STOCKTON METHODIST CIRCUIT
CHARITY REGISTRATION NUMBER: 1137263
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
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STOCKTON METHODIST CIRCUIT
CHARITY REGISTRATION NUMBER: 1137263
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
C O N T E N T S
| Pages | |
|---|---|
| Trustees’ Report | 1 to 6 |
| Independent Examiner’s Report to the Trustees | 7 |
| Statement of Financial Activities | 8 to 9 |
| Balance Sheet | 10 |
| Notes to the Financial Statements | 11 to 16 |
Page 1
STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021
BASIS OF PREPARATION AND LEGAL FRAMEWORK
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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
REFERENCE AND ADMINISTRATIVE INFORMATION
Full Name of Charity: Stockton Methodist Circuit Registration Charity Number: 1137263 Date of Registration: 4 August 2010 Main Communication Address: 4 Fritillary Place Stockton-on-Tees TS21 3LZ
The members of the Stockton Methodist Circuit meeting are the Charity Trustees, membership being made up of circuit office holders, ministers and representatives appointed by the local churches.
Full membership is shown at Appendix A of this report.
CIRCUIT MINISTERS AND OFFICERS
Active Circuit Minsters Rev. Vincent Jambawo – appointed September 2021 Rev. Peter Catford – retired August 2021 Rev. Suva Catford – retired August 2021 Rev. Sarah Ramsden Rev. Martin Ramsden Rev. Rachel Williams – appointed September 2021 Circuit Stewards: Mrs. Liz Mason – retired August 2021 Dr. Peter Dodd Dr. Roger Taylor – retired January 2022 Mr. John Moore Mrs. Margaret Walton (property) Mrs. Jean Jones Mr. Mark Hall – appointed October 2021 Administrator: Ms. J. Prior
Mr. J.G. Moore acted as the principal officer overseeing the day-to-day financial management and accounting for the Circuit during the year.
Independent Examiner: D.F. Adams FCA Baines Jewitt Limited Barrington House 41-45 Yarm Lane Stockton-on-Tees TS18 3EA Investment Bankers: Central Finance Board of the Methodist Church Trustees for Methodist Church Purposes
Page 2
STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021
AIMS AND ORGANISATION
The purposes of the Methodist Church are, and shall be deemed to have been since the Date of Union, the advancement of:
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(a) The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church;
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(b) Any charitable purpose for the time being of any Connexional, District, Circuit, local or other organisation of The Methodist Church;
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(c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church;
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(d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church.
The charity’s objective is to act as a Resource provider within the area around Stockton-on-Tees for the Methodist Church. To do this we will engage with the community, share with one another and share Jesus Christ. Our activities include:
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The organisation and resourcing of regular public acts of worship open to members of the church and nonmembers alike;
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The teaching of Christianity through sermons, courses and small groups;
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The resourcing of pastoral work including visiting the sick and bereaved;
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Taking religious assemblies in local schools;
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Promotion of Christianity through the staging of events and services;
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Provision of chaplaincy services to the local university and other institutions.
PUBLIC BENEFIT
We confirm the trustees have had regard to the Charity Commission’s guidance on public benefit.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The governing document for the Circuit is the Deed of Union (1932) and Methodist Church Act (1976).
Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD).
TRUSTEE TRAINING
A range of guidance is produced by Methodist Connexion to support the effective running of the Circuit, specifically the leaflet ‘The Role of a Trustee in the Methodist Church’ is given to all new Circuit meeting members as induction to their role as trustees.
RELATED PARTIES
See note 17 to the accounts.
REVIEW OF THE YEAR
Circuit Mission Statement
ENGAGE WITH COMMUNITY [Local and global]
CARE FOR ONE ANOTHER
SHARE JESUS CHRIST
1 Peter 3;15 Be ready at all times to answer anyone who asks you to explain the hope you have in you. (Good News Bible).
Page 3
STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021
REVIEW OF THE YEAR - Continued
Significant Developments during the Year
Over this year, the Circuit has been seeking to support churches as they work out how to be church in a season when traditional ways of working have not been possible.
We have maintained contact with the Methodists who have joined the Anglican church at St Paul’s in Newtown. They have completed their refurbishment and the new priest was inaugurated on 25 July with one of the new church wardens being a former Methodist member. The Circuit has continued to be involved with the Methodist members hosting conversations when restrictions allowed. These conversations have provided a safe space to talk and have played a part in enabling the project to reach this stage of development.
The staff team has deepened its relationship and supported one another as we have tried to understand how to exercise ministry during the pandemic.
Along with the churches we continue to struggle to find volunteers to fill roles at a Circuit level and to keep these covered. This is causing a rethink in the way the Circuit is structured and we await to see what changes will be prompted in the coming months.
Achievements during the Year
Having come to the end of their five-year appointments, the husband and wife presbyter team decided to move on. Consequently, working through the Methodist Church stationing process, two new presbyters (one of them to be Superintendent Minister) have been appointed to the Circuit and will be joining us in September 2021.
