2024-08-31-accounts

EAST SOLENT AND DOWNS METHODIST CIRCUIT Registered Charity Number 1153209 TRUSTEES, ANNUAL REPORT for the year ended 31 AUGUST 2024

EASTSOLENT AND DOWNS METHODIST CIRCUIT Year ended 31 August 2024 Objectives and activities In setting our objectives and planning our activities, the Circuit Meeting (under the leadership of the Circuit Leadership Team), which meets three times in each year, has given careful consideration to the Charity Cornmissioners, general guidants on public benefit and, in particular, to its supplementary public benefit guidan￿ on advancing our objectives and conforms to the Charities Act 2011. Our Mission is to resour￿ and enable the Local Churches of the Circuit to pursue the mission of God through worship, leaming and caring, Servi￿ and evangelism. This is done for as many people as possible within the geographical area the Circuit serves through the provision of staff, preachers, education and pastoral oversight. This enables the local Methodist Churches to provide Christian worship, spiritual development, and pastoral care both to church members and to the wider communities in which they are located. The Circuit supwrts the advan￿ment of the Christian Faith through ecumenical liaison with other Christian groups. There is a significant increase in general house building and also acGommodation for older people within the Circuit footprint. This is seen to be a growing opportunity for Mission and Outreach. Achievements and performance In common with other Circuits and churches of other denominations, this has again been a year with both challenges and encouragements. Digital Church continues to provide a Servi￿ online for (almost) all Sundays of the year and subscriber numbers have increased. We are pleased to see a small increase in responses online. These ServI￿S enable individuals to access a worship service on Sundays if they are unable to get to a churGh building. It also provides a service which congregations can use on occasions when it is not possible to provide a preacher. In addition to the weekly services, we have developed sorne 'shorts', especially as Lent Reflections. One major challenge is filling the appointments on the Preaching Plan. The availability of several resources, including our own Digital Church services, means thal we can be encouraged by the development of members of local congregations in leading worship. Vthilst we were not in stationing for the 202￿ Connexional Year there has ben some change in responsibilities. Our part-time Supernumerary Minister responsible for one church has come to the end of the appointment and that church has been added to the responsibilities of another Minister. There will always b8 more than enough to do for the ministry time available and one of the challenges in the distribution of different fom)s of ministry as most appropriate to the needs across the Circurt. We continue to work with the Diocese of Guildford and the United Reformed Church in relation to the church in Bordon to meet the needs of a rapidly expanding population. We have been encouraged by the appointment of a Pioneer Minister for the Compass Project, Portsmouth from 1 September 2024.

EAST SOLENT AND DOWNS METHODIST CIRCUIT Year ended 31 August 2024 The Circuit's Vision and Mission Plans have come together and now move into the phase of enabling local churches to form their own Mission Plans alongside the reflection and exploration of appropriate forms of ministry in each part of a diverse Circuit. We have been encouraged by a third individual with a call to Anna Chaplaincy ministry among older people. 2.1 Plans for future years To continue to resource and enable Ihe local churches to focus on worship and spiritual development. To continue to focus on mission activity that will lead new people into faith and so grow the number of Christians. To continue to work with the Diocese of Guildford in developing the Local Ecumenical Partnership at Bordon. To support the Pioneer Ministerfs work with the Compass Project, Portsmouth. To continue to support the Methodist people in Portsmouth as they se8k to discem the future location of the society. To review with local churches the availability of local leadership and consider whether their witness would be enhanced by joining together To continue to seek ways to support local churches with practicalities of buildings and finance. To continue to align our property portfolio with the needs of the Circuit going forward so that we make best use of our buildings. To continue to explore ways to respond to the Climate Emergency. Financial review During the year the Circuit re￿iVed total income of £1,380,802 (2022-23: £713,993) and dispersed £939,598 (2022-23: £863,655). Total unrestricted reserves carried forward were £1,553,451 (2022-23: £1,112,247). £102,968 of these reserves are designated: £49,993 in the Mission Fund and £52,975 in the Manse Fund. The balan￿ of £1,196,501 in the Circuit Model Trust Fund (CMTF) is held by the Trustees for Methodist Church Purposes (TMCP). The trustees of the Circuit have every reason to believe that the Circuit is a going cOn￿rn. principally because all except one of the Circuit's churches continue to meet their assessments and the Circuit has adequate reserves to cover any shortfall in anticipated income. The one church that was unable to meet its full assessment in 2022-23 paid its debt in full and its full assessment this year. There was one church that was unable to pay 2 months of its assessment this year, however, the trustees are confident that the Circuit has sufficient reserves to support any churches who have or fall into financial difficulties. There are no subsidiary undertakings. The Circuit has the following sources of funds: Interest on investments Assessments on churches within the Circuit Income from let manses These sums are used to administer the Circurt and to provide grants to churches and individuals in the Circuit so that they may embark on or continue with projects that fulfil the mission of the Circuit by bringing more people to Christ or by providing facilities that rnight enable this to happen.

EAST SOLENT AND DOWNS MEfHODISTCIRCUIT Year ended 31 August 2024 3.1 Remuneration policy The remuneration for ministerial staff is detennined by the Methodist Conferen￿, and the recommended basis of the annual increase is the average of the increases in the Consumer Price Index and the Average Weekly Eamings Index. The Circuit then applies the same annual increase to the salaries of its lay staff which is approved by Circuit Meeting as part of the annual budget 3.2 Investment Policy and Performance To comply with Methodist Standing Orders, monies for long tenn investment are lodged with TMCP who act as custodian trustee for all real estate held by Circuits, for all large (over £20,000) bequests, and for the prO￿edS of sale of any property formerly owned by the Circuit. These sums are invested in unitised investments or held on deposrt. The inveslment retums are close to tracking the movements in the ￿sE100 index. The deposit income mirrors the deposit rates available elsewhere. East Solent and Downs Methodist Circuit trustees, inveslment policy is aligned with that of the Central Finan￿ Board (CFB) and TMCP because these organisations take into consideration the social, environmental and ethical considerations, both negatively and positively, that make investments suitable for the Methodist Church. Short term deposits are lodged directly with the CFB and attract comparatively good rates of interest. There are no benchmarks for the expected retums or appreciation on investments at ThfjCP and CFB. It 18 the Circuit's policy to manage the cash and investment resources of the Circuit so that a rate of return on investment- both by way of dividend and capital appreciation - obtained is at least as good as market rate. considering the Circuit's low appetite for risk. 3.3 Reserves level and policy The unrestricted reserves readily available total £1,553,451: of whith £1,196,501 is held by TMCP in the CMTF; and the balan￿ of £356.950 represents the year*nd level of reserves. within which £49,993 has been designated for mission activity and £52,975 has been designated for future major repairs to manses: leaving £253,982 in the General Fund, The Circuit has a reserves policy covering all its unrestricted funds which is reviewed annually. Grants are made annually out of the CMTF, most of which a￿ paid in full, some will be paid by annual instalments and others may be applications for funding anticipated to be required in fvture years. The trustees seek to ensure that there are SLrffiGient funds in the CMTF to meet these antr'cipated requests and they now recognise future grants as liabilities on the Balance Sheet. Reserves Policy (a) The reserrfes policy for the Circuit's General Fund is to hold at least six month's expenditure in hand. The balance of £253,982 in the General Fund at 31st August 2024 amounted to 42.750h of the 2024-25 General Fund expenditure budget {£594,100). The 202425 General Fund income budget plans to draw £117,768 from the CMTF reserves to support this expenditure. (b) The reserves policy for the designated Mission and Outreach Fund is to achieve a balance of £20,000. The 2022-23 committed grants of £62,061 have all either been paid out

