TENDRING METHODIST CIRCUIT
REGISTERED CHARITY NUMBER: 1140466
BEDS, ESSEX AND HERTS DISTRICT
CIRCUIT NUMBER 34/7
FINANCIAL STATEMENTS AND TRUSTEES REPORT FOR THE YEAR ENDED 31/08/2023
Tendring Circuit Office c/o Emmanuel Church New Pier Street Walton on the Naze Essex CO14 8EB
Encouraging and enabling churches to speak the Good News of God's love; to share in worship and to serve their communities in Tendring.
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| CONTENTS | ||
|---|---|---|
| Page | ||
| Index | 1 | |
| Trustees’ Report | 2 | |
| Financial Statements | ||
| SOFA 2023 | 10 | |
| Balance Sheet | 11 | |
| Notes to the Accounts | 12 | |
| Independent Examiner’s Report | 20 |
Encouraging and enabling churches to speak the Good News of God's love; to share in worship and to serve their communities in Tendring.
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TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023
This report has been prepared in accordance with the requirements of the SORP applicable to charities.
Aims and organisation
The Circuit’s Mission is to work together as a Circuit to encourage and enable its members to speak the Good News of God's love; to share in worship; and to serve the communities in which they are set.
The charity objective is to act as a resource provider for the Methodist Church within the administrative district of Tendring.
The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of:
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a) The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church;
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b) Any charitable purpose for the time being of any Connexional, District, Circuit. local or other organisation of The Methodist Church;
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c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church;
d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church
In Tendring this manifests as:
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a) The provision of regular public acts of worship, which are resourced and organised through the Circuit, encouraging all in their faith and open to everyone.
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b) The teaching of Christianity through sermons, courses, and small groups.
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c) The resourcing of pastoral work including visiting the sick and bereaved.
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d) Being a presence in the community with some midweek services in churches and services in care homes.
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e) Taking religious assemblies in local schools.
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f) Promotion of Christianity through the staging of events and services.
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g) Provision of chaplaincy services as required.
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h) Provision of chaplaincy services to Alexandra House, Marine Parade, Dovercourt.
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i) Pastoral work including occasional offices and meeting people individually to offer pastoral support.
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j) The Circuit produces a preaching plan every 3 months to ensure regular acts of worship take place at each of the 13 Methodist churches, 3 Local Ecumenical Partnerships and the Methodist Home for the Aged in its geographical area.
Public Benefit :
We confirm that the trustees have had regard to the Charity Commission’s guidance on public benefit.
Our policy is particularly to work with deprived communities in Clacton and Jaywick and to this end we employ a Deacon working full time in these communities.
We have aspirations to employ a part time youth worker.
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We are contributing to the funding of a Community Worker in Dovercourt.
All our churches serve the communities around them in a variety of ways. Some for the youth and/or elderly; others amongst the homeless and vulnerable.
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. There is a Manse Sub‐committee for the oversight of Circuit residential property. There is a Sales Sub‐committee for the oversight of the sale of Circuit property. There is a Finance Sub‐committee.
There is a Circuit Safeguarding Group. There is a Circuit Invitation Committee.
Administrative Details of Charity
Full name of charity Tendring Methodist Circuit Registration Charity Number 1140466 Date of registration 28 February 2011 Main communication address: Tendring Circuit Office Methodist Church, Forge Lane Great Bentley Essex CO7 8GD
The members of the Tendring Methodist Circuit meeting are the Charity Trustees, membership being made up of circuit office holders and representatives appointed by the local churches. Full membership is on page 10 of this report.
Circuit Ministers and Officers during 2022/23:
Active Circuit Ministers Rev Thomas Osborne (Superintendent) Rev Steven Sutton Deacon Angela Shereni Rev Trevor Hahn (URC minister Authorised to Serve in the Methodist Church as a Presbyter)
Circuit Stewards Mrs M Woods Mr A Merriday Mrs Denise Raven (from February 2023) Circuit Treasurer None (see review of year explanations) Circuit Lay Staff Circuit Manager Mr Colin Tucker Circuit Administrator Mrs Jackie Cannon (from April 2023) Circuit Finance Officer Mr Alistair Jenkins (from July 2023)
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Professional Service Providers
Independent Examiner : Vincent Chandler FCA FCCA Moore Green Chartered Accountants, 22 Friars Green, Sudbury SUFFOLK CO10 2AA Investment managers Central Finance Board of the Methodist Church Trustees for Methodist Church purposes CCLA Investment Management Ltd One Angel Lane London EC4R 3AB Current accounts : Barclays Bank, Manningtree Branch Lloyds Bank, Blackheath, London Branch Property Management : None Currently Solicitor : Capsticks LLP, Toronto Square, Toronto Street, Leeds LS1 2HJ
Risk Management
Risks are identified by the Circuit Leadership Team and its sub committees, with professional advice taken as required.
