NORTH KIRKLEES AND MORLEY METHODIST CIRCUIT
Registered Charity No-1145602
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
RESERVES POLICY 2022/2023
Structure
The North Kirklees and Morley Circuit is part of the Yorkshire West District, and is accountable to the Methodist Circuit
The Circuit functions in accordance with the Constitution, Practice and Discipline (CPD) of the Methodist Church, often referred to as the Connexion.
Names of the charity trustees
The number of trustees fluctuates during the year depending on changes in office holders in the churches and Circuit. There was an average of forty trustees listed on the Charity Commission website during this year.
They are appointed by local churches and existing trustees; Ministers are automatically trustees.
In accordance with the CPD of the Methodist Church, the Chair is Rev Marian Olsen the Superintendent Minister of the Circuit, who was appointed on 1 September 2022.
The charity governing document is the Deed of Union (1932) and Methodist Church Act (1976)
The Circuit trustees meet four times each year (the Circuit Meeting).
The Circuit Leadership Team (CLT) consisting of the Circuit Stewards, Staff and other Circuit Officers meet monthly and cover the day-to-day management of the Circuit
Circuit Administration activities are undertaken by two members of staff who are based at Batley Central Methodist Church
These financial statements comply with the charity’s governing document, which being the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice.
This is applicable to all charities who prepare their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ireland published in October 2019.
Financial Review 2021/22
The Circuit Account includes:
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The General Fund is the main operating account through which the expenditure and revenue for both operational and strategic purposes are managed. As such we have accounts with the Co-operative Bank and Central Finance Board
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The Circuit Model Trust Fund which primarily arises from the sale of buildings no longer required within the Circuit. Under Conference directions the Fund can be used for any purpose supporting the mission of the Church. Applications must be made to the Circuit Meeting
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The various restricted funds which are detailed within the notes to the accounts.
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The endowment fund holds money which cannot be spent but must be retained (as capital) to generate an income (we receive nominal interest)
The Circuit has the following principal sources of funds:
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Assessments on Churches within the Circuit
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Rental income from 2 Trust Properties (Morley and Old Bank Road Dewsbury)
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Interest on investments
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The Circuit Model Trust Fund
These sums are used to administer, facilitate the work of the Circuit, and secure its future viability and future work
As such the monies currently provide for
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4 Presbyters and 1 Deacon who provide ministerial oversight and pastoral care of the churches in the Circuit
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Two members of staff at the Resource Centre
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Maintenance of 7 Circuit Manses (including the two where we have a rental income
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Upkeep and maintenance of empty Circuit Properties – where the future direction is still to be agreed (Gildersome- and to a lesser extent Newlands and Wesley Playhouse
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District / Connexional Assessment (currently
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Miscellaneous travel costs / preaching fees etc
The Covid-19 pandemic and measures taken to control the spread of the virus continue to impact the income streams across the Circuit
Church incomes continue to be restricted by reduced income from both lettings from external user groups and numbers attending weekly worship, which in turn has led to difficulty for some in paying their assessed contribution to the Circuit.
However, over 90% of the planned assessment was received during the year, but I fully appreciate that for some this was a struggle to meet their commitment and have concerns going forward
As such the recently formed Circuit Finance Group are re-visiting the formula as to how we collect individual assessments (at present it is based on ability to pay agreed by the church treasurers- and NOT on membership). This is no easy task – and we are working our way through a number of options – and hope to bring a proposal to the March 2023 Circuit Meeting to implement from September 2023
I will stress that in the interim if a Church has a specific concern, they speak to myself direct
The respective accounts for 2021/22 are documented at the end of this report for you to consider
Happy to answer any questions either in advance or on the night – but just to draw your attention to a couple of areas
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Presbyters (including Deacon) stipend rate is agreed each year by Methodist Conference. Any increase is based on the average of the increases in the consumer price index and the average weekly earnings index
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As such it is agreed Circuit Policy that any increase that is paid to Presbyters will be applied to our Lay Workers
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District/ Connexional Assessment – this supports the work of the district – including admin staff – and Connexional colleagues who implement wider strategic, resourcing and mission work- The calculation of each Circuit contribution is complex – but an element is based on ability to pay – and we do come out of these discussions very favourably
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We have heavily invested this year in our manse maintenance – The pandemic naturally put on hold some of this planned work – so it has been very much a case of playing catch up
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Going forward it is our intention to take a more planned strategic view in respect manse maintenance – working closely with Alan Curry – who does a brilliant job for us in this area- keeping costs to a minimum – and ensuring we get value for money
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Rental income -Morley Manse £1000 pcm -Old Bank Road £775 pcm
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Since the year -end Thornhill has been sold (£143k) and these proceeds will be paid into the Circuit Model Trust –
Summary of Total Funds Held
General Fund £72,431.65
Circuit Model Trust (held at TMCP) £336,297.38 (Does not include proceeds from sale of Thornhill)
Other Circuit Trusts (held at TMCP) £151.374.29
Fixed Assets
Total value of 7 manses (5 occupied – 2 rental) £ 2,580,860
The accounts are currently with the auditor- Thus subject to them finding no areas to bring to your attention I am asking for your approval of the accounts subject to this caveat
Ian Wilson
North Kirklees and Morley Circuit Treasurer
24[th] November 2022
The Accounts were subsequently approved at the Circuit Meeting held on the 8[th] December 2022
No issues identified
Circuit Reserve Policy
The reserves policy for the North Kirklees and Morley Methodist Circuit is to hold a sum equivalent to 6 months average expenditure. This will be around £230k
This I believe is sufficient to meet any unforeseen item of major expenditure and/or be able to continue in the short-term funding planned activities in the event of an inability to raise the full circuit assessment from churches.
