STOCKTON METHODIST CIRCUIT
CHARITY REGISTRATION NUMBER: 1137263
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 AUGUST 2022
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STOCKTON METHODIST CIRCUIT
CHARITY REGISTRATION NUMBER: 1137263
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
C O N T E N T S
| Pages | |
|---|---|
| Trustees’ Report | 1 to 6 |
| Circuit Meeting Membership | Appendix A |
| 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 2022
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and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.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. Sarah Ramsden Rev. Martin Ramsden Rev. Rachel Williams – appointed September 2021 Circuit Stewards: Dr. Peter Dodd Dr. Roger Taylor – retired January 2022 Mr. John Moore (treasurer) Mrs. Margaret Walton (property) Mrs. Jean Jones Mr. Mark Hall – appointed October 2021 Mr. Leslie Gilburt – appointed June 2022 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
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STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022
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).
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STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022
REVIEW OF THE YEAR - Continued
NOTE: The Circuit is reviewing and reimagining its mission statement and vision for the future considering what we have been in the past and now. To this end, a Circuit Encouragement Group has been proposed and will receive appropriate training to, among other things, help the Circuit churches rethink their mission statements which will in turn feed into the Circuit Mission Statement.
Significant Developments during the Year
Coming out of lockdown and its debilitating impact on life, in general, has been both a rewarding and challenging experience and no less so for the work and life of the church. Over this year, the Circuit has been supporting individual churches to negotiate and navigate the intricacies of their context while seeking to identify and forge synergies across the Circuit to fulfil the calling of the Methodist Church people in Britain of responding to the gospel of God’s love in Christ and to live out its discipleship in worship and mission. Some churches have embraced novel ways of being church and all churches have experienced diminished activity in some aspects of their ecclesiological objectives. Invariably ‘community ministry’ has occasioned the most significant growth as churches responded with insight and sensitivity to the needs of their individual communities. There is no doubt that this will reinforce the foundations of community evangelicalism as the Circuit seeks to deliver on the districtwide mantra of ‘every church growing’.
Whilst there is evidence of growth and even flourishing, the pandemic and concomitant challenges have put a severe strain on ecclesiological viability, threatening, in some cases, the very survival of church communities. It is worth noting that this existential risk has roots beyond the pandemic, with an inexorable decline in traditional ways of being church recorded across the Connexion, and the pandemic has either hastened this decline or brought the predicament into sharper relief. Stockton Circuit has not been shielded from lockdown and church decline. It is in this context that we must report with not a small degree of sadness and consternation that one of the smaller Circuit churches, Maltby Methodist Church, has asked for and has been granted permission to cease to meet with their last act of worship scheduled at the beginning of the following church year on 16 October 2022. While there is a tremendous amount of sadness across the Circuit at this development, there are many ways in which the church’s decision must be considered brave, proactive and prophetic. In the fullness of time, we will acknowledge and affirm Maltby’s ministry in the area over many years and across several generations.
Despite these adverse conditions (or because of that), it is with thanksgiving that we note the resurgence of missional initiative and entrepreneurship in all churches. Whilst resuscitating viable traditional pre-pandemic activities, the churches in the Circuit are becoming adept at exploring and picking up community-relevant ways of being church. This is neither easy nor smooth, but we trust and pray that this ethos will transform the Circuit into a mission-shaped movement of faithful disciples.
The arrival of a new Superintendent and a new Presbyter has changed the staff dynamic somewhat but is in sync with an ongoing revisioning and rethinking of the governance and management of the Circuit. Robust lay leadership of experienced Circuit stewards ensures stability and continuity amidst opportunities for change and innovation. One steward who was also responsible for safeguarding relocated during the church year. The Circuit, however, has been able to appoint a Circuit Safeguarding Officer who is not a member of the Circuit Leadership Team. There is now a full complement of Circuit Stewards, with two joining the Circuit Leadership Team during the year. One of these had previously served on the team before and the other is having his first stint. Three stewards have agreed to extend their terms in office, giving the Circuit space to scout for potential leaders for these critical roles in the constitution and management of the Circuit.
There is no doubt that in the future, along with the churches, the Circuit will struggle to find willing and able volunteers to take up all mandatory roles hence the constant need to rethink the way the Circuit is structured. There is District and Connexional support for the Circuit to explore various possibilities. The Circuit is considering sending a team to participate in the Connexionally-run Transformational Leadership Learning Community, for at least one year. This will, among other things, provide capacity-building and changemanagement support to the Circuit leadership.