Income and Expenditure is being monitored in total and is compared with the approved annual budget on a quarterly basis to detect trends as part of the risk management process.
The Circuit has adopted a Safeguarding Policy and ensured that individual churches produce their own policies and have safeguarding officers in place. The Circuit ensures that safeguarding training is provided by a Circuit Trainer.
Reserves Policy
The Reserves Policy for the Tendring Circuit is to hold a sum equivalent to at least 3 months’ average 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 the closure of a large church or an inability to raise the full Circuit Assessment from churches.
As part of our forward planning, expenditure forecasts are prepared looking 5 years ahead. It is necessary to hold sufficient working capital to enable the quarterly payment of stipends and business expenses for 3 Presbyters and a Deacon and 2 part time assistants and our contribution to the District.
Safeguarding
Every person has a value and dignity which comes directly from the creation of people 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.
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Methodist Connexional practice outlines commitment to the following principles:
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the care and nurture of, and respectful pastoral ministry with, all children, young people, and adults
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the safeguarding and protection of all children, young people, and adults when they are vulnerable
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the establishing of safe, caring communities which provide a loving environment where there is
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informed vigilance as to the dangers of abuse.
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We will carefully select and train all those with any responsibility within the Church, in line with Safer Recruitment principles, including the use of criminal records disclosures and registration with the relevant vetting and barring schemes.
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We will respond without delay to every complaint made which suggests that an adult, child, young
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person, or vulnerable adult may have been harmed; cooperating with the police and local authority in any investigation.
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We will seek to work with anyone who has suffered abuse, developing with them an appropriate
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ministry of informed pastoral care.
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We will seek to challenge any abuse of power, especially by anyone in a position of trust.
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We will seek to offer pastoral care and support, including supervision and referral to the proper
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authorities, to any member of our church community known to have offended against a child, young person, or vulnerable adult.
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In all these principles we will follow legislation, guidance and recognised good practice
The Tendring 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 Tendring 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.
Review of the year
The year 2022/23 was an unexpectedly challenging year. Owing to the resignation from office by several volunteers, much of the year was spent with only the minimum number of Circuit Stewards and with no formal Treasurer. This meant that the focus of the Circuit Leadership was on ensuring the necessities occurred, without being able to commit resources to wider planning and processes. Thankfully, partnership with the neighbouring Colchester Circuit enabled us to obtain the services of an incredibly well‐experienced financial adviser, Alistair Jenkins, as Circuit Finance Officer from the beginning of July 2023. The principle focus in his initial months has been to properly consolidate our accounts and ensure proper procedures are in place for overseeing and recording financial decisions and processes, work for which the Circuit is exceedingly grateful.
The challenges of the year also included the development of a new Ministry Team, as 1[st] September 2022 saw both a reduction in staffing (to 3.25 FTE ministers) and a change of two full‐time ordained staff – including a Probationer Presbyter in their initial appointment and so very much learning the role, and a Deacon picking up the work of Hope@Trinity and therefore spending much time simply getting to know the project. This has meant a year of getting to know one another, as well as the two new ministry appointments getting to know the context of Tendring and its churches.
In addition, the role of Circuit Administrator remained vacant until April 2023, when, following a second recruitment drive, Jackie Cannon, was appointed. While joining the team with significant administrative experience, she was not familiar with the workings of Methodism, and therefore she too has needed to spend time learning a new context alongside the work requirements.
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All of the above means that the 2022‐23 year was not the one that was originally planned for. However, there have been good news stories alongside the challenges. The annual statistics gathered in November 2022 indicated that the total membership across the Circuit was up, despite church closures in 2021‐22, and several churches across the Circuit have made more members since then. Alongside this, numerous churches have returned to pre‐Covid activities or started new activities to enable engagement with their local communities. Furthermore, the summer saw us dispose of a further property for more than had been originally anticipated, leaving us currently with only one empty chapel to sell.
Income trends
Despite running a deficit budget, the reserves were able to be increased owing to the sale of Gt Clacton chapel.