EAST SOLENT AND DOWNS METHODIST CIRCUIT Year ended 31 August 2024 or ceased because they were no longer needed. The dosing balan￿ in the Mission and Outreach Fund at 31st August 2024 was £49,993. (c) The reserves policy for the designated Manse Fund is to maintain a balance of £38,500 which equates to £3,500 per manse. In 2024-25 the cost of manse repairs is expected to increase. The balance in the Manse Fund at 31 August 2024 was £52,975. (d) The reserves policy for the CMTF is to maintain a minimum balance of £300,000. With increased missional vision in the Circuit this will need to be supported in terms of both people and buildings. Our policy is that no more than 50% of the fund shall be expended in any one year. The balance in the CMTF at 31 August 2024 was £1,196,501. 3.4 Collaborative arrangements with connected charities The Circuifs main Sour￿ of funding was the assessments obtained from each Church within the Circuit based on the membership and ability to pay and this was used to defray some of the cost of administering the Circuit which amountsd to £939,598 (2022-23: £863,655). The Circuit holds no funds as custodian trustee. Trustees, responsibilities For each financial year ending on 31st August the Trustees are required to Prepa￿ financial statements that give a true and fair view of the Circuit's financial activtties during the year and of its financial position at the end of the year. In preparing these financial statements, the Trustees must.. select suitable accounting policies and apply them consistently using the accruals method make judgements and estimates that are reasonable and prudent follow applicable accounting standards prepare accounts to comply with the Charities SORP The Trustees are responsible for keeping proper accounting records which disclose with reasonable acGuracy at any time the financial position of the Circuit and enables them to ensu￿ that the financial statements Gomply with the law. They are also responsible for safeguarding the assets of the Circuit and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The Truslees are responsible for the rna1ntenan￿ and integrity of the corporate and financial information included on the Circuit's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 4.1 Risk The Circuit is largely risk averse. Risks are managed by being aware of them, quantifying their impact not only in cost terms but in possible reputational or structural damage, laying them off through an insurer and rninimising them by not taking them or by setting up control systems that report any significant change in the risk. The four signrficant risks that have been identified are: 1 . Inability to appoint ministers and being without presbyteral staff. This is managed by giving careful attention to future workforce planning. trying to ensure that we do nol have multiple vacancies in any one year, and by engaging in early conversation with the District Chair who has a significant role in stationing decisions.

EAST SOLENT AND DOWNS METHODIST CIRCUIT Year ended 31 August 2024 2. The Circuit's main source of funding is the assessments levied on each church and there is an increasing risk that some churches may not have sufficient funds to pay their assessment. This risk is managed by holding sufficient reserves. planning ahead with an annual budget and continually monitoring expenditure against budget, 3. Safeguarding children and vulnerable adults. The Cir¢￿It policy is to adhere to the Methodist Church's poliGy on Safeguarding Children and Vulnerable Adults and to require all churches to comply with the Methodist Church's Safeguarding policy. The Circurt provides regular safeguarding training that can be accessed by churches within the Circuit to support them in complying with the policy. 4. The Circuit's manses and church buildings are at risk from damage to property and theft which is minimised by all manses and churGh buildings being adequately Govered by appropriate insurance policies with Methodist Insurance. Structure, governance and management The Circuit is an unincorporated association and is governed by the Methodist Church Act 1976, the Deed of Union and the Model Trust Deeds of the Methodisl Church and was registered with the Charity Commissioners on 2 August 2013. 5.1 Structure The Circuit is the coordinating charity for local groups of Churches, some of whom are registered as independent charities and the balance of whom are excepted charitie8. The Circuit pays the stipends of the ministers and employs lay staff to serve its Churches; most decisions are made at or rattfied by the Circuit Meeting. The Circuit is part of the Southampton District which is the coordinating charity for a group of contiguous CirGUits. District decisions are made at the half yearly synod to which the Circuit appoints both lay and ordained representatives. The Methodist Conference meets once each year as the supreme denominational body for all Methodist Churches. Overall regulatory authority rests with the Methodist Conference. The Connexional offi￿ implements decisions made by conferen￿ and is also respon8ible for the stationing of presbyters and deacons (collectively known as ministers) in individual Circuits. Connexional decisions are passed via Districts to Circuits for local implementation by the Superintendent Minister, ministerial staff and Circuit Stewards, and authority is delegated to the Circuit Meeting for ￿rtain matters. The Circuit Meeting passes regulatory control down to Church Councils for local implementation by the presbyter, the Church Stewards, and other officers, and this regulatory authority is then exercised by Church Councils as Managing Trustees of their charity. 6.2 Purpose of the Circult The Circuit is an expression, over a wider geographical area than any Church, of the Connexional character of the Church. The purposes of the Methodist Church are and shall be deemed to have been since the date of the union the advancement of: the Christian faith in accordan￿ with the doctrinal standards and the discipline of the Methodist Church, and