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STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022
Achievements during the Year
As mentioned above, the Circuit successfully appointed two members of staff, a Presbyter and a Superintendent Minister, through the Methodist Stationing process in a like-for-like replacement at the beginning of the year, September 2021. There are now three full-time Presbyters serving the ten Circuit churches.
As we emerge from the stifling effects of the pandemic lockdown, Circuit churches find themselves at variable degrees of preparedness to build back, with declining congregational numbers and demographic frailty made more apparent. Russia’s invasion of Ukraine has compounded the global situation and the inevitable global economic uncertainty is impacting some of our members’ ability to contribute financially to the life of their churches. Although fundraising opportunities are creeping back into the mix, they are yet to attain the prepandemic levels.
At the beginning of the calendar year, Stockton Circuit was one of the Circuits visited by Sonia Hicks (President) and Barbara Easton (Vice-President) of the Methodist Church in Britain on their tour of the Darlington Methodist District. It was a memorable and inspiring experience during which the Circuit was able to highlight, showcase and affirm its church-to-community ministry. Starting with morning prayers and the fellowship of community bacon butties and a cuppa at Eaglescliffe Trinity Methodist Church, the presidential tour included the vision of reclaimed industrial wasteland shared at the Port Clarences allotment project, the conversations of community engagement at Thornaby, the work of Stockton Hope at St. Andrew’s Methodist Church, the radical welcome practised by the Refugees and Asylum Seekers’ Project (RASPS) at Yarm Road Methodist Church and the tour of John Wesley’s favourite elegant church in Yarm. The President gave us the challenging and encouraging sermon of response at Norton Methodist Church and both the President and Vice-President helped in the practical testimony of community service of the Community Pantry. The visit represents graphically a synopsis of significant Circuit developments this year. The Community Pantry at Norton, the Stockton Hope Food Bank, the Salvation Project at Thornaby and the Refugees and Asylum Seekers’ Project at Yarm Road are truly inspiring community projects whose relevance and expansion are both touching and heart-wrenching.
The Circuit is grateful to the Impetus Environmental Trust who provided The Friends of Thornaby Methodist Church with 90% of the cost of new heating boilers and a new heating system, following the failure of the existing vintage boilers in November. This has enabled both worship and the community service work to continue at this location.
Although the Circuit no longer employs a Baptism Lay Worker, baptism services are a shining testimony of the Circuit’s Christian witness to the communities we journey alongside. Most baptisms are for people who otherwise have no connection with the church. It is fresh ground that needs to be tilled and nurtured.
Worship takes place across the Circuit and we have continued to seek to find ways to encourage variety. This year saw the continued development of online Circuit services and studies and the support of churches as they managed the gradual unlocking as the pandemic continued.
The church has engaged meaningfully and sensitively with the conference’s decision to recognise, celebrate and consecrate same-sex marriage alongside traditional heterosexual marriages. At least two of the Circuit churches are now registered to conduct same-sex marriages.
FINANCIAL REVIEW
Income Trends
Circuit income is primarily drawn from the assessment paid by the Circuit churches. With the progressive easing of coronavirus pandemic restrictions in 2022, church finances have gradually recovered and all the Circuit churches have been able to meet their assessment commitments in the year to 31 August 2022. The Circuit has also benefited from the gradual rise in interest rates in 2022, a trend that looks set to continue for some time.
However, the pandemic has taken its toll and has led churches to review their situations. One of the smaller churches has already decided to close in the Autumn of 2022 and at least one other is considering its position. Assessments that will provide 97% of the previous year’s level have been agreed with the churches for 2022/2023.
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STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022
FINANCIAL REVIEW – Continued
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. Closure of further churches in ensuing years represents a significant threat to Circuit finances, as the remaining churches may well struggle to make up the resulting shortfall. With such considerations, it is anticipated that overall, the income from church assessments is unlikely to increase.
Expenditure Trends
Stipend expenditure has increased by 1.16% in line with conference approved increases and there were also increased employer’s national insurance contributions during the year, although the government has now reversed these changes. The assessment paid to the District and Connexion in the year to 31 August 2022 was reduced by 10.75% from the previous year. Manse maintenance costs were a few thousand less than predicted but this was mainly due to some scheduled tasks being delayed until the next financial year.
