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2023-08-31-accounts

Circuit Accruals Accounts 2022-2023

THE METHODIST CHURCH

REPORT AND ACCOUNTS

for the year ended 31 August 2023

Tamworth and Lichfield Circuit Registered Charity - Registration number Birmingham District No / Circuit No 05/09 Ministers Revd Joanna Thornton Revd Wendy Walker Deacon Joy Sykes Circuit Stewards David Gowdy Albert Wright Robert Share Carole Share ~~uu~~ Circuit Treasurer Paul McDermott

Registered Charity - Registration number

1137326

Tamworth and Lichfield Methodist Circuit Trustee's Annual Report for the year ended 31 August 2023

Introduc"on

The Trustees present their Report and Accounts for the year ended 31 August 2023

Aims and organisa"on

The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of:

a) The Chris'an faith in accordance with the doctrinal standards and discipline of The Methodist Church;

b) Any charitable purpose for the 'me being of any Connexional, District, Circuit. local or other organisa'on of The Methodist Church;

c) Any charitable purpose for the 'me being of any society or ins'tu'on subsidiary or ancillary to The Methodist Church;

d) Any purpose for the 'me being of any charity being a charity subsidiary or ancillary to The Methodist Church

The organisa'on and resourcing of regular public acts of worship open to members of the church and non members alike.

The teaching of Chris'anity through sermons, courses and small groups. The resourcing of pastoral work including visi'ng the sick and bereaved. Taking religious assemblies in local schools.

Promo'on of Chris'anity through the staging of events and services. Provision of chaplaincy services to the local university and other ins'tu'ons.

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 Cons'tu'onal Prac'ce and Discipline of the Methodist Church by order of the annual conference (CPD).

Day to day management of the circuit is undertaken by the Circuit Leadership team along with the Local Preachers mee'ng and the Circuit Mee'ng.

Trustee Training

A range of guidance produced by Methodist Connexion to support the effec've running of the circuit , specifically the leaflet ‘The Role of a Trustee in The Methodist Church’ is given to all new Circuit mee'ng members as induc'on to their role as trustees.

Related Par"es

The Circuit is part of the Birmingham District and is also accountable to the Methodist Conference.

Tamworth and Lichfield Methodist Circuit Trustees' Annual Report (con"nued)

Risk Management

The major risks have been iden'fied and recorded by the Circuit Leadership Team with professional advice taken as required.

There is a regular annual review process undertaken and recorded.

Income and Expenditure is 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 crea�on of male and female in God’s own image and likeness. Chris�ans see this poten�al as fulfilled by God’s re-crea�on 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 prac'ce outlines commitment to the following principles:

The Circuit commits itself to ensuring the implementa'on of Connexional Safeguarding Policy; government legisla'on, guidance and safe prac'ce in the circuit and in the churches.

The 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 responsibili'es in safeguarding and promo'ng the welfare of children and adults who may be vulnerable.

Reserves Policy

The Reserves Policy for the Circuit is to hold a minimum sum equivalent to six months’ average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and / or to be able to con'nue, in the short term, funding planned ac'vi'es in the event of any inability to raise the full Circuit Assessment from churches.

Review of the year

The financial posi'on of the Circuit remains stable. The task of encouraging and equipping the churches within the Circuit to fulfil the mission of the Methodist Church has con'nued and is being further developed.

Tamworth and Lichfield Methodist Circuit Statement of Financial Ac"vi"es for the year ended 31 August 2023

Note Unrestricted funds

Income from:
Assessments
Investments
4
Other
Total
Expenditure on:
S'pends, salaries, NIC & Pension costs
5
District Assessment
Methodist Church Funds
Telephone & travel’ etc
Insurance, u'li'es, etc
Maintenance of manses
Other Expenditure
Grants and Dona'ons
Contribu'ons to District Advance Fund		 General
Total
£
£
£
£
£
174,528
174,528
162,660
4,093
4,201
8,294
1,386
75
123,134
123,209
Circuit Model
Trust Fund
Endowment
Funds
Total
2022
178,696
127,335
0
306,031
164,046
128,819
128,819
105,168
34,908
34,908
34,296
2,528
2,528
2,662
5,961
5,961
4,173
9,368
9,368
8,421
4,647
4,647
11,349
6,277
332
6,609
9,538
400
400
24,838
3,331
3,331
4,032
Total 192,908
3,663
0
196,571
204,477
Net income/(expenditure)
Transfer between funds
Gains/(Losses) on investment assets
Net movement in funds
Reconcilia"on of funds:
Total funds brought forward
Total funds carried forward		 -14,212
123,672
0
109,460
-40,431
1,050
-1,050
-167
-368
-537
-843
-13,162
122,455
-370
108,923
-41,274
616,798
116,612
9,944
743,354
784,628
603,636
239,067
9,574
852,277
743,354

