## **THE HANTS-SURREY BORDER METHODIST CIRCUIT**
## **REPORT AND FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
|**Contents**|**Page**|
|---|---|
|Reference and administrative details|1 - 2|
|Trustees' Report|3 - 6|
|Independent Examiner’s Report|7|
|Statement of Financial Activities|8|
|Balance Sheet|9|
|Notes to the Financial Statements|10 - 14|
HANTS-SURREY BORDER METHODIST CIRCUIT REFERENCE AND ADMINISTRATIVE DETAIL
## **Trustees**
Aileen Ashby Rolfe Bridson (resigned June 2023)
Melvyn Buckett Gill Bunch Kym Burgess Denis Compton Liz Cooper (died Dec 2022) Loise Cushing Nina Curley Steve Curtis Alex Day (from January 2024) Anne Day (from Sept 2022) Steve Dewey Carole Gaines Colin Gawthrop (resigned Sept 2022) Frances Gawthrop Liz George Neil Gray Rita Greig Gina Hoff Michael Hopkins (resigned Jan 2024) Christopher Hunter Colin Johnston (resigned Sept 2023) Margaret Janes Liz Jones David Kember Paul Kingston (resigned Sept 2022)
Neil Lambert (resigned Sept 2022) Gisela Lawson Andrew Micklefield (resigned Sept 2022) David Moll Ian Moore Jayne Moore Michael Morrice Judith Nicholls Alison Noakes Nick Oborski Thomas Oborski Andy Osborne (from Sept 2023) Sally Press Elizabeth Read Heather Richards Alex Sanderson Ian Sargeant Brian Sexton Philip Simpkins Muriel Simpson Sue Smith Gill Ter Kuile Graham Titterington Jill Whittingham (from Sept 2022) Pete Wisbey (died Aug 2023) Carol Woodruffe (from March 2024)
## **Key Management Personnel**
REV NICK OBORSKI REV ANNE DAY REV GINA HOFF REV MICHAEL HOPKINS REV PHILIP SIMPKINS ELIZABETH ANNE GEORGE DAVID WILLIAM MOLL JAYNE BEVERLEY MOORE MICHAEL JOHN MORRICE
CHAIR AND SUPERINTENDENT
CIRCUIT PRESBYTER CIRCUIT PRESBYTER CIRCUIT PRESBYTER CIRCUIT PRESBYTER CIRCUIT STEWARD CIRCUIT STEWARD CIRCUIT STEWARD CIRCUIT STEWARD Page 1
HANTS-SURREY BORDER METHODIST CIRCUIT REFERENCE AND ADMINISTRATIVE DETAIL
## **Principal office**
12 Glen Road FLEET Hampshire GU51 3QR
## **Independent Examiners**
Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton SM1 2SW
## **Bankers**
CAF Bank 25 Kings Hill Avenue, Kings Hill, West Malling ME19 4JQ
HSBC Bank Plc. Lansdowne House 74 High Street Alton GU34 1EZ
Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE
The Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ
## **Charity registration number:**
1137593
Page 2
## **THE HANTS-SURREY BORDER METHODIST CIRCUIT**
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023
The Trustees present their report and the financial statements of Hants-Surrey Border Methodist Circuit for the year ended 31 August 2023, which have been prepared in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102).
## **Structure, governance and management**
The charity was established by a Deed of Union (1932) and Methodist Church Act (1976) adopted on 26 August 2010.
## _**Recruitment and appointment of trustees**_
Trustees selection method:
- Certain Officers and elected representatives of local churches.
- Ministers appointed to the Circuit by the Methodist Conference.
## _**Additional governance issues**_
The Circuit comprises nine churches: Aldershot, Alton, Cove, Fleet, Frimley Green, Hale, Hartley Wintney, North Camp, Rowledge and two LEPs: Elvetham Heath (LEP),The Spire (Farnham LEP). Work continued through the year to further develop the Circuit to help it effectively fulfil its purpose as mentioned below under objectives and activities.