The two new presbyters are not related to each other, so it has been necessary to provide an extra manse. The existing spare manse in Ingleby Barwick needed significant renovation and was located several miles distant from any of the Circuit’s churches. This manse was sold and the proceeds, together with some additional funding, used to buy a new manse in the Hartburn area of West Stockton. Some further expenditure was required to bring the electrical wiring and heating system up to the appropriate standard. The new manse is located in the vicinity of the four churches with which the occupying presbyter is most involved.
A number of the Circuit churches have found the year to 31 August 2021 to present financial challenges, with loss of fundraising opportunities, reductions in lettings income and also in some voluntary offerings. As a Circuit, we have been aware of these issues and have supported the churches by offering a dispensation that they need not pay the fourth instalment of the assessment. Six of the ten churches chose to accept this offer. This resulted in a loss of Circuit income of £24,300 and this shortfall was covered from the reserves.
The celebrations of special services of baptism and weddings have recently been restarted. Our focus during the pandemic has been to support those who are grieving by providing a safe venue for funerals to take place in accordance with Government guidelines.
There has been work across the Circuit in partnership with local schools and this has continued during the pandemic using Zoom and recording material to be used for assemblies.
Work in the community has developed at St Andrew’s. The Foodbank has continued to seek to serve the community in the pandemic. Local support groups have not met but have been supported by the Community Worker.
The Circuit has been supportive of an initiative at North Billingham in using a bequest to fund their “Grow our Church” project which involves renewal of outside areas and looking to appropriate community involvement in a garden project as restrictions are lifted.
Page 4
STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021
Achievements during the Year – Continued
In Port Clarence the Circuit continues to support the work of BELP (Billingham Environmental Link Programme) by providing a chaplain on the allotment on a monthly basis. The Circuit is investigating if it can place a chaplain more regularly on the allotment and this will be brought to the attention of the Circuit meeting in the coming months.
The Yarm Road church has continued to develop support of the Asylum Seeker project as they seek to find ways to support people safely as restrictions are lifted. This is being achieved with the aid of a grant from the Darlington District.
Greens Lane has developed outreach into the community and amongst those who have been isolating through knitted installations for Remembrance, Christmas, Lent, Easter and most recently for Creation. It has brought joy and comfort to those who have passed by and purpose to our knitters.
Worship takes place across the Circuit and we have continued to seek to find ways to encourage variety. This year saw the continued developing of Circuit online services and studies and the support of churches as they manage the gradual unlocking as the pandemic continues.
We continue to implement Methodist Safeguarding policy with a new Circuit Safeguarding Officer. He has begun work on ensuring that the Circuit and churches are supported and accountable in adhering to their safeguarding policy. This is being achieved on a one-to-one level with three churches each year and with regular get-togethers of church officers. This, along with training and improved record keeping, is part of the Circuit’s commitment to safeguarding vulnerable people of all ages.
FINANCIAL REVIEW
Income Trends
Circuit income is primarily drawn from the assessment paid by the Circuit churches. The effects of the coronavirus pandemic have meant that 2020/2021 was a lean year financially for many of the churches. Being mindful of this, the Circuit offered a dispensation that they need not pay the fourth instalment of the assessment and six of the ten churches close to take advantage of this. As a consequence, Circuit income was reduced by £24,300. However, assessments have been agreed with all the churches for 2021/2022 that overall will provide 98% of the pre-pandemic level and it is anticipated all will be able to meet this commitment.
Longer term, the Circuit will endeavour to maintain assessment income at this level. However, it is recognised that with an ageing demographic, there will probably be further reductions in church membership and with a number of ageing buildings to maintain, church finances are likely to come under increasing pressure. Not all of the churches may be able to continue indefinitely. In such circumstances, a significant increase in income from church assessments cannot reasonably be expected.
Expenditure Trends
Stipend expenditure has increased by 2.6% in line with conference approved increases but the assessment paid to the District and Connexion in the year to 31 August 2021 was reduced by 2% from the previous year. This year has also seen £166,000 of the Circuit’s cash reserves spent on the purchase of a new manse and subsequent maintenance work to bring it up to standard. However, this was in nature a one-off event and not anticipated to be repeated in future years.
Stipends and associated expenditure and the assessment paid to the District and Connexion make up 75% of Circuit expenditure. In 2021/2022 stipends will increase by 1.16% and from April there will also be the 1.25% rise in employer’s national insurance contributions. However, the District/Connexional assessment will reduce by 10.75%. In addition, having used most of the funds in its TMCP account to buy the new manse, the Circuit will benefit by a reduction in the District levy on these funds of almost £7,000.
Page 5
STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021
FINANCIAL REVIEW – Continued
Looking further ahead, although in 2022/2023 the District/Connexional assessment is proposed to reduce by a further 5%, stipend expenditure is anticipated to increase by nearly 4.3% and it seems likely general UK inflation will also be at this level. As annual Circuit income is not envisaged to increase in the next few years, if this level of inflation were to continue, it would become an issue of some concern.
