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2023-08-31-accounts

NEWPORT & LOWER WYE METHODIST CIRCUIT

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDING 31 AUGUST 2023

INTRODUCTION

The Newport and Lower Wye Methodist Circuit is part of the Methodist Church in Britain. The Circuit acts as the umbrella body and a resource provider for seventeen Methodist Churches in our area, which covers Newport and parts of South East Wales and Herefordshire.

The Circuit also contains a Local Ecumenical Partnership Church with the URC and the Presbyterian Church of Wales at Dan-y-Graig in Risca.

AIMS AND ORGANISATION

Aims and organisation (including the Circuit Mission statement)

Further to the Methodist Church’s statement “Our Calling” and “Priorities for the Methodist Church”, the Newport and Lower Wye Circuit has the following policy:

When planning our activities for the year, the Newport and Lower Wye Methodist Circuit has considered the Commission’s guidance on public benefit and, in particular, the specific guidance on Charities for the advancement of religion. There is a particular emphasis on impacting on the community beyond the membership of the churches. Many of our church buildings are used by community groups requiring safe and suitable spaces for meetings and the Circuit encourages this. Many of the Churches run groups on the church premises which may not be specifically church orientated but are certainly for the public benefit – examples are Parent and Toddlers Groups, Uniformed Organisations for girls and boys, Coffee Mornings and Luncheon Clubs, Welsh Classes, Kids Theatre groups and much more, which enhance the way of life in the communities in which they are located, improve wellbeing and reduce isolation and loneliness.

The Circuit prepares a quarterly plan of services and preachers for all of our Churches.

The Circuit encourages Hospital and Prison Chaplaincy

The Circuit encourages ecumenical links within the Circuit, not least with regard to its work with and for the smaller chapels in cooperation with a Baptist rural missioner in the northern end of the Circuit, as and when appropriate.

REVIEW OF THE YEAR

In September 2022 we welcomed our new Superintendent, Revd. Sue Keegan von Allmen, to our Circuit. Rev Sue and her husband moved into the manse purchased for them in Rogerstone, Newport.

In other changes, Rev Bethany Willers took over responsibility for pastoral care at Caldicot, Rogiet, Penycaemawr, Earlswood Valley and Earlswood Hope in addition to her responsibilities at Monmouth, Trellech, Broad Oak, Llancloudy and Gwehelog. Bethany moved her manse from Monmouth to Caldicot.

Churches continue to recover slowly after the Covid restrictions of 2020-21. Our use of Zoom, which was assisted by grants from the Wales Synod, has allowed those who are still cautious about Covid to join in our worship and our other activities. We have also continued to send out regular printed acts of worship to the many people for whom using technology is difficult.

Work continued at the Ty Sign Resource Centre in Risca which is much appreciated by the immediate community, and several successful gatherings were held of Forest Church, a new form of outdoor worship. Trellech Methodist Church has been visiting local schools to encourage children to Open The Book. Unfortunately, the Newport Family Worker project came to an end in October 2022.

The Circuit has continued to reach out to our local communities. Several of our Churches have been able to support their local communities by continuing their coffee mornings and offering soup and company to people who would like it. The Beacon Café in Chepstow Methodist Church and the St James’s St Kitchen lunch club at Monmouth Methodist Church have both been in operation. Caldicot Methodist Church too has opened its coffee-mornings up for community use.

Economic conditions, with high inflation and rocketing energy prices, have caused major problems for our churches and our communities. Our churches responded by opening our buildings as warm spaces, where people could meet others, keep warm and save on heating bills. Some churches have been involved in inter-denominational initiatives. We also responded to the urging of The Methodist Council to implement the current Living Wage – an increase of 10% on last year – for all employees as soon as possible.

Sadly, worship ceased at Langstone Methodist Church, Newport, in the summer of 2023 and the church has since been sold. It brings to a close a long period of Christian witness in this place.

In December 2022, a part-time Local Preacher Tutor was appointed to oversee a number of local preachers in training in the Newport & Lower Wye Circuit and the Gwent Hills & Vales Circuit. Her work has been supported by grants from the two Circuits and from Wales Synod Cymru.

We pray that the Newport and Lower Wye Methodist Circuit will continue as worshipping people that stay connected to their local communities, attract new people by taking part in online worship, and open their doors to different groups.

FINANCIAL REVIEW OF THE YEAR

Income Trends

The total income of the Circuit was £598,963 in 2022-23, or £271,963 excluding capital receipts. The income of the Circuit in 2021-22 was £296,881.

The Circuit’s main source of funding was the assessments paid by the churches to the Circuit. These assessments are reviewed annually and a budget agreed which is intended to cover the costs of the Circuit in fulfilling its mission, whilst maintaining adequate reserves in line with the Circuit Reserves Policy. Assessments were £232,531 in 2022-23 compared with £255,244 in 2021-22.

The Circuit received £15,000 in income from lettings in 2022-23 compared with £14,550 in 2021-22.

Capital receipts totalling £327,000 were received in 2022-23 from the sale of the manse at 608 Chepstow Road, Newport and the sale of Shaftesbury Street Methodist Church, Newport. There were no sales in 2021-22.

In 2022-23 the Circuit employed a part-time presbyter to act as a tutor for local preachers in the Newport & Lower Wye and Gwent Hills & Vales Circuits. The work of the tutor was supported by grants totalling £6,815 from the Wales Synod Cymru and Gwent Hills & Vales Circuit. In 2021-22 the Circuit and its churches provided £10,000 towards the Newport Family Worker project which is treated as a restricted fund in the Circuit accounts.

Income from monetary investments totalled £11,176 in 2022-23 compared with £1,348 in 2021-22. Other income received in 2022-23 totalled £6,441 compared with £15,739 in 2021-22.

Expenditure Trends

Under Standing Orders, the Circuit must meet its financial obligations in relation to the support of its ministers, the maintenance of the manses, other running expenses and making contributions to District, Connexion and other Methodist Funds. Total charitable expenditure during 2022-23 was £389,587 compared with £288,411 in 2021-22.

Salaries and associated costs, which form the largest single element of Circuit expenditure, were £171,084 in 2022-23 compared with £161,708 in 2021-22. The Circuit pays pensions and national insurance contributions, travelling, telephone and other expenses of ministers. In 2022-23 there were three full-time Presbyters in the Circuit (including the Superintendent) and two part-time Presbyters, one of who joined partway through the year. The Circuit also employed three part-time lay employees; a Circuit administrator a mission developer at Ty Sign and a Newport family worker, but the mission developer and the family worker left during the year. The average number of staff employed was 6.9 in 2022-23 compared with 6.5 in 2021-22.

The Circuit pays for maintenance, insurance, council tax, water charges, etc. on its manses and on other property. Total expenditure in 2022-23 was £59,580, which included £13,149 on professional and legal fees in connection with the sales of Shaftesbury Street Methodist Church and the manse at Chepstow Road, Newport and £4,852 in interest on a bridging loan which was repaid in December 2022. Total expenditure in 2021-22 was £33,775, including £5,786 on refurbishing the new manse at Rogerstone and £2,838 on professional and legal fees.

The Circuit made payments to the Wales Synod District and the Methodist Connexion of £131,123 in 2022-23, compared with £55,731 in 2021-22. The payments in 2022-23 included a Connexional Priority Fund levy of £80,853 on the proceeds of the sale of Shaftesbury Street Church.