The Circuit Assessment is reviewed annually to cover the cost of meeting the objectives, and activities listed below, and is shared between each of the churches on an equitable basis. Under Standing Orders, the Circuit must meet its financial obligations in relation to the support of its Presbyters, five manses and Connexional requirements. The Circuit therefore, needs to generate a reasonable surplus to meet these obligations and ensure that the ‘reserves policies’ relating to its various funds are maintained.
The Ash Vale Chapel is a “Fresh Expression” of church managed jointly with St Mary’s Church, Ash Vale. This is regarded as a Circuit ‘project’, with a local management group being appointed by the Circuit Meeting to assume responsibility for routine maintenance of the property and day-to-day oversight of its activities. Within this framework, the Circuit continues to assume responsibility for the Ash Vale Chapel building, with expenditure being met from the Assessment income.
The key management personnel of the charity as listed on page 1 oversee the directing, controlling, running and operating the charity on a day to day basis.
## **Objects of the Circuit**
The purposes of the Methodist Church are and shall be deemed to have been since the date of union the advancement of -
- the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church;
- any charitable purpose for the time being of any Connexional, district, circuit, local or other organisation of the Methodist Church;
- any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church;
- any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church.
Page 3
## **THE HANTS-SURREY BORDER METHODIST CIRCUIT**
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023
## **The principal activities of the Circuit**
The Circuit is where new initiatives and changes in the pattern of church life originate. This is where the staffing capacity and resources for ministry are organised, where fresh expressions of church or new pioneer ministries are launched, and where decisions to close churches in the interest of re-shaping mission priorities are debated.
We act as an umbrella and resourcing body for the 9 local churches, 2 LEP churches and 1 mission outreach project in the Circuit, so that they can effectively fulfil their mission statements to engage with all those who seek God and/or a spiritual dimension to their lives.
We organise, provide leadership of, and administer the Circuit Meeting as the governing body of the Circuit, and provide the link upwards to District and Conference. The public are welcome to attend.
We administer the stipends and expenses of ministers and salaries and expenses of lay workers in the Circuit, provide pastoral support and, where appropriate, provide their accommodation.
We promote the well-being of Circuit churches and open access to all who wish to participate in their activities, through oversight of individual church councils and their decision-making, and in consultation with their representatives in the Circuit Meeting (who are also trustees of the Circuit).
We prepare the quarterly Circuit preaching plan that assigns ministers and lay preachers to church services, to which all are welcome.
We encourage ecumenical work and activities with other Christian denominations and their congregations.
We periodically sponsor events within the Circuit that are open to all.
## **Public Benefit**
The Trustees are aware of their duty, set out in section 4 of the Charities Act 2006, to have due regard to the public benefit guidance published by the Charity Commission.
The Circuit is part of the Methodist church which exists, to:
1. Increase awareness of God's presence and to celebrate God's love;
2. Help people to learn and grow as Christians, through mutual support and care; and
3. Be a good neighbour to people in need and challenge injustice.
The trustees consider that for these reasons the charity meets these public benefit requirements.
## **Review of Progress - 22/23**
Through the local churches represented in the Circuit, and the resources allocated to them, the following achievements have been made:
Continued opportunities for public worship in many of the larger towns and villages in the Circuit.
Page 4
## **THE HANTS-SURREY BORDER METHODIST CIRCUIT**
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023
The continued ability to offer occasional services (e.g. baptisms, weddings, funerals) to both church members and others, as required.
Continued pastoral care of a wide range of age groups, both within the church membership and the wider community.
Continued participation in various community-based projects.
Continued support for the work of local charities and community groups.
The continued management and maintenance of properties required to achieve the aims and objectives of the Circuit.
The ecumenical arts and community project based at The Chapel in Ash Vale has been enhanced by the development of a music studio which will be used as a resource for training individuals and community groups. The project is managed through a local committee in partnership with St Mary’s Church.
