EAST SOLENT AND DOWNS METHODIST CIRCUIT Registered Charity Number 1153209 TRUSTEES, ANNUAL REPORT for the year ended 31 AUGUST 2025 EAST SOLENT AND DOWNS METHODIST CIRCUIT Year ended 31 August 2025 Objectives and activities In setting our objectives and planning our activrties, the Circuit Meeting (under the leadership of the Circuit Leadership Team). whith meets three times in each year. has given Gareful consideration to the Charity Commissioners. general guidance on public benefit and in particular. to its supplementary public tenefit guidance on advar.cing our objectives and conforffls to the Charit,es Act 2011. Our Mission is to resource and enable the Local Churches of the Circuit to pursue the mission of God through worship. leaming and caring. SeN1￿ and evangelism. This is done for as many people as possible within the geogr8phical 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 supports the advancement of the Christian Faith through ecumenical liaison with other Christian groups. There is a significant increase in general house building and 8ccommodation for older people wrthin the Circuit footprint. This is seen to be a growing opportunity for Mission and Outreach. Achievements and performance In common with other Circufts and churches of other denominations, this has again been a year with both challenges and encouragements. Digital Church continues to provide a service 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 services enable Individuals to access a worship seNice on Sundays if they are unable to get to a church building It also provides a service which congregations can use on occasions when it is not possible to provide a preacher. In addrtion to the weekly services, we have developed some 'shorts , especially as Lent Reflections. One major challenge is filling the appointments on the Preaching Plan. The availability of several resources, including our own Digrtal Church services encouraged the development of members of local congregations in leading worship. Whilst we were not in stationing for the 2024-5 Connexional Year there has been some change in responsibilities. Our part-time Supemumerary Minister responsible for one church came to the end of the appointment and that church was added to the responsibilities of another Minister. One diaconal stationing ended with the Deacon being stationed in another Circuit. Our remaining Deacon's ministry focus is now In the south of the Circuit where rt has been In the north for the last 3 years. There will always be more than enough to do ',or the ministry time available. and it remains a challenge to distribute drfferent forms of ministry as most appropriate to the needs across the Circurt. We note the rapidly expanding population in several areas of the Circuit and continue to cjiscern when. where and how to include and offer ministry to those areas We continue to work with our ecumenical partners. Including Bordon. Drayton and Hart Plain. EAST SOLENT AND DOWNS METHODIST CIRCUIT Year ended 31 August 2025 The District's Ccmpass Project launched in Portsmouth. September 2024 is a Pioneer Ministry as an alternative form of ministry with real potential to Impact the younger generation and their families in the Copnor area. This ministry is currently mairly done wrth the 8oys and Girts Brigades in th8t area. 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 appropri3te forms of ministry in each part of a diverse Circurt. 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 the local churches to focus on worship and spiritual development. To continJe to focus on mission activity that will lead new people into farth and so grow the number of Christians. To continue to work wrth our ecumenical partners in the Circuit at Bordon. Drayton and Hart Plain. To continue to support Ihe Pioneer ministry with the Distnct s Compass Project, Portsmouth. To continue to support the Methodist people in Portsmouth as they seek to discern the future loGation of the society, To continue to review, with local churches. the availability of local leadership and consider where their wjtness would be enhanced by joining together. To continue to seek ways to support local Churches with practicalities of ministry and propety To continue to align our property portfolio with the needs of the Circuit going fO￿ard 50 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 Circutt received total income of r541:232 (2023-24.. £1,380.802) and dispersed £794,261 (2023-24. £939.598) Total unrestricted reserves camed forward were £1.300,422 (202>24. £1.553.451). of which £1.000:318 is held by the Trustees for Methodist Church Purposes {TMCP) in the Circurt Model Trust Fund (CMTF). Out of the remaining balance of £300.104. £64.825 are designated". £25.993 in the Mission Fund and £38,832 in