Unfortunately, no rental income was possible during the 2022/23 year, however it is anticipated that following investment into the Southcliff Park manse, this will begin generating rental income in the second half of the 2023/24 financial year.
The Circuit continues to be grateful for a grant of £30,000 per year over 5 years (beginning this year) from the BEH District Grants Committee to support the work of the Deacon.
Churches have continued to face financial challenges; however all Circuit Assessments have been met this year, and the Circuit Meeting has agreed to begin decreasing the budget deficit with an increase in the total Assessment amount in 2023/24.
Expenditure trends
Stipends continue to increase each financial year, in line with Conference‐approved policies but this year the total stipend costs were offset by the reduction of one full‐time appointment. The changes in staffing have also meant reductions in expenses, especially in relation to mileages as the new oversight arrangements mean far fewer miles for new team members than for those they replaced.
Following expenditure on the manses due to be occupied by new ministers in 2022, this year has seen expenditure predominantly on the Southcliff manse in order to make it ready to let and begin generating income. This has been significant work, given minimal maintenance was done during the previous occupancy. Some expenditure was also required on the Elmdale Manse, and it is anticipated that in the coming year it is this property that will require the most maintenance expenditure owing to the need to undertake some significant improvements.
Looking to the future, it is hoped that mission plans across the Circuit will see a growth in project funding as an area of expenditure, as the Circuit trustees look to spend the now significant reserves on activities that further the charitable objectives.
Fund balances
As at 31 August 2023 the total funds of the Circuit were £2,337,190, an increase of £38,678. This is the net of a gain on the sale of Great Clacton chapel of £122,874 and a deficit on other activity of £84,196. Net proceeds from the chapel sale has now been invested in TMCP funds in line with other similar funds (see note 18 to the accounts). Market conditions mean the overall return for the year shows as a loss (£5,491) but we anticipate this will reverse in future periods.
Plans for 2023/24
Planning for the 2022/23 year focuses on the following particular matters:
- the need of the Circuit to have a coherent mission‐funding policy that enables the Circuit to appropriately support Local Churches who understand their local mission and the needs of their local community;
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the disposal of one further vacant building by public sale;
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the recruitment of new Circuit Officers – in particular a new Property Steward, a further Circuit Steward, and Circuit Safeguarding Officer plus support group;
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continuing liaison with the District and Connexion regarding possible wider funding for a pioneering role within the Circuit ministry team to explore creative ways of reaching new people in new places as well as those where we have recently withdrawn our visible presence through the closure of buildings and church societies;
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continuing to support the work of the URC Church‐Related Community Worker at Dovercourt Central, including more direct Circuit input in his oversight committee;
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the implementation of appropriate financial processes and policies to ensure the Circuit finances are properly managed and understood.
Policy on Grant making
The Circuit Grant policy is under review and is likely to be significantly revised during the 2023/24 financial year. Currently the following guides grant‐giving decisions by the Circuit Meeting.
The Circuit Model Trust Fund had a balance at the year‐end of £851,926. This fund derives from sales of chapels and manses and is restricted by the Conference. This restriction is an internal regulation though the fund can be used for a variety of purposes. The Circuit Leadership Team has drawn up a set of ground rules within the Circuit Strategic Plan, which has been adopted by the Circuit Meeting, to ensure grants made from the Circuit Funds are used effectively for mission and capital works. The ground rules are set out below:
1) All applications to Circuit Meeting or Ministers for new or continuing ventures or finance must show viable mission.
2) Priority will be given to Grant applications for new work to develop the impact on the community, satisfying one or more of the following criteria in line with District Policy and adopted locally.
a) Work with children, young people, and those in the 25 to 40 age group (the group where we have the least representation in our membership and where committed people can make the biggest impact in the Church and upon their own families.)
b) New ways of being church
c) Mission initiatives
d) Ecumenical initiatives
e) Community based initiatives, especially in areas of new housing development
f) Rural work with a clear mission imperative:
3) Information that will be considered include the viability of the project, ministerial and local human resources required and financial implications
4) Criteria for future Circuit finance support will depend upon the state of the building, payment of the circuit assessment and whether adequate car parking is available locally. Grants will not be given for maintenance of buildings. (These criteria indicate to the Circuit meeting that the Circuit investment would be wise and produce positive results in the community)
In the Methodist Churches most of the ground work is done by volunteers advised by their professional staff. Without the work of volunteers, the service provided to the community by the Church would cease since the Circuit does not carry out work on the ground itself; its job is to supply staff, opportunities and encouragement to enable the Local Churches to carry out their mission of worshipping and serving the community around them.