Fund Balances
As at 31 August 2021, the net current assets of the Circuit were £256,000 giving approximately 13 months cover for unrestricted expenditure. This is a significant reduction compared to the previous year, largely due to the purchase of the new manse.
Plans for 2020/2021
Circuit financial plans for the coming year have been prepared on the basis that there will be three full-time ordained staff and one part-time lay staff with a 1.16% cost of living stipend increase and taking into account the 1.25% increase in employer’s national insurance contributions from April. The assessment paid to the District and Connexion will be reduced by 10.75%. As described above, the assessment income from the churches has been agreed at 98% of the pre-pandemic level. With foreseeable outgoings, income and expenditure is anticipated to be in balance.
RESERVES POLICY
General
It is the trustees’ policy to maintain a balance of unrestricted funds equivalent to six months unrestricted expenditure. However, as a consequence of the coronavirus pandemic, the current financial climate remains uncertain and it is not clear how well and how quickly church finances will recover. In these circumstances, it is seen as not unreasonable if reserves are above this level until there is more clarity about the future situation.
The Circuit has agreed to take on two new presbyters from September 2021 and their appointments will have five years to run. In addition, the Circuit has a third presbyter whose appointment still has at least three years to run. It is essential for the Circuit to maintain sufficient income/reserves to ensure the associated financial commitments can be met.
The Circuit also endeavours to hold funds to meet a mission challenge in the Stockton area.
RISK MANAGEMENT
The major risks associated with the Circuit have been identified and recorded by the Circuit Leadership Team (CLT) with professional advice taken as required. There is a regular annual review process undertaken and recorded. Income and expenditure are being monitored in total and is compared with the approved annual budget on a half yearly basis to detect trends as part of the risk management process to avoid unforeseen calls on reserves.
SAFEGUARDING
Every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. Christians see this potential as fulfilled by God’s recreation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protect them from harm.
Methodist Connexional practice outlines commitment to the following principles:
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The care and nurture of, and respectful pastoral ministry with, all children, young people and adults;
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The safeguarding and protection of all children, young people and adults when they are vulnerable;
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The establishing of safe, caring communities which provide a loving environment where there is informed vigilance as to the dangers of abuse;
Page 6
STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021
SAFEGUARDING - Continued
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We will carefully select and train all those with any responsibility within the Church, in line with Safer Recruitment principles, including the use of criminal records disclosures and registration with the relevant vetting and barring schemes;
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We will respond without delay to every complaint made which suggests that an adult, child or young person may have been harmed, cooperating with the police and local authority in any investigation;
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We will seek to work with anyone who has suffered abuse, developing with them an appropriate ministry of informed pastoral care;
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We will seek to challenge any abuse of power, especially by anyone in a position of trust;
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We will seek to offer pastoral care and support, including supervision and referral to the proper authorities, to any member of our church community known to have offended against a child, young person or vulnerable adult;
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In all these principles we will follow legislation, guidance and recognised good practice.
The Stockton Methodist Circuit commits itself to ensuring the implementation of the Connexional Safeguarding Policy, government legislation, guidance and safe practice in the Circuit and in the churches.
The Stockton Methodist Circuit commits itself to the provision of support, advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable.
APPROVAL
This report has been approved by Managing Trustees and will be presented to the Board of Trustees for approval at the 21 March 2022 Circuit Meeting.
Approved on behalf of the Charity’s Trustees on 21 March 2022 and signed on their behalf by:
REV. VINCENT JAMBAWO
……………………………………………….
