STOCKTON METHODIST CIRCUIT
CHARITY REGISTRATION NUMBER: 1137263
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 AUGUST 2023
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STOCKTON METHODIST CIRCUIT
CHARITY REGISTRATION NUMBER: 1137263
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
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 2023
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and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.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 Rev. Sarah Ramsden Rev. Martin Ramsden Rev. Rachel Williams Circuit Stewards: Dr. Peter Dodd – retired August 2023 Mr. John Moore (treasurer) Mrs. Margaret Walton (property) Mrs. Jean Jones – retired June 2023 Mr. Mark Hall – appointed October 2021 Mr. Leslie Gilburt – appointed June 2022 Mr. Paul Toplis – appointed June 2023 Mrs. Caroline Noble – appointed September 2023 Administrator: Ms. J. Prior – resigned November 2023 Mrs. Rachel Wilson – appointed February 2024
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 Spitfire House 19 Falcon Court Preston Farm Industrial Estate STOCKTON ON TEES TS18 3TU 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 2023
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 18 to the accounts.
REVIEW OF THE YEAR
Circuit Mission Statement
ENGAGE WITH COMMUNITY [local and global]
CARE FOR ONE ANOTHER [watching over each other with love]
SHARE JESUS CHRIST [radical generosity and hospitality]
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 2023
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. The Circuit Support and Encouragement Group (CSET) was appointed at the beginning of the church year with the overarching mandate to, inter alia, help the Circuit churches reimagine their calling in mission and ministry statements which will, in turn, feed into the Circuit Mission Statement. The operating paradigm is the Why Process (Simon Sinek 2009) with the Rev. Dr. Martin Ramsden leading the team. The overarching question for this ecclesiological and missional “reimagining” is: What is God doing within each person, each church and the Circuit?
Introduction
This annual review provides an overview of the developments, achievements and concerns of the Stockton Methodist Circuit (SMC) over the past year, from September 2022 to August 2023. At the beginning of the year, the Circuit comprised ten churches. During the year, it faced significant challenges with the closure of one church in October and another at the end of August and financial difficulties among other individual churches. However, the Circuit remains committed and favourably positioned to foster a resilient and robust community for worship, mission and ministry. Additionally, the closure of the two churches is, in effect, a strategic resizing for efficiency and effectiveness with most members from these churches poised to transfer their membership to one of the other churches in the Circuit.
Significant Developments and Achievements
Despite the challenges, SMC has made notable progress in various areas over the past year. We have witnessed increased community outreach programmes, including food banks, with over 100 people served weekly from Norton Methodist Church’s community pantry and the Community Larder at St. Andrew’s Methodist Church, Hardwick. These efforts have allowed the Circuit to engage with a broader demographic, serve those in need and provide potential evidential legitimacy to challenge injustices in society locally and beyond. Furthermore, the Circuit has actively promoted ecumenical dialogue and collaboration with other religious communities. We have strengthened community bonds and worked towards common goals by fostering mutual understanding and cooperation. On the national scale, the Circuit joined other Circuits across the Connexion in supporting the JPIT (Joint Public Issues Team of the Baptist Union of Great Britain, the Methodist Church and the United Reform Church) statement expressing concern about the Illegal Immigration Bill. Over the year, we also celebrated increased inclusivity, most notably the registration of several churches for same-sex marriages. Our internal systemic processes take advantage of Methodist-wide mechanisms of EDI (Equality, Diversity and Inclusivity) and Safeguarding to provide appropriate training and oversight to everyone, particularly those in positions of authority and leadership.
Concerns and Challenges
Closing two churches within the Circuit has undoubtedly posed a significant challenge. The loss of these churches has impacted the Circuit’s overall strength and reach. We recognise the sadness and loss felt by members of these churches and have provided support and guidance during this transition.
Financial struggles have also been a pressing concern for individual churches within the Circuit. The annual contribution required to sustain the Circuit’s operations, including staff stipends, salaries and pension contributions, has become increasingly burdensome for some churches. This situation has strained the financial stability of the Circuit as a whole.
