (1,227,360)
Net Expenditure (79,329) -
(79,329)		 165,580
Net Losses on investments 8(a) (22,940) - (22,940)
 (103,748)
Net movement in funds 11 (102,269) - (102,269) 61,832
Reconciliation of Funds
Fund balances brought forward at 1st September 1,435,424 - 1,435,424
 1,373,592
Fund balances carried forward 31st
August		 11
1,333,155 - 1,333,155 1,435,424

The notes on pages 26 to 38 form an integral part of these accounts

Page 23 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Statement of Financial Position as at 31[st ] August 2023

Note
Fixed Assets
Tangible fixed assets
6
Intangible fixed assets
7
Investments
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
Net Assets
The Funds of the Charity
Unrestricted income funds
11
Restricted income funds
12
Total Charity Funds		 2023
£
-
-
1,108,784
1,108,784
117,702
170,066
287,768
(63,397)
224,371
1,333,155
1,333,155
-
1,333,155		 2022
£
-
-
1,126,666
1,126,666
57,531
309,715
367,246
(58,488)
308,758
1,435,424
1,435,424
-
1,435,424

The financial statements on pages 23 to 38 were approved by the Board and authorised for issue on: 20[th] February 2024 and signed on its behalf by

........................................................................ Board Member ........................................................................ Board Member

The notes on pages 26 to 38 form an integral part of these accounts.

Page 24 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Statement of Cash Flows for the year ended 31[st] August 2023

Note
Net cash from operating activities
16
Cash Flows from Investing Activities
Dividends & interest
3 (b)
Addition: Tangible Fixed Asset
6
Addition: Intangible Fixed Asset
7
Proceeds from sale of investments
8 (a)
Transfers of CFB units as per Conference Resolutions
8 (a)
Transfer of CFB units from T10885b
8 (a)
Monies held as Debtor
8 (a)
Net Transfers from Trustees Interest Fund
8 (a)

Changes in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
 2023
£
(186,098)
51,507
-
-
13,774
-
-
-
(18,832)
46,449
(139,648)
309,715
170,066		 2022
£
179,481
28,596
-
-
3,980
-
(2,981)
946
16,661
47,202
226,683
83,032
309,715

The notes on pages 26 to 38 form an integral part of these accounts

Page 25 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

Notes to the Accounts for the Year Ended 31st August 2023

1 Trustees for Methodist Church Purposes (The Board)

These accounts do not include investments of some £375 million (2022: £362 million) at market value held by the Board in its capacity as trustee or custodian trustee. These funds are held for Methodist purposes for the Managing Trustees who may be local Church Councils, Circuit Meetings or other bodies of trustees. Of the £375 million, approximately £3.45 million is in the form of trusts over which the Board has full discretion in accordance with the objects of the trusts. These trusts are segregated from the Charity’s individual assets, being each identified as separately labelled funds. Any instructions for actions in respect of those funds are given by the Managing Trustees responsible for the funds and only acted upon when this authority is given. Regular reconciliations of these funds and investments held are performed and all processes are subject to scrutiny.

The financial statements are prepared in sterling, which is the functional currency of the entity.

2 Accounting Policies

(a) Basis of preparation and assessment of going concern

These financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or in the notes to the financial statements.

They have also been prepared in compliance with FRS 102, ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland’, the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.

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

The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. There were no significant areas of adjustment and key assumptions that affect items in the accounts. With respect to the next reporting period, 2023-2024, the most significant areas of uncertainty that affect the carrying value of assets held by the Charity are the level of investment return and the performance of investment markets.

(b) Statement of Cash Flows

In accordance with FRS102 a Statement of Cash Flows has been prepared.

(c) Tangible Fixed Assets

Fixed assets purchased in the year costing over £5,000 are capitalised at cost.

Depreciation on assets in use has been provided at rates calculated to write down their cost or valuation to their residual values over the period of their estimated useful economic lives. A full year’s depreciation is charged in the year of purchase.

The rate of depreciation used on Computer Equipment is 33.3% on a straight-line basis.

Page 26 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

(d) Intangible Fixed Assets

Intangible Fixed assets purchased in the year are capitalised at cost and amortised over their useful life with a full year’s amortisation charged in the year of purchase.

Amortisation on intangible assets in use has been provided at rates calculated to write down their cost or valuation to their residual values over the period of their estimated useful economic lives.

The rate of amortisation used during the year is 33.3% on a straight-line basis.