Superintendent Minister
Appendix A
STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021
CIRCUIT MEETING MEMBERSHIP
| Superintendent | Rev. Peter Catford – retired August 2021 |
|---|---|
| Rev. Vincent Jambawo – appointed September 2021 | |
| Ministers | Rev. Suva Catford – retired August 2021 |
| Rev. Sarah Ramsden | |
| Rev. Martin Ramsden | |
| Rev. Rachel Williams – appointed September 2021 | |
| Circuit Stewards | Mrs. Liz Mason – retired August 2021 |
| Dr. Peter Dodd | |
| Dr. Roger Taylor – retired January 2022 | |
| Mrs. Margaret Walton (property) | |
| Mrs. Jean Jones | |
| Mr. Mark Hall - appointed October 2021 | |
| Circuit Treasurer | Mr. John Moore |
| Supernumerary Minister | Rev. Richard Bielby – retired March 2020 |
| Rev. John Howard-Norman – appointed September 2021 | |
| Secretary of the Circuit Meeting | Ms. J Prior (non-voting) – appointed June 2021 |
| Secretary of Local Preachers’ Meeting | Dr. Peter Dodd – appointed June 2021 |
| Local Preacher Representative | Mrs. Sheila Hargreaves |
| Additional Members appointed by | Mr. Ian Fyfe – became a Yarm representative September 2021 |
| the Circuit Meeting | Mr. Mike Leason – died December 2020 |
| Mr. John Monkhouse | |
| Mr. David Parkin | |
| Mrs. Delysia Parkin | |
| Mrs. Valerie Wootton | |
| Lay Property Secretary | Mr. Vic Bowmer |
| Lay Mission Support Group Secretary | Mrs. Kathleen Mee |
| Lay Youth Forum Secretary | Mrs. Margaret Murray |
| MWiB Representative | Miss Margaret Rose – retired August 2021 |
| Position currently vacant | |
| Methodist Homes Representative | Position currently vacant |
| Safeguarding | Dr. Roger Taylor – appointed October 2020, retired January 2022 |
| Ms. Aneta Bradley – appointed February 2022 |
Appendix A
STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021
MEETING – SEPTEMBER 2020
| From each Church: | Steward, Treasurer and Elected Representatives: |
|---|---|
| Carlton: | Joan Burn, Charlton Peters,Margaret Hall– appointed September 2021 |
| Greens Lane: | Caroline Noble, David Smart, Judy Morrison,Jim Bruce(died December 2020) |
| Margaret Schofield | |
| Maltby: | Joan Tarren, Stephen Smith, Ken Davison |
| North Billingham: | Rhona Ball, Cynthia Dent, Jackie Pitt, Maureen Gowland |
| Norton: | Guan Lim and Kay Dodsworth – retired August 2021 |
| Howard Gill, Judith Lloyd | |
| Catherine Bemrose– appointed September 2021 | |
| Aneta Bradley– appointed November 2021 | |
| St. Andrew’s: | Doreen Sharp, Gill Carr, Marjorie Dunn |
| Thornaby: | Judith Powell, Ken Davison, Edith Appleby, Eileen Middleton |
| Trinity Eaglescliffe: | Robert Woodman, Ralph Barton |
| Yarm: | Joan Rivers– retired August 2021;Abigail Beer– appointed December 2021 |
| Brian Bainbridge,Mark Hall– became Circuit Steward October 2021 | |
| Chris Kendrew, Graham Clarke, Roz Matthews | |
| Ian Fyfe– was an additional member until September 2021 | |
| Yarm Road: | Alison Tonkinson, Jim Dale, Edwin Doidge |
Page 7
STOCKTON METHODIST CIRCUIT
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 August 2021 which are set out on pages 8 to 16.
Responsibilities and Basis of Report
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts as carried out under section 145 of the 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.
Independent Examiner’s Statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements concerning the form and content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts 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 accounts to be reached.
D.F. Adams, FCA Baines Jewitt Limited Barrington House 41-45 Yarm Lane STOCKTON ON TEES TS18 3EA
4 April 2022
DFA/GW
Page 8
STOCKTON METHODIST CIRCUIT
STATEMENT OF FINANCIAL ACTIVITIES (SOFA) FOR THE YEAR ENDED 31 AUGUST 2021
| Circuit Model | ||||||
|---|---|---|---|---|---|---|
| General Fund | Trust | Restricted | Total | Total | ||
| Notes | (Unrestricted) | (Unrestricted) | Funds | 2020-2021 | 2019-2020 | |
| £ | £ | £ | £ | £ | ||
| Income | ||||||
| Income from monetary | ||||||
| investments | 4 | 339 | 794 | - | 1,133 | 3,509 |
| Income from investment | ||||||
| properties | 5 | - | - | 5,457 | 5,457 | 5,238 |
| Assessments on churches | 187,805 | - | - | 187,805 | 209,700 | |
| Grants received | - | - | 4,000 | 4,000 | 17,100 | |
| Other income | 6 | 7,270 | 23,403 | - | 30,673 | 13,662 |
| __ | _ | ______ | __ | __ | ||
| Total Income | 195,414 | 24,197 | 9,457 | 229,068 | 249,209 | |
| ----------- | ---------- | -------- | ----------- | ----------- | ||