Resilience and Robustness
In response to these challenges, the SMC has taken proactive measures to ensure its resilience and robustness as a charity and worshipping community. We have strengthened our partnership with the broader Methodist community and sought additional resources and support. This includes collaborating with neighbouring Circuits, sharing resources, and exploring grant opportunities. For example, Thornaby Methodist Church has received funding from Darlington Methodist District for one year for a caretaker. This is the first planning stage for a New Places for New People (NPNP) initiative at that church.
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STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023
Resilience and Robustness - continued
Efforts have also been made to provide financial guidance and support to churches facing difficulties meeting their annual contributions. The Circuit Treasurer consults with church Treasurers on their assessment, meaning that a finger is kept on the pulse of each church. Additionally, we have encouraged churches to explore alternative revenue streams and engage in community fundraising initiatives.
To ensure the long-term sustainability of the Circuit, we are implementing a strategic plan focused on diversifying income sources, reducing expenses, and improving financial transparency. Regular monitoring and evaluation of the economic situation will be conducted to address any emerging issues promptly.
The staff situation remains stable with the Rev. Dr Martin Ramsden invited to be stationed and serve in the Circuit for a further five years. The evolving demographic situation means we must redouble our efforts to find volunteers to deliver on mission and ministry. We may have to look more and more to less traditional sources.
We are also pleased to record that all our premises are maintained at or above legal requirements and that safeguarding policies have been robust and proactive over the years.
Conclusion
While SMC has faced significant challenges over the past year, it remains committed to its mission of worship and charity. The closure of two churches and financial struggles among individual churches have necessitated resilience and robustness. Through collaborative efforts, financial support and strategic planning, the Circuit works tirelessly to overcome these challenges and build a sustainable future. With its members’ continued dedication and support, SMC will continue to thrive as a worshipping community and a force for positive change in the broader society.
FINANCIAL REVIEW
Income Trends
Circuit income is primarily drawn from the assessment paid by the Circuit churches. In general, church finances have recovered from the pandemic and all of the continuing churches were able to meet their assessment commitments in the year to 31 August 2023. However, they have all been affected by high inflation and the increase in wholesale energy costs. One of the smaller churches at Maltby closed in October 2022 which resulted in a minor loss of assessment income but the Circuit was compensated by the receipt of the residual funds of this church. It was agreed the Yarm Road Methodist church would close at the end of the 2022/2023 church year. This meant that the Circuit did not receive any assessment payment from this source in August 2023 (normally the Circuit would receive payment in advance for the months of September, October and November). Assessments that will provide 96% of the previous year’s level have been agreed with churches for 2023/2024 but it should be noted this is the second year running in which the assessment level has fallen slightly from the year before.
The Circuit has benefitted from the progressive rise in interest rates in the second half of 2022 and through 2023. This has compensated to some extent for the reduction in assessment income.
The Circuit has taken possession of the Maltby church property. This is a small, one-roomed chapel without any onsite parking or any surrounding land. The Circuit expects to receive a capital sum from the sale of the Yarm Road Church property during the 2023/2024 church year.
Longer term, the Circuit will endeavour to maintain assessment income at the current 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. With such considerations, it is anticipated that overall the income from church assessments is unlikely to increase.
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STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023
FINANCIAL REVIEW – Continued
Expenditure Trends
Stipend and associated expenditure and the assessment paid to the District and Connexion make up 75% of Circuit expenditure.
Stipend expenditure has increased by 4.3% in line with conference approved increases. Following on from the sharp increase in energy prices and the high level of general inflation, with encouragement from the Connexion, the Circuit brought the annual cost of living rise for lay workers forward by four months to 1 December 2023. The Circuit also made a one-off cost of living payment to lay workers on the basis of £500 for a full-time worker, part-time workers receiving a payment in proportion to their hours. It should be noted that the presbyters also received a one-off cost of living payment but the money for this came from Connexional funds and the Circuit finances were not involved. The assessment paid to the District and Connexion in the year to 31 August 2023 remained the same as the previous year.
Looking ahead to 2023/2024, stipend expenditure is scheduled to increase by 7.84%, while the District/ Connexional assessment will remain steady. General inflation which affects the remaining 25% of expenditure is now falling and during 2024, it will hopefully return to the levels that were normal in the previous decade.
Looking further ahead, in 2024/2025 stipend expenditure is anticipated to increase by around 6.8%, but it seems likely general UK inflation will fall back to 2 or 3%. 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 remain challenging.