Stipends and associated expenditure and the assessment paid to the District and Connexion make up 75% of Circuit expenditure. In 2022/2023, stipends will increase by 4.3% but the District/Connexional assessment will reduce by 5.3%. However, world events have brought about significantly increased levels of inflation in the UK economy and these will undoubtedly have an effect increasing the remaining 25% of Circuit costs.
Looking further ahead, although in 2023/2024 the District/Connexional assessment is likely to remain steady, stipend expenditure is anticipated to increase by over 7.8% and it seems likely general UK inflation will also be at this level. General UK inflation is predicted to eventually fall back, but this may take some time. As annual Circuit income is not envisaged to increase in the next few years, and could suffer some decrease, matching income with expenditure is likely to prove challenging.
Fund Balances
As at 31 August 2022, the net current assets of the Circuit were £274,000 giving approximately 15 months’ cover for unrestricted expenditure.
Plans for 2022/2023
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 4.3% cost of living stipend increase. The assessment paid to the District and Connexion will be reduced by 5.3%. As described above, the assessment income from the churches has been agreed at 97% of the previous year’s 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 and the conflict in Ukraine, the financial climate remains uncertain. Some of the churches have found recovery from the pandemic particularly difficult and are uncertain of their future direction and this adds to the anxiety regarding Circuit finances. 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 took on two new presbyters in September 2021 and their appointments still have four years to run. In addition, the Circuit has a third presbyter whose appointment still has two years to run and the Circuit/ presbyter will need to discern in the coming year whether this will be extended or whether the Circuit is to enter the stationing process for a new presbyter to start in September 2024. In this latter case, the new appointment would run until 2029. It is essential for the Circuit to maintain sufficient income/reserves to ensure the financial consequences associated with these commitments and decisions can be met.
The Circuit also endeavours to hold funds to meet a mission challenge in the Stockton area.
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STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022
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;
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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 20 March 2023 Circuit Meeting.
Approved on behalf of the Charity’s Trustees on 20 March 2023 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 2022
CIRCUIT MEETING MEMBERSHIP
Superintendent Rev. Vincent Jambawo – appointed September 2021 Ministers Rev. Sarah Ramsden Rev. Martin Ramsden Rev. Rachel Williams – appointed September 2021 Circuit Stewards Dr. Peter Dodd Dr. Roger Taylor – retired January 2022 Mrs. Margaret Walton (property) Mrs. Jean Jones Mr. Mark Hall - appointed October 2021 Mr Leslie Gilburt – appointed June 2022 Circuit Treasurer Mr. John Moore Supernumerary Minister Rev. John Howard-Norman – appointed September 2021 Secretary of the Circuit Meeting Ms. J Prior (non-voting) – retired June 2022 Mrs June Howard-Norman – appointed September 2022 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. 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 Position currently vacant Methodist Homes Representative Position currently vacant Safeguarding Dr. Roger Taylor – retired January 2022 Ms. Aneta Bradley – appointed February 2022
Appendix A
STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022
MEETING – SEPTEMBER 2022
From each Church: Steward, Treasurer and Elected Representatives:
Carlton: Joan Burn, Charlton Peters, Margaret Hall – appointed September 2021 Greens Lane: Caroline Noble – retired June 2022, David Smart, Judy Morrison, Margaret Schofield. Sandra Wilkinson – appointed June 2022 Maltby: Joan Tarren, Stephen Smith, Ken Davison – all retired November 2022 North Billingham: Rhona Ball, Cynthia Dent, Jackie Pitt, Maureen Gowland Norton: 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: 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 2022 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
17 April 2023
DFA/GW
Page 8
STOCKTON METHODIST CIRCUIT
STATEMENT OF FINANCIAL ACTIVITIES (SOFA) FOR THE YEAR ENDED 31 AUGUST 2022
| Circuit Model | ||||||
|---|---|---|---|---|---|---|
| General Fund | Trust | Restricted | Total | Total | ||
| Notes | (Unrestricted) | (Unrestricted) | Funds | 2021-2022 | 2020-2021 | |