the Manse Fund. leaving £235,279 in the General Fund. The trustees of the Circuit have every reason to believe that the Circuit is a going concern, pnncipally because all the Circuit:s churches continue to meet their assessments and the Circuit has sufficient reserves to cover any shortfall In income matching expenditure and to Support any churches who fall into financial difficulties. There are no subsidiary undertakings. The Circurt has the followrng SoUr￿S of funds.. Inte￿St on investments, assessments on its churches and income from let manses. These sums are used to administer the Circuit and to provide grants to churches in the Circutt so that they May embark on or continue wrth projects that fulfil the mission of the Circuit by bringing more people to Christ or by providing facilrties that might enable this to happen. EAST SOLENT AND DOWNS METHODIST CIRCUIT Year ended 31 August 2025 3.1 Remuneration policy The remuneration for ministerial staff IS deternined by the Methodist Conference. and the recommended basis of the annual Increase is the average of the increases in the Consumer Price Index and the Average Weekly Earnings Index. The Circuit then applies the same annual increase to the salaries of its lay staff which is approved by Circurt Meeting as part of the annual budget 3.2 Investment Policy and Performance To comply wrth Methodist Standing Orclers, monies for long term investment are lodged with TMCP who act as custodian trustee for all real estate held by Circuits, for all large lover £20,000) bequests, and for the proceeds of sale of any property formerfy owned by the Circurt. These sums are invested in unitised investments or held on deposrt. The investment retums are close to tranking the movements in the FTSE100 Index. The deposit income mirrors the deposit rates available elsewhere. East Solent and Downs Methodist Circuit trustees, investment policy Is aligned with that of the Central Finance Board (CFB} and TMCP because these organisations take into consideration the social. environmental and ethical considerations, both negative y and positively. that make investments Suitable for the Methodist Church Short term deposits are lodged directly wtth the CF8 and attract comparatively good rates of interest. There are no benchmarks for the expected returns or appreciation on investrnents at TMCP and CFB. It is the Circurt s policy.to manage the cash and investment resources of the Circuit so that a rate of retum 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 ReseNes level and policy The unrestricted reserves readily available total £1.300.422'. of which £1,000,318 is held by TMCP in the CMTF: and £300,104 is held in the ￿adIlY accessible accounts at CAF Bank and CFB. The Circuit has a reserves policy covering 811 its unrestricted funds which is reviewed annually. It has a policy to maintain a minimum balance of £300,000 in the CMTF and policy that grants are awarded after received applications have been reviewed by or on behalf of the trustees, as per the Circuit Grants Policy Most grants are paid in full, but some may require annual instalments or be for anticipated funding In future years. The trust8es seek to ensure that there are sufficient funds in the reserves to meet these anticipated requests, and they now recognise future grants as liabilities on the Balan￿ Sheet. Reserves Policy The reserves policy is to hold money designated for one of three areas of expenditure. These areas are. (a) The General (free) reserve. This is a resep4e that equates to six month'8 expenditure and provides the Circuit with the ability to meet bills as they are presented. This re8erve is held in the CAF bank account and CFB deposit account. For 202&26, the running costs for the Circurt before any grant or exceptional expenditure is budgeted at £627,900 and EAST SOLENT AND DOWNS METHODIST CIRCUIT Year ended 31 August 2025 therefore the policy is to have £313.950 he:,d in this general resepie. The balance in the General fund at 31 August 2025 was £235.279. (b) The Circuit Property Repairs reserve. The Circuit ha5 decided that rt would be prudent to hold a designated reserve for propety repairs of £7.000 per manse. With 10 manses this provides a designated reseNe of £70,000 which is to cover general repairs and p18nned maintenance to the manses. Note in 2024-25 expendrture in this category was £41,597 and the balance in the designated Manse Fup,d at 31 August 2025 was £38,832. (d) The Circuit Grants reserv8. Tqe balance of the unrestricted reserves is held for current and future grants or Circuit mission. Grants to churches are made for mission, environmental improvements or prcpety Improvements. This designated reserve is also used to support Circuit based mission initiatives and includes the designated Mission and Outreach