Fund Balances
As at 31 August 2023, the net current assets of the Circuit were £287,000 giving approximately 15 months’ cover for unrestricted expenditure.
Plans for 2023/2024
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 7.84% cost of living stipend increase. The assessment paid to the District and Connexion will remain at the same level. The assessment income from the churches has been agreed at 96% of the previous year’s level. It is anticipated that the Circuit will receive a lump sum from the sale of Yarm Road Methodist Church during the year and it is intended this will be used to support mission activities at Thornaby Methodist Church and also mission activities elsewhere in the Stockton area. Apart from this “oneoff” injection of money and any associated expenditure, it is anticipated that, with foreseeable outgoings, the Circuit will run at a small deficit in 2023/2024.
RESERVES POLICY
General
It is the trustees’ policy to maintain a balance of unrestricted funds equivalent to six months’ unrestricted expenditure. However, following on from the coronavirus pandemic and with the continuing conflicts in the Ukraine and the Middle East, the financial climate continues to be uncertain. Some of the churches have found recovery from the pandemic difficult and all have been affected by the sharp increase in wholesale gas prices. The past two years of high inflation have been detrimental to the finances of both Circuit and churches. All this adds to the anxiety regarding Circuit finances. In these circumstances, it is seen as not unreasonable for reserves to be above this level until there is more clarity about the future situation.
The Circuit has extended the position of one presbyter for a further five years, meaning their appointment will run until at least August 2029. In addition, the appointments of the two other presbyters still have three years to run. It has also been agreed that the Circuit will provide a grant of £11,000 a year to Thornaby Methodist Church for the next three years. This is to support specific mission activity and is primarily associated with funding staff positions. 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 still hopes to identify and support other mission challenges in the Stockton area and endeavours to hold funds for this purpose.
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STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023
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 19 March 2024 Circuit Meeting.
Approved on behalf of the Charity’s Trustees on 19 March 2024 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 2023
CIRCUIT MEETING MEMBERSHIP
Superintendent Rev. Vincent Jambawo Ministers Rev. Sarah Ramsden Rev. Martin Ramsden Rev. Rachel Williams Circuit Stewards Dr. Peter Dodd – retired August 2023 Mrs. Margaret Walton (property) Mrs. Jean Jones – retired June 2023 Mr. Mark Hall Mr. Leslie Gilburt Mr. Paul Toplis – appointed June 2023 Mrs. Caroline Noble – appointed September 2023 Circuit Treasurer Mr. John Moore Supernumerary Minister Rev. John Howard-Norman Secretary of the Circuit Meeting Mrs June Howard-Norman – appointed September 2022 Secretary of Local Preachers’ Meeting Dr. Peter Dodd Local Preacher Representative Mrs. Sheila Hargreaves Additional Members appointed by Mr. John Monkhouse the Circuit Meeting Mr. David Parkin Mrs. Delysia Parkin Mrs. Valerie Wootton Lay Property Secretary Mr. Vic Bowmer – retired March 2023 Position currently vacant 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 Ms. Aneta Bradley – retired May 2023 Dr. Peter Dodd – appointed June 2023
Appendix A
STOCKTON METHODIST CIRCUIT
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023
From each Church: Steward, Treasurer and Elected Representatives:
Carlton: Joan Burn, Charlton Peters, Margaret Hall Greens Lane: David Smart, Judy Morrison, Margaret Schofield, Sandra Wilkinson 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 Aneta Bradley 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 Brian Bainbridge Chris Kendrew, Graham Clarke, Roz Matthews Ian Fyfe Yarm Road: Alison Tonkinson, Jim Dale, Edwin Doidge – all retired September 2023
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 2023 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.