| £ | £ | £ | £ | £ | ||
| Income | ||||||
| Income from monetary | ||||||
| investments | 4 | 995 | 137 | - | 1,132 | 1,133 |
| Income from investment | ||||||
| properties | 5 | - | - | 5,597 | 5,597 | 5,457 |
| Assessments on churches | 204,495 | - | - | 204,495 | 187,805 | |
| Grants received | - | - | 2,000 | 2,000 | 4,000 | |
| Other income | 6 | 21,482 | - | - | 21,482 | 30,673 |
| __ | ____ | ______ | __ | __ | ||
| Total Income | 226,972 | 137 | 7,597 | 234,706 | 229,068 | |
| ------------ | ----- | -------- | ----------- | ----------- | ||
| Expenditure | ||||||
| Grants and donations | 7 | 12,755 | - | - | 12,755 | 200 |
| Salaries and associated | ||||||
| costs | 8 | 127,213 | 93 | 190 | 127,496 | 129,511 |
| Property maintenance | 9 | 19,784 | - | 1,192 | 20,976 | 36,870 |
| Connexional assessment | ||||||
| and model trust levy | - | - | - | - | - | |
| District assessment and levy | 10 | 51,532 | 817 | - | 52,349 | 65,492 |
| Office expenses | 2,621 | - | - | 2,621 | 2,049 | |
| Other outgoings | 2,200 | - | 939 | 3,139 | 4,381 | |
| __ | ____ | ______ | __ | __ | ||
| Total Charitable Expenditure | 216,105 | 910 | 2,321 | 219,336 | 238,503 | |
| ----------- | ----- | -------- | ----------- | ----------- | ||
| Net Income/(Expenditure) | 10,867 | (773) | 5,276 | 15,370 | (9,435) | |
| Transfers between funds | 16 | 8,135 | (3,730) | (4,405) | - | - |
| _ | ______ | _ | _ | ______ | ||
| Net Movement in Funds | 19,002 | (4,503) | 871 | 15,370 | (9,435) | |
| Total funds brought forward | 1,351,713 | 32,668 | 91,719 | 1,476,100 | 1,485,535 | |
| ____ | _ | _ | ____ | ____ | ||
| Total Funds Carried Forward | 16 | 1,370,715 | 28,165 | 92,590 | 1,491,470 | 1,476,100 |
| ======== | ====== | ====== | ======== | ======== |
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 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 | 6,242 |
| Salaries and associated 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
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STOCKTON METHODIST CIRCUIT
BALANCE SHEET AS AT 31 AUGUST 2022
| Circuit Model | ||||||
|---|---|---|---|---|---|---|
| General Fund | Trust | Restricted | Totals | Totals | ||
| Notes | (Unrestricted) | (Unrestricted) | Funds | 2022 | 2021 | |
| £ | £ | £ | £ | £ | ||
| Fixed Assets | ||||||
| Circuit Manses and equipment | 12 | 1,127,261 | - | - | 1,127,261 | 1,127,261 |
| Investment properties | 12 | - | - | 90,000 | 90,000 | 90,000 |
| ____ | ___ | _ | ____ | ____ | ||
| Total Fixed Assets | 1,127,261 | - | 90,000 | 1,217,261 | 1,217,261 | |
| ======== | === | ====== | ======== | ======== | ||
| Current Assets | ||||||
| Debtors | 13 | 9,472 | - | - | 9,472 | 10,223 |
| Investments with TMCP | 14 | - | 28,165 | - | 28,165 | 32,668 |
| Central Finance Board deposits | 266,117 | - | 2,590 | 268,707 | 236,522 | |
| Cash at bank and in hand | 21,984 | - | - | 21,984 | 33,310 | |
| __ | _ | ______ | ___ | __ | ||
| Total Current Assets | 297,573 | 28,165 | 2,590 | 328,328 | 312,723 | |
| ----------- | --------- | -------- | ------------ | ----------- | ||
| Current Liabilities | ||||||
| Creditors: due in less than one | ||||||
| year | 15 | 54,119 | - | - | 54,119 | 53,884 |
| _ | ___ | ___ | _ | _ | ||
| Total Current Liabilities | 54,119 | - | - | 54,119 | 53,884 | |
| ---------- | ---- | ---- | ---------- | ---------- | ||
| Net Current Assets/Liabilities | 243,454 | 28,165 | 2,590 | 274,209 | 258,839 | |
| ----------- | ---------- | -------- | ------------ | ----------- | ||
| Total Assets less Current | ||||||
| Liabilities | 1,370,715 | 28,165 | 92,590 | 1,491,470 | 1,476,100 | |
| ======== | ====== | ====== | ======== | ======== | ||
| Net Assets | 1,370,715 | 28,165 | 92,590 | 1,491,470 | 1,476,100 | |
| ======== | ====== | ====== | ======== | ======== | ||
| Funds of the Circuit | ||||||
| General fund (unrestricted) | 16 | 1,370,715 | - | - | 1,370,715 | 1,351,713 |
| Circuit Model Trust Fund | ||||||
| (unrestricted) | 16 | - | 28,165 | - | 28,165 | 32,668 |
| ____ | _ | ___ | ____ | ____ | ||
| Total Unrestricted Funds | 1,370,715 | 28,165 | - | 1,398,880 | 1,384,381 | |
| -------------- | ---------- | ---- | ------------- | -------------- | ||
| Restricted funds | 16 | - | - | 92,590 | 92,590 | 91,719 |
| --- | --- | ---------- | ---------- | ---------- | ||
| Total Funds | 16 | 1,370,715 | 28,165 | 92,590 | 1,491,470 | 1,476,100 |
| ======== | ====== | ====== | ======== | ======== |
These financial statements were approved on behalf of the Charity’s Trustees on 20 March 2023 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 2022
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 in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
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.