During 2022-23, grants and donations totalling £4,300 were approved by the Circuit Meeting, compared with £21,588 in 2021-22. Grants for mission related activities and community work within

the Circuit included £3,000 for a toddler worker in Chepstow, £800 to Eden Gate, a Newport charity working with the homeless, and £500 to the Methodist Church Fund for Property.

In 2022-23, the Circuit spent £4,663 on office and administrative costs, and £18,837 on other outgoings. The latter includes the expenses of lay preachers and supernumerary (retired) ministers, who play an important role in ensuring that regular worship takes place at all the Circuit’s churches, and additional provision was made for pastoral and ministerial care at Caldicot and Rogiet churches.

Overall, after allowing for gains and losses on investments, income in 2022-23 exceeded expenditure by £209,324. This surplus was largely because of the proceeds of sales of properties. In 2021-22, by comparison, income exceeded expenditure by £8,378.

Fixed Assets: Properties

At 31 Aug 2023 the Circuit had six properties (one less than at 31 Aug 2022). Three manses were occupied by ministers; one manse was leased to a private tenant; one manse was vacant pending leasing to a private tenant; the former manse attached to St David's Church, Ty Sign, which had been used as a Resource Centre for mission in the Ty Sign, Risca and Crosskeys areas, was now awaiting sale. The combined value of the properties at 31 August 2023 was £1,836,000 compared with £2,200,526 at 31 August 2022.

Fund Balances

The General Fund, at 31 August 2023, comprised the Circuit's current and deposit account balances (net of debtors and creditors) of £79,119 and the Circuit Model Trust Fund of £301,370. Restricted, designated and endowment funds were £55,617 so that total reserves of the Circuit (excluding investments) were £436,106.

In July 2022, the Circuit took out a bridging loan of £325,000 from Methodist Chapel Aid to help fund the purchase of the new manse at 8 Soane Close, Rogerstone. The bridging loan was repaid in December 2022 following the sale of 608, Chepstow Road, Newport.

The overall aim of the Circuit is to have adequate reserves in the General Fund to meet unexpected expenditure. The guidance from Connexion and the Charities Commission suggests that charities should have reserves of about 50% of annual expenditure. As the majority of the income and expenditure of the Circuit is predictable, the Circuit’s policy is that reserves should not fall below 40% of annual expenditure.

At 31 August 2023 the Circuit General Fund stood at 133% of annual expenditure. The overall level of the reserves is therefore satisfactory.

Plans for 2023-24

A budget was prepared for 2023-24 on the basis that there would be three full-time and two parttime ordained ministers. Provision was made for the costs of lay employees and anticipated increases in stipends. It was assumed that two manses would be let throughout the year. The budget required assessments to increase by an average of 5.2% compared 2022-23 in agreement with the Circuit churches.

BASIS OF PREPARATION AND LEGAL FRAMEWORK

The Charity’s annual report and accounts for the year ended 31 August 2023 have been prepared in accordance with the Charities Act 2011 and the Charities: Statement of Recommended Practice 2015 as applicable to the Financial Reporting Standard (FRS) 102

Full Name of Charity: Newport & Lower Wye Methodist Circuit Registration Charity Number: 1137596 Date of registration: 26 August 2010 Main communication address: 27 Church Road, Caldicot, Monmouthshire, NP26 4HN

The members of the Newport & Lower Wye 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 to this report.

Circuit Ministers and officers in 2022-23

Active Circuit Ministers Rev S Keegan von Allmen (Superintendent) Rev S Keegan von Allmen (Superintendent)
Rev L Jones Rev B Willers
Rev P Chesworth
Circuit Stewards Mrs M Ham Mr K Harvey
Mr M Strange Mr M Roberts
Miss P Blakemore Mr R Bafico
Mrs B Quinlan Mrs J Horrod-Tottem
Mr R Langford
Safeguarding Officer
Mrs P Lloyd
Administrator: Mrs P M Farr

Mr R Langford acted as the principal officer overseeing the day-to-day financial management and accounting for the Circuit during the year.

Independent examiner Mr R J Lewin, 17 Wyelands View, Mathern, Chepstow Monmouthshire, NP16 6HN

Investment Bankers Central Finance Board of the Methodist Church

Trustees for Methodist Church Purposes

Aims and organisation

Charity objective is to act as a Resource provider within the area around Newport and the lower Wye Valley for the Methodist Church:

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

The Circuit aims to achieve this through:

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).

Day to day management of the circuit is undertaken by the Circuit Leadership team along with the Local Preachers meeting, the Circuit Finance and Property Committee and the Circuit Policy Committee.

Trustee Training

A range of guidance 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

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

The following Methodist Churches are linked to the Circuit………………….

Bishpool Ringland, Broad Oak, Caldicot, Chepstow, Crosskeys, Earlswood Hope, Earlswood Valley, Gwehelog, Langstone, Llancloudy, Monmouth, Penycaemawr, Rogiet, St David’s Ty Sign, St Julian’s, Trellech, Trinity Newport

Dan-Y-Graig Church (LEP) is also linked to the Circuit.

Risk Management

The major risks have been identified and recorded by the Circuit Finance and Property Committee 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 creation of male and female in God’s own image and likeness. Christians see this potential as fulfilled by God’s re-creation 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:

The Newport & Lower Wye Methodist Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the Circuit and in the churches.

The Newport & Lower Wye 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.

Reserves Policy

The Reserves Policy for the Circuit is to hold a minimum sum equivalent to 40% of normal annual expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and / or to be able to continue, in the short term, funding planned activities in the event of any inability to raise the full Circuit Assessment from churches.

APPENDIX A

NEWPORT & LOWER WYE METHODIST CIRCUIT

MEMBERSHIP OF CIRCUIT MEETING 2022-23

MINISTERS

Reverend Susan Keegan von Allmen Reverend Lesley Jones Reverend Bethany Willers Reverend Paul Chesworth

SUPERNUMERARY MINISTERS

Reverend Linda Healey

LAYWORKERS

Pauline Farr Deborah Crahart (to Oct 22) Tim Crahart (to Aug 23)

CIRCUIT STEWARDS

Miriam Ham Keith Harvey Roger Bafico Penelope Blakemore Jacqueline Horrod-Tottem Beryl Quinlan Roger Langford (Treasurer) Mike Strange (Property) Mike Roberts (Secretary)

