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2024-08-31-accounts

Charity registered number 1143674

The Aldershot Methodist Military Trust Annual Report and Accounts 31 August 2024

The Aldershot Methodist Military Trust Charity Information

Trust Office

c/o The Acting Secretary 68 Caswell Close Farnborough Hants GU14 8TD

Treasurer

B Roberts Esq 8 High Mount Mount Avenue Heswall Wirral CH60 4RH

Auditors

Begbies 9 Bonhill Street London EC2A 4DJ

Bankers HSBC Bank plc The Peak 333 Vauxhall Bridge Road, London SW1V 1EJ

Solicitors

Pothecary Witham Weld 70 St George’s Square London SW1V 3RD

Investment managers

Central Finance Board of the Methodist Church 25 Tavistock Place London WC1H 9SF

1

The Aldershot Methodist Military Trust Trustees' Report

The Trustees present their annual report and accounts for the year ended 31 August 2024. The charity information page forms part of this report.

Status

The Aldershot Methodist Military Trust is a Religious Charity which was registered with the Charity Commission on 6 September 2011. Its charity number is 1143674.

Trustees

The following persons served as Trustees during the year:

D. Barwick Rev. C.M. Weir Rev. P.J. Howson (Secretary) (M) (resigned 31 October 2024) N. White D. Kendall Rev. D.E. Wilkes B Roberts (Treasurer) (M) Rev. T.L. Wilkinson Miss S. Press (M) (Assistant secretary) (resigned 1 February 2024) Mrs S.M. Smith (M) Rev. R Smith (M) indicates a member of the Management Committee

Governing instrument and objects

The Aldershot Methodist Military Trust was set up under a Declaration of Trust in 1859 for the purposes of the propagation of the Gospel within the prescribed doctrinal limits of the people called Methodists, to provide and maintain buildings and to provide support for Ministers/Chaplains.

On 3rd February 2014, the Trustees passed a Resolution that their existing powers exercisable in the administration of the Charity, and the existing provisions regulating the procedure to be followed should be amended by a revised Trust Deed. On 12th February 2014 the Charity Commission granted a Scheme to allow for the modernisation of the Trust Deed.

The Objects have been amended by the Scheme as follows:

The advancement of religion in accordance with the Purposes of the Methodist Church throughout the Armed Forces across the world in particular but without limitation to the generality of the foregoing by:

Investment powers

The Trust Deed precludes investment in Government or real securities in Ireland and requires the written consent of the President of the Methodist Conference for sales, transfers and disposals. These conditions are met by the investments being made through the Trustees for Methodist Church Purposes in funds administered by The Methodist Church Central Finance Board.

Appointment of trustees and officers

The Trust membership was renewed by the Methodist Council in 2009 and comprises of 11 members on 1 September 2023 and 10 members on 31 August 2024 all of whom are appointed in accordance with the Trust Deed.

Changes in membership have been notified to the Charity Commissioners.

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The Aldershot Methodist Military Trust Trustees' Report

Governance

Mrs S Smith has remained Chair throughout the year. A number of people have been approached with a view to them taking up the position of Chair to the Trust but none have felt able to do so. The Trust continues to look for the right person to fulfil this role on a more permanent basis.

Administration

The Trust is administered through an Annual Meeting of the Trustees which appoints the Management Committee and receives their report, reviews and approves the Annual Report and Audited Accounts, considers future investment policy and lays down the grant policy and ceiling for the coming year. Additional meetings of the trustees are held as required.

The Management Committee comprises the Chairman, Secretary, and Treasurer, (Executive Officers) together with two trustees. The Management Committee meets regularly to consider and approve grants within the ceiling fixed by the Trustees' Annual Meeting, to review the investments and investment policy of the Trust and receive reports from the Investment Managers and the Executive Officers.

The Executive Officers administer the day to day running of the Trust reporting to the Management Committee regularly.

Activities for the public benefit, grant making and work of the Trust

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and setting the grant making policy for the year. The Trust carries out these objectives by administering investment funds of over £2.4 million and using the income to meet the needs of Methodist work with HM Forces in addition to that supported through the Forces Board.

Grant making

The decisions made by the Forces Board in the previous financial year have resulted in a change to the grant making policy of the Trust. It has continued to provide a grant to the Board. The Trust also funded the cost of the Lay Worker in Aldershot Garrison through the Hants-Surrey Border Circuit. For the initial year of the project the Trust provided funds to meet the full cost. The intention in future is that the Trust will only meet the full cost of a project in exceptional circumstances.