Annual Report 2023 Tendrinz Methodtst arcuh 34n Trustee Tralnl A range of guidance produced by Methodist Connexion to support the effettive running of the Circuit, specifically the leafiet Yhe Role of a Trustee in The Methodist Church, is 8lven io all new Circuit meetin8 members as Induttion to thelr role as trustees. Safeguarding training is a prlority within the Circuit and withln the Indlwdual churches. Ststement of Trustees. res nslbllltles The tru5tee5 are required to prepare financial ststements each financial year which give a true and fair view of the Circuit'5 financial activities during the year and of its financial positlon at the end of the year. In preparin8 these finantial statements, the trustees have: Selected sultable accountin8 policies and applied them cons15tently. Made jud8ements and estimates that are reasonable and prudent. Followed applicable accounting standards. Prepared the financial statements on the going concem basls. The trustees are responsible lor keepin8 proper aCCnting records which disclose with reasonable accuracy at any time the financial posltion of the Circuit and enable them to ensure thal the flnanclal statements comply with the law. They are also responsible for safe8uardin8 the assets of the arcult and hence for takin8 steps for the preventbon and detertion of fraud and other Irregularities. So far as each of the tnjsiees Is aware. there15 no relevant Information that has not been dlsclosed to the auditors and each of the trustees believes that all steps have been taken that ought to have been taken to make them aware of any relevant audit Infom)atlon and io estsblbSh that the auditors have been made aware of that Informatlon. Signed on behalf of the Clrcuit Leadership team on ...... Re4erend Thomas 05borne Superintendent Ministew Mrs Ma88ie Woods arcuit Steward
LIST OF TENDRING METHODIST CIRCUIT MEETING MEMBERSHIP / TRUSTEES
CIRCUIT OFFICERS and MINISTERS
MINISTERS Rev T Osborne Rev S Sutton Rev T Hahn Deacon Angela Shereni SUPERNUMERARY MINISTERS Rev J Allison Rev D Lang Rev G Martin Rev R Parsons Rev A Potter Rev J Robinson CIRCUIT STEWARDS Mrs M Woods Mr A Merriday
CHURCH REPRESENTATIVES Mrs J Allison Mr D Bavister Mrs G Bavister Ms D Bignell B Britain P Bushby C Buxton Ms J Chapman M Cole Ms K Collins Miss J Crawford Mr B Cuthbertson Mr A Edwards (from Feb 23, previously served to 31/8/22) R Fisher
Ms P Humphries Ms J Kilby Mrs M Kimmitt Mr R Lambelle Mr L Lay‐Flurrie Mrs C Lacey Miss A Lott Ms E Marshall Mrs H McLaughlin Mr A Nunn Mrs M Quartermain Mrs D Raven Mrs C Scott Ms D Setterfield Mr D Shearmur Mrs M Stephens Mrs J Taylor Mr R Taylor Mr M Tubby Miss D West Mrs M West Mrs M Whittle Mrs S Wright
Tendring Circuit Circurt No 34ti statement of Financial Acts-vities ISOFAI forthe year ende(131 August 2023 rirt•sto Clrtuitmodol DÈsl8natsd 6Erbwal FLmd TrwtFuThd totsnts IUhTestrirtÈdl {UfvrrIrtdTr Iltsr(IrtèdTr Furbds Furbd% Total Total 2021-23 2021-22 IntomÈ l Donations and leBacies 2 Iniorne from monetary In¥e5trn 3 Incorne from investrnent properties 4 Assessrnents on Churches 30.5CKI 2,682 30.500 27.217 21,594 2,086 855 6,615 5.262 130.712 392.282 20.(XJJ 129.867 27.567 I2967 34.660 5 Capital Receipt5 6 Gfants feceived 7,093 7 Other charitable income 2,748 557.619 8 Total incorne 190,616 21,594 9,179 855 222.244 ExpeTrdire 9 Grants and donation5 8.114 150.299 33.538 36.876 599 12.713 150,299 33.538 36076 49,803 219 10?25 4,576 3fM),949 -5.491 122,874 38.678 5.5C¥) 166.195 53,507 108.913 85.108 10 Salaries ènd associatecj costs 11 Property maintenance 12 Connexional 655e55ment & mo io li 13 Distritt Assessment & Levv 14 Depreciation 15 Office expenses 16 Other out8oings 17 Total charr(3ble expeTrdiiure 18 Gainsiiiossesl on monètèry invÈstmÈn 19 Gainsll1055e51 on inve5trnent properties 20 incomellexpeThJinJrel 21 Tr8n5fer5 between funds li 49.803 14 2,819 10.325 2.D52 12 8.671 50.155 13 2.225 211 87 244.024 56,028 4.223 122,874 84,217 .13.CO) 211 -743 478.048 -B.698 -11.421 59,451 -5 -51,408 13.605 8,225 -436 -356 20 -169 22 Other ¥ains11105ses1 23 rrvjvement in funds -39.803 1.420.696 1,380,893 71.217 780.709 851,926 7,789 66.731 74,520 -525 3B,678 2.298,512 2,337,190 59.451 24 Total funds brouEht fomard 25 Total fDnds carried I(ard 30.376 29051 2.239,061 2.298,512