Circuit Local Preachers & Worship Leaders representatives

Michael Gray

Circuit Safeguarding Co-ordinator

Pam Lloyd

CIRCUIT CHURCH REPRESENTATIVES

Church 1 Caldicot Rep 1 Gareth Edwards
Rep 2 Jack Healey
Church 2 Rogiet Rep 1 Marion Edwards
Rep 2 Hazel Bennett
Rep 3 Jack Healey
Church 3 Earlswood Hope and Valley Rep 1 Ray Jeremiah
Rep 2 Avril Smith
Church 4 Penycaemawr Rep 1 Sandra Hanbury
Rep 2 Jill Ellis
Church 5 Chepstow Rep 1 Stuart Nuttall
Rep 2 Margaret Harvey
Rep 3 Allan Strange
Church 6 Monmouth Rep 1 David Evans
Rep 2 Ann Langford
Church 7 Gwehelog Rep 1 Margaret Jenkins
Rep 2 Mrs J Williams
Church 8 Gwern-y-Saint Rep 1 (Closed)
Church 9 Trellech Rep 1 Pam Lloyd
Rep 2 Vivienne Casson
Rep 3 Jacqueline Horrod-Tottem
Church 10 Llancloudy Rep 1 Arthur Isaac (to Jan 23)
Church 11 Broad Oak Rep 1 Robin Hill
Church 12 St Julian's Rep 1 Simon Oram
Rep 2 Chris Morgan
Rep 3 Sian Llewellyn
Rep 4 Gill Benson
Rep 5 Edwin Jones
Church 13 Shaftesbury Rep 1 (Closed)
Church 14 Crosskeys Rep 1 Michael Gray
Rep 2 Ruth Gray
Rep 3 Rosemary Carnell
Church 15 Trinity Rep 1 Miriam Ham
Rep 2 Brian Shier-Jones
Rep 3 Margaret Nicholas
Rep 4 Martin Lougher
Rep 5 John Mountford
Rep 6 Pat Dicker
Rep 7 Ann Mackie
Church 16 St David's Rep 1 Irene Scowcroft
Rep 2 Deborah Crahart
Rep 3 Timothy Crahart
Church 17 Bishpool Rep 1 Penelope Blakemore
Rep 2 Alf Waldron
Rep 3 Janice Morgan
Rep 4 Ann Waldron
Rep 5 Jenny Suter
Rep 6 Dr Rob Goodson
Church 18 Langstone Rep 1 Mike Macleur (to Aug 23)
Rep 2 Ingrid Smith (to Aug 23)
Church 19 Dan-y-Graig Rep 1 Carol Aldridge
Rep 2 Margaret Harrison
Rep 3 Sarah-Jane Jones

Circuit Accruals Accounts

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THE METHODIST CHURCH REPORT AND ACCOUNTS (ACCRUALS BASIS) for the year ended 31 August 2023

Newport & Lower Wye Methodist Circuit

Registered Charity - Registration number

1137596

District No /
02/19
Wales Synod District
Circuit No
Circuit Treasurer
Circuit Stewards
Ministers
Roger LANGFORD
Miriam HAM
Keith HARVEY
Mike STRANGE
Mike ROBERTS
Jacqueline HORROD-TOTTEM
PennyBLAKEMORE
Roger BAFICO
BreylQUINLAM
Pam LLOYD
Roger LANGFORD
Rev Sue Keegan von Allmen
Rev Les JONES
Rev BethanyWILLERS
Rev Paul CHESWORTH

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Bala nce Sheet as at31Au at31Au gust20 23 23
General Fund L;rrcurt Model lJesignated Restricted Endowment Totals at
(Unrestricted) Trusts Funds Funds Funds 31Aug2023
Notesto the (Unrestricted) (Unrestricted)
Accounts e t ! e I
Fixed Assets
0ircuitl\4anses& Equipmeni 19 1,601,000 1,601,00c 1,?6tsr6l
lnvestment properties to 235,000 235,00( €soool
lnvestments 20 90t 57 1,482 ,53a
Iofa,frxedassefs 1,836,00[ 908 571 1,837,482 I
z,zoz,oool
CurrentAssBts
)ebtors 21 14,49? 14,492
-oansbythe Circuit 22
nvestments withTIV1CP 20 301,37C 50,1 8i 177 351,734
Central Finance Board Deposits 68,154 869 4,384 73,407
Cash at Bank andinhand ZJ 31,334 31,334
Totalcurreot#se,s I 13,981 301,370 86€ 54,571 177 470,968
Currentliabilities
Creditors (dueinunder 1year) 24 34,862 34,862
Loan repayable within 2022-23 25 0 325,000
Total c urrenlliabilities 34,862 0 0 0 34,862 365,903
Netc urrentassets/li ab iIities 79,11S 301,370 869 54,571 177 436,106 -'t23,272
Iola,assets ,ess currefitliaulities l-r,o 8,?sgl
!on8term liabilities
ldrrcrftarmarathrn anawarrl
3rantspayableafter 2A22-23 26
-oanstolheCircuit
/Vetassets 1.915.1t9l
302-27.
86! il,571 75t 2,273,58
Funds of theCircuit
Seneral Fund (Unrestricted) 1.915.1i9l 1,915,11€ 1,956,81€
Sircuit Model Trust Fund (Unrestricted) 302.275 302,27r
lesignatedFunds(Unreslrided) aool 86€ 84C
TotalUnrctric@Funds 2,218,263 2,008,483
lestrictedFururs s+,strl 54.571 69,539
:ndowmenlFunds Total Funds r,us,rrsltoz,ztsl essl s+,sztl 751

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Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

1. Basis of Accounts and Accounting Standards

i Accounting standard

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective from 1 January 2015) – (Charities SORP (FRS 102)).

Ii Public benefit entity

The Newport and Lower Wye (NLW) Methodist Circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) below.

iii 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. The accruals basis has been used and trustees present accounts that show a true and fair view of the Circuit’s financial position and activities.

iv Content

The financial information presented is relevant, reliable, comparable and complete. Where estimates are used these are based on experience, research and judgement. The accounts are expressed in £Sterling, rounded to the nearest pound.

v FRS102 SORP2015 [applies to 2016-17 onwards]

These accounts are compliant with FRS102 and with the FRS102 SORP 2015. The accounts have been prepared in accordance with applicable charity law in England and Wales this being the Charities Act 2011 and SI 2008/629 (Charities Accounting and Reporting Regulations) and, pending the making of replacement Regulations specific to SORP 2015 in accordance with Reg.8(4)(d) of SI 2008/629, the charity trustees have departed from the requirement of Reg.8(5) by following SORP (FRS 102) instead of SORP 2005 to the extent necessary to give a true and fair view in the circumstances.

vi Going concern

Based on the monetary assets and human resources available at 31 August 2023, the trustees believe that the Circuit is a going concern.

vii Consolidation

The Circuit has denominational regulatory oversight in respect of the work of the Churches within the Circuit but has no legal or operational control of those Churches and their governing bodies except in extreme circumstances. For this reason, the financial statements of the Churches within the Circuit are not consolidated into these financial statements.

viii Income recognition

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

Income is brought into account when there is entitlement and the amount is reliably measurable once it is more likely than not that the economic benefit of the income will be forthcoming.

Individual amounts categorised as Other income in the SOFA will be shown separately if they are considered material.

The Circuit acts as agent in two matters:

• the collection from Churches and payment over of their contributions to various Funds controlled and administered by The Methodist Church – “Connexional Funds”.

In all these matters the transactions are not reflected in the SOFA because they are the income of either the Connexion or the Churches as appropriate. Instead the transactions are disclosed in the Notes to the Accounts as required by SORP (FRS 102), module 19.12.

In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised. Further information on this matter is provided in the Trustees’ Annual Report. If goods are donated, a value will be shown in the SOFA or Notes where the value is considered material.

ix Expenditure

This is recognised when a liability is incurred, or a constructive obligation arises, where the amount is reliably measurable and it is considered more likely than not that there will be an outflow of economic benefit.

x Grants

Grants made by the Circuit from its own funds are recognised in full at the time of agreement if there are no performance conditions, or when the Circuit accepts that there is a legal or operational obligation to make the payment if it is subject to performance conditions.

xi VAT

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

xii Tangible fixed assets

Fixed assets are capitalised if they can be used for more than one year, and individually cost at least £1,000.

The freehold and/or long leasehold residential property is shown in the accounts at deemed historical cost. Recent valuations (2015 or later) for the manses have been used where available and other manses have been taken at their insured values at August 2016. The valuations will be reviewed periodically.