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D F Adams FCA Baines Jewitt Limited Spitfire House 19 Falcon Court Preston Farm Industrial Estate STOCKTON ON TEES TS18 3TU
25 March 2024
DFA/GW
Page 8
STOCKTON METHODIST CIRCUIT
STATEMENT OF FINANCIAL ACTIVITIES (SOFA) FOR THE YEAR ENDED 31 AUGUST 2023
| Circuit Model | ||||||
|---|---|---|---|---|---|---|
| General Fund | Trust | Restricted | Total | Total | ||
| Notes | (Unrestricted) | (Unrestricted) | Funds | 2022-2023 | 2021-2022 | |
| £ | £ | £ | £ | £ | ||
| Income | ||||||
| Donations | 4 | 65,000 | - | - | 65,000 | - |
| Income from monetary | ||||||
| investments | 5 | 8,869 | 822 | - | 9,691 | 1,132 |
| Income from investment | ||||||
| properties | 6 | - | - | 5,776 | 5,776 | 5,597 |
| Assessments on churches | 204,245 | - | - | 204,245 | 204,495 | |
| Capital receipts | - | - | - | - | - | |
| Grants received | - | - | 2,000 | 2,000 | 2,000 | |
| Other income | 7 | 21,940 | - | - | 21,940 | 21,482 |
| ___ | ____ | ______ | ___ | __ | ||
| Total Income | 300,054 | 822 | 7,776 | 308,652 | 234,706 | |
| ------------ | ------ | -------- | ------------ | ----------- | ||
| Expenditure | ||||||
| Grants and donations | 8 | 8,627 | - | - | 8,627 | 12,755 |
| Salaries and associated | ||||||
| costs | 9 | 135,948 | 80 | 274 | 136,302 | 127,496 |
| Property maintenance | 10 | 27,434 | - | 1,570 | 29,004 | 20,976 |
| Connexional assessment | ||||||
| and model trust levy | - | - | - | - | - | |
| District assessment and levy | 11 | 48,956 | 704 | - | 49,660 | 52,349 |
| Office expenses | 2,342 | - | - | 2,342 | 2,621 | |
| Other outgoings | 2,340 | - | 2,220 | 4,560 | 3,139 | |
| ___ | ____ | ______ | ___ | __ | ||
| Total Charitable Expenditure | 225,647 | 784 | 4,064 | 230,495 | 219,336 | |
| ------------ | ------ | -------- | ------------ | ----------- | ||
| Net Income/Expenditure | 74,407 | 38 | 3,712 | 78,157 | 15,370 | |
| Transfers between funds | 17 | 8,506 | (4,300) | (4,206) | - | - |
| __ | _ | _ | _ | _ | ||
| Net Movement in Funds | 82,913 | (4,262) | (494) | 78,157 | 15,370 | |
| Total funds brought forward | 1,370,715 | 28,165 | 92,590 | 1,491,470 | 1,476,100 | |
| ____ | _ | _ | ____ | ____ | ||
| Total Funds Carried Forward | 17 | 1,453,628 | 23,903 | 92,096 | 1,569,627 | 1,491,470 |
| ======== | ====== | ====== | ======== | ======== |
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 2022
| Circuit Model | ||||||
|---|---|---|---|---|---|---|
| General Fund | Trust | Restricted | Total | Total | ||
| Notes | (Unrestricted) | (Unrestricted) | Funds | 2021-2022 | 2020-2021 | |
| £ | £ | £ | £ | £ | ||
| Income | ||||||
| Income from monetary | ||||||
| investments | 4 | 339 | 794 | - | 1,132 | 1,133 |
| Income from investment | ||||||
| properties | 5 | - | - | 5,457 | 5,597 | 5,457 |
| Assessments on churches | 187,805 | - | - | 204,495 | 187,805 | |
| Grants received | - | - | 4,000 | 2,000 | 4,000 | |
| Other income | 6 | 7,270 | 23,403 | - | 21,482 | 30,673 |
| __ | _ | ______ | __ | __ | ||
| Total Income | 195,414 | 24,197 | 9,457 | 234,706 | 229,068 | |
| ----------- | --------- | -------- | ----------- | ----------- | ||
| Expenditure | ||||||
| Grants and donations | 7 | 200 | - | - | 12,755 | 200 |
| Salaries and associated costs | 8 | 129,101 | 410 | - | 127,496 | 129,511 |
| Property maintenance | 9 | 35,822 | - | 1,048 | 20,976 | 36,870 |
| Connexional assessment and | ||||||
| model trust levy | - | - | - | - | - | |
| District assessment and levy | 10 | 57,736 | 7,756 | - | 52,349 | 65,492 |