EAST SOLENT AND DOWNS METHODIST CIRCUIT Year ended 31 August 2024 any charitable purposes for the time being of any Connexional, District, Circuit, local or other organisation of the Methodist Church, and any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church, and any purpose for the time being of any charity being a charity subsidiary or ancillary of the Methodist Church. The primary purpose of this Circuit is to advance the mission of the Church in areas of Hampshire, Surrey and Sussex by providing opportunities for Churches to work togetheT and support each other by offering to Churches resources of personnel and expertise and occasionally finance The Circuit serves the Local Churches and the Conference in the support, deployment and oversight of the various ministrie8 of the Church, and in programmes of training. 5.3 Governance The Circuit operates Wlthin a statutory framework of regulation and seeks to ensure that it follows Methodist Standing Orders. It relies on the Connexional offi￿ at Methodist Church House, 25, Tavistock Pla￿, London WC1 H 9SF to provide guidance on changes that could affect the Circuit. The Circuit Meeting meets three times a year and is the decision-making body for the Circuit. Membership of the Circurt Meeting is made up of Presbyters and Deacons who are stationed in the Circuit. Supernumerary Ministers stationed in the Circuit who chose to be members, two representatives from eaGh Church chosen annually by each church, Circuit stewards who are appointed annually by the Circuit Meeting and individual members appointed annually by the Circuit Meeting to ensure that all areas of the Circuit's work is appropriately represented. The Circuit Leadership Team, whose membership comprises the Presbyters and Deacons stationed in the Circuit together with the Circuit Stewards, meet regularly between Circuit Meetings to implement the decisions of Circuit Meeting and to provide strategic leadership to the Circuit by formulating policies and proposals to bring to the Circuit Meeting for approval that will advance the Mission of the Circuit. There is a Circuit Finance and Property Group who meet when needed during the year and who report to and are accountable to the Circuit Meeting. Reference and Administrative Details 6.1 Name ofthe charity The East Solent and Downs Methodist Circuit. 6.2 Charity registration number 1153209. registered in England and Wales

EAST SOLENT AND DOWNS MEfHODISTCIRCUIT Year ended 31 August 2024 6.3 Principal Office 19121 High Street Emsworth Hampshire, P010 7AQ Telephone [phone] Circuit Superintendents Revd David Muskett and Revd Elize Goddess 6.5 Circuit Treasurer Mr Mark Wade 6.6 Names of trustees The following served as trustees throughout part or all of the year 202>24 or were trustees at the time of this report being approved- M Avis D Beesley D Beesley Mrs J Brandon Mis S Bond Mrs S Calvert Mrs L Collins Mrs Corrigan Revd D Coote N Cox Revd P Crispin Mrs P Cuckow A Dabbs T De Graft Eshun S Dewberry P Dey Miss P Dimmid( B Dyer Revd D Faulkner Revd E Goddess Revd R Goddess Mrs A Griffiths P Gregory J Hacon A Haynes Mrs E Hodges Mr R Hollingbery Huntingdon- Thresher B James Revd Mrs Mrs Mrs Mrs Mrs Mrs Revd Mr Mr Mrs Mrs Mr Mrs Revd Mrs Dcn Mrs Mrs Mr Mr Mr Mrs Mrs Mr Illsley S Mann Martyn B Mcaleer Minnell S Mitchell H Murphy D Muskett H Nightingale A Painter Pannell N Parker M Petter A Ri D Rice G Richardson from 11112123 S Richardson B Ross D Sales D Sawyer R Smith G Smithers R Standford A Steinhausen E Strankalis M Thomas M Travell E Wade M Wade M Wheeler from 25105124 from 11107124 from 24106124 from 29101124 from 08107124 from 11112123 from 02103124 Mrs from 27102124 from 01109124 from 01103124 Dcn from 12102124 from 01109124 Mrs until 01108124 Mr Mrs

EAST SOLENT AND DOWNS MEfHODISTCIRCUIT Year ended 31 August 2024 C JanseVanRensburg from 01103124 B Keefe from 04106124 C Wilkins C Withers Mrs until 31108124 No trustee claims exemption from disclosure of his or her name here. 6.7 Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME194JQ Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE 6.8 Investment managers and custodian trustees Trustees for Methodist Church Purposes Central Buildings Oldham Slreet Manchester M1 1JQ 6.9 Auditors appointed 1 March 2016 Morris Crocker Chartered Accountants Station House North Street HAVANT P091QU Approvals The Trustees, Report and the Financial Stalements were approved by the Circuit Leadership Team on behalf of the Trustees on 17 De￿mber 2024 Signed on behalf of the Circuit, as authorised: David Muskett (signed) Mark Wade (signed) David Muskett Circuit Superintendent Mark Wade Circuit Treasurer Date: 17 December 2024 Date: 17 December 2024

Name of Circuit East Solent and Downs Methodist Circuit Clr¢utt No 28107 Statement of Flnanclal Actlvlties (SOFA) for the year ended 31 August 2024 Noles to cIr￿lt Model Deslgnaled G•￿Tal Fund Trust Fund Funds Endowmerf Total accounts (Unrestricted) (Unrestri¢t•d) (Unrestricted Funds 2023-24 Totsl 2022-23 Income and Endowments In¢ome from inv95tmen15 Income from charitable actmtles Assessments on churches Capitsl ￿Ceipts Total from charitable actMJ¢s Letting$ Total charitable Income Other Income Total incom• arKI endovmients 16353 65.111 81A64 39,441 378,396 23,451 401W17 97,799 515.999 3,032 519,031 378,396 779,111 1,157,507 97,799 1,336,770 44,032 1380.802 374,868 200,000 574.868 92,272 706.581 7,412 71a.993 13 755,660 755,660 820,771 41.000 861,771 Expenditure Expendlture on charflable a¢tlvltle8 Grants and donations Stip8nds and assodated costs maintenan￿ on manses Office expenses Telephone and travel Insuran￿ and utllity ¢osts Dlstrfct assessment Melhthll$t Church Fund CMTF ￿vIeS pald Expenditure on othw cirojit property Other outgolngs Tolal charltable expendllure 18,595 344,352 550 7,594 23,171 20,316 16A60 89.184 -7.045 11.550 344.352 39,944 7,594 23,171 30,018 16,860 89,184 330,355 26,756 19.814 939,598 58,129 315,229 70,482 6,968 23,382 34.90D 14,084 79,780 155.052 49,957 55,692 863,655 39,394 10 10 11 9,702 13 330,355 26,756 17.502 564,880 12,13 2,312 332,667 41051 Net incrynel(expenditurB} belore Investm8nt galn$llosses gain51(108se8) on inveStr￿nts 45.849 529,104 42,051 441,204 494 -149,062 -283 13,17 494 Net IncompA(8x￿nrtI1Urn) bèfore transfws 45,849 529,104 42,051 494 441,698 -149.945 Transfers betr￿en fundj Other gai[￿{10$Se5) 14 72.608 -153A12 81.104 345,530 Net movement In fund8 26,759 375.Z92 39,153 494 441.698 195,585 Total funds brought fof%rdrd 21-23 3,681,650 821209 63015 6,391 4,573,065 4.377N80 Total funds Carried forward 21-r3 3.708,409 1.196.501 102,968 6,885 5.014,763 4,573,065 io