(e) Taxation

The Charity is exempt from Income and Corporation Tax on income derived from its charitable activities because of its charitable status.

Since 1[st] June 2014, the Charity is no longer registered for Value Added Tax and as such resources expended are presented gross of VAT.

(f) Investments

The Charity holds unlisted investments. Investments are a form of financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the Statement of Financial Position date using the closing quoted bid price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year (see note 8a.)

The Charity does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the Charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investments risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

(g) Income and Endowments

(h) Expenditure

All resources expended are accounted for on an accruals basis. Any ensuing liabilities are recognised as soon as a legal or constructive obligation exists.

Page 27 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

(i) Pension Costs

The Board is a participating employer of the Pension and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC), which is a multi-employer, defined benefit scheme for lay employees. As it is not possible to identify the share of the underlying assets and liabilities of the scheme attributable to the Trustees for Methodist Church Purposes on a consistent and reasonable basis, it is accounted for as a defined contribution scheme. Accordingly, contributions payable to this scheme are charged to the Statement of Financial Activities in the period to which they relate.

The Methodist Council closed the PASLEMC to new entrants with effect from 31[st] May 2019. Existing members benefit from the Scheme arrangements up to this date but are no longer able to make further contributions and members do not therefore build up any future benefits in the Scheme. The pension that members have already built up is retained in the Scheme and upon retirement they will receive that pension and any inflationary increases granted.

TMCP now contributes to a defined contribution scheme with Royal London for its employees.

(j) Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

(k) Debtors

Amounts owed by related parties due within one year are measured at the undiscounted amount of cash or other consideration expected to be received. All other debtors are measured at transaction price, less any impairment.

(l) Creditors

Amounts owed to related parties due within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid. All other creditors are measured at transaction price.

(m) Financial instruments

The Charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to and from related parties.

Page 28 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

3. Income and endowments from:

3(a) Donations and legacies Unrestricted
Funds		 Restricted
Funds		 Total
Funds		 Unrestricted
Funds		 Restricted
Funds		 Total
Funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Grant from discretionary
trust		 - 131,126 131,126 - 106,170 106,170
Legacy - - - - - -
- 131,126 131,126 - 106,170 106,170
3(b) Investment and other Unrestricted Restricted Total Unrestricted Restricted Total
income Funds Funds Funds Funds Funds Funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Deposit Interest 19,444 - 19,444 1,676 - 1,676
Dividends 32,063 - 32,063 26,920 - 26,920
51,507 - 51,507 28,596 - 28,596
3(c) Charitable activities Unrestricted
Funds		 Restricted
Funds		 Total
Funds		 Unrestricted
Funds		 Restricted
Funds		 Total
Funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Management Charge 1,011,841 - 1,011,841 1,068,775 - 1,068,775
Methodist Council
Contribution		 176,000 - 176,000 174,384 - 174,384
Methodist Council
Additional Work		 - - - 5,110 - 5,110
Support Services in
Manchester Contribution		 9,715 - 9,715 9,777 - 9,777
Other income and recovery
of bank charges		 720 - 720 128 - 500
1,198,276 - 1,198,276 1,258,174 - 1,258,174

Page 29 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

4. Expenditure on:

4(a) Analysis of
Expenditure		 Unrestricted
Funds		 Restricted
Funds		 Total
Funds		 Unrestricted
Funds		 Restricte
d Funds		 Total Funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Charitable Activities –
Staff Costs		 1,054,999 7,599 1,062,598 900,318 38,449 938,767
Charitable Activities –
Support Costs		 248,455 123,527 371,982 192,425 67,721 260,146
Governance costs (note
4 (c))		 25,658 - 25,658 28,447 - 28,447
1,329,112 131,126 1,460,238 1,121,190 106,170 1,227,360
4(b) Staff Costs
Wages & Salaries
Social Security costs
Pension & Permanent Health Insurance
costs
Average number of employees (full time
equivalent)		 2023
£
837,391
92,508
132,699
1,062,598
20		 2022
£
733,465
82,196
123,106
938,767
20

The full-time equivalent is calculated on the basis of a 35-hour week. The average number of employees (headcount) during the year was 20 (2022: 20) with all employee time involved in providing either support to the governance of the charity or support services to charitable activities.

A provision of £13,955 has been included in the 2023 wages and salaries total in respect of potential holiday pay. A provision for this was also made in 2022(£9,582).

The Board considers its key management personnel comprise the Trustees, the Chief Executive and five senior managers. The total employment benefits including employer pension contributions of the key management personnel were £451,944 (2022: £ 410,938).