Tendrlng Circuit Clrcuit No Balance Sheet as at 31 August 2023 TvJsts FurTr Fund5 Totals &ZJ Totals cttu1ueSIE 74 1 310 307 1 310.47 Inv•SbmWts 1.3l•J87 I.310.7 1)13.186 AsS•t5 eDry S Pr TO 4L" T'.a Loans Dytr C t.I In¥•svpnTSwth TIICP Pol L41.)=e 29 991 -¥ 883 Cash It Jnd - h•rf r4X•t¢urrtnra&q•r8 •4 091 4091 •51.926 29.151 1.016.764 J.032 CuTh•rrt lb•S Granii le wth..n rn= 19.940 i?. 7.706 29.851 W.326 Tothl•••¥ IM4 ¢Uff•t I J80.194 151.926 74.520 .851 2.J37 t$t 14¥• 3bJ• Jfr*r.Y'" -: Loani th¢ Crxt 1.380 851 431 926 74.5 29.1 2.337.181 1291.SlZ Cru1 MtrJ• Tw Fw F.nds.kknr•$rv.. 2332.•19, Ik)1.405 P•5theed FLV.ds ENdLrr•rtFè5 74 510 66 731 29851. 30.316 I.•.454 851.526 74.$20 29.851 •?-. I 22.511
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NOTES TO THE ACCOUNTS
1. Basis of accounting
The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS102 — the Charities SORP (FRS102) issued in October 2019.
2. Funds
The funds held constitute: General Funds held for any purpose of the Circuit which are unrestricted. The Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as unrestricted. Restricted funds and Endowment funds are those held for a narrower purpose, which is defined within the trust and details of each material fund are disclosed in note 18 to these accounts. Any funds may be represented by cash held and also investments (as explained at note 16).
3. Accounting policies
Basis
These accounts have been prepared on the basis of historical cost, professionally suggested current market values of property in use and allowing for potential direct selling costs. The accruals basis has been followed to show a true and fair view of the Circuit's financial position and activities.
Income
Recognition Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the proceeds, the trustees are sure the monies will be received, and value can be measured with sufficient reliability. In accordance with the Charities SORP (FRS102) the value of time given by volunteers is not recognised.
Expenditure
This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources.
VAT
Since the circuit is not registered for VAT, input VAT is charged as an expense with the related expense.
Tangible fixed assets for use by the Circuit
Tangible fixed assets are capitalised if they can be used for more than one year, and cost at least £1000. All properties are freehold, and the estimated land component of all properties is indicated in note 14 to the accounts. No depreciation is provided on buildings since the Trustees consider the current residual fair value of the manse buildings and other properties to be not less than their current value. Any depreciation would not be material. The properties were valued by external inspection at September 2021. Depreciation of Fixtures and Fittings has been charged at a rate of 10% straight line.
Investments
Apart from a Cash Deposit Account with CFB, which is available at call, the Circuit has restricted investments in funds managed by TMCP, in accordance with Methodist principles and policy.
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NOTES TO THE ACCOUNTS (continued)
Debtors and Prepayments
The main prepayment included in the accounts is in respect of the payment made, in late August 2023, to the Methodist Church Centrally being the value of monthly Ministerial Stipend due to the Circuit Ministers on September 1 2023, and payable in advance by Circuits.
Creditors
Creditors relate to unpaid invoiced expenditure at August 31 2023 and provisions for amounts likely to become payable associated with year to August 31 2023 accounting period.