| Expenditure | ||||||
| Grants and donations | 7 | 200 | - | - | 200 | |
| Salaries and associated | 6,242 | |||||
| costs | 8 | 129,101 | 410 | - | 129,511 | 143,306 |
| Property maintenance | 9 | 35,822 | - | 1,048 | 36,870 | 29,696 |
| Connexional assessment | ||||||
| and model trust levy | - | - | - | - | - | |
| District assessment and levy | 10 | 57,736 | 7,756 | - | 65,492 | 67,493 |
| Office expenses | 2,049 | - | - | 2,049 | 3,499 | |
| Other outgoings | 2,100 | - | 2,281 | 4,381 | 1,996 | |
| __ | ______ | ______ | __ | __ | ||
| Total Charitable Expenditure | 227,008 | 8,166 | 3,329 | 238,503 | 252,232 | |
| ----------- | -------- | -------- | ----------- | ----------- | ||
| Net Income/(Expenditure) | (31,594) | 16,031 | 6,128 | (9,435) | (3,023) | |
| Transfers between funds | 16 | 192,887 | (188,478) | (4,409) | - | - |
| __ | ___ | ______ | ______ | ______ | ||
| Net Movement in Funds | 161,293 | (172,447) | 1,719 | (9,435) | (3,023) | |
| Total funds brought forward | 1,190,420 | 205,115 | 90,000 | 1,485,535 | 1,488,558 | |
| ____ | __ | _ | ____ | ____ | ||
| Total Funds Carried Forward | 16 | 1,351,713 | 32,668 | 91,719 | 1,476,100 | 1,485,535 |
| ======== | ====== | ===== | ======== | ======== |
The notes on pages 11 to 16 form part of these accounts
Page 9
STOCKTON METHODIST CIRCUIT
STATEMENT OF FINANCIAL ACTIVITIES (SOFA) FOR THE YEAR ENDED 31 AUGUST 2020
| Circuit Model | ||||||
|---|---|---|---|---|---|---|
| General Fund | Trust | Restricted | Total | Total | ||
| Notes | (Unrestricted) | (Unrestricted) | Funds | 2019-2020 | 2018-2019 | |
| £ | £ | £ | £ | £ | ||
| Income | ||||||
| Donations and legacies | - | - | - | - | 16,791 | |
| Income from monetary | ||||||
| investments | 4 | 1,702 | 1,807 | - | 3,509 | 3,797 |
| Income from investment | ||||||
| properties | 5 | - | - | 5,238 | 5,238 | 5,313 |
| Assessments on churches | 209,700 | - | - | 209,700 | 213,825 | |
| Capital receipts | - | - | - | - | 130,159 | |
| Grants received | - | - | 17,100 | 17,100 | 15,600 | |
| Other income | 6 | 13,662 | - | - | 13,662 | 76,893 |
| __ | ______ | _ | __ | __ | ||
| Total Income | 225,064 | 1,807 | 22,338 | 249,209 | 462,378 | |
| ----------- | -------- | ---------- | ----------- | ----------- | ||
| Expenditure | ||||||
| Grants and donations | 7 | 6,242 | - | - | 6,242 | 11,053 |
| Salaries and associated costs | 8 | 125,763 | 443 | 17,100 | 143,306 | 149,092 |
| Property maintenance | 9 | 19,519 | 9,213 | 964 | 29,696 | 22,923 |
| Connexional assessment and | ||||||
| model trust levy | - | - | - | - | 32,064 | |
| District assessment and levy | 10 | 58,916 | 8,577 | - | 67,493 | 65,383 |
| Office expenses | 3,499 | - | - | 3,499 | 5,180 | |
| Other outgoings | 1,996 | - | - | 1,996 | 2,000 | |
| __ | _ | _ | __ | __ | ||
| Total Charitable Expenditure | 215,935 | 18,233 | 18,064 | 252,232 | 287,695 | |
| ----------- | ---------- | ---------- | ----------- | ----------- | ||
| Net Income/(Expenditure) | 9,129 | (16,426) | 4,274 | (3,023) | 174,683 | |
| Transfers between funds | 16 | 4,274 | - | 4,274 | - | - |
| ______ | ______ | ______ | ______ | __ | ||
| Net Movement in Funds | 13,403 | (16,426) | - | (3,023) | 174,683 | |
| Total funds brought forward | 1,177,017 | 221,541 | 90,000 | 1,488,558 | 1,313,875 | |
| ____ | __ | _ | ____ | ____ | ||
| Total Funds Carried Forward | 16 | 1,190,420 | 205,115 | 90,000 | 1,485,535 | 1,488,558 |
| ======== | ====== | ===== | ======= | ======== |
The notes on pages 11 to 16 form part of these accounts
Page 10
STOCKTON METHODIST CIRCUIT
BALANCE SHEET AS AT 31 AUGUST 2021
| Circuit Model | ||||||
|---|---|---|---|---|---|---|
| General Fund | Trust | Restricted | Totals | Totals | ||
| Notes | (Unrestricted) | (Unrestricted) | Funds | 2021 | 2020 | |
| £ | £ | £ | £ | £ | ||
| Fixed Assets | ||||||
| Circuit Manses and equipment | 12 | 1,127,261 | - | - | 1,127,261 | 949,942 |
| Investment properties | 12 | - | - | 90,000 | 90,000 | 90,000 |
| ____ | ___ | _ | ____ | ___ | ||
| Total Fixed Assets | 1,127,261 | - | - | 1,217,261 | 1,039,942 | |
| -------------- | ---- | --------- | ======== | ======= | ||
| Current Assets | ||||||
| Debtors | 13 | 10,223 | - | - | 10,223 | 8,917 |
| Investments with TMCP | 14 | - | 32,668 | - | 32,668 | 205,115 |
| Central Finance Board deposits | 234,803 | - | 1,719 | 236,522 | 264,219 | |
| Cash at bank and in hand | 33,310 | - | - | 33,310 | 22,114 | |
| __ | _ | ______ | __ | __ | ||
| Total Current Assets | 278,336 | 32,668 | 1,719 | 312,723 | 500,365 | |