The churches continue to recover from the effects of COVID and meeting the challenge of reducing membership. The Circuit continues to work with the local churches to understand their vision for their future.
## **Financial Review and Reserves**
## **Income and expenditure**
Overall, the net movement in funds for the year was £17,081 (2022 - (£39,821)).
## **Reserves policy**
The Trustees have considered the level of reserves they wish to retain that are appropriate to the Circuit's needs. This is based on the Circuit's size and the level of financial commitments held.
The Trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The Trustees will endeavour not to set aside funds unnecessarily.
General fund expenditure during the financial year was £422,169 (2022 – £453,426).
General fund balance was £262,980 (2022 - £269,753).
This represents around 11 months expenditure - more than the 6 months required by the Circuit’s Reserves Policy.
Other unrestricted (designated) funds are generally performing satisfactorily.
.
Excluding freehold property, the balance of the unrestricted funds stands at £675,448 (2022 £658,368).
Page 5
THE HAKfs-SURREY BORDER MEfHODIST CIRCUIT
TRUSTEES, REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
The Circuit has a balan owed to W&wx Trust of £26,611 as its contribution towards the
new manse required for Churth on the Heath. This will be released when the shariThJ
agreement has been signed.
Risk Anaysis and Ilanagém
The Trustees actively review the major risks which the charity faces on a regular basis and
b81i8V6 thai mair1-snIng th8 free r6sefy"8s staled combined wim th8 annual of th8
controls over key financial systems carrEd (Krt on an annual basis w1 provide sufficient
resources in Ihe event of adverse cijnditions. The TteeS have also examined other
operational and business rtsks which they face and )nfirM that they hav8 established
systems to MItate the signFfi(snt risks.
TfUStèès' Resp4>nsibilltles
The law requires those responsilje fDr the administration of (*atiEFes to prepare financial
ts for fin2nar al 54*r giva 2 +rLiQ 2V*A f2ir of th. itate of tf..- vt
the charity and of the surplus or deficit of Ihe charity for that year. In preparing those financial
statements, they are required to:
observe the methods and principles in the Charibes SORP"
make judgements and estimates that are reasonable and prudent"
materiat departures disclosed and explained in the financial statements" and
prepare the financial statefrkents on the going o)ncem basis.
They have overall responsibthty f(Y ensuritHJ that the charity has appropriate systetns of
control. financial and otherwise.
records which disdose with reasonable accuracy at any time the financial position of the
charity and enable them to ensure that the financial statements comply wth the Charities Act
2011. They are also responsible for safeguarding the a55ets of the charity and hence *oi taking
reasonable steps for the prevet7tIc and deteclion of fraud and olher irregularilies.
For and on hall of the trustees
Rov Oborski
Date.. IOJune 2024
Page 6
## INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS OF
## **THE HANTS-SURREY BORDER METHODIST CIRCUIT**
I report to the charity trustees on my examination of the accounts of THE HANTS-SURREY BORDER METHODIST CIRCUIT (the Charity) for the year ended 31 August 2023.
## **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**
Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
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:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Report) 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.
Paul Newton FCA Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW
Dated 13 June 2024
Page 7
THE HANTS-SURREY BORDER METHODIST CIRCUIT
## STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2023
|**Note**
Charitable Activities
2
Donations
Grants
Investment Income
Interest
Other Trading Activities
Manse rental
Charitable Activities
Ongoing activities
3
Funds carried forward at 31 August 2023
**Income from:**
**Total Income**
**Expenditure on:**
Loss on disposal of fixed assets
**Total Expenditure**
**Net Income/(expenditure)**
**Reconciliation of Funds**
Funds brought forward on 1 September 2022|2023
£
331,494
68,209
19,637
19,909
439,249
422,169
422,169
17,080
2,814,799
2,831,879|2022
£
322,858
52,347
2,636
35,764
413,605
371,400
82,026
453,426
(39,821)
2,854,620
2,814,799|
|---|---|---|
Page 8
THE HANT&SUP_qEY BORDER MEfHnDISTCIRCUIT
BALANCE SHEAs AT 31 AUG2023
2023
2022
Note
Tanble Assels
2.156,431
2.156,4131
Debtors
52.709
Cash at bank and in fiand
709.157
721,233
761.866
721.232
Cr•Ait0.