It will also ensure that we have funds to cover the payment of stipends and expenses for the ministers and lay workers and our contribution to the District and Connexion.
In the unlikely event of the above happening these funds can be drawn down from Circuit Model Trusts and other investments (none of the intended money is invested in property or other forms of investment)
A key element for any charity is that it does not hold excessive funds that are not earmarked for future property/ mission work
As previously stated, the Model Trust Fund can be used by the Circuit for a variety of mission, ministry, and property projects.
There is an on-going Circuit Review – looking at all aspects of church life – which will subsequently aid our forward planning and determine our future funding needs.
This could result in funding for property schemes or potential lay workers’ salaries
Considering all the above we meet the requirements of the Charity Commission Reserve Policy
Ian Wilson
North Kirklees and Morley Circuit Treasurer
24[th] November 2022
NORTH KIRKLEES AND MORLEY METHODIST CIRCUIT ACCOUNTS 2021/2022
| INCOME | 2021/2022 | 2020/2021 | EXPENDITURE | 2021/2022 | 2020/2021 | |
|---|---|---|---|---|---|---|
| Assessments | 335,948.50 | 348,015.50 Stipends, NI contributions etc. | 182,006.17 | 216,900.24 | ||
| Interest | 289.5 | 69.99 Ministers Travel --Expenses | 3727.48 | 6211.79 | ||
| Connexional Funds/ Circuit Collections | 1662.95 | 1209.61 Ministers Telephone/Broadband Costs | 5216.33 | 5338.56 | ||
| Other Circuit Income | 34967.82 | 40185.61 Supernumery Preachers fee and travel | 2660.5 | 359 | ||
| CRC-Net income from printing after expenses | 1000 | 0 Local Preachers Expenses | 400 | 100 | ||
| Payment from Circuit Advance Fund | 60000 District Assessment | 86680 | 91432 | |||
| TOTAL | 373868.77 | 449480.71CRC- Administrative Staff | 21802.32 | 22142.59 | ||
| CRC- Expenditure | 10330.73 | 4811.47 | ||||
| Manses Council Tax |
14,684.71 | 11,834.48 | ||||
| Manses Water Rates |
1955.74 | 1825.2 | ||||
| BALANCES AT 31/08/2022 | Manses Insurance |
5233.18 | 4736.83 | |||
| Maintenance/Property | ||||||
| CO-OP | 4,332.47 | Manses Upgrade |
27437.92 | 26345.56 | ||
| CFB | 74,253.82 | Manses Alarm- Heating Contracts |
945 | 1729 | ||
| HSBC | 26.6 | Church Property Costs | 6099.52 | 2268.71 | ||
| HSBC | 0.28 | Loan to Church | 3133.2 | 6000 | ||
| Cash | 159.55 | Ministers Removal Costs/Grant | 3575.06 | 1189.54 | ||
| TOTAL | 78772.72 | Other Expenditure | 7093.78 | 23400.32 | ||
| Connexional Funds/ Circuit Collections | 1662.95 | 1209.61 | ||||
| NEWLANDS | 6341.07 | Rev Alex Kerala Appeal | 4978 | |||
| Youth Work Expenditure | 1377.04 | |||||
| CIRCUIT BALANCE | 72431.65 | TOTAL | 390999.63 | 427834.9 | ||
| INCOME 2021/2022 | 373868.77 | 449480.71 | ||||