| ----------- | ---------- | -------- | ----------- | ----------- | ||
| Current Liabilities | ||||||
| Creditors: due in less than one | ||||||
| year | 15 | 53,884 | - | - | 53,884 | 54,772 |
| _ | ___ | ___ | _ | _ | ||
| Total Current Liabilities | 53,884 | - | - | 53,884 | 54,772 | |
| --------- | ---- | ---- | ---------- | --------- | ||
| Net Current Assets/Liabilities | 224,452 | 32,668 | 1,719 | 258,839 | 445,593 | |
| ------------ | ---------- | -------- | ----------- | ----------- | ||
| Total Assets less Current | ||||||
| Liabilities | 1,351,713 | 32,668 | 91,719 | 1,476,100 | 1,485,535 | |
| ======== | ====== | ====== | ======== | ======== | ||
| Net Assets | 1,351,713 | 32,668 | 91,719 | 1,476,100 | 1,485,535 | |
| ======== | ====== | ====== | ======== | ======== | ||
| Funds of the Circuit | ||||||
| General fund (unrestricted) | 16 | 1,351,713 | - | - | 1,351,713 | 1,190,420 |
| Circuit Model Trust Fund | ||||||
| (unrestricted) | 16 | - | 32,668 | - | 32,668 | 205,115 |
| ____ | _ | ___ | ____ | ____ | ||
| Total Unrestricted Funds | 1,351,713 | 32,668 | - | 1,384,381 | 1,395,535 | |
| -------------- | ---------- | ---- | -------------- | ------------- | ||
| Restricted funds | 16 | - | - | 91,719 | 91,719 | 90,000 |
| --- | --- | ---------- | ---------- | ---------- | ||
| Total Funds | 16 | 1,351,713 | 32,668 | 91,719 | 1,476,100 | 1,485,535 |
| ======== | ====== | ====== | ======== | ======== |
These financial statements were approved on behalf of the Charity’s Trustees on 21 March 2022 and are signed on their behalf by:
REV. VINCENT JAMBAWO
………………………………………………
(Superintendent Minister)
The notes on pages 11 to 16 form part of these accounts
Page 11
STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
1. CHARITY INFORMATION
The charity (registered number 1137263) is a public benefit entity, established in the UK and governed by The Methodist Church Act 1976. The address of the principal office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operation and principal activity is the advancement of the Christian faith.
2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
Basis of Preparation and Assessment of Going Concern
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value, and in accordance with applicable accounting standards, the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Charities Act 2011. The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.
3. ACCOUNTING POLICIES
(a) Funds
The funds held constitute: General funds held for any purpose of the Circuit which are unrestricted; the Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as unrestricted; Restricted funds which are held for a narrower purpose; there are no endowment funds; details of each material fund are disclosed in the final note to these accounts and any funds may be represented by more than just cash.
(b) Incoming Resources
Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability.
(c) Resources Expended
This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources.
(d) Grants
Grants made by the Circuit from its own funds are recognised in full at the time of agreement or when the Circuit accepts that there is a legal or operational obligation to make the payment.
(e) VAT
Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.
(f) Tangible Fixed Assets for use by the Circuit
These are capitalised if they can be used for more than one year, and individually cost more than £500. The freehold property purchased pre 2015 is shown in the accounts at 2015, deemed values resulting from a valuation in 2005. Freehold property purchased since 2015 is shown at cost. The land component is deemed to be a third. No depreciation is provided because the trustees consider the current residual value of the property in its present condition to be not less than its current valuation and, in the absence of any evidence or impairment, any depreciation provision for the buildings component of the property would be immaterial.
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STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
3. ACCOUNTING POLICIES - Continued
(g) Investment Properties
These are properties held for the long term and are included in the financial statements at fair value. Depreciation is not provided on investment property.
(h) Financial Instruments
The charity only has financial assets and liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Any losses arising from impairment are recognised in expenditure.