Amounts falling due oneyear
(86,4181
1618651
Net curFent assets
675.448
658,368
Totalassets less CUFTent iÈabilities
2,831,879
2.814.799
Reserves
Unrestricted income fvnds
2.831.879
2.814,799
Total Charity Funds
2,831,879
2,814,799
Approved bythe Trustees on
10 June 2024 al signed on their behalf by
Rev. Nick Oborski
Trustee
Page S
## **HANTS-SURREY BORDER METHODIST CIRCUIT**
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
## 1 **ACCOUNTING POLICIES**
THE HANTS-SURREY BORDER METHODIST CIRCUIT was formed on 1[st] September 2012. The principal office is. 12 Glen Road FLEET GU51
## (a) **Basis of accounting**
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Charities Act 2011 and UK Generally Accepted Accounting Practice. The circuit is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the circuit. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention.
## (b) **Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## (c) **Income**
Voluntary income and donations (including legacies) are accounted for once the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Where material assets are donated to the circuit for its use, these are capitalised at the estimated market value at the date of the gift and included under income.
## (d) **Expenditure**
Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Charitable expenditure includes all support costs in respect of the charity activities.
## (e) **Grants payable**
Grants payable are accounted for as they are paid over.
## (f) **Governance**
This comprises all the expenditure incurred in meeting the constitutional requirements of the charity and is included in charitable expenditure.
Page 10
## **HANTS-SURREY BORDER METHODIST CIRCUIT**
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 (continued)
## 1. **ACCOUNTING POLICIES (continued)**
## (g) **Fixed assets**
Land and buildings are included at deemed cost. Freehold land is not depreciated. Where the charity adopts a policy of maintaining properties to a standard that prolongs their lives and enhances their residual value, the charity considers any depreciation arising to be insignificant and the properties are not depreciated.
## (h) **Debtors**
Prepayments are valued at the amount prepaid.
- (i) **Cash and cash equivalents**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.
## (j) **Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.
## (k) **Financial instruments**
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
- (l) **Pension contributions**
Contributions to personal pension schemes are charged as they fall due.
Page 11
HANTS-SURREY BORDER METHODIST CIRCUIT NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023 (continued)
|**2**
**INCOME FROM CHARITABLE ACTIVITIES**
Circuit Assessments
Contributions
Chapel Ash Vale
**3**
**EXPENDITURE ON CHARITABLE ACTIVITIES**
Connectional and District Assessments
Staff Costs
Staff Expenses
Staff Costs
Office
Property Costs
Mission Projects
Legal & professional Fees
Bank Charges
Governance Costs
Independent Examiner
**4**
**STAFF COSTS**
Salaries
Employer's National Insurance Contributions
Employer's Pension Contributions
Contribution to other salaries and other costs
The average number of employees during the year were|**2023**
£
311,929
66
19,465
331,459
**2023**
£
76,468
207,946
15,599
14,066
67,948
35,325
908
1,029
2,880
422,169
**2023**
£
166,753
14,686
30,916
9,657
222,012
6|**2022**
£
311,241
8,089
3,528
322,858
**2022**
£
70,495
186,318
9,911
12,223
63,331
25,089
1,020
133
2,880
371,400
**2022**
£
149,599
11,990
24,796
12,197
198,582
5|
|---|---|---|
No employees received remuneration of more than £60,000
## **5 TRUSTEES REMUNERATION**
The stipends, employer’s NIC and employer’s pension contributions of the Presbyters, who are Trustees, are paid by the Methodist Connection, but their costs are funded by the Circuit. These are included in the staff costs note in these accounts.