Name of Circuit East Solent and Downs Methodist C[￿urt Clrcuit No 26107 Balance Sheet as at 31 August 2024 Goneral Fund {Uftrtstslctd} Clrcuit Mod•l Tn￿t Fund (ilnrnstrlcted) D•Blgnated Funds IUnrgstriGlod Endo￿nI Funds T(al¥ 2024 Tolals 2023 Fixed Assgts anses Inveslmenls 3,454,427 3,454.427 6.885 3.461.312 3.454,427 8,391 3.460,818 17,23 6,885 Tothl fix￿•$¢(• 3.454,427 Currant Assèts Deblors and repa Loans th& Circuit Inv¢slm&nts ￿th TMCP C6ntral Finance Board Deposlts Cash al BAnk and In hand Total cuffenlassets nts 16 16 17 18 32.934 20.262 5.126 43,024 20,262 1.191,537 320,507 19,371 1.594.701 60.282 1.5CIO 817.209 320.375 12,026 1.211.372 1,191,537 230,589 11.267 295.052 89.918 8.104 103.148 18 1.196.￿1 urront Ilobllltl•• Creittors (d￿ In urmjer 1 year) Grants payable 1 year Totsl cumntHabllltlès at current assoWllabllhles 19 41,070 41,250 37.064 62.(181 99,125 1.112,247 41,070 253,982 41,2SO 1,$53.451 1.195.501 102,968 3.708.409 1.19S.501 1ff2,968 5,014.763 4.573.065 N•1 ass•ts 3.708,409 1,196.501 102,968 6.885 5,014,763 4,573.065 Funds of thg cIr￿lI Unrestricted: General Fund Pro Circuil Model Trust Fund 21.1 21.1 21.2 21.3 253.982 3,454.427 253,982 3,454,42T 1.196.501 102.968 5.007.878 6.885 5014763 227,223 3,454,427 821,209 63,815 4.566,674 6,391 4.573,065 1.196.50t naled FuThY$ 102.968 Endowment Funds Total Funds 3.708A09 1.196.501 102,968 6085 ThE finanrAal statements were approved on t)ehaff ofthe &ffjrd of Tnths on 17th Detembw 2024 Theymwe Signed on behaLf of the B¢wd 0lTrt￿tee$ ty: ReKt D Mu¥kett li

Name of C1￿Ul1 East Solont and Downs Alethotht Ctreult Ctrcult No 26107 Statement of cash flows for the.year ended: 31 August 2024 (229, 136): i229,1￿) , N•t ¢•h pro¥id•d by lu••d ITr) operatTrng actlvili•s Cash lity￿ frtyri InvestinL%tl¥tt1￿. Inier•ii recav&l frrm Irweglm8nts 39.441 1.932 .N•t ¢￿h prfwided by {u8•d In) In¥estlng •cl 81.464 hatyo In cash •nd In th• r•portlNJ p•riod 361,8051 1187.7631 Cash and cash •quidl8nts •tthè bqiTrnI￿0fth9 repOrtIn￿r￿ad 1,337 913 C•sh and cash •1 •nd of th• r•p(Ung ￿140￿. 1,531 955 1.1X).150 1 R•conclliatiori of net in¢0m￿l•¥p•ndl￿rn) io rnt￿h flow frnrn rtovltkns 2024 lknt In¢tyMll•xpndlturollorthg 1•POrtin￿_ p•nod {aB per th• 9Liigrngnt of flnanctsl a¢tlvltl•l Adjustments for. ains1c￿ Imi&sbn 149.9451 283 139.4411 (24.536} 115,497) 1229,1361,, Drtlinws#j in dabtors (1,5241 (57.8751 Ne¢ providÈd ty (used In) 9￿1.1￿ •cOvltlo0

Accounting framework and accounting policies i Accounting framework The financial statements have been prepared in accordan￿ with the Charities SORP (FRS 102) '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) (effective from 1 January 2019),. Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Charrties Act 2011. li Public benefit entlty The East Solent and Downs (ESandD) Circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost ortransaction value unless otherwise stated in the relevant accounting policy notes 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. on the accruals basis to show a true and fair view of the Circurt's financial position and activities. iv Content The financial infonnation presented is relevant, reliable. comparable and complete. Vvhere 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 These accounts are compliant with FRS102 and with the FRS102 SORP 2019. vl Going concern Based on the monetary assets and human resources available at 31 August 2024, the trustees believe that the Circuit is a going Con￿rn and there is no material uncertainty with regards to this assumption. vii Income recognitlon Income is brought into account when it is more likely than not that Ihe economic benefit of the income will be forthGoming. No attempt is made to measure the value of services donated by volunteers and. in accordance with the Charities SORP (FRS 102) the time of volunteers is not recognised. Individual amounts categorised as other income in the SOFA will be shown separately if they are considered material. The Circuit acts as agent in the collection of donations to Connexional Funds from churches which are paid to the relevant Connexional Fund Dn regular basis. The transactions are not reflected in the SOFA because the sums received cannot be recognised as income in the Circuit as they are the income of the Connexional Funds. viii 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 outllow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources. ix Grants Grants are recognised in full when the award is made On￿ the Circuit accepts that there is legal or constructive obligation to make payment and that such payment is probable. x VAT The Circuit is not VAT registered and all input VAT is charged with the expense to which it refers. 13