4. INCOME FROM MONETARY INVESTMENTS
| Circuit Model | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Central Finance Board | |||||
| Deposits | 339 | - | - | 339 | 1,702 |
| Investments with TMCP | - | 794 | - | 794 | 1,807 |
| ____ | ____ | ___ | _____ | ______ | |
| 339 | 794 | - | 1,133 | 3,509 | |
| === | === | == | ==== | ===== |
5. INCOME FROM INVESTMENT PROPERTIES
| Circuit Model | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Lettings income: | |||||
| Alpine Way | - | - | 5,457 | 5,457 | 5,238 |
| ___ | ___ | ______ | ______ | _____ | |
| Total | - | - | 5,457 | 5,457 | 5,238 |
| == | == | ==== | ==== | ==== | |
| OTHER CHARITABLE INCOME | |||||
| Circuit Model | 2021 | 2020 | |||
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Lettings income: | |||||
| 2 Wallington Road | 6,900 | - | - | 6,900 | 6,900 |
| Donations for Connexional | |||||
| Funds | 200 | - | - | 200 | 6,242 |
| Gain on sale of 15 Hanbury | |||||
| Grove, Ingleby Barwick | - | 23,403 | - | 23,403 | - |
| Sale of manuals | - | - | - | - | 520 |
| Other sundry income | 170 | - | - | 170 | - |
| ______ | _ | ___ | _ | _ | |
| Total | 7,270 | 23,403 | - | 30,673 | 13,662 |
| ==== | ===== | == | ===== | ===== |
6. OTHER CHARITABLE INCOME
One of the Circuit manses is currently let on a short-term basis. It is anticipated that it will be again required to house a Minister.
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STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
7. GRANTS AND DONATIONS
| Circuit Model | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Connexional Funds | 200 | - | - | 200 | 6,242 |
| === | == | == | === | ==== |
8. SALARIES AND ASSOCIATED COSTS
| Circuit Model | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Gross wages, salaries and | |||||
| benefits in kind | 86,951 | - | - | 86,951 | 104,405 |
| Pension costs | 21,036 | - | - | 21,036 | 21,668 |
| Employer’s national | |||||
| insurance costs | 7,345 | - | - | 7,345 | 8,586 |
| Apprenticeship levy | 467 | - | - | 467 | 489 |
| Telephone | 2,266 | - | - | 2,266 | 2,027 |
| Travelling | 1,833 | - | - | 1,833 | 2,858 |
| Administration | 480 | 410 | - | 890 | 923 |
| Relocation costs | 8,723 | - | - | 8,723 | 2,350 |
| __ | ____ | ___ | __ | __ | |
| Total | 129,101 | 410 | - | 129,511 | 143,306 |
| ====== | === | == | ====== | ====== |
The average number of staff engaged during the year was 4 (2020: 5). No employees received employee benefits that totalled more than £60,000.
The Superintendent of the Circuit and the other Presbyters and the remaining members of the Circuit Leadership Team are considered as key Management Personnel. The members of the Circuit meeting are the trustees of the Circuit. The stipends, employer’s NIC, apprenticeship levy and employer’s pension contributions and other expenses of the Presbyters of the Circuit are paid by the Circuit.
Payments to Trustees
Apart from the Presbyters (stipends) and the Supernumerary Minister (preaching fees), no member of the Circuit meeting received any payment for work undertaken on behalf of the Circuit.
Included in these accounts is £1,571 (2020: £5,296) in respect of reimbursed expenses for four trustees.
9. PROPERTY
| PROPERTY | |||||
|---|---|---|---|---|---|
| Circuit Model | 2021 | 2020 | |||
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Council tax | 5,832 | - | - | 5,832 | 4,542 |
| Water supply | 1,002 | - | - | 1,002 | 1,191 |
| Energy supply | 141 | - | - | 141 | 356 |
| Repairs and maintenance | 20,782 | - | 131 | 20,913 | 17,101 |
| Insurance | 3,235 | - | - | 3,235 | 3,633 |
| Letting expenses | 1,230 | - | 917 | 2,147 | 2,113 |
| Valuation fees | - | - | - | - | 280 |
| Quinquennial reports | 3,600 | - | - | 3,600 | 480 |
| _ | ___ | _____ | _ | _ | |
| Total | 35,822 | - | 1,048 | 36,870 | 29,696 |
| ===== | == | ==== | ===== | ===== |
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STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
10. DISTRICT ASSESSMENT AND LEVY
| Circuit Model | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| District expenses and | |||||
| Methodist Church funds | 57,736 | - | - | 57,736 | 58,916 |
| Levy on CMTF funds | - | 7,756 | - | 7,756 | 8,577 |
| _ | ______ | ___ | _ | _ | |
| Total | 57,736 | 7,756 | - | 65,492 | 67,493 |
| ===== | ==== | == | ===== | ===== |
11. NET INCOME/EXPENDITURE FOR THE YEAR
This is stated after charging:
| This is stated after charging: | ||
|---|---|---|
| 2021 | 2020 | |
| Total | Total | |
| £ | £ | |
| Independent Examiner’s Fees: | ||
| Independent examination – 2021 | 2,100 | 1,998 |
| Less: Overprovision re 2019 | - | (2) |
| ______ | ______ | |
| 2,100 | 1,996 | |
| ==== | ==== |
12. TANGIBLE FIXED ASSETS
| Circuit | Investment | ||
|---|---|---|---|
| Manses | Property | Total | |
| £ | £ | £ | |
| Cost or Valuation | |||
| Balance brought forward as at 1 September 2020 | 949,942 | 90,000 | 1,039,942 |
| Additions | 329,125 | - | 329,125 |
| Disposals | (151,806) | - | (151,806) |
| ____ | _ | ____ | |
| 1,127,261 | 90,000 | 1,217,261 | |
| Depreciation | |||
| At 31 August 2020 and 31 August 2021 | - | - | - |
| ____ | _ | ___ | |
| Balance carried forward as at 31 August 2021 | 1,127,261 | 90,000 | 1,217,261 |
| ======== | ===== | ======= |
The Manses comprise four manses for use by the Circuit staff.