There were no other related party transactions in the year.
Page 12
HANTS-SURREY BORDER METHODIST CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 (continued)
|**6**
**TANGIBLE FIXED ASSETS**
Cost
At 31st August 2023||||**Freehold**
**Property**
2,156,431|
|---|---|---|---|---|
|At 31st August 2022||||2,156,431|
|**7**
**CREDITORS:** Amounts falling
Accruals
Deferred income|due within one year|**2023**
£
14,820
71,598||**2022**
£
1,440
61,425|
|||86,418||62,865|
|**8**
**FUNDS**
**Unrestricted**
**Designated Funds**
Ashvale Chapel (Freehold)
Manse Fund (Freeholds)
Manse Repair Fund
Garrison Worker
Mission Support
The Chapel Ash Vale
North Camp Worker
General Fund
Frimley Green Worker|1 September
2022
Income
£
£
269,753
332,166
750,482
-
1,405,949
-
99,767
-
-
15,000
11,604
12,709
207,492
40,000
66,511
19,909
3,241
19,465|Expenditure
£
269,548
-
-
67,948
13,473
-
35,874
21,798
13,528|Transfers
£
(69,391)
-
-
60,000
18,000
-
-
(18,000)
9,391|31 August
2023
£
262,980
750,482
1,405,949
91,819
19,527
24,313
211,618
46,622
18,569|
|**Total Funds**|2,814,799
439,249|422,169|0|2,831,879|
The **Designated Funds** are represented by the Charity's cash reserves and fixed asset investments General Fund General reserves comprise the funds which are either not designated or restricted.
Ashvale Chapel (Freehold) Ash Vale Chapel is a freehold church used by the Circuit for a fresh expressions church
Manse Fund (Freeholds) Manse Fund is the 5 freehold properties used by the Circuit to house Presbyters
Manse Repair Fund Manse Repair Fund is monies set aside to maintain and refurbish the manse dwellings used by the Presbyters
North Camp Worker North Camp Lay Worker Fund represents monies received as grants to be used for the employment of a families and youth worker at North Garrison Worker Garrison Worker Fund represents funds set aside to employ a worker to support families and youth in the Aldershot Garison.
Mission Support Mission Support is funds available to circuit churches for specific mission projects
The Chapel Ash Vale The Chapel is a Fresh Expressions church run as a joint venture with St Mary’s Church Ash Vale PCC. Page 13
## HANTS-SURREY BORDER METHODIST CIRCUIT NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023 (continued)
|**Unrestricted**
General Fund
**Designated Funds**
Ashvale Chapel (Freehold)
Manse Fund (Freeholds)
Manse Repair Fund
North Camp Lay Worker
Garrison Worker
Mission Support
The Chapel Ash Vale
Circuit Model Trust Fund
**Restricted Funds**
**Total Funds**
**FUNDS (continued)**
Alma Adley
General Reserve
Benevolent Fund
AUE Shared Manse|1 September
2021
Income
Expenditure
£
£
£
182,222
293,877
301,821
750,482
-
-
1,673,449
-
-
28,803
29,600
58,636
11,196
12,347
11,939
-
40,000
32,508
67,056
34,253
33,554
13,372
3,528
14,968
42,849
-
-
65
-
-
2,115
-
-
48,611
-
-
34,400
-
-
2,854,620
413,605
453,426|Transfers
31 August
2022
£
£
95,475
269,753
-
750,482
(267,500)
1,405,949
100,000
99,767
11,604
200,000
207,492
(1,244)
66,511
1,309
3,241
(42,849)
-
(65)
-
(2,115)
-
(48,611)
-
(34,400)
-
-
2,814,799|
|---|---|---|
**----- Start of picture text -----**
Tangible Net Current Total
Assets Assets
£ £ £
2,156,431 675,448 2,831,879
2,156,431 658,368 2,814,799
**----- End of picture text -----**
## **9 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
2023 2022
Page 14