| OVERALL SURPLUS FOR YEAR | -17130.86 | 21645.81 | ||||
| CFWD FROM 2020/2021 | 89562.51 | 67916.7 | ||||
| TOTAL CARRIED FORWARD TO | ||||||
| 2022/2023 | 72431.65 | 89562.51 |
2022
NORTH KIRKLEES AND MORLEY METHODIST CIRCUIT MODEL TRUST FUND- TRUST 21592
| DISTRICT LEVY/CPF PAYMENT | |
|---|---|
| DEDUCTED ON 1/9/2021 | 17761.65 |
| TOTAL | 17761.65 |
| TCMP ADMIN FEE | |
| DEDUCTED FROM 1/9/2021 | 1007.44 |
| TOTAL | 1007.44 |
| GRAND TOTAL | 18769.09 |
| INCOME | |
| INTEREST | 1577.83 |
| TOTAL | 1577.83 |
| SUMMARY | |
| OPENING BALANCE | 353488.64 |
| INCOME | 1577.83 |
| TOTAL | 355066.47 |
| EXPENDITURE- | 18769.09 |
| BALANCE AT 31/8/22 | 336297.38 |
OTHER CIRCUIT TRUSTS CLOSING BALANCES AS AT 31/8/2022
| TRUST FUND | GRAND | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| NUMBER | 20584 | 16271 | 11878 | 12487 | 18393 | 19984 | 12861 | 4040 | TOTAL | |
| RESTRICTED | RESTRICTED | RESTRICTED | RESTRICTED | RESTRICTED | RESTRICTED | RESTRICTED | ENDOW | |||
| * | * | |||||||||
| INTEREST/INCOME | 230.85 | 99.05 | 6.35 | 2.29 | 1.6 | 330.73 | 5.49 | -103.15 | 573.21 | |
| ADMIN | 140.19 | 101.92 | 5.07 | 1.38 | 0.98 | 200.83 | 3.32 | 20.41 | 474.1 | |
| PAYMENTS MADE | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| TOTAL MOVEMENT | 90.66 | -2.87 | 1.28 | 0.91 | 0.62 | 129.9 | 2.17 | -123.56 | 99.11 | |
| OPENING BALANCE | 49189.44 | 21109.15 | 1355.18 | 485.34 | 342.5 | 70467.54 | 1166.28 | 7159.75 | 151275.18 | |
| CLOSING BALANCE | 49280.1 | 21106.28 | 1356.46 | 486.25 | 343.12 | 70597.44 | 1168.45 | 7036.19 | 151374.29 |
- Trustee income from trusts 16271 and 11878 is paid direct into Circuit Current Account
| Fixed Assets- Manse Vaiuations-Occupied-Taken from Methodist Insurance property valuation -2021/22 | Fixed Assets- Manse Vaiuations-Occupied-Taken from Methodist Insurance property valuation -2021/22 |
|---|---|
| 12 Stockwell Drive Batley | 463,601 |
| Lee Green Mirfield | 370,096 |
| 6 Shaw Street Cleckheaton | 379,736 |
| 579 Bradford Road Cleckheaton | 336,169 |
| 4 Longwood Road Tingley | 324,635 |
| TOTAL | 1,874,237 |
| Fixed Assets- Manse Valuation- Currently gaining rental income-Taken from Methodist Insurance property valuation | |
| 146 Old Bank Road Mirfield | 297,461 |
| 29 Bluebell Gardens Morley | 409,162 |
| TOTAL | 706,623 |
NORTH KIRKLEES AND MORLEY METHODIST CIRCUIT MODEL TRUST FUND- TRUST 21592
| DISTRICT LEVY/CPF PAYMENT | |
|---|---|
| DEDUCTED ON 1/9/2021 | 17761.65 |
| TOTAL | 17761.65 |
| TCMP ADMIN FEE | |
| DEDUCTED FROM 1/9/2021 | 1007.44 |
| TOTAL | 1007.44 |
| GRAND TOTAL | 18769.09 |
| INCOME | |
| INTEREST | 1577.83 |
| TOTAL | 1577.83 |
| SUMMARY | |
| OPENING BALANCE | 353488.64 |
| INCOME | 1577.83 |
| TOTAL | 355066.47 |
| EXPENDITURE- | 18769.09 |
| BALANCE AT 31/8/22 | 336297.38 |