4. Donations
Donations during 2022/23 year comprise mainly a grant of £30,000 received from BEH District in support of ministerial expenses.
5. Income from monetary investments
This comprises funds deposited with Central Finance Board (CFB) and Trustees for Methodist Church Purposes (TMCP).
6. Assessments on churches
Each Circuit church is assessed for a yearly contribution towards meeting the costs of the Circuit's operations, including the payment of Ministerial costs and the Circuit's annual assessment in respect of the Beds, Essex & Herts Methodist District, and the Methodist Connexion. The amount assessed on each church is considered and agreed annually by the Finance and Resources Committee and confirmed at the summer Circuit Meeting.
7. Capital receipts and Profit on Property sale
During the year 2022/23, the Church property at Great Clacton was sold and the following accounting balances transferred into Tendring Circuit:
| £ | ||
|---|---|---|
| ‐ | Bank accounts transfer into Circuit Cash | 2,268 |
| ‐ | Transfer of restricted funds (see note 18) | 32,316 |
A profit on sale has been disclosed in the Statement of Financial Position and is arrived at as follows:
| £ | |
|---|---|
| Sales Proceeds | 166,775 |
| Costs of sale allowable | 1,985 |
| District Levy on sale | 41,916 |
| Gain on sale | 122,874 |
8. Grants (expenditure)
The principal grants made during the year were:
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£4,000 to Dovercourt Mission worker (from Circuit Model Trust Fund)
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£5,000 Trinity church Mission grant for "Cup of Hope", a trial expansion of the Hope@Trinity, the day centre project at Trinity, Clacton
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£3,114 Frinton church Mission grant towards property development to enable outreach work to occur
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NOTES TO THE ACCOUNTS (continued)
9. Salary and related costs
In Connexional year 2022‐23 the Circuit had 2 full time Presbyters and 1 Deacon (August 2022 —3 Presbyters and 1 Deacon). The Circuit is required to pay "employer" contributions to the Methodist Ministers Pension Scheme in respect of all Presbyters. The pension scheme is controlled and administered by The Methodist Church centrally. A home telephone and broadband connection is provided solely for use on Circuit business and travel costs are reimbursed against expense claims.
The Ministers' Manses provided by the Circuit and the Circuit maintains and insures the properties. The value of Council Tax and Water Charges are shown below but these regarded by HMRC as being "Benefits in Kind".
| 2023 Stipend and salaries 133,083 Presbyter travel 7,092 Manse bills 10,124 TOTAL 150,299 |
2022 126,340 13,277 26,578 166,195 |
|---|---|
Prior year travel includes £4,941 relocation expenses.
10. Property Maintenance
The maintenance costs of properties, shown as expenses incurred by the General Fund, relate to the costs of insurance for Circuit Manses, utilities costs on vacant manses whilst being or awaiting refurbishment. The cost of repair and maintenance for the Circuit Manses are met from a General Funds. These costs include Quinquennial inspection expenses.
11. Connexional and District Assessments
These Assessments are calculated to reflect the number of Church members and the staffing of the Colchester Circuit in proportion to the total numbers within the Beds, Essex & Herts Methodist District. 50% of the assessment is calculated using membership and 50% using staffing levels.
Each 1st September, the Beds, Essex & Herts District takes an annual levy on Circuit Model Trust funds held by TMCP for the purposes of the District Advance Fund.
12. Office Expenses
| General office Insurance (premises) TOTAL 13. Other outgoings Professional fees Investment expenses Other expenses TOTAL |
2023 6,275 4,050 10,325 2023 1,400 2,595 580 4,575 |
2022 5,735 2,936 8,671 2022 1,800 2,318 46,037 50,155 |
|---|---|---|
Investment expenses for prior year are estimated based on relative funds volume.
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NOTES TO THE ACCOUNTS (continued)
14. Fixed Assets
At 31 August 2023 the Tendring Circuit possessed:
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4 Manses of which 1 is not currently used but is being prepared for letting and
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1 church at Ardley which is awaiting sale
The church sold during the year (Great Clacton, see note 7) was no longer an asset as at 31 August 2022, and was sold before 31 August 2023.