No depreciation is provided on the buildings because the trustees consider the current residual fair value of the manse buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. In the absence of any evidence of

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

impairment, any depreciation provision for the buildings component of the property would be immaterial. The property has been reviewed for impairment.

xiii(a) Monetary Investments

The Circuit’s investments in monetary assets are classified as basic financial instruments under FRS 102. These monetary assets, with the exception of the endowment Charity of William Richards, are held by the Trustees for Methodist Church Purposes (TMCP) as custodian trustees and the valuations, at market value, are those provided by TMCP. The endowment Charity of William Richards is held in the COIF Charities Investment Fund and the valuations, at market value, are those provided by COIF. The unrealised gains arising on investments at the end of the year are shown in the SOFA and in Note 20 below.

xiii(b) Investment Properties

From time to time the Circuit may hold residential property (formerly manses) which is surplus to its normal staffing requirements. When this is the case and it is anticipated that the property is unlikely to be used as a manse within a period of two years, the property is classed as Investment Property (whether let or not) and any lets are at market rates unless there is a compelling reason not to do so in furtherance of the Circuit’s charitable objectives.

xiv Receivables and Payables; Bank and Cash (Basic Financial Instruments)

Debtors are stated at the amounts owed to the Circuit or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or the amount advanced to the Circuit. Subsequently creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit fund balances are shown at the realisable values.

xv Methodist Connexional Funds

The Methodist Church Connexion raises levies against Circuits and these are paid quarterly to their Districts. The Circuits raise assessments against churches in the Circuit. The District quarterly remits to The Methodist Church Fund most of the sum received from Circuits. A small sum is retained by the District to meet its own costs. The Circuit may act as agent for ad hoc collections for various funds controlled and administered by The Methodist Church. These are detailed at Note 28 below.

xvi Funds

The trustees have adopted a policy for all unrestricted reserves which is available as a separate document.

xvii Endowment Funds

Where the Circuit holds money that may not be spent and must be retained (as capital) to generate an income, the money or assets to be retained are classified as an Endowment Fund. The capital will be shown in the balance sheet in the column for endowment funds. The income may be restricted or unrestricted depending on the terms of the endowment.

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

xviii Ministers’ manse costs

The Circuit is required to provide accommodation for each minister in the Circuit and their families and this is seen as a benefit to the Circuit. Ministers are expected to occupy the manse provided for them, except in exceptional circumstances. The Circuit bears the cost of repairs, maintenance, buildings insurance, Council Tax and water charges. These figures are not separately disclosed as benefits-in-kind for ministers as HMRC does not seek to tax these receipts in the hands of ministers.

2. Glossary of terms

CFB : Central Finance Board of the Methodist Church manages a Common Deposit Fund and a series of pooled investment funds for Methodist entities in Great Britain and provides investment advice to those entities

Church : a group of members from fewer than 10 to more than 300

Circuit : a group of Methodist Churches near each other, typically between 10 and 30

Circuit Meeting : the trustees of the Circuit, most of whom are appointed by their local Churches and others by virtue of a role they undertake for the Circuit and/or their local Churches

CLT (Circuit Leadership Team) : a group (comprising mostly but not exclusively) of Circuit trustees responsible for the day-to-day administration and policy formation of the Circuit. Generally, the CLT comprises the Presbyters and Deacons stationed within the Circuit, the Circuit Stewards and sometimes other Circuit officers (who may not be trustees)

CMTF : Circuit Model Trust Fund

Connexion : The Methodist Church in Great Britain which includes the Head Office at Methodist Church House, all Methodist Districts, Circuits and Churches in Great Britain

Connexional Funds : the designated and/or restricted funds held and administered by the Connexion in furtherance of its charitable and mission objectives

District : a group of contiguous Circuits, usually between 15 and 30

DAF : District Advance Fund

FRS : Financial Reporting Standard

HMRC : His Majesty’s Revenue and Customs

Lay employees : personnel employed by the Circuit on generally accepted commercial employment terms

MMPS : Methodist Ministers’ Pension Scheme

NEST : National Employment Savings Trust, the organisation through which the Circuit arranges an auto-enrolment pension scheme for its lay employees

PASLEMC : Pensions and Assurance Scheme for Lay Employees of the Methodist Church

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

Presbyters (including Superintendent) : Probationer or Ordained Methodist Ministers and/or Deacons who have pastoral and administrative responsibility for the Churches within the Circuit

SOFA : Statement of Financial Activities

SORP : Statement of Recommended Practice

TMCP : Trustees for Methodist Church Purposes, the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds

INSERT SOFA AND BALANCE SHEET FOR 2022-23

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

3. P rior Year

3.1 Restatement of comparative figures

In preparing the accounts the trustees have considered whether, in applying the accounting policies required by FRS 102 [not Section 1A] and the Charities SORP FRS 102, the restatement of comparative items was required. There have been no changes of classification between categories of expenditure in the accounts of 2022-23 compared with those for 2021-22. No restatements were necessary and a reconciliation of opening balances is therefore not required.

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

4. Donations and legacies

No donations or legacies were received in 2022-23 or 2021-22.

5. Income from investment properties

Unres-
tricted
CMTF Desig-
nated
Rest-
ricted
Endow
-ment
2023
Total

2022
Total
Lettings - 27 Church Road, 2,500 2,500 14,550
Caldicot
Total 2,500 - - - - 2,500 14,550

The manse at 27 Church Road, Caldicot, was let to a private tenant until November 2022 and is now occupied by a minister. Letting income is gross of fees and commission.

6. Assessments on Churches

The following 17 churches were linked to the Circuit during 2022-23:

Bishpool Ringland Methodist Church Langstone Methodist Church Broad Oak Methodist Church Llancloudy Methodist Church Caldicot Methodist Church Monmouth Methodist Church Chepstow Methodist Church Penycaemawr Methodist Church Crosskeys Methodist Church Rogiet Methodist Church Dan-Y-Graig Church (LEP), Risca St Julian’s Methodist Church, Newport Earlswood Hope Methodist Church Trellech Methodist Church Earlswood Valley Methodist Church Trinity Methodist Church, Newport Gwehelog Methodist Church

Each church is assessed for a contribution towards the overall costs of the Circuit. This Assessment on Churches is determined annually by the Circuit and the Churches using a process which takes into account the income of each church, including receipts from lettings, and the number of worshippers.

Shaftesbury Street Methodist Church, Newport and St David’s Methodist Church, Ty Sign, Risca closed to regular worship during 2021-22 and no assessments were due from them in 2022-23.

All Churches paid their full annual 2022-23 assessments by 31 August 2023; (£851 of assessments for 2021-22 was not paid until 2022-23).

Assessments on churches are payable quarterly in advance and are treated as pre-payments on a receivable basis. If any church has not paid its assessment by the due date, the sum in question is also treated as a creditor. Such cases are detailed in Notes 21 and 24.

7. Capital Receipts

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

Unres-
tricted
CMTF Desig
nated
Rest-
ricted
Endow
-ment
2023
Total

2022
Total
Chepstow Road, Newport
Gross sales proceeds 407,000 407,000 -
(less) Book Value (350,000) (350,000) -
Shaftesbury Street Newport
Gross salesproceeds 270,000 - -
Total 57,000 270,000 - - - 327,000 0

The manse at 608 Chepstow Road, Newport was sold in December 2022. Shaftesbury Street Methodist Church, Newport was sold in January 2023 and the proceeds of the sale were transferred to the Circuit. (The Circuit had no capital receipts in 2021-22.)