The investment property is one property which is held for the long term. In the opinion of the trustees, £90,000 is a reasonable estimate of the market value as at 31 August 2021.
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STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
13. DEBTORS AND PREPAYMENTS
| DEBTORS AND PREPAYMENTS | ||
|---|---|---|
| 2021 | 2020 | |
| Total | Total | |
| £ | £ | |
| Assessment debtors | 1,200 | - |
| Stipends paid in advance | 9,023 | 8,680 |
| _ | ______ | |
| 10,223 | 8,680 | |
| ===== | ==== |
14. INVESTMENTS WITH TRUSTEES FOR METHODIST CHURCH PURPOSES
This is an investment receiving body within the Methodist Church and pay interest at market rates.
15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Total | Total | ||||
| £ | £ | ||||
| Assessments received in advance | 49,320 | 52,425 | |||
| Other creditors and accruals | 4,564 | 2,347 | |||
| _ | _ | ||||
| 53,884 | 54,772 | ||||
| ===== | ===== | ||||
| SUMMARY OF FUND MOVEMENTS | |||||
| At | At | ||||
| 01.09.20 | Income | Expenditure | Transfers | 31.08.21 | |
| £ | £ | £ | £ | £ | |
| General fund | 1,190,420 | 195,414 | 227,008 | 192,887 | 1,351,713 |
| Circuit Model Trust fund | 205,115 | 24,197 | 8,166 | (188,478) | 32,668 |
| ____ | __ | __ | __ | ____ | |
| Total Unrestricted Funds | 1,395,535 | 219,611 | 235,174 | 4,409 | 1,384,381 |
| -------------- | ----------- | ----------- | ---------- | ------------- | |
| Tees Valley Housing Fund | 90,000 | 5,457 | 1,048 | (4,409) | 90,000 |
| Circuit Mission and | |||||
| Evangelism Fund | - | 4,000 | 2,281 | - | 1,719 |
| _ | ______ | ______ | ______ | _ | |
| Total Restricted Funds | 90,000 | 9,457 | 3,329 | (4,409) | 91,719 |
| --------- | -------- | -------- | -------- | --------- | |
| TOTAL ALL FUNDS | 1,485,535 | 229,068 | 238,503 | - | 1,476,100 |
| ======== | ====== | ====== | === | ======== |
16. SUMMARY OF FUND MOVEMENTS
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STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
16. SUMMARY OF FUND MOVEMENTS – Continued
| At | At | ||||
|---|---|---|---|---|---|
| 01.09.19 | Income | Expenditure | Transfers | 31.08.20 | |
| £ | £ | £ | £ | £ | |
| General fund | 1,177,017 | 225,064 | 215,935 | 4,274 | 1,190,420 |
| Circuit Model Trust fund | 221,541 | 1,807 | 18,233 | - | 205,115 |
| ____ | __ | __ | ______ | ____ | |
| Total Unrestricted Funds | 1,398,558 | 226,871 | 234,168 | 4,274 | 1,395,535 |
| ------------- | ----------- | ----------- | ------- | ------------- | |
| Tees Valley Housing Fund | 90,000 | 5,238 | 964 | 4,274 | 90,000 |
| Baptismal Worker Fund | - | 17,100 | 17,100 | - | - |
| _ | _ | _ | ______ | _ | |
| Total Restricted Funds | 90,000 | 22,338 | 18,064 | 4,274 | 90,000 |
| --------- | --------- | --------- | ------- | --------- | |
| TOTAL ALL FUNDS | 1,488,558 | 249,209 | 252,232 | - | 1,485,535 |
| ======== | ====== | ====== | === | ======== |
General Fund - this fund is used for general purposes.
Circuit Model Trust Fund - This fund has wide purposes as defined in the standing orders of the Methodist Church.
Tees Valley Housing Fund - This fund is to be used to benefit homeless families.
Baptismal Worker Fund – This fund was used towards the cost of employing a baptismal worker.
Circuit Mission and Evangelism Fund – This fund is used to support new Mission and Evangelism activities.
17. RELATED PARTY TRANSACTIONS
The Churches which form the Stockton Methodist Circuit whose assessments provide the principal income for the Circuit are:
Carlton Greens Lane Maltby North Billingham Norton St. Andrew’s Thornaby Trinity Eaglescliffe Yarm Yarm Road
The Circuit paid an assessment and levy to Darlington Methodist District as detailed in note 10 to these accounts.