Page 30 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

2023 2022
No. of employees
 No. of employees
£60,001 - £70,000 1 1
£70,001 - £80,000 1 1
The Trustees do not receive any emoluments.
4(c) Governance costs 2023 2022
£ £
Trustees Expenses (note 15) 2,515 1,087
Committee Expenses (sundry costs) 752 450
Auditors Remuneration:
In their capacity as external auditors 13,463 14,700
In their capacity of Independent Examiners 1,350 1,350
Charges for other services:
Internal audit 4,189 4,434
HR Services 6,426 6,426
25,658 28,447
5. Net movement in funds for the year 2023 2022
£ £
Net movement in funds for the year is stated after charging: -
Depreciation - 3,715
Amortisation - 1,090
Operating lease rentals 2,833 3,891
2,833 8,696

Page 31 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

6. Tangible Fixed Assets
Cost
At 1stSeptember 2022
Additions in the year
At 31st August 2023
Depreciation
At 1stSeptember 2022
Charge for the year
At 31st August 2023
Net Book Values
At 31st August 2023
At 31stAugust 2022
7 Intangible Fixed Assets
Cost
At 1stSeptember 2022
Additions in the year
At 31st August 2023
Amortisation
At 1stSeptember 2022
Charge for the year
At 31st August 2023
Net Book Values
At 31st August 2023
At 31st August 2022		 Computer
Equipment
£
19,970
-
19,970
19,970
-
19,970
-
-
Website
Development
£
52,662
-
52,662
52,662
-
52,662
-
-

Page 32 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

8 Investments

8(a) Movement on Investments
Market value 1stSeptember
Disposal proceeds
Transfers of CFB Units into Trust 17A &5723A as per
conference resolution
Transfer of CFB Units from 10885B
Cash Transfer from (17A)
Net Transfers from Trustees Interest Fund
Monies held as Debtor
Net (losses)/gains on investments
Market value at 31stAugust		 2023
£
1,126,666
(13,774)

-
18,832
-
(22,940)
1,108,784		 2022
£
1,249,020
(3,980)
-
2,981
-
(16,661)
(946)
(103,748)
1,126,666

8(b) Analysis of Investments

Market value is that provided by the Central Finance Board of the Methodist Church

2023 2022
Market Value Market Value
Central Finance Board £ £
Trustees Interest Fund 19,067 236
Global Equity Fund 215,871 206,282
UK Equity Fund 454,921 458,138
Short Fixed Interest Fund 136,690 143,063
Corporate Bond 76,514 80,805
Property Fund 94,410 121,405
Managed Mixed Fund 92,555 96,519
Managed Fixed Interest Fund 18,756 20,218
1,108,784 1,126,666
9 Debtors 2023 2022
£ £
Debtors 223 4,667
Amounts due from related party 22,227 22,289
Prepayments and accrued income 95,252 30,575
117,702 57,531

Page 33 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

10 Creditors 2023 2022 2022
£ £
Trade creditors 34,361 17,198
CFB Client Creditor - 11,000
Accruals 29,036 30,290
63,397 58,488
11 Unrestricted - Administration Fund 2023 2022
£ £
Accumulated fund at 1stSeptember 1,435,424 1,373,592
Net movement in funds (102,269) 61,832
At 31stAugust 1,333,155 1,435,424
12 Analysis of restricted fund
movements		 Funds at
Income		 Expenditure Funds at
01-Sep-22 31-Aug-23
£ £ £ £
Restricted Fund - 131,126 (131,126) -
- 131,126 (131,126) -
Income received from T10885B
13 Analysis Net Assets Between Fund Unrestricted
Funds
Restricted
Funds
Total Funds
Total		 Funds
2023 2023 2023 2022
£ £ £ £
Tangible fixed assets - - - -
Intangible fixed assets - - - -
Investments 1,108,784 - 1,108,784 1,126,666
Cash at bank and in hand 170,066 - 170,066 309,715
Other net current assets 54,304 - 54,304 (957)
Net assets at 31 August 2021 1,333,155 -
1,435,424		 1,435,424

Page 34 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

14 Pension Costs

The Board is a participating employer of the Pension and Assurance Scheme for Lay Employees of the Methodist Church (“the Scheme”), a defined benefit scheme.