xi Tangible fixed assets These are capitalised rf they can be used for more than one year, and individually cost at least £1,000. The freehold propety is shown in the accounts at the total cost value of all the manses on 1 September 2015, except for new manses purchased after 1 September 2015, which are brought into the accounts at their purchase pri￿. The total land component is deemed to be £1,151,476, see Note 15. No depreciation is provided on the buildings because the trustees consider the residual value of the manses is not less than cost and the depreciation would be immaterial. The CirGUit makes use of the deemed cost transitional provisions of the FRS 102 SORP. xii Investsnent Properties There are no investment properties. Those properties owned by the Circuit but not used as manses, are rented out, and are being kept by the Circuit, pending future stsffing requirements xiii Investments The investments of ESandD Circuit a￿ held by the Trustees for Methodisl Church Purposes (TMCP) as custodian trustees. The valuations, at market value, are those provided by TMCP. The unrealised gains arising on investments at the end of the year are shown in the SOFA and in Notes 13, 17 and 23 below. xiv Financial Instruments The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable investments in stocks and shares. The rneasurement basis used for these financial instruments is detailed below. xv Receivables and Payables; Bank and Cash Debtors are stated at the amounts owed to the Circuit or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where nonral credit terms apply, or at amount advanced to the Circuit. Subsequently, Creditors that are current liabilities are measured at the cash or other consideration, are expected to be paid. The liquid funds of bank balances and d8POSit account balan￿S are shown at the realisable values. xvl Loans Vthere cOn￿SsiOnary loans (i.e., free of interest) are made to (or received by) the Circuit to further its charitable purposes, and are repayable after more than one year, they are initially recognised at the amount paid [or re￿IVed], with the carying value adjusted in subsequent years to reflect repayments and any accrued interest, adjusted for any impainnent, rf necessary. Where there is objective eviden￿ of impaimient, an immediate impairment loss is recognised in the Statement of Financial Activities. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impainnent loss was recognised, are recognised immediately in the Statement of Financial Activities. Glossary of terms CFB: Central Finan￿ Board of the Methodist Church manages a Common Deposit Fund and a series of pooled investment funds for Methodist entities in Great Brrtain and provides investment advice to those entities Church: a group of members from fewer than 12 to more than 300 Circuit: a group of Methodist Churches near each other, typically between 10 and 30 CMTF: Circuit Model Trust Fund Connexlon: The Methodist Church in GB which includes the national office at Methodist Church House, all Methodist Distiicts, Circutts and Churthes in Great Britsin 14

FRS: Financial Reporting Standard MCF: Methodist Church Fund 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, Endovdments and Accumulated Funds 15

3 Ststement of Financial Activities for the year ended 31 August 2023 General Circuit Model Designated Fund6 Trust Fund Funds Unrestrictsd Unrestrlctsd Unrestrlcted Endowment Funds Total 202243 Income and Endowments In¢omo from investments Income from charltable activities Assessments on churches CMTF levies refunded Total from charitabl• activities Lettings Total charitable Income Other income Total income and endowments Expenditure Expenditurn on charitable activities Grants and donats'ons Stipends and associated costs Maintenance on manses Office expenses Telephone and travel Insurance and utility costs District assessment Methodist Church Fund CMTF levies paid Expenditure on other circuit property Other outgoings Total charitable expenditure Net income before investment (losses)Igalns Net (losses)Igains on investments 13,546 25,895 374,868 374 868 200 000 574,868 92,272 706,581 7,412 713.993 200,000 1 200.000 374 868 92,272 225,895 7,412 488,098 225 895 2,913 315,229 480 6,968 23.382 24.902 12,58S 42,631 58,129 315,229 70,482 6,968 70,002 9,998 34,900 14,084 79.780 155 052 40,298 9.6S9 1,033 178,329 49,957 55,692 863 655 562,695 122.631 -74,597 47,566 -122,631 -149 662 -283 -283 Net (8xpendsture)fincome before transfers -74,S97 47.566 -122,631 -283 -149,945 Transfers beiween funds Other g8insl{losses) -33,032 65,135 345,530 Net movement In funds 237,901 -57.496 -283 195 $85 Total funds brought forward 3A43.749 805 746 121311 4 377 480 Totsl funds carried foThrnrd 3,681,650 821,209 63,815 4,573,065 16

Assessments on Churches The Circuit oversees the work of the following Churches: Bedhampton Methodist Church St Mark's Church, Bordon Drayton United Church Emsworth Methodist Church Fareham Methodist Church Gosport Methodist Church Hart Plain Church Haslemere Methodist Churth Havant Methodist Church Lee on the Solent Methodist Church Lindford Methodist Church Liphook Methodist Church Midhurst Methodist Church Petersfield Methodist Church Portchester Methodist Church Portsmouth Methodist Church Stubbington Methodist Church Wymering Methodist Church The assessment paid by churches is calculated using a fomiula that is approved by Circuit Meeting of 25% membership and 75% ability to pay. The exceptions to this are the local ecumenical partnership churches at Hart Plain and St Mark's Church, Bordon who pay a parish share to the relevant Diocesan authority and the contribution they make to Circuit funds is redU￿d to take account of this. For 2023-24, the overall assessment to be raised represented a 2.59A increase cornpa￿d to 2022-23. In addition, it was decided to cap the increases at 50/0 and decreases at 20A. Any shortfall was to be met from reserves. Portsmouth Methodist Church paid its assessment debt of £24,731 during 2023-24. Havant Methodist Church were unable to pay 2 months of their assessment during 2023-24 and owe £1,530. This will be reviewed in 2024-25. See Note 16. Payments to trustees It is Circuit policy to offer to reimburse Ministers, Circuit Stewards, Local Preachers and Supemumerary Ministers for expenditure properly incurred in canying out their duties. Expenses that have been reimbursed are itemised under office expenses, telephone and travel, and other outgoings under Notes 10 and 12. The total amount reimbursed is £20.533 to 11 trustees. This is a slight increase when compared to 2022-23 (£19,918). Other income The figure of £44,032 (2022-23-. £7,412) is: £3,032 to the General Fund which is £2,379 from bookkeeping services offered to Churches and £653 received as collections from Circuit serviGes and paid out to the Methodist Church Fund for Training. £41,000 to the CMTF which was the retum of the voluntary contribution made to the Pension Reserve Fund in September 2021 . Grants and donations and related support costs Several grants were made during 2023-24 to pay". the interest re￿iVed from the Gane Bequest and to churches for property projeGts and mission work. The contributions to the costs of minister to continue the work ofthe Beacon Church were oased from January 2024 as they were 17