8. Grants received

Unres-
tricted
CMTF
Desig-
nated
Rest-
ricted
Endow
-ment
2023
Total
2022
Total
Wales Synod
Gwent Hills & Vales Circuit
NLW Circuit and Churches
3,510
3,510
-
3,305
3,305
-
-
10,000
Total 6,815
-
-
-
-
6,815
10,000

In 2022-23 the Circuit has employed a part-time presbyter to act as a tutor for local preachers in the Newport & Lower Wye and Gwent Hills & Vales Circuits. The work of the tutor has been supported by grants from the Wales Synod Cymru and Gwent Hills & Vales Circuit. (See also Note 11.1 below.)

(The Circuit has also been coordinating a project to employ a lay family worker in some of the churches in Newport. In 2021-22 the project received donations of £3,999 from St Julian’s Methodist Church, £2,668 from Bishpool Ringland Methodist Church and £3,333 from the Circuit.)

9. Other charitable income

Unres-
tricted
CMTF Desig-
nated
Rest-
ricted
Endow
-ment
2023
Total

2022
Total
Letting income 12,500 12,500 14,328
Shaftesbury Street funds 5,563 5,563 -
Other income 878 878 1,411
Total 18,941 - - - - 18,941 15,739

The manse at Hilltop, Newport Road, Chepstow was occupied since November 2022 by a private tenant. (The same manse was occupied throughout 2021-22 by a former presbyter of the Circuit, whose letting and manse costs were paid by the Methodist Church Fund.)

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

The funds of Shaftesbury Street Methodist Church have been distributed by the Church Council to other churches; a residual amount of £5,563 is held by the Circuit as a temporary contingency.

10. Grants and donations given

Grants and donations as listed below were made during the year.

Unres-
tricted
CMTF Desig-
nated
Rest-
ricted
Endow
-ment
2023
Total
2022
Total
Circuit Churches:
Chepstow
(Toddler Worker) 3,000 3,000 3,000
Chepstow (New Boiler) - 4,500
Bishpool (Roofing) - 2,000
Pension Reserve Fund - 7,139
Newport Family Worker - 3,333
Leaders of Worship and
Preachers Trust - 315
Methodist Church Property Fund 500 500 500
Other donations 800 800 801
Total 4,300 - - - - 4,300 21,588

The Circuit donated £800 in 2022-23 and 2021-22 to Eden Gate, a Newport charity working with the homeless. For the Pension Reserve Fund, see also Note 11.2.

11. Salaries and associated costs

11.1 Stipends, salaries and associated costs

Pres-
byters
Lay
People
Unres-
tricted
CMT
Fund
Desig-
nated
Rest-
ricted
Endow
-ment
2023
Total
2022
Total
Pres-
byters
Lay
People
Unres-
tricted
CMT
Fund
Desig-
nated
Rest-
ricted
Endow
-ment
2023
Total
2022
Total
Gross stipends
and salaries
Employer’s NI
contributions
Pension costs
Payroll Bureau
fee
Apprenticeship
levy
Travel
Telephone
Stationing and
relocation costs
Other expenses
102,425
14,574
8,621
57
26,639
865
480
512
72
9,197
61
3,531
2,756
988
306
114,967
2,032
116,999
111,808
8,622
56
8,678
8,283
27,392
112
27,504
24,037
480
480
480
584
584
560
9,258
9,258
8,341
3,531
3,531
2,723
2,756
2,756
-
3,965
988
306
1,294
1,511
Total 154,669
16,415
168,578
-
-
2,506
-
171,084
161,708

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

Average staff nos 4.8 2.1 6.7 0.2 6.9 6.5
employed in year
(full-time 3.7 0.7 4.3 0.1 4.4 4.6
equivalent staff)

In 2022-23 there were three full-time Presbyters in the Circuit (including the Superintendent) and two part-time Presbyters, one of who joined partway through the year. The average number of presbyters employed was 4.8 (2021-22: 3.5) or 3.7 full-time equivalents (2021-22: 3.3). The Circuit employed three part-time lay employees; a Circuit administrator a mission developer at Ty Sign and a Newport family worker, but the mission developer and the family worker left during the year. The average number of lay employees was 2.1 (2021-22: 3.0) or 0.7 full-time equivalent staff (2021-22: 1.3).

No employees received employee benefits of more than £60,000. There is no accrual for holiday pay as it is immaterial; the holiday year ends on 31 August. All staff are paid at or above the living wage.

11.2 Pensions costs

Most ordained presbyters and deacons are members of the Methodist Ministers’ Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers (which term includes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National Insurance Contributions and pension contributions, the terms ‘employer’ and ‘employee’ are used as they would be in an employing body.

The Connexion shows the accounts for the MMPS pension scheme in the annual Methodist Church in Great Britain accounts. The MMPS was in deficit in August 2020 but in surplus in August 2021 and August 2022, and the Pension Reserve Fund has been strengthened with the help of donations from Districts, Circuits and Churches, including a donation of £7,139 from the Newport & Lower Wye Circuit in 2021-22.

Lay employees are contractually employees and have the option of joining a pension scheme. The Circuit has complied with government legislation on workplace pensions and lay employees have since May 2016 been enrolled in a National Employment Savings Trust (NEST) pensions scheme. This is a defined contribution scheme.

11.3 Cost of superintendent, presbyters and trustees

The Superintendent of the Circuit, the other presbyters (except the Local Preachers Tutor) and the remaining members of the Circuit Leadership Team are considered as Key Management Personnel. The Superintendent chairs the meetings of the CLT and Circuit Meetings. The members of the Circuit Meeting are the trustees of the Circuit. The stipends, employer’s NIC, employer’s pension contributions and other expenses of the presbyters of the Circuit are paid by the Circuit. The stipends, employers’ National Insurance contributions and pension contributions of the presbyters on the CLT were as follows:

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

Cost of Presbyters 2023 2022
Stipends of Presbyters 97,376 86,894
Employers’ National Insurance contributions 8,621 7,918
Employer's pension contributions to a
defined benefit pension scheme
25,281 22,542
Apprenticeshiplevy 487 435
Total
131,765 117,789

The manses are provided by the Circuit and the Circuit maintains the properties. The value of the Council Tax and water charges paid by the Circuit is not revealed here as HMRC does not regard this as a benefit-in-kind in the hands of the minister.

Each presbyter is entitled to three months’ sabbatical leave every five years. No sabbatical leave was taken during the year 2021-22 (2021-22 no sabbaticals). The Circuit does not accrue for holiday pay cover since the remaining staff cover the presbyter’s absence as needed without extra pay. Had additional cover been required, the cost of this is estimated as being the appropriate proportion of a single annual stipend plus NIC, pension and other normally incurred expenses.

11.4 Payments to trustees

It is Circuit policy to offer to reimburse members of the Circuit Leadership Team and others involved in the administration of Circuit affairs for expenditure properly incurred in carrying out their duties.

The presbyters of the Circuit undertake the primary executive role within the Circuit. The travel costs of presbyters in attending CLT and other Circuit meetings are included within their overall travel expenses (detailed in Note 11.1) and is not separately determined.

The current Circuit administrator is both a Circuit trustee and an employee of the Circuit, who receives a salary and other employment-related expenses (as detailed in Note 11.1).

Until 1 June 2022 pastoral and ministerial care at Caldicot and Rogiet Churches was provided under contract (as detailed in Note 15) by a supernumerary minister who was also a member of the Circuit Meeting. Since 1 June 2022, it has been provided by one of the presbyters.

Apart from the presbyters, the contractors and the Circuit administrator, no member of the CLT received payment for work undertaken on behalf of the Circuit in 2022-23. (One Circuit Meeting member received £630 in 2021-22 for professional services in connection with a quinquennial inspection.)