| Office expenses | 2,049 | - | - | 2,621 | 2,049 | |
| Other outgoings | 2,100 | - | 2,281 | 3,139 | 4,381 | |
| __ | ______ | ______ | __ | __ | ||
| Total Charitable Expenditure | 227,008 | 8,166 | 3,329 | 219,336 | 238,503 | |
| ----------- | -------- | -------- | ----------- | ----------- | ||
| Net Income/(Expenditure) | (31,594) | 16,031 | 6,128 | 15,370 | (9,435) | |
| Transfers between funds | 16 | 192,887 | (188,478) | (4,409) | - | - |
| __ | ___ | ______ | _ | ______ | ||
| Net Movement in Funds | 161,293 | (172,447) | 1,719 | 15,370 | (9,435) | |
| Total funds brought forward | 1,190,420 | 205,115 | 90,000 | 1,476,100 | 1,485,535 | |
| ____ | __ | _ | ____ | ____ | ||
| Total Funds Carried Forward | 16 | 1,351,713 | 32,668 | 91,719 | 1,491,470 | 1,476,100 |
| ======== | ====== | ====== | ======== | ======== |
The notes on pages 11 to 16 form part of these accounts
Page 10
STOCKTON METHODIST CIRCUIT
BALANCE SHEET AS AT 31 AUGUST 2023
| Circuit Model | ||||||
|---|---|---|---|---|---|---|
| General Fund | Trust | Restricted | Totals | Totals | ||
| Notes | (Unrestricted) | (Unrestricted) | Funds | 2023 | 2022 | |
| £ | £ | £ | £ | £ | ||
| Fixed Assets | ||||||
| Circuit Manses and equipment | 15 | 1,192,261 | - | - | 1,192,261 | 1,127,261 |
| Investment properties | 15 | - | - | 90,000 | 90,000 | 90,000 |
| ____ | ___ | _ | ____ | ____ | ||
| Total Fixed Assets | 1,192,261 | - | 90,000 | 1,282,261 | 1,217,261 | |
| ======== | === | ====== | ======== | ======== | ||
| Current Assets | ||||||
| Debtors | 16 | 10,214 | - | - | 10,214 | 9,472 |
| Investments with TMCP | 17 | - | 23,903 | - | 23,903 | 28,165 |
| Central Finance Board deposits | 280,670 | - | 2,096 | 282,766 | 268,707 | |
| Cash at bank and in hand | 20,444 | - | - | 20,444 | 21,984 | |
| ___ | _ | ______ | ___ | ___ | ||
| Total Current Assets | 311,328 | 23,903 | 2,096 | 337,327 | 328,328 | |
| ------------ | --------- | -------- | ------------ | ------------ | ||
| Current Liabilities | ||||||
| Creditors: due in less than one | ||||||
| year | 18 | 49,961 | - | - | 49,961 | 54,119 |
| _ | ___ | ___ | _ | _ | ||
| Total Current Liabilities | 49,961 | - | - | 49,961 | 54,119 | |
| ---------- | ---- | ---- | ---------- | ---------- | ||
| Net Current Assets/Liabilities | 261,367 | 23,903 | 2,096 | 287,366 | 274,209 | |
| ----------- | ---------- | -------- | ------------ | ------------ | ||
| Total Assets less Current | ||||||
| Liabilities | 1,453,628 | 23,903 | 92,096 | 1,569,627 | 1,491,470 | |
| ======== | ====== | ====== | ======== | ======== | ||
| Net Assets | 1,453,628 | 23,903 | 92,096 | 1,569,627 | 1,491,470 | |
| ======== | ====== | ====== | ======== | ======== | ||
| Funds of the Circuit | ||||||
| General fund (unrestricted) | 19 | 1,453,628 | - | - | 1,453,628 | 1,370,715 |
| Circuit Model Trust Fund | ||||||
| (unrestricted) | 19 | - | 23,903 | - | 23,903 | 28,165 |
| ____ | _ | ___ | ____ | ____ | ||
| Total Unrestricted Funds | 1,453,628 | 23,903 | - | 1,477,531 | 1,398,880 | |
| -------------- | ---------- | ---- | ------------- | ------------- | ||
| Restricted funds | 19 | - | - | 92,096 | 92,096 | 92,590 |
| --- | --- | ---------- | ---------- | ---------- | ||
| Total Funds | 19 | 1,453,628 | 23,903 | 92,096 | 1,569,627 | 1,491,470 |
| ======== | ====== | ====== | ======== | ======== |
These financial statements were approved on behalf of the Charity’s Trustees on 19 March 2024 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 2023
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.