Page 12
STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
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.
(i) Going Concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
4. INCOME FROM MONETARY INVESTMENTS
| Circuit Model | 2022 | 2021 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Central Finance Board | |||||
| Deposits | 995 | - | - | 995 | 339 |
| Investments with TMCP | - | 137 | - | 137 | 794 |
| ____ | ____ | ___ | ______ | ______ | |
| 995 | 137 | - | 1,132 | 1,133 | |
| === | === | === | ==== | ==== |
5. INCOME FROM INVESTMENT PROPERTIES
| Circuit Model | 2022 | 2021 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Lettings income: | |||||
| Alpine Way | - | - | 5,597 | 5,597 | 5,457 |
| ___ | ___ | ______ | ______ | ______ | |
| Total | - | - | 5,597 | 5,597 | 5,457 |
| == | == | ==== | ==== | ==== |
6. OTHER CHARITABLE INCOME
| OTHER CHARITABLE INCOME | |||||
|---|---|---|---|---|---|
| Circuit Model | 2022 | 2021 | |||
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Lettings income: | |||||
| 2 Wallington Road | 6,900 | - | - | 6,900 | 6,900 |
| Donations for Connexional | |||||
| Funds | 9,955 | - | - | 9,955 | 200 |
| District employment | |||||
| reimbursement | 4,240 | - | - | 4,240 | |
| Gain on sale of 15 Hanbury | |||||
| Grove, Ingleby Barwick | - | - | - | - | 23,403 |
| Sale of manuals | - | - | - | - | - |
| Other sundry income | 387 | - | - | 387 | 170 |
| _ | ___ | ___ | _ | _ | |
| Total | 21,482 | - | - | 21,482 | 30,673 |
| ===== | == | == | ===== | ===== |
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.
Page 13
STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
7. GRANTS AND DONATIONS
| Circuit Model | 2022 | 2021 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Connexional Funds | 9,955 | - | - | 9,955 | 200 |
| Thornaby Methodist Church | 2,800 | - | - | 2,800 | - |
| _ | ___ | ___ | _ | ____ | |
| 12,755 | - | - | 12,755 | 200 | |
| ===== | == | == | ===== | === |
8. SALARIES AND ASSOCIATED COSTS
| Circuit Model | 2022 | 2021 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Gross wages, salaries and | |||||
| benefits in kind | 91,504 | - | - | 91,504 | 86,951 |
| Pension costs | 21,580 | - | - | 21,580 | 21,036 |
| Employer’s national | |||||
| insurance costs | 8,115 | - | - | 8,115 | 7,345 |
| Apprenticeship levy | 459 | - | - | 459 | 467 |
| Telephone | 2,370 | - | - | 2,370 | 2,266 |
| Travelling | 2,792 | - | 190 | 2,982 | 1,833 |
| Administration | 480 | 93 | - | 573 | 890 |
| Relocation costs | (87) | - | - | (87) | 8,723 |
| __ | ____ | ____ | __ | __ | |
| Total | 127,213 | 93 | 190 | 127,496 | 129,511 |
| ====== | === | === | ====== | ====== |
The average number of staff engaged during the year was 4 (2021: 4). 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 £4,266 (2021: £1,571) in respect of reimbursed expenses for four trustees.