In addition, CLT and Circuit Meeting members may sometimes be reimbursed for travel or computing costs incurred in the work of the Circuit. In 2022-23 one Circuit Meeting member was reimbursed for travel costs incurred in the work of the Circuit (2021-22: one CLT member).

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

Trustees’ expenses 2023 2022
Number of trustees who were paid expenses 1 1
Total amount paid (£) 16 50

Some lay preachers and supernumeraries are also Circuit trustees because they attend the Circuit Meeting as nominees from their churches, and any travel costs in attending Circuit Meetings are included within their overall expenses (detailed in Note 15 below).

12. Property expenses

Expenditure on property during the year is shown below.

Unres-
Tricted
CMTF
Desig-
nated
Rest-
ricted
Endow-
ment
2023
Total
2022
Total
Expenditure on Manses:
Manse maintenance
Council Tax
Water charges
Insurance
Gas and electricity
Other charges
Purchases and Sales:
Legal and Professional Fees
Interest on bridging loan
Other Property Expenses:
Quinquennial reviews
Castleton graveyard
Gwern-Y-Saint church
Shaftesbury Street church
Lettingexpenses
16,642
16,642
9,262
7,667
7,667
9,818
4,686
4,686
3,740
3,063
3,063
3,136
3,609
3,609
1,817
894
12,255
13,149
2,838
4,852
4,852
2,580
2,580
630
175
175
130
1,039
1,039
949
81
81
2,037
2,037
1,455
Total 42,473
17,107
-
-
-
59,580
33,775

During the year the Circuit was responsible for the maintenance of six manses or former manses, for the payment of Council tax and water charges (except where these were paid by a tenant) and for landlord’s annual gas inspections and home service agreements. The Circuit also paid the gas and electricity charges on unoccupied properties.

In 2022-23 the Circuit spent £16,642 on manse maintenance; £9,987 was spent on refurbishing the manse in Caldicot in preparation for occupation by a minister, £5,107 on preparing the manses in Chepstow and Monmouth for occupation by private tenants and £1,548 on maintaining the other properties. (In 2021-22, £5,786 was spent on refurbishing the manse at 8 Soane Close, Rogerstone in preparation for occupation by a minister and £3,476 on maintaining the other properties.)

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

In 2022-23, the Circuit spent £13,149 on professional and legal fees in connection with the sale of the manse at 608 Chepstow Road, Newport and the sale of Shaftesbury Street Methodist Church, Newport. (In 2021-22 the Circuit spent £2,838 on professional and legal fees in connection with the purchase of 8 Soane Close, Rogerstone and the sale of 608 Chepstow Road, Newport.)

In July 2022, the Circuit took out a bridging loan for £325,000 from Methodist Chapel Aid to help in the purchase of 8 Soane Close, Rogerstone. The loan was repaid in December 2022 following the sale of 608, Chepstow Road, Newport.

Gwern-Y-Saint Methodist Church closed on 7 October 2018 and the Circuit has taken on responsibility for insuring the property.

The former manse at 27 Church Road, Caldicot was leased to tenants from February 2021. An agency was employed to manage the lease.

13. Connexional and District assessments and levies

The Connexional and District assessments are paid to the Wales Synod District, which determines the assessment to be paid by each Circuit in accordance with a formula based on the number of presbyters and lay employees in each Circuit (see also Note 1xv).

Connexional assessment
and Priority Fund levy
Unres-
tricted
CMTF Desig-
nated
Rest-
ricted
Endow-
ment
2023
Total

2022
Total
Connexional assessment 43,516 43,516 45,806
Connexional Priority Fund
levy - 80,853 80,853 -
Total 43,516 80,853 - - - 124,369 45,806

The Connexional Priority Fund levy is taken from the proceeds of the sale of former manses or churches. A levy of £80,854 was charged during the current year on the proceeds of sale of Shaftesbury Street Methodist Church, Newport. (No levy was charged in 2021-22.)

District assessment and
levy
Unres-
tricted
CMTF Desig-
nated
Rest-
ricted
Endow
-ment
2023
Total
2022
Total
District assessment 5,484 5,484 5,772
District Advance Fund levy - 1,270 1,270 4,153
Total 5,484 1,270 - - - 6,754 9,925

The District Advanced Fund levy is calculated on a sliding scale percentage of the Circuit Model Trust Fund account balance at 31 August in the previous financial year.

14. Office and administration costs

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

Office and administration
costs
Unres-
Tricted
CMTF Desig-
nated
Rest-
ricted
Endow
-ment
2023
Total

2022
Total
Conference minutes and
materials 990 990 621
Circuit Stewards’ and Circuit
officers’ expenses 16 16 50
Printing, postage, stationery
and computing supplies 1,737 1,737 1,524
Office equipment 700 700 -
Office telephone,
broadband and website 356 356 214
Independent Examiner’s fee 300 300 275
TMCP Administration and
Investment Management - 145 139 284 603
fees
Other admin costs 280 280 83
Total 4,379 145 - 139 - 4,663 3,370

The Circuit office is at Caldicot Methodist Church, where the Circuit uses a room on four mornings a week. The Circuit does not pay rent for use of the room, but pays half of the Church’s telephone, broadband and website costs.

During the year the Circuit paid £283 to TMCP, the custodians of the Circuit’s investments (Circuit Model Trust Fund, Mary A Curtis Bequest and Kelly Legacy) (2021-22: £603). The fees charged represent a levy of 0.285% on the value of the funds at the beginning of the year. and are allocated among the three funds as shown in the table above.

15. Other outgoings

Unres-
Tricted
CMTF
Desig-
nated
Rest-
ricted
Endow
-ment
2023
Total
2022
Total
Preaching and worship:
Local preacher’s expenses
Supernumerary ministers’
fees and expenses
Pastoral Care
Other Expenses:
Training
Events
Miscellaneous
458
458
342
3,204
3,204
3,557
0
6,456
300
300
-
186
186
308
464
14,225
14,689
1,576
Total 4,312
-
-
14,525
-
18,837
12,239

The Circuit offers to reimburse lay preachers and supernumerary ministers for the costs of travel to the churches where they conduct services and supernumerary ministers may also claim a preaching fee. (Until 1 June 2022, the Circuit established a contract with a supernumerary minister to provide pastoral and ministerial care at Caldicot and Rogiet following the retirement of Rev Preben. Since 1 June 2022, it has been provided by one of the Circuit presbyters.)

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

The Newport family worker project closed in 2022-23 and unused donations totalling £14,225 were returned to the Synod Advanced Fund and Bishpool and St Julian’s Churches.

16. Gains and losses on monetary investments

There were total net losses on monetary investments of £52 in 2022-23 compared with net losses of £92 in 2021-22. A detailed breakdown is immaterial. See also Notes 20 and 27 below.

17. Transfers between funds

Transfers between funds Unres-
Tricted
CMTF
Desig-
nated
Rest-
ricted
Endow-
ment
2023
Total
2022
Total
Proceeds of sale of manse at
Chepstow Road, Newport
Refund of NFW Synodgrant
(82,000)
82,000
0
-
7,910
(7,910)
0
-
Total 100,004
(70,100)
(4)
(29,900)
-
0
0

During the current year, the manse in Chepstow Road, Newport was sold for £407,000. £350,000 was used to repay the bridging loan from Methodist Chapel Aid and £82,000 (gross of fees and interest payments) was transferred to the Circuit Model Trust Fund). In addition, £7910 was repaid to the Synod Advanced Fund as an unused grant to the Newport Family Worker project, repayment being made from the Circuit Model Trust Fund (see Note 15).