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STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
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. DONATIONS
| Circuit Model | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Gift of church property | 65,000 | - | - | 65,000 | - |
| ====== | == | == | ====== | == |
Under the Methodist Church constitution, when a local Methodist society closes, the church passes to the Circuit and becomes part of its assets.
5. INCOME FROM MONETARY INVESTMENTS
| Circuit Model | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Central Finance Board | |||||
| Deposits | 8,869 | - | - | 8,869 | 995 |
| Investments with TMCP | - | 822 | - | 822 | 137 |
| ______ | ____ | ___ | ______ | ______ | |
| 8,869 | 822 | - | 9,691 | 1,132 | |
| ===== | === | == | ===== | ===== |
6. INCOME FROM INVESTMENT PROPERTIES
| Circuit Model | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Lettings income: | |||||
| Alpine Way | - | - | 5,776 | 5,776 | 5,597 |
| ___ | ___ | ______ | ______ | ______ | |
| Total | - | - | 5,776 | 5,776 | 5,597 |
| === | === | ===== | ===== | ===== |
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STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
7. OTHER CHARITABLE INCOME
| Circuit Model | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Lettings income: | |||||
| 2 Wallington Road | 6,900 | - | - | 6,900 | 6,900 |
| Donations for Connexional | |||||
| Funds | 8,627 | - | - | 8,627 | 9,955 |
| District employment | |||||
| reimbursement | 6,147 | - | - | 6,147 | 4,240 |
| Other sundry income | 266 | - | - | 266 | 387 |
| _ | ___ | ___ | _ | _ | |
| Total | 21,940 | - | - | 21,940 | 21,482 |
| ====== | == | == | ====== | ====== |
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.
8. GRANTS AND DONATIONS
| Circuit Model | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Connexional Funds | 8,627 | - | - | 8,627 | 9,955 |
| Thornaby Methodist Church | - | - | - | - | 2,800 |
| ______ | ___ | ___ | ______ | _ | |
| 8,627 | - | - | 8,627 | 12,755 | |
| ===== | == | == | ===== | ====== |
9. SALARIES AND ASSOCIATED COSTS
| Circuit Model | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Unrestricted | Trust Fund | Restricted | Total | Total | |
| £ | £ | £ | £ | £ | |
| Gross wages, salaries and | |||||
| benefits in kind | 97,705 | - | - | 97,705 | 91,504 |
| Pension costs | 22,553 | - | - | 22,553 | 21,580 |
| Employer’s national | |||||
| insurance costs | 8,654 | - | - | 8,654 | 8,115 |
| Apprenticeship levy | 490 | - | - | 490 | 459 |
| Telephone | 2,855 | - | - | 2,855 | 2,370 |
| Travelling | 3,211 | - | 274 | 3,485 | 2,982 |
| Administration | 480 | 80 | - | 560 | 573 |
| Relocation costs | - | - | - | - | (87) |
| __ | ___ | ____ | __ | __ | |
| Total | 135,948 | 80 | 274 | 136,302 | 127,496 |
| ======= | == | === | ======= | ======= |
The average number of staff engaged during the year was 4 (2022: 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.
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STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
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 £3,766 (2022: £4,266) in respect of reimbursed expenses for four trustees.