Balance Sheet as at 31 August 2023

Tangible Fixed Assets
Notes
Land & Buildings
6
Investments
7
Total fxed assets
Current Assets
Debtors and Prepayments
8
Other
Central Finance Board Deposits
Cash at Bank and in hand
Total current assets
9
Net current assets (liabili"es)
Total assets less current liabili"es
Net assets
Funds of the Circuit
Unrestricted funds
11
Endowment funds
Total Funds
Trustees for Methodist Church
Purposes deposits
Creditors and Accruals (due
within one year)
Circuit Model Trust Fund
(Unrestricted)		 Unrestricted
Total
2022
£
£
£
£
£
507,927
507,927
507,927
3,771
9,574
13,345
13,882
Circuit Model
Trust Fund
(Unrestricted)
Endowment
Funds
507,927
3,771
9,574
521,272
521,809
10,386
10,386
15,610
0
235,296
235,296
112,674
127,570
127,570
135,530
1,291
1,291
4,195
139,247
235,296
0
374,543
268,009
43,538
43,538
46,464
95,709
235,296
0
331,005
221,545
603,636
239,067
9,574
852,277
743,354
603,636
239,067
9,574
852,277
743,354
603,636
603,636
616,798
239,067
239,067
116,612
9,574
9,574
9,944
603,636
239,067
9,574
852,277
743,354

Tamworth and Lichfield Methodist Circuit Notes to the Accounts for the year ended 31 August 2023

1 Basis of accoun"ng

The financial statements have been prepared under the Chari'es Act 2011 in accordance with the 2014 version of Accoun'ng and Repor'ng by Chari'es: Statement of Recommended Prac'ce (SORP) applicable to chari'es preparing their accounts in accordance with the Financial Repor'ng Standard for Smaller En''es applicable in the UK (effec've from 1 January 2015) – the Chari'es SORP (FRSSE) – in replacement for the SORP’s 2005 version specified in its related 2008 Regula'ons and in accordance with the ‘true and fair override’ provision contained therein.”

2 Funds

The funds held may include: 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 also the following Endowment funds as listed. Details of each material fund are disclosed in the final note to these accounts. Any funds may be represented by more than just cash.

3 Accoun"ng policies

Basis

These accounts have been prepared on the basis of historical cost except that investments are shown at their market value at the end of the year, on the accruals basis to show a true and fair view of the Circuit’s financial posi'on and ac'vi'es.

Income Recogni"on

Income is included in the Statement of Financial Ac'vi'es (SOFA) when the Circuit becomes en'tled to the resources, and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability.

Resources Expended

This is recognised when a liability is incurred, or a construc've obliga'on arises, that results in the payment being unavoidable. Liabili'es are recognised as soon as an oung the Circuit to pay out resources.

Grants

Grants made by the Circuit from its own funds are recognised in full at the 'me of agreement or when the Circuit accepts that there is a legal or opera'onal obliga'on to make the payment. When the grant is recurrent over more than one year the balance payable in future years is treated as a provision for future commitments in the Balance Sheet against the appropriate fund, the provision being released in future years as instalments are paid in accordance with the originally agreed terms.

VAT

Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.

Tangible fixed assets for use by the Circuit

The freehold property is shown in the accounts at 2015 deemed values. No deprecia'on is provided on the building because the trustees consider the current residual fair value of the manse buildings to be not less than its balance sheet value. Any deprecia'on would not be material. The property has been reviewed for impairment.

Investments

Investments are valued in the balance sheet at market value at the year end. Investment income is included in the accounts when receivable and any gains or losses on revalua'on at the year end are shown in the SOFA.

Debtors and Prepayments

Debtors include the payment of the September s'pend in August.

Creditors

Creditors include both sundry expenses and specifically the 1st quarter assessment received in August.

Tamworth and Lichfield Methodist Circuit Notes to the Accounts for the year ended 31 August 2023

4. Investment income Unrestricted Circuit Model
Trust Fund		 Restricted 2023
Total		 2022
Total
£ £ £ £
Central Finance Board 3824 3,824 752
Other 269 4,201 4,470 634
Total 4,093 4,201 - 8,294 1,386

5. Paid Employees

Staff costs paid during the year were:

Gross stipends and salary
Employer's national insurance contributions
Pension costs
Apprenticeship levy
Total
Average number of staff employed during the year		 £
£
96,697
79,634
9,200
6,381
22,446
18,753
476
400
2023
Total
2022
Total
128,819
105,168
4
3

6. Tangible Fixed Assets

6. Tangible Fixed Assets
Manses Equipment Total
£ £ £
Cost/valuation brought forward 507,927 6,392 514,319
Cost/valuation carried forward 507,927 6,392 514,319
Accumulated depreciation brought forward 0 6,392 6,392
Depreciation charge for the year 0 0 0
Accumulated depreciation carried forward 0 6,392 6,392
Net Book Value 31 August 2023 507,927 0 507,927
The insurance value of the three manses was £851,163

7 Investments

The funds that support the Circuit Model Trust Fund and the Manses Fund are held by TMCP in Trustees Interest Funds on which interest is credited to the accounts each month. These are regarded as medium and long term investments.

TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds. Trust property is held for and on behalf of local Managing Trustees who are responsible for the day to day management of trust property. TMCP ensure that, through providing guidance and ac'ng under their direc'on, the Managing Trustees comply with charity law and Methodist law and polity as determined by the Methodist Conference.

Analysis of investment movements
Investments held in common investment funds
Changes in investment values
Market value at beginning of year
Net gain/(loss on revaluation
Market value at end of year		 £
£
3,771
3,938
2023
Total
2022
Total
3,938
4,202
-167
-264
3,771
3,938

Tamworth and Lichfield Methodist Circuit Notes to the Accounts for the year ended 31 August 2023

8 Current Assets
Debtors and prepayments
Miscellaneous debtors
Cash at bank
Bank balance held at Lloyds Bank
9 Creditors and accruals
(due within one year)
Prepaid assessments
Other creditors		 2023
2022
£
£
0
10,386
15,610
10,386
15,610
1,291
4,195
1,291
4,195
43,538
37,469
8,995
43,538
46,464

10 Capital commitments and contingent liabilities

At 31 August 2023 the Circuit had no capital commitments and no known contingent liabilities.

**11 ** Fund Movements Opening Closing
Balance **Income ** Expended Revaluation **Balance ** Purpose of fund
Unrestricted funds
General 616,798 178,696 191,858 603,636 General purposes
CMTF 116,612 127,335 4,713 -167 239,067 General purposes
733,410 306,031 196,571 -167 842,703
Endowment funds
Capital Annual Income
Endowment Name How Invested Value Income Used For
Arthur Roland Evetts Endowment 3,821 106 General Fund
Tolson Fund Endowment 4,116 115 General Fund
Mrs E Deakin Gift Gift in Memory 437 12 General Fund
Various Bequests Model Trust Bequest 1,200 36 General Fund
9,574 269

12 Pension Fund Commitment

The Circuit has in the past participated in a multi-employer scheme for two past employees. This scheme is currently in deficit and the Circuit is paying an annual sum to meet its share of this deficit under an arrangement designed to eliminate the deficit by 2025. At 31 August 2023 the net present value of the payments to be made was £481 (2022 - £791)

DECLARATIONS

Treasurer

I confirm that these accrual based accounts for the year ended 31 August 2023 have been prepared from the records of the Circuit and that they include all funds under the control of the Circuit Meeting.

----- Start of picture text -----
Signature of Treasurer Date
Name of Treasurer P McDermott
Address
13 Blackthorne Road, Lichfield, WS14 9YJ
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Presentation to the Circuit Meeting for approval.

I confirm that the annual report and accounts for the year ended 31 Aug 2023 were 13-Feb-24 presented to the Circuit Meeting at its meeting on

and were approved. Signature of the Chair of the meeting Name of the Chair of Revd Joanna Thornton the meeting Date _______________

Independent Examiner’s Report to the Trustees of the
Tamworth and Lichfield Methodist Circuit
This Report is on the Circuit Accounts for the year ended 31stAugust 2023

Respective responsibilities of Trustees and Examiner

The Circuit's trustees are responsible for ensuring that the annual report and accounts for the year to 31 August 2023 present a true and fair view of the Circuit's income and expenditure for the year and of its assets and liabilities at the balance sheet date. The trustees consider that an audit is not necessary for this year under Section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.

It is my responsibility to:

Basis of Independent Examiner’s Report

My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items, in nature or scale, or disclosures in the accounts, seeking explanations from the Trustees concerning such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently no opinion is given as to whether the accounts present a true and fair view. My report is limited to those matters set out in the statement below.

Independent Examiner’s Statement

In connection with my examination, no matter has come to my attention (other than as disclosed below*)

(1) which gives me reasonable cause to believe that in any material respect the requirements:

• to keep accounting records in accordance with Section 130 of the Charities Act.

• to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act

have not been met, or

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

(3) I have not obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10,000 (ten thousand pounds) at the balance sheet date.

Name of independent J H Willis examiner Signature of independent examiner

Relevant Professional qualification of independent examiner

Chartered Accountant

Name of firm (where appropriate)

Address 134 Beacon Park Village, Lower Sandford Street, Lichfield, Staffs. WS13 6JZ

Date

20 December 2023