FRS102 Disclosures

A valuation of the Scheme for the purposes of these disclosures was carried out at 31 August 2023 by an independent actuary. The major assumptions used by the actuary, together with those used in the previous year, were:-

vious year, were:-
31 August 2023 31 August 2022
% pa % pa
Discount rate 5.2 3.9
RPI inflation rate 3.4 3.5
CPI inflation rate 2.8 3.0
Rate of increase in pensionable 2.8 3.0
earnings
Rate of increase in pension 2.3 / 3.3 / 5.0 2.3/ 3.4 / 5.0
payments

The major categories of the Scheme’s assets (excluding money purchase AVCs) as a percentage of the total Scheme assets, were as follows: -

Scheme assets, were as follows: -
31 August 2023 31 August 2022
% %
Equities 12 12
Corporate bonds 37 37
Property 10 10
Cash 16 16
Liability Driven Investment 20 20
Annuities 5 5

The following amounts at 31 August 2023 were measured in accordance with the requirements of FRS102.

Total market value of assets
Present value of scheme liabilities
Net overfunding in Scheme
Unrecognised assets
Net Defined Benefit Asset		 £ million
57.2
53.2
4.0
(4.0)
0.0

Page 35 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

The Scheme operated by the Methodist Church is a defined benefit scheme. However, the Board is not the only participating employer in the Scheme and it is unable to determine its share of the underlying assets and liabilities on a consistent and reasonable basis. This is because contributions paid into the Scheme have not been invested separately to those paid by other employers participating in the Scheme. As such no separate fund is identifiable in respect of the Board. In order to determine a current fund for each participating employer it would be necessary to separately account for contributions, benefit payments and investment returns for each participating employer.

Under the terms of the Scheme, the assets and liabilities are pooled amongst the participating employers. If a participating employer were to cease to participate, then that employer would be required to pay a debt to fully fund their share of the Scheme’s liabilities. The Board would not be liable for another employer’s debt but has an option to assume responsibility under an apportionment arrangement.

The Scheme closed to new entrants and the future accrual of pensionable service with effect from 31 May 2019 and therefore regular employer contributions ceased on this date.

A full actuarial valuation of the Scheme was carried out at 1 September 2020 by the Scheme Actuary. The valuation disclosed a past service deficit of £16.7m. It was agreed that the shortfall revealed at 1 September 2020 should be eliminated by contributions to be paid from the Pension Reserve Fund of the Methodist Church to the Scheme as follows:

An update of the funding position as at 1 September 2022 was carried out by the Scheme Actuary. This showed that the past service deficit had reduced from £16.7m to a surplus of £1.1m

The next full actuarial valuation is currently being carried out as at 1 September 2023.

Page 36 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

15 Transactions with Members of the Board and Connected Persons (Trustees)

Under the requirements of Accounting by Charities - Statement of Recommended Practice, it is necessary to disclose details of certain transactions with Trustees.

2023 2022 2023 2022
Nature of transaction £ £ No No
Travel expenses reimbursed 2,515 1,087 25 20

16. Reconciliation of net movement in funds to net cash flow from operating activities

Cash Flows from Operating Activities
Net Movement in funds
Add Depreciation charge
Add Amortisation provided
Add / Deduct Losses/ (Gains) on investments
Deduct Dividends & interest
(Increase)/Decrease in debtors
Increase in creditors
Net cash from operating activities		 2023
£
(102,269)
-
-
22,940
(51,507)
(60,171)
4,909
(186,098)		 2022
£
61,832
3,715
1,090
103,748
(28,596)
9,677
28,015
179,481

17. Operating lease commitments

At 31[st] August 2023 the total future minimum lease payments under non-cancellable operating leases are as follows:

Leases which expire:
Not later than one year
Later than one year and not later than five years
Later than five years		 2023
£
2,167
1,939
-
4,106		 2022
£
2,833
4,105
-
6,938

18. Related Parties

There were no related party transactions during the year (2022: none) other than expenses paid to Trustees as disclosed in note 15.

Transactions with connected organisations are reported in the Trustees’ Report on pages 17 and 18.

Page 37 of 38

Report and Accounts 31[st] August 2023

Trustees for Methodist Church Purposes

19. Analysis of changes in net debt
Cash at bank and in hand

20. Financial instruments
The charity had the following financial instruments:
Financial assets measured at fair value through the Statement
of Financial Activities:
Investments stated at market value		 At 1
September
2022
Cash
flows
At 31
August
2023
£
£
£
309,715
(139,649)
170,066
309,715
(139,649)
170,066
2023
2022
£
£
1,108,784
1,126,666

Page 38 of 38