no longer being used for their intended purpose and the remaining grant for this was ￿moVed. A net total of £11,551 {2022-23: £58,129). 2023-24 2022-23 From General Fund". Gane Be uest interest aid to Gos Grants aid to churches for ro Total From Circuit Model Trust Fund- Pro ro ect rant to Hart Plain Church Total From Mission & Outreach Fund: Increase to Haslemere Mission Intern rant Grants to Churches for mission ro ects Remove a reed rant to Beacon Church Write off un aid assessments Grant for Havant Passion Pla Total Total rtmc ro ects 175 18,420 18,595 178 2,735 12,585 3,800 27,022 -29,193 8,809 -7.045 rants and donations $8,129 Salaries and associated costs Gross salaries paid to 11 (11 in 2022-23) employees were as follows: 2023-24 2022-23 Gross Employerfs National Insuran￿ Contributions Employerfs pension corrtribLrtions to defined benefit schemes Totsl stipends and associated Gosts 271,301 23,446 248,985 20,756 49,605 344,352 45,488 315.229 No employees received employee benefrts that totalled more than £60,000. There were no accruals for holiday pay. All staff were paid at or above the living wage. There are no key management personnel. Most ordained presbyters and deacons are rnembers ofthe Methodist Ministers, Pension Scheme (MMPS). This is a defined benefrt scheme. The Supreme Court held in 2014 that Methodist ministers (which term indudes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National Insuran￿ Contributions and pension contributions, the tenns 'employerf and 'employee' are used as they would be in an employing body. ESandD Circuit is registered with the NEST Pension Scheme and contributes 60A of gross salary for its eligible employees and any other employees that elect to join the pension scheme. This is in accordance with the directive from Conference. 18

Maintenance on manses and expenditure on other Circuit property 2023-24 2022-23 maintenan￿ and repairs on manses Quinquennial inspections on manses Maintenance on manses total From General Fund: Quinquennial inspections on churches Letting agent fees Copnor Church building costs Bridgemary Church building costs Manse legal fees Totsl From Circuit Model Trust Fund: Manse legal fees Totsl Expenditure on other Circuit property total 39,394 550 39,944 70,002 480 70.482 1,675 6,350 1,147 17,584 1,295 5,625 15,607 14,052 3,719 40,298 26.756 9,659 9,659 49,957 26,756 10 Office expenses and telephone and travel 2023-24 2022-23 Ministers, & La em Circuit office costs Office ex nses total Ministers, & La ern lo ees. travel costs Circuit Stewards, travel costs Ministers, & La em lo ees, tele Tele hone and travel total lo ees office costs 1,146 6,448 7,594 18,372 171 4.628 1,041 5,927 6,968 18,000 1,086 4,298 hone costs 11 Insurance and utility costs 2023-24 2022-23 Manses insurance Manses council tax Manses water & sewera Total 9,702 17,729 2,587 30,018 9,998 20,234 4,668 34,900 e rates 12 Other outgoings 2023-24 2022-23 From General Fund". Local preachers, expenses rnumeraries, ex enses Circuit Stewards, other costs Trainin and Develo ment costs Audit fees 1,686 4,535 167 165 4,195 2,000 2,706 90 469 4,063 19

Youth work Cha lainc costs Bank char es Contribution to URC for Dra Miscellaneous costs Removal costs Relocation allowance Loans aid out Welcome Service collection Manse rental costs Totsl From Circuit Model Trust Fund: TMCP admin cha Total Other outgoings total 24 75 on United Church 2,022 3,017 972 3,135 21,132 1,200 aid out 653 249 18,040 54,659 17.502 2,312 2,312 19,814 1,033 1,033 55,692 None of the ￿MainIng individual arnounts aggregated as 'miscellaneous costs, above - is considered material and therefore, are not listed separately. 13 Investment management During the year the Circuit paid an administration charge of £2,312 (2022-23: £1,033) to TMCP, the custodians of the Circuit Model Trust Fund (CMTF). This was levied at 0.285% on the value of the funds at the end of the previous year (£811,209) and is shown in the othei outgoings line on the SOFA and in Note 12 above. The Circuit paid £52,091 (2022-23: £18,427) as its annual contribution to the District Advan Fund (DAF) of Southampton District which was levied on an asset value in the CMTF of £811,209 as at 31 August 2023. In addition, the Circuit paid a Connexional Priority Fund (CPF) Levy of £278,264 based on the prO￿edS of £755.660, shown on the Capital re￿IPtS line of the SOFA, from the sale of Copnor Methodist Church. CPF Levy is calculated in accordanGe with CPD Standing Order 972. The total levies paid were £330,355 (2022-23: £155,052). An additional amount of £23,451 was paid into the Circuit's current account being the reimbursement of various fees in connection with the sale of Copnor Methodist Church, also shown on the Capttal re￿iptS line of the SOFA. The amount of £494 {2022-23: -£283) on the net gainsl(losses) on investments line of the SOFA, represents the net unrealised gain in the Gane Bequest endowment fund. More information can be found at Notes 17 and 23. 14 Transfers between funds The transfers between funds shown on the SOFA represents: transfers of budget amounts and transfers from the CMTF as agreed by the Trustees at Circuit Meeting. The net £72,608 transferred into the General Fund is made up of: £100,000 from the CMTF as a transfer from reserves to balance the 2023-24 budget plus £7,608 for work at Bridgemary Church., less £35.000 to the Manse Fund for manse repairs and insuran￿. The £153,812 out of the CMTF is made up of: £107,608 to the General Fund and £46,204 to the Manse Fund. The £81,204 into the Manse Fund is made up ofr. £25,000 for manse repairs budget and £10,000 for manse insurance budget from the General Fund" £28,571 from the CMTF for garden landscaping works and finishing the new kitchen at 6 St Thomas Close, plus new windows and doors for Nicholson Way. plus £17,633 to restore the balance in the Manse Fund at the start of 2023-24 to the reserves policy level of £38,5000 (£3,500 per manse). 20