The Trustee for Methodist Church Purposes (TMCP) is the legal owner and custodian trustee of all Methodist Trust property, Legacies, Endowments and Accumulated Funds. Trust property is held for and on behalf of local Managing Trustees who are responsible for day‐ to‐ day management of trust property. TMCP ensure that, through providing advice and acting under their direction, the local Managing Trustees comply with Charity law and Methodist law and polity as determined by the Methodist Conference.
| comply with Charity la | w and Metho | dist law and | polity as determ | ined by the |
|---|---|---|---|---|
| Land | Manses | Fixtures and Fittings |
TOTAL | |
| Cost | ||||
| Brought forward | 385,000 | 900,000 | 28,186 | 1,313,186 |
| Carried forward | 385,000 | 900,000 | 28,186 | 1,313,186 |
| Depreciation | - | - | - | |
| Openingbalance | ||||
| Charge foryear | - | - | 2,819 - |
2,819 - |
| Closingbalance | 2,819 - |
2,819 - |
||
| Net book value | ||||
| Openingbalance | 385,000 | 900,000 | 28,186 | 1,313,186 |
| Closing balance | 385,000 | 900,000 | 25,367 | 1,310,367 |
15. Debtors
| 2023 | 2022 | |
|---|---|---|
| Stipend prepaid | 10,222 | 10,643 |
| Other receivables | 310 | 443 |
| TOTAL | 10,532 | 11,086 |
16. Cash and Investments
Cash balances are held in bank accounts and a deposit account at Central Finance Board of methodist church, as well as cash funds within Trustees for Methodist Purposes. Balances may be moved between the deposit and investments, in order to meet the ongoing requirements of the Circuit.
Investments are held by Circuit funds, as shown on the balance sheet. These investments are in unitised funds with Trustees for Methodist Purposes, in line with the investment principles of Methodism.
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NOTES TO THE ACCOUNTS (continued)
17. Creditors (due within one year)
| NOTES TO THE ACCOUNTS (continued) 17. Creditors (due within one year) |
||
|---|---|---|
| Professional fees Staff expenses Property / other accruals TOTAL |
2023 1,400 1,980 16,560 19,940 |
2022 1,800 908 4,998 |
| 7,706 |
18. Analysis of Fund Balances
An analysis of balance sheet lines allocated to fund type is provided on the face of balance sheet.
Tendring Methodist Circuit 34/7
Annual Report 2023
NOTES TO THE ACCOUNTS (continued)
Unrestricted
General Funds
This is used at the discretionary use of the Trustees in the furtherance of the general objectives of the Circuit and where funds have not been designated for other purposes. The vast majority of the total General Fund is held as freehold properties, being manses for Ministers and churches under the control of the Circuit with the remainder in cash accounts.
Unrestricted Circuit Model Trust fund
Trust 11088 Tendring Circuit Model Trust Fund. This trust is Model Trust Capital as defined in standing order 915 (2) (i) made up of proceeds of sale from model trust properties. This trust is subject to standing order 955 which mean that it has to pay an annual contribution to the District Advance Fund.
Funds received during the year, from Great Clacton church, are as follows:
Unrestricted Trust 21999 ‘Audrey Harris’ and Trust 14559 ‘Various Bequests’ These are ‘B’ type Trusts, which means there are no restrictions attached to either Trust.
Restricted Funds:
12945 Sale of Land and 12945A Sale of Land
Two trusts being a division of one sum of money which arose from sale of the Lawford site in 1981. At the time some of the proceeds went into the Circuit Model Trust Fund No 11088 but the rest was treated as the sale of an investment property with interest being available to the Circuit.
The funds in this trust can be used towards a project or other approved expenditure.
19526 Caretaker House
Trust 19526 is an ‘M’ type Trust, meaning it was created to deposit the proceeds from the sale of a Caretaker’s house at Great Oakley Methodist Church in 2001. TMCP inform us this is unrestricted.
13775 ‐ Various Bequests
This trust is made up of a number of bequests over the years since 1984. There are Model Trust Capital, and the funds can be used towards approved expenditures or property projects of Old Colwyn Methodist Church.
1996 – M Carrington Bequest
This trust was established in 1940, the Will Document was damaged when our office was fire‐bombed in the Second World war. What we can see from the paper work which survives, is that the bequest of about £200 was left to the Circuit to be used for any Chapel building schemes of the Clacton‐on‐Sea Circuit.
18986 E A Begg Bequest
This trust was established by the will of Edgar Archibald Begg, in the sum of £ 17,726.38 in December 1999. The Will states, “To the trustees of the Zion Methodist Chapel absolutely for the general purposes of the chapel”. As the Zion Methodist Church was closed the Circuit decided that the bequest should go to the Circuit. This is Model Trust Capital, and the funds can be used towards approved expenditures or property purposes.