- PROPERTY
| 10. | PROPERTY | |||||
|---|---|---|---|---|---|---|
| Circuit Model | 2023 | 2022 | ||||
| Unrestricted | Trust Fund | Restricted | Total | Total | ||
| £ | £ | £ | £ | £ | ||
| Council tax | 7,412 | - | - | 7,412 | 7,008 | |
| Water supply | 1,557 | - | - | 1,557 | 1,352 | |
| Energy supply | 50 | - | - | 50 | - | |
| Repairs and maintenance | 11,806 | - | 407 | 12,213 | 4,444 | |
| Insurance | 4,655 | - | - | 4,655 | 3,730 | |
| Letting expenses | 1,054 | - | 1,163 | 2,217 | 2,282 | |
| Quinquennial reports | 900 | - | - | 900 | 2,160 | |
| _ | ___ | ______ | _ | _ | ||
| Total | 27,434 | - | 1,570 | 29,004 | 20,976 | |
| ====== | == | ===== | ====== | ====== | ||
| 11. | DISTRICT ASSESSMENT AND | LEVY | ||||
| Circuit Model | 2023 | 2022 | ||||
| Unrestricted | Trust Fund | Restricted | Total | Total | ||
| £ | £ | £ | £ | £ | ||
| District expenses and | ||||||
| Methodist Church funds | 48,956 | - | - | 48,956 | 51,532 | |
| Levy on CMTF funds | - | 704 | - | 704 | 817 | |
| _ | ____ | ___ | _ | _ | ||
| Total | 48,956 | 704 | - | 49,660 | 52,349 | |
| ====== | === | == | ====== | ====== | ||
| 12. | NET INCOME/EXPENDITURE | FOR THE YEAR | ||||
| This is stated after charging: | ||||||
| 2023 | 2022 | |||||
| Total | Total | |||||
| £ | £ | |||||
| Independent Examiner’s Fees: | ||||||
| Independent examination – | 2023 | 2,340 | 2,100 | |||
| ===== | ===== | |||||
| 13. | TANGIBLE FIXED ASSETS | |||||
| Circuit | Investment | |||||
| Property | Property | Total | ||||
| £ | £ | £ | ||||
| Cost or Valuation | ||||||
| Balance brought forward as at 1 September 2022 | 1,127,261 | 90,000 | 1,217,261 | |||
| Additions in year | 65,000 | - | 65,000 | |||
| Depreciation | ||||||
| At 31 August 2022 and 31 August 2023 | - | - | - | |||
| ____ | _ | ____ | ||||
| Balance carried forward as at | 31 August 2023 | 1,192,261 | 90,000 | 1,282,261 | ||
| ======== | ===== | ======== |
Circuit property comprises four manses for use by the Circuit staff and the chapel located at Maltby village which is used for occasional Circuit services and as a Circuit office.
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 2023.
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STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
14. DEBTORS AND PREPAYMENTS
| DEBTORS AND PREPAYMENTS | ||
|---|---|---|
| 2023 | 2022 | |
| Total | Total | |
| £ | £ | |
| Stipends paid in advance | 10,176 | 9,472 |
| Other debtors | 38 | - |
| _ | ______ | |
| 10,214 | 9,472 | |
| ====== | ===== |
15. INVESTMENTS WITH TRUSTEES FOR METHODIST CHURCH PURPOSES
This is an investment receiving body within the Methodist Church and pay interest at market rates.
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 2023 | 2022 | |
|---|---|---|
| Total | Total | |
| £ | £ | |
| Assessments received in advance | 46,130 | 50,675 |
| Other creditors and accruals | 3,831 | 3,444 |
| _ | _ | |
| 49,961 | 54,119 | |
| ====== | ====== |
17. SUMMARY OF FUND MOVEMENTS
| At | At | ||||
|---|---|---|---|---|---|
| 01.09.22 | Income | Expenditure | Transfers | 31.08.23 | |
| £ | £ | £ | £ | £ | |
| General fund | 1,370,715 | 300,054 | 225,647 | 8,506 | 1,453,628 |
| Circuit Model Trust fund | 28,165 | 822 | 784 | (4,300) | 23,903 |
| ____ | __ | ___ | ______ | ____ | |
| Total Unrestricted Funds | 1,398,880 | 300,876 | 226,431 | 4,206 | 1,477,531 |
| -------------- | ----------- | ------------ | -------- | ------------- | |
| Tees Valley Housing Fund | 90,000 | 5,776 | 1,570 | (4,206) | 90,000 |
| Circuit Mission and | |||||
| Evangelism Fund | 2,590 | 2,000 | 2,494 | - | 2,096 |
| _ | ______ | ______ | _ | _ | |
| Total Restricted Funds | 92,590 | 7,776 | 4,064 | (4,206) | 92,096 |
| ---------- | -------- | -------- | --------- | ---------- | |
| TOTAL ALL FUNDS | 1,491,470 | 308,652 | 230,495 | - | 1,569,627 |
| ======== | ======= | ======= | == | ======== |
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STOCKTON METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
17. SUMMARY OF FUND MOVEMENTS – Continued
| 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 |
| ======== | ======= | ======= | == | ======== |
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.
18. 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 11 to these accounts.