15 Manse and other property The basis for the deemed cost of the 11 manses is the total of the buildings value on 1 September 2015 except for any new manse purchased after 1 September 2015 for which the purchase value was used. This amount has been split into one third land value and two thirds buildings value. The frozen valuation option has been adopted. There is no depreciation on the manses as the informal review of the manses as carried out at the end of the year by the Circuit stewards. confinned that the current residual market value of the buildings was greater than the carrying value of that part of the asset's cost to date. Cost or valuation Land Buildings Total Balance brought forward at 31 August 2023 Transfers between categories Balance carried forwar(l at 31 August 2024 1,151,476 2,302,951 3,454,427 1,151,476 2,302,951 3,454.427 16 Debtors and prepayments All sums paid in advance at 1 September 2023 were for costs incurred during 2023-24. Similarty, it is expected that payments in advance at 1 September 2024 will be expensed in 2024-25. The unpaid church assessrnents 2022-23 were paid in full in 2023-24 Debtors and p￿paYrnents were made up as follows: Debtors Contribution for Prayer handbooks Unpaid church assessments 2022-23 Unpaid church assessments 2023-24 Rent owed from 2023-24 Prepayments Ministers, stipends paid in advance Deposit paid for work to be done in 2024-25 Accrued income August rent paid in September CMTF interest due for 31 August Refund received in October for Copnor Church building insurance paid in May Total 2023-24 2022-23 211 213 24,731 1.530 1,200 23,643 5.126 24,063 6,350 3,950 4,000 3,305 60,262 43,024 Loans by the Circuit Bedhampton Methodist Church Havant Methodist Church Lee on the Solent Methodist Church Totsl 9,000 5,000 6,262 20,262 1,500 1.500 Total Debtors 63,286 61,762 21

17 Trustees for Methodist Church Purposes The CMTF is held by TMCP in a Trustees Interest Fund on which interest is Credited to the account each month. The Gane Bequest endovllnent fund is held by TMCP in a CFB Managed Mixed Fund on which the dividend distribution is credited to the Circuit's CFB deposit account each quarter. These are regarded as medium and long-tenn investments. Market value As at 1 September 2023 Revaluation As at 31 August 2024 Net book value As at 31 August 2024 As at 31 August 2023 6,391 494 6,885 6,885 6,391 TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, induding legacies, endowments and accumulated funds. Trust property is held for and on behalf of local Managing Trustees who are responsible for the day-t(Fday managemerrt 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 detemiined by the Methodist Conferen￿. 18 Central Finance Board and Cash at Bank The Circuit has one Current account at CAF Bank Ltd, an authorised institution. The sums held on that account are immediately available. In addition. the Circutt has one deposit account at the Central Finance Board (CFB), a common deposit fund. Interest is earned on this account and is credited monthly to the account; the sums deposited can be withdrawn without noti￿ and withoLrt loss of interest. These sums are viewed as being liquid. 19 Creditors, accrued expenses and deferred income 2023-24 2022-23 Creditors: Audit fee Expenses reimbursed Farewell sendi￿ collection owed to Methodist Church Fund for Training Accruals- Accrued expenses Manse repairs owed Totsl creditor8 & accruals Deferred Income: Assessments paid in advan Rent paid in advan Total deferred Income Total credltors 4,190 2.761 4.063 2,189 389 2.389 180 9,520 1.182 888 8.711 30,695 27.318 1,035 1.035 31,730 28,353 41,250 37,064 Deferred Released Deferred Deferred Deferred income 01-Sep23 in year in year 31-Aug-24 Assessments paid in advance 27.318 (27,318) 30,695 30.695 Rent paid in advan 1.035 (1,035) 1,035 1.035 Total 28.353 (28,353) 31,730 31.730 Deferred income represents amounts received in advance of the relevant service delivery period and is recognised as income in the SOFA as the associated obligations are fulfilled. 22

20 Grants payable within 1 year It is Circuit policy to ￿COgnise committed grants immediately as expenditu￿ and thus accrue the unpaid amounts at the year-end as liabilities. During 2023-24, the balance of the grant for Beacon Church was removed, see Note 7: and £25,800 was paid to Haslemere MC, leaving the Circuit with no comrnitments to pay grants from any funds. 2023-24 2022-23 From MIs8ion Fund: Remainin rant a reed for Beacon Church Bordon Grant a reed towards Haslemere MC Mission Intem Total a rants able 36,261 25,800 21 Unrestricted Funds 21.1 General Fund £3,681,650) balance £3,708,409 at 31 August 2024 (2023: The purpose of Ihe fund is for use at the discretion of the trustees In the furtherance of the general objectives of the Circuit and which have not been designated for other wrposes. 93.20A of this fund is held as 11 freehold properties which are used as manses for the ministers of the Circuit. Those manses that are not currently needed for ministers are rented out until such time as they are needed. 21.2 CMTF - balance £1,196,501 at 31 August 2024 (2023: £821,209) The CMTF is held by the TMCP, Note 17. and is where the majority of the reserve funds of the Circuit are held. These fvnds are not restricted by any document or deed to a specific purpose. 21.3 Designated Funds £63,815) balance £102,968 at 31 August 2024 (2023: The designated funds of the Circuit are.. the Manse Fund which is funds that have been set aside to meet the repairs and maintenance as deemed ne￿SSary for the Circuit's manses,. the Mission and Outreach Fund which was funded by the equivalent salary costs of 3 lay employees made redundant in 2016-17 until 2021-22 when no further transfers were made, as agreed by Circuit Meeting; its purpose is to provide grants to Churches to assist with any mission andlor outreach projects. All of these funds have been set aside for specific purposes but none of them are reslricted lo that purpose alone by any document or deed. The balan￿ at 31 August 2024 of £102,968 is rnade up of: £52.975 in the Manse Fund. £49,993 in the Mission and Outieach Fund. 22 Endowment Fund- Gane Bequest The Gane Bequest endowment fund is from a bequest left to Lees Lane Methodist Church and is held by TMCP in the Ex-Lees Lane Trust within the CFB Managed Mixed Fund. The dividends from this fund are paid into the Circuit's CFB deposrt fund and are paid over to Gosport Methodist Church, by agreement of the trustees. 23