Work of the Trust

This report covers the second full year in which the Trust has been solely a grant making body. During the year the Trust has started to look at a longer term policy for grants that would meet the needs of the Forces Board and the wider Methodist Church. It is hoped that in the coming year it will become possible to develop a strategy that allows the Trust to work with the policy of the Methodist Church in its work with the armed forces.

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The Aldershot Methodist Military Trust Trustees' Report

Achievements and performance

The results for the year are set out on page 9. There have been no changes to the Trust’s policies during the year.

During the past year and previously the Trust has had significant issues with delays and non response of TMCP (Trustees for Methodist Church Purposes) in providing or confirming legal matters or advice. In addition our £2m + investments via them were not yielding as well as we believed they could. We sought investment advice and also help from the Methodist recommended solicitors. As a result we changed our investments to Epworth (a branch of the Methodist Finance Board). The results speak for themselves. Sadly a number of issues including the financial change needed a nudge and legal support hence the larger than usual solicitors' bills.

Income

The Trust’s income arises from its investment portfolio and interest receivable.

Expenditure

Total expenditure was £69,461. The major expenditure has been in awarding grants to the the Hants and Surrey Borders Circuit and the Norfolk Circuit who received £22,100 and £20,000 respectively during the year.

Investments

The investment portfolio managed by Central Finance Board of The Methodist Church was sold during the year and funds were reinvested with Epworth Investment Management Limited. The market value of the investment portfolio stands at £2,480,032.

Funds at the year end

The net income/expenditure for the year was a deficit of £18,634 but there was profit on disposal of investments of £114,373 and a gain on the revaluation of investments of £66,801. The overall impact on total funds was an increase from £2,358,505 to £2,521,045.

Reserves

The Trustees are confident that the combined income and reserves are sufficient to enable the Trust to meet its obligations in the coming year, currently:

Reserves policy

An appropriate level of Reserves will be proposed when future plans are agreed and implemented. The Trustees have not established any specific restrictions on the use of the General Fund beyond determining that it shall not fall below a level of £1,500,000 in order to ensure a significant income towards the making of future grants.

Investment policy and objectives

Investments are held and managed by Epworth Investment Management Limited. The current conservative risk profile of the portfolio maintains a prudent approach to the investments. The social, ethical and environmental considerations followed are those of the Methodist Church.

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The Aldershot Methodist Military Trust Trustees' Report

Risks and uncertainties facing the charity

The Trustees have considered the major risks to which the charity is exposed. The key risk likely to affect the charity's ability to meet its objectives relate to its investment portfolio, the economic climate and the war in the Ukraine. These risks are monitored and appropriate action taken when required.

Future activities

The Trust will continue to respond to requests for financial support from the bodies working with forces personnel and their families.

Approved by the Trustees on …...................

S Press B Roberts Assistant Secretary Treasurer

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The Aldershot Methodist Military Trust Statement of Responsibilities of the Trustees 31 August 2024

The Trustees are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and of the income and expenditure of the Charity for that period. In preparing these accounts, the Trustees are required to:

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Charities Act 2011, the charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed/constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

6

The Aldershot Methodist Military Trust Independent auditor's report to the members of The Aldershot Methodist Military Trust

Opinion

We have audited the accounts of The Aldershot Methodist Military Trust (the charity) for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the accounts:

Basis of opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the accounts and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' annual report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

7

The Aldershot Methodist Military Trust Independent auditor's report to the members of The Aldershot Methodist Military Trust

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our audit procedures were designed to respond to risks of material misstatement in the accounts, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the accounts, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Begbies are eligible for appointment as auditor of the charity by virtue of their eligibilty for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with section 145 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity's tustees as a body, for our audit work, for this report, or for the opinions we have formed.

Begbies Chartered Accountants and Statutory Auditors

9 Bonhill Street London EC2A 4DJ

…...................

8

The Aldershot Methodist Military Trust Statement of Financial Activities (including the Income and Expenditure Account) for the year ended 31 August 2024

----- Start of picture text -----
Unrestricted Unrestricted
funds funds
Notes 2024 2023
£ £
Income
Investment income 39,336 76,313
Interest receivable 11,491 4,470
50,827 80,783
Expenditure
Grants payable 2 42,100 128,209
- -
Property expenses
Administration expenses 3 14,813 2,836
TMCP administration fees 6,091 6,364
-
Epworth Investment management fees 6,457
69,461 137,409
Net expenditure (18,634) (56,626)
-
Profit on the disposal of investments 114,373
Gain/(loss) on revaluation of investments 66,801 (15,684)
Net movement in funds 162,540 (72,310)
Fund balances b/fwd 2,358,505 2,430,815
Fund balances c/fwd 2,521,045 2,358,505
----- End of picture text -----