18. Gains and losses on investment properties and other gains and losses

There were other losses of £14,526 in 2022-23 because of the revaluation of the Circuit property at Thistle Way, Ty Sign, Newport. (There were other gains of £14,696 in 2021-22 because of the revaluation of the manse at 608 Chepstow Road, Newport.) (see Note 19).

19. Manses and other property

At 31 Aug 2023 the Circuit had six properties (one less than at 31 Aug 2022). Three manses were occupied by ministers; the manse at Chepstow was leased to a private tenant; the manse at Charles Close, Monmouth was vacant pending leasing to a private tenant; the former manse attached to St David's Church, Ty Sign had been used as a Resource Centre for mission in the Ty Sign, Risca and Crosskeys areas but was now awaiting sale.

The manse at 27 Church Road, Caldicot has been declassified as an investment property with effect from November 2022 and replaced by 8 Soane Close, Monmouth (see xiiib).

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

The value of the Resource Centre @ St David’s, Ty Sign, was revised in September 2023 in line with a designated adviser’s report. This resulted in a revaluation loss of £14,526. The valuation includes the former Church of St David’s, Thistle Way, Ty Sign, which is now a Circuit property.

The office equipment in the Circuit office has not been capitalised since the items individually cost less than £1,000 (see xii).

General advice was sought from estate agents in Newport, Monmouth and Abergavenny as to the value of land as a proportion of the total value of residential properties in different parts of the Circuit. Where no other information exists, the value of the manses has been apportioned between land and buildings on the basis of this information.

Recent valuations (2015 or later) are available for the five manses at Charles Close, Monmouth, St Julian’s Avenue, Newport, Soane Close, Newport, Church Road, Caldicot and Newport Road, Chepstow, and for St David's Church and Resource Centre, Thistle Way, Ty Sign. These valuations have been taken as the deemed values of these properties.

19.1 Cost or valuation of fixed assets

Invest-
ment
Prop-
erties
Land Buildings Other
Buildings
Other Fixed
Assets incl.
Vehicles
Fixtures,
Fittings,
etc
Assets
under
constru-
ction
2023
Total

2022
Total
Balance brought
forward 435,000 507,632 1,097,000 160,894 2,200,526 1,760.830
Additions in the 0 425,000
year
Revaluations (3,632) (10,894) (14,526) 14,696
Less: Disposals in
the year (87,500) (262,500) (350,000)
Transfers between
categories (200,000) 84,800 115,200 0
Balance carried
forward 235,000 501,300 949,700 150,000 1,836,000 2,200,526

19.2 Accumulated depreciation and impairment provision

Basis
Rate
N/A
N/A
N/A
N/A
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
507,632
1,097,000
160,894
-
-
-
2,200,526
1,760,830
Balance brought
forward
-
Depreciation charge
for year
Revaluations
Disposals
Transfers
Balance carried
forward
-
19.3 Net book value
Brought forward
435,000
-
-
Carried forward 235,000 501,300
949,700
150,000
-
-
-
1,836,000
2,200,526

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

20. Investment Assets (and TMCP Funds)

The funds that support the Circuit Model Trust Fund, the Mary A Curtis Bequest and the Kelly Legacy are held by TMCP in Trustees Interest Funds or CFB Managed Mixed Funds on which interest is credited to the accounts each month or each quarter. 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 acting under their direction, the Managing Trustees comply with charity law and Methodist law and policy as determined by the Methodist Conference.

The Charity of William Richards Endowment is invested in the COIF Charities Investment Fund. The Fund is a Common Investment Fund established by the Charity Commission under the Charities Act 1993 section 24 and investment in the Fund is only available to charities within the meaning of section 96 of the Charities Act.

Investment Assets and
TMCP
Unres-
Tricted
CMTF Desig-
nated
Rest-
ricted
Endow-
ment
2023
Total

2022
Total
CFB Managed Mixed
Funds 905 905 945
COIF Charities Investment
Fund 577 577 589
Total Investment Assets 0 905 0 0 577 1,482 1,534
TMCP Trustees Interest
Funds 301,370 50,187 177 351,734 98,817
Total 0 302,275 0 50,187 754 353,216 100,351

21. Debtors and Prepayments

All sums shown as debtors on 31 August 2022 were received during the following year. All sums paid in advance at 1 September 2022 were for events that have been held during 2022-23. Similarly, it is expected that all payments in advance at 1 September 2023 will be expended in 2023-24.

Debtors and Prepayments Unres-
Tricted
CMTF Desig-
nated
Rest-
ricted
Endow
-ment
2023
Total

2022
Total
Stipends, pensions and NI
paid in advance 13,805 13,805 10,959
Accrued Income 0 851
Other debtors 688 688 1,004
Total 14,493 - - - - 14,493 12,814

22. Loans by the Circuit

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

The Circuit has no outstanding loans at 31 August 2023 (2022: £0).

23. Central Finance Board and Bank Balances

Monetary balances at the Central Finance Board of the Methodist Church and at HSBC Bank Limited are all available on demand without loss of interest or other penalty.

Bank balances and cash in
hand
Unres-
Tricted
CMTF Desig-
nated
Rest-
ricted
Endow-
ment
2023
Total

2022
Total
Central Finance Board Deposits 68,155 869 4,384 73,409 93,702
Balance held at HSBC 31,134 31,134 37,098
Cash in hand 200 200 200
Total 99,489 - 869 4,384 - 104,743 131,000

24. Creditors, accruals and income in advance

All sums accrued at 31 August 2022 were paid before 31 August 2023. Similarly, it is expected that all sums accrued at 31 August 2023 will be paid by 31 August 2024.

Current Liabilities Unres-
Tricted
CMTF Desig-
nated
Rest-
ricted
Endow
ment
2023
Total

2022
Total
Church assessments paid in
advance 37,839 37,839 37,582
Assessments paid late 0 (2,486)
Ministers and staff
expenses 682 682 741
Other expenses 1,154 1,154 544
Stipends, pension and NI 0 -
Taxation and Social Security 0 -
Other creditors (4,813) (4,813) 4519
Total 34,862 - - - - 34,862 40,903

25. Loans to the Circuit repayable in 2022-23

The Circuit took out a bridging loan for £325,000 from Methodist Chapel Aid in July 2022 to help in the purchase of 8 Soane Close, Rogerstone. The bridging loan was repaid in December 2022 following the sale of 608, Chepstow Road, Newport. There are no current loans.

26. Grants payable in 2023-24

The Circuit has set up a committee to provides grants to support mission related projects within the Circuit. The Committee has already approved a grant of £3,000 in 2023-24 for a project at Chepstow Methodist Church.. The Circuit has also allocated a budget of £1,150 in 2023-24 to support the night shelters at St Julians and Crosskeys and make small donations. Sufficient funds are available within the General Fund to support these grants.

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

27. Commitments in 2023-24

In 2022-23 the Circuit has allocated a budget of £12,000 for manse maintenance which will be paid out of the annual receipts of the Circuit.