9. PROPERTY
| PROPERTY | |||||
|---|---|---|---|---|---|
| Circuit Model | 2022 | 2021 | |||
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Council tax | 7,008 | - | - | 7,008 | 5,832 |
| Water supply | 1,352 | - | - | 1,352 | 1,002 |
| Energy supply | - | - | - | - | 141 |
| Repairs and maintenance | 4,305 | - | 139 | 4,444 | 20,913 |
| Insurance | 3,730 | - | - | 3,730 | 3,235 |
| Letting expenses | 1,229 | - | 1,053 | 2,282 | 2,147 |
| Quinquennial reports | 2,160 | - | - | 2,160 | 3,600 |
| _ | ___ | ______ | _ | _ | |
| Total | 19,784 | - | 1,192 | 20,976 | 36,870 |
| ===== | == | ==== | ===== | ===== |
Page 14
STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
10. DISTRICT ASSESSMENT AND LEVY
| Circuit Model | 2022 | 2021 | |||||
|---|---|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |||
| £ | £ | £ | £ | £ | |||
| District expenses and | |||||||
| Methodist Church funds | 51,532 | - | - | 51,532 | 57,736 | ||
| Levy on CMTF funds | - | 817 | - | 817 | 7,756 | ||
| _ | ____ | ___ | _ | _ | |||
| Total | 51,532 | 817 | - | 52,349 | 65,492 | ||
| ===== | === | == | ===== | ===== | |||
| 11. | NET INCOME/EXPENDITURE FOR THE YEAR | ||||||
| This is stated after charging: | |||||||
| 2022 | 2021 | ||||||
| Total | Total | ||||||
| £ | £ | ||||||
| Independent Examiner’s Fees: | |||||||
| Independent examination – 2022 | 2,100 | 2,100 | |||||
| ==== | ==== | ||||||
| 12. | TANGIBLE FIXED ASSETS | ||||||
| Circuit | Investment | ||||||
| Manses | Property | Total | |||||
| £ | £ | £ | |||||
| Cost or Valuation | |||||||
| Balance brought forward as at | 1 September 2021 | 1,127,261 | 90,000 | 1,217,261 | |||
| Depreciation | |||||||
| At 31 August 2021 and 31 August 2022 | - | - | - | ||||
| ____ | _ | ____ | |||||
| Balance carried forward as at 31 August | 2022 | 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 2022.
Page 15
STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
13. DEBTORS AND PREPAYMENTS
| DEBTORS AND PREPAYMENTS | ||
|---|---|---|
| 2022 | 2021 | |
| Total | Total | |
| £ | £ | |
| Assessment debtors | - | 1,200 |
| Stipends paid in advance | 9,472 | 9,023 |
| ______ | _ | |
| 9,472 | 10,223 | |
| ===== | ===== |
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
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| Total | Total | ||||
| £ | £ | ||||
| Assessments received in advance | 50,675 | 49,320 | |||
| Other creditors and accruals | 3,444 | 4,564 | |||
| _ | _ | ||||
| 54,119 | 53,884 | ||||
| ===== | ===== | ||||
| SUMMARY OF FUND MOVEMENTS | |||||
| At | At | ||||
| 01.09.21 | Income | Expenditure | Transfers | 31.08.22 | |
| £ | £ | £ | £ | £ | |
| General fund | 1,351,713 | 226,972 | 216,105 | 8,135 | 1,370,715 |
| Circuit Model Trust fund | 32,668 | 137 | 910 | (3,730) | 28,165 |
| ____ | ___ | __ | ______ | ____ | |
| Total Unrestricted Funds | 1,384,381 | 227,109 | 217,015 | 4,405 | 1,398,880 |
| ------------- | ------------ | ------------ | -------- | ------------- | |
| Tees Valley Housing Fund | 90,000 | 5,597 | 1,192 | (4,405) | 90,000 |
| Circuit Mission and | |||||
| Evangelism Fund | 1,719 | 2,000 | 1,129 | - | 2,590 |
| _ | ______ | ______ | ______ | _ | |
| Total Restricted Funds | 91,719 | 7,597 | 2,321 | (4,405) | 92,590 |
| --------- | -------- | -------- | -------- | --------- | |
| TOTAL ALL FUNDS | 1,476,100 | 234,706 | 219,336 | - | 1,491,470 |
| ======== | ====== | ====== | == | ======== |
16. SUMMARY OF FUND MOVEMENTS
Page 16
STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
16. SUMMARY OF FUND MOVEMENTS – Continued
| 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 |
| ======== | ====== | ====== | === | ======== |
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.
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 – closed October 2022 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.