9

The Aldershot Methodist Military Trust Balance Sheet as at 31 August 2024

----- Start of picture text -----
Notes 2024 2023
£ £
Fixed assets
Investments 4 2,480,032 2,217,231
Current assets
Debtors 5 - 16,244
Epworth Investment Management
Limited 13,881 -
Methodist Church Central Finance
Board:
CFB deposit account 27,687 119,916
Trustees interest fund - 52,709
Cash at bank and in hand 1,445 7,014
43,013 195,883
Creditors: amounts falling due
within one year 6 (2,000) (54,609)
Net current assets 41,013 141,274
Net assets 2,521,045 2,358,505
Funds
Unrestricted funds 7 2,521,045 2,358,505
2,521,045 2,358,505
----- End of picture text -----

Approved by the Trustees on …...................

S Press B Roberts

Assistant Secretary Treasurer

10

The Aldershot Methodist Military Trust Notes to the Accounts for the year ended 31 August 2024

1 Accounting policies

Basis of preparation

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to the accounts. They have also been prepared in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" - Charities SORP (FRS 102) and the Charities Act 2011. The accounts have been presented in sterling.

The Charity constitutes a public benefit entity as defined by FRS 102.

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant area of uncertainty that affect the carrying value of the assets of the charity (see “Risks and uncertainties facing the charity” in the trustees’ report.

Income

Income represents rental and investment income, which are accounted for on a receivable basis. Dividends are recognised when the dividend goes "ex div".

Expenditure and creditors

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably –usually the invoice amount. All expenditure is accounted for on an accruals basis.

Grants

Grants are made in accordance with the charity’s objects and at the trustees' discretion.

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The main form of financial risk faced by the Trust is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors.

Debtors

Debtors are measured at their recoverable amounts at the balance sheet date.

11

The Aldershot Methodist Military Trust Notes to the Accounts

for the year ended 31 August 2024

2
Grants
Financial support for Forces Committee work:
Forces Board
Hants-Surrey Borders Circuit family worker
Norfolk Circuit family worker
North Camp Methodist Church for Family Workers
Talavera School - mental health champions project
3
Administration expenses
Committee expenses
AGM costs and travel
Legal & professional fees
Subscriptions -software
Audit fees
Bank charges		 2024
£
-
22,100
20,000
-
-
42,100
2024
£
222
1,383
10,680
144
2,320
64
14,813		 2023
£
75,000
40,000
-
12,709
500
128,209
2023
£
174
-
165
144
2,260
93
2,836

Committee expenses relate to general committee expenses and travel incurred by the Trustees. No remuneration or benefits were paid to the Trustees. The Trust has no employees.

4 Investments

At fair value
At 1 September 2023
Additions
Disposals at opening market value
Revaluation
At 31 August 2024
Historical cost		 2024
2023
£
£
2,217,231
2,232,915
2,930,092
-
(2,734,092)
-
66,801
(15,684)
2,480,032
2,217,231
2,413,232
1,471,054
Quoted investments

All investments at the year-end are held with Epworth Investment Management Limited.

5
Debtors
Accrued income
Prepayments		 2024
£
-
-
-		 2023
£
16,100
144
16,244

12

The Aldershot Methodist Military Trust Notes to the Accounts

for the year ended 31 August 2024

6
Creditors: amounts falling due within one year
2024
£
Other creditors
-
Accruals
2,000
2,000
7
Analysis of charitable funds
General
reserve
Other reserves
£
At 1 September 2023
2,358,505
-
Net surplus/(deficit) on revaluation of investments
66,801
-
Profit/(loss) on sale of investments
114,373
-
Deficit for the year
(18,634)
-
At 31 August 2024
2,521,045
-
Previous year
At 1 September 2022
2,430,815
-
Net surplus/(deficit) on revaluation of investments
(15,684)
-
Profit/(loss) on sale of investments
-
-
Deficit for the year
(56,626)
-
At 31 August 2023
2,358,505
-
8
Capital commitments - grants
2024
£
Future commitments
23,000
Hants-Surrey Borders Circuit family worker
£23,000
The Trust has committed to paying the following amounts over the forthcoming year.		 2023
£
52,709
1,900
54,609
Total
£
2,358,505
66,801
114,373
(18,634)
2,521,045
2,430,815
(15,684)
-
(56,626)
2,358,505
2023
£
40,000

9 Related party transactions

See note 4. The Trustees are not aware of any other related parties.

10 Critical accounting estimates and judgements

The Trustees do not consider that any significant critical accounting estimates or judgements were required to be made in the preparation of these accounts.

13