23 Movement in significant individual funds Movement in funds for current year 12 months: Balance at 01-Sep-23 Income Gainsl Balance at Losses 31-Aug-24 Fund Expenditure Transfers General Fund Property Reserve Fund Circuit Model Trust Fund Manse Fund (Des) Mission & Outreach (De8) Total unrestrlcted funds Gane Bequest Total endowment funds Total funds 227,223 3,454,427 821,209 20,867 42,948 4,566,674 1,380,802 6,391 6,391 4 573 065 1380 802 519,031 564,880 72,608 253,982 3,454,427 1,196.501 52,975 49,993 0 5,007,878 494 6,885 494 494 5 014 763 861,771 332,667 (153,812) 49,096 81,204 (7,045) 939,598 939,598 Comparatives for movement in funds for prior year 12 monlhs: Balan￿ at 01-SeFF22 Income Gainsl Losses Balance at 31-Aug-23 Fund Expenditure Transfers General Fund Property Reserve Fund Circuit Model Trust Fund Manse Fund (Des) Mission & Outreach (Des) Total unrestricted funds Gane Bequest Total endowment funds Totsl funds 332,920 488,098 3,110.829 805,746 225,895 35,731 85,580 4,370,806 713,993 6,674 6,674 4 377 480 713.993 562.695 {31,100) (1,932) (32,103) 65,135 227,223 345,530 3,454,427 821,209 20,867 42,948 345.530 4,566,674 {283) 6,391 283 6,391 345 247 4 573 065 178,329 79.999 42,632 863,655 863,655 A current year 12 months and ptior year 12 months combined position is as follows: Balan￿ at 01-Sep-22 Income Gainsl Losses Balance at 31-Aug-24 Fund Expenditu￿ Transfers General Fund 332,920 1,007,129 Property Reserve Fund 3,110,829 Circuit Model Trust Fund 805,746 1,087,666 Manse Fund (Des} 35,731 Mission & Outreach {Des} 85,580 Total unrestrlcted funds 4,370,806 2,094,795 Gane Bequest 6,674 Total endowment funds Totsl funds 1,127,575 41,508 (1,932) 510,996 {185,915) 129,095 146.339 35,587 1.803,253 253,982 345.530 3,454,427 1,196,501 52,975 49,993 345,530 5,007,878 211 6,885 211 6,885 345,741 5,014.763 4,377 480 2 094,795 1803,253 24

24 Volunteer contributions Every entity (Connexion, District, Circuit and Church} within the Methodist Church in GB is heavily reliant on volunteers who contribute their skills, time and money in the furtherance of the work of the Church. Principally this contribution is by serving on committees of the Circuit that deal with mission, manses, finance, policy, grants. training, development. We are grateful to all of them for their help and commitment. It is impossible to put a monetary equivalent value on this. 25 Capital commitments and contingent liabilities There were no capital commitments or contingent liabilities at the year end. 26 Auditor An accrual has been made for the fee of the audilors in the surn of £4,190 for the year 2023-24 (2022-23 £4,063). 27 Related party disclosures There were no related party transactions for the year ended 31 August 2024. 25

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF EAST SOLENT AND DOWNS METHODIST CIRCUIT Opinion Vve have audited the financial statements of East Solent and Downs Methodist Circurt (the 'charity') for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 {United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 August 2024 and of its incoming resour￿$ and application of resources for the year then ended" have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been p￿pared in accordance with the requirements of the CharIt￿S Act 2011. Basis for 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 Auditors responsibilities for the audtt of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Stsndard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden￿ we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial ststements, we have concluded that the trustees, use of the going concem basis of accounting in the preparation of the financial statements 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 iwelve months from when the financial statements are authorised for issue. Our responsibilrties and the responsibilities of the tfustees with respect to going concem are described in the relevant sections of this report_ Other infomiation The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other infomiation 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 financial statements, our responsibility is to read the other information and, in doing so, consider whelher the other information is materially inconsistent with the financial statements or our knowledge obtsined in the audit or otherwise appears to be materially misstated_ If we identify such material inconsistencies or apparent material misstatements. we are required to delemiine whelher there is a material misstatement in the financial statements 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 infom]ation, 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 We have nothing to report in respect of the ft)Ilowing matters where the Charities Act 2011 require5 US to report to you if, in our opinion.. the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements . or sufficient 2ccounting records have not been kept. or the financial statements are not in agreement with the accounting records and retums. or we have not received all the informats'on and explanations we require ft)r our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF EAST SOLENT AND DOWNS METHODIST CIRcurr Responsibilftles of trustees As explained more fulty in the Ststement of Trustees Responsibilities. the trustees are resp)nsible for the preparation of the financial statements which give a true and fair view. and for such intemal control as the trustees determine is necessary to enable the preparats'on of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concem, disclosing, as applicable, matter5 related to going concem and using the going concern basis of accounting unless the trustees erther intend to liquidate the charity or to ￿ase operations, or have no realistic altemative but to do so. Our responslbllltles for the audit of the financial statements We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assuran￿ about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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 a￿ayS detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individualty or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance wtth laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. To the extent to which our prO￿dureS are capable of detecting irregularits'es. including fraud is detailed below. From discussion wrth management and those charged with governan￿ infomation about the entity is documented to assess the activity within the organisatj'on. ive discuss managements assessment of risk in respect of irregularities, fraud and going Goncem. Based on these discussions and our own assessments we determined that the key risk areas were income recognition in respect of cut off issues and management override concerning the size of the organisation. We set financial statement materialty level based on the level of income. As a not for profit organisation raising income is its primary focus which is why income was used to detennine the level of materiality. Our overall assessment of risk was used to dete￿nine Performan￿ materiality at an appropriate level. Substantive audit tests were deS￿ned after assessing and performing vmlkthrough tests. The walkthrough testing confirmed documented systems which have b￿n designed to act as a preventatrve measure against fraud and error which appear to be operating as documented. Substantive testing tested a sample of the population. representative of the population, to identify errors. The testing did not idenkn'fy any material misstatements in areas tested. Audit substantive tests concluded no material errors over the key risk areas of income recognition and management override. The audit considers the organtsation is not exposed to material risk of error as a result of assessing laws and regulations that are appropriate to the organtsation. Management assessed there is no going concern risk. The audrt undertook a review of budgets, management accounts and the review of board minutes and came to the same conclusion as management. A further descnption of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.or .uklauditorsres onsibilities. This description forms part of our Report of the Independent Auditors. 27

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF EAST SOLENT AND DOWNS METHODIST CIRCUIT Use of our report This report is made solely to the charity's trustees, as a Lx)dy, in accordance with Secb'on 144 of the Charities Act 2011 8nd regulations made under Section 154 of that Act. 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 auditors, 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 and the charity's trustees as a body, for our audit work, for this reFN￿. or for the opinions we have formed. Morris Crocker Limtted Chartered Accountants Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 station House North Street Havant Hampshire P09 1QU Date.. 28