Tendring Methodist Circuit 34/7
Annual Report 2023
NOTES TO THE ACCOUNTS (continued)
Funds received during the year, from Great Clacton church, are as follows:
Restricted Trust 887 ‘Anonymous gift’
This is a ‘C’ type Trust, meaning it is restricted and where the capital is available for ‘evangelistic work at Great Clacton, or throughout the circuit at the discretion of the Managing Trustees’.
Endowment Funds
Endowment Fund ‐ 15041 circuit fund
Trust 15041 Circuit Account – in 1976 a sum of £ 1,500 was raised or subscribed or given (the correspondence does not indicate the precise source) with the intention that it would form a “permanent Endowment” to provide an annual income to help meet the running expenses of the circuit. Nonetheless the circuit treasurer Mr Earnest Bailey at that time suggested that if it was absolutely necessary the capital could be realised for the support of the circuit.
Endowment Fund ‐ 13679 L Nunn
Trust 13679 Lilian Nunn Bequest – This bequest is a permanent endowment given in 1984 stating: “the annual income arising from the same shall be paid from time to time to the Superintendent Minister of the Circuit in the Connexion in which the Methodist Chapels at St. Osyth Jaywick Torrington Great Bentley and Rush Green… shall be situated…in order that the same may be divided by him in such proportions as he shall think fit between the Treasurers of the said Chapels or any of them to be applied by such Treasurer in augmentation of the ordinary income thereof”
19. Analysis of net assets by fund
| General Fund (Unrestricted) £ |
Circuit Model Trusts (Unrestricted) £ |
Designated Funds (Unrestricted) £ |
Restricted Funds £ |
Endowment Funds £ |
Totals 2023 £ |
|
|---|---|---|---|---|---|---|
| Fixed Assets | 1,310,367 | 1,310,367 | ||||
| Investments | 25,961 | 851,926 | 74,520 | 29,851 | 982,258 | |
| Current assets | 64,506 | 64,506 | ||||
| Current liabilities | (19,940) | (19,940) | ||||
| Total | 1,400,835 | 851,926 | - | 74,520 | 29,851 | 2,357,132 |
| Totals 2022 |
||||||
| Fixed Assets | 1,313,186 | 1,313,186 | ||||
| Investments | - | 780,709 | 66,731 | 30,376 | 877,816 | |
| Current assets | 115,216 | 115,216 | ||||
| Current liabilities | (7,706) | (7,706) | ||||
| Total | 1,420,696 | 780,709 | - | 66,731 |
30,376 | 2,298,512 |
Tendring Methodist Circuit 34/7
Annual Report 2023
20. Related Parties
No trustees made donations to the Circuit during the year. All of the Trustees are members of a church in the Circuit, and some will also be on Church Councils of Circuit churches.
Related parties include the Methodist Conference, the Bedfordshire Essex & Hertfordshire Methodist District, other circuit churches. No remuneration was paid to any Trustee during the financial period.
Reimbursement of expenses to Circuit Trustees amounted to £6,581 during the period (2022 £15,537 – included removal expenses).
21. Transfers between funds
Two types of transfer between funds existed during this year and the prior year:
-
a) Transfers of restricted income into general reserves for circuit use, as permitted by the funds. To August 2023, £436 and £169 was transferred out of restricted to unrestricted funds.
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b) Transfers of money from unrestricted funds (e.g. CMTF) into general funds to support the work of the circuit. To August 2023, £13,000 was transferred out of CMTF into unrestricted funds.
22. Financial commitments
The Circuit is committed to giving £5,000 annually for the next 5 years in connection with the costs of Dovercourt Central in respect of the church having a community worker.
Tendring Methodist Circuit 34/7
Annual Report 2023
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF TENDRING METHODIST CIRCUIT
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which give me cause to believe that in, any material respect:
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the accounting records were not kept in accordance with section 130 of the Act; or
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the accounts do not accord with the accounting records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view, which is not a matter considered as part of an independent examination
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the trustees’ annual report is not consistent with the accounts
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.
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.
Signature of independent examiner ………………………………………………………………….
Name of independent examiner: Vincent P Chandler
Relevant professional qualification of independent examiner: FCA, FCCA
Name of firm: Moore Green, Chartered Accountants Address: 22 Friars Street, Sudbury, Suffolk, CO10 2AA
Date: …16.04.2024………………………………………