28. Detailed Analysis of Individual Funds

The individual funds of the Circuit are as follows:

Name Type Purpose
General Fund Unrestricted &
Undesignated
General mission as directed by the Circuit Meeting
Circuit Model Trust
Fund
Unrestricted &
Undesignated
General mission as directed by the Circuit Meeting
William Richards
(Income)
Designated Support for other churches in the Monmouth sector
of the Circuit as directed bythe Circuit Meeting
Vera Holt Restricted As directed by the Circuit Meeting for youth work and
training
Mary A Curtis Bequest Restricted General mission as directed by the Circuit Meeting
Manse Expenses Restricted Expenditure onpurchase or renovation of manses
Newport FamilyWorker Restricted Funds of the Newport FamilyWorkerproject
KellyLegacy Endowment Maintenance of Castletongraveyard
Charity of William
Richards
Endowment Support for other churches in the Monmouth sector
of the Circuit as directed bythe Circuit Meeting

Summary of Fund Movements - 2022-23

Summary of Fund Movements - 2022-23
Funds Balance at
31/8/22
Income Expend-
iture
Transfers Gains /
Losses
Balance at
31/8/23
General Fund 1,956,818 319,957 (273,042) ( 74,090) (14,526) 1,915,117
Circuit Model Trust Fund 50,824 276,775 ( 99,374) 74,090 ( 40) 302,275
Total unrestricted &
undesignated 2,007,642 596,732 (372,416) 0 (14,566) 2,217,392
William Richards (Income) 840 29 869
Total designated 840 29 0 0 0 869
Vera Holt (CFB 020) 1,867 59 ( 300) 1,626
Mary A Curtis Bequest (21224) 48,618 1,561 ( 139) 50,040
Manse Expenses 142 5 147
Newport Family Worker (030) 18,912 578 ( 16,732) 2,758
Total restricted 69,539 2,203 ( 17,171) 0 0 69,539
Kelly Legacy 177 6 (6) 177
Charity of William Richards 589 ( 12) 577
Total endowments 766 6 (6) 0 ( 12) 754
Total of All Funds 2,078,787 598,970 (389,593) 0 (14,578) 2,273,586

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

Summary of Fund Movements - 2021-22 (for comparison)

Funds Balance at
31/8/21
Income Expend-
iture
Transfers Gains /
Losses
Balance at
31/8/22
General Fund 1,818,475 285,833 (262,190) 100,004 14,696 1,956,818
Circuit Model Trust Fund 133,060 570 ( 12,642) ( 70,100) ( 64) 50,824
Total unrestricted &
undesignated 1,951,535 286,403 (274,832) 29,904 14,632 2,007,642
William Richards (Income) 826 19 ( 1) ( 4) 840
Total designated 826 19 ( 1) ( 4) 0 840
Vera Holt (CFB 020) 1,859 8 1,867
Mary A Curtis Bequest (21224) 48,528 228 ( 138) 48,618
Manse Expenses 30,000 128 ( 86) ( 29,900) 142
Newport Family Worker (030) 22,172 10,095 ( 13,355) 18,912
Total restricted 102,559 10,459 ( 13,579) ( 29,900) 0 69,539
Kelly Legacy 177 1 (1) 177
Charity of William Richards 617 ( 28) 589
Total endowments 794 1 (1) 0 ( 28) 766
Total of All Funds 2,055,714 296,882 (288,413) 0 14,604 2,078,787

29. Related Parties

Related parties include the Methodist Connexion and its funds, the Wales Synod District, the Churches within the Newport & Lower Wye Circuit, other Methodist Circuits in Great Britain, CFB and TMCP.

Year ending 31 August 2023

Income Payments Loans Amount
Name of Related Party Relation-
ship
Description from
Related
to
Related
to
Related
owed by
RP on
Party Party Party 31.08.23
Assessment
Wales Synod Cymru District Donee and Levy 6,754
Wales Synod Cymru District Donor Grant 3,510 7,909
Methodist Church Connexion Donee Assessment 124,369
Churches within NLW Circuit Donor Assessment 232,531
Churches within NLW Circuit Donee/ Grant / 9,616
Donor Donation
Methodist Church Fund for Donee Donation 500
Property
Gwent Hills & Vales Circuit Donor Grant 3,305
Trust for Methodist Church Donee Admin 283
Purposes Charge
Total 239,346 149,433 0 0

Circuit number 02/19

Newport and Lower Wye Methodist Circuit

Year ending 31 August 2023

Notes to the Accounts

Year ending 31 August 2022

Income Payments Loans Amount
Name of Related Party Relation-
ship
Description from
Related
to
Related
to
Related
owed by
RP on
Party Party Party 31.08.22
Assessment
Wales Synod District Donee and Levy 9,925
Methodist Church Connexion Donee Assessment 45,806
Churches within NLW Circuit Donor Assessment 255,244
Churches within NLW Circuit Donee/ Grant / 6,667 9,500
Donor Donation
Methodist Church Fund for Donee Donation 500
Property
Leaders of Worship and Donnee Donation 314
Preachers Trust
Pension Reserve Fund Donee Grant 7,139
Methodist Church Connexion Donor Letting 14.328
Trust for Methodist Church Donee Admin 603
Purposes Charge
Total 276,239 73,787 0 0

None of the Circuit trustees made donations directly to the Circuit in the current year or the previous financial year. All of the Circuit trustees are members of one or another Church within the Circuit and may be trustees of their Churches.

Declarations and Scrutiny I confirm that these accruals-based accounts for the year to 31 August 2023 have been prepared from the records of the Circuit and that they indude all funds under the control of the Circuit meeting. Signature of treasurer . Date...7 December 2023 Name and address of treasurer ...... Roger John Langford. Spindlewood, 122 Hereford Road MONMOUTH. Monmouthshire....................... Post Code NP25 3GD Presentation to the Circuit meeting I confirm that the annual report and accounts for the year ended 31 August 2023 werelwilkbe presented to the Circuit meeting held on: 7 December 2023 Signature ofthe Chairof themeeting:............................................................................. Name of the Chair of the meeting: Rev Sue Keegan vonAllmen Date........................ Independent Examinerfs Report to the Trustees of the Newport and Lower Wye Methodist Circuit Charity Number 1137596 Responsibilities and basis of report I report to the trustees on my examination of the accounts of the Nwort & Lower V￿e Methodist Circuit for the year ended 31 August 2023 set out on pages ... to . As the Circuit's trustees, you are responsible for the preparation of the accounts in accordan￿ wÉth the requirements of the Charities Act 2011 (￿e Act,). I report in respect of my examination of the Circuit's accounts carried out under section 145 of the Act and, in carrying out my examination, I have followed all the applicable Directions gNen by the Charity Commission under section 145{5)(b) of the Act. delete or circle as appropriate

Name of Circuit Nthvport arKI Lower Wye Methodist Cirujit No...02119 Independent Examinerfs Statement trhe Circuit's gross income exceeded £250.000 and l am qualified to undertake the examination by being a qualified member of (' ]. Delete [ ] rfnot applicable. I have completed my examination. I ￿nfin￿ that no material matters have come to my attention in connection with the examination (￿￿￿48￿") which give me cause to believe that in, any material respect: the accounting records were not kept in accordan￿ with section 130 of the Act" or the accounts do not accord with the accounting records: or the accounts do not comply with the applicable requirements con￿MIng the fomi and content of accounts set OLrt in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fairf view, which is not a matter considered as part of an independent examination Delete rfnot applicable i.e. all R&P accounts the trustees, annual report is not consistent with the ac(x)unts Delete rfnot applicable i.e. all R&P accounts. I have no cOn￿mS arKI 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. I ha¥glhave not" obtained independent venfication of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balan￿S and funds at the Central Finan￿ Board of the Methodist Church which a￿ individualty in excess of £10.000 (ten thousand pounds) at the balan￿ sheet date. Signature of independent examiner Name of independent examiner. ...... Mr R J Lewin Relevant professional qualification of independent examiner. . Address: 17 INyelands View. Mathem. Chepstow, Monmouthshire Post Code.. NP16 6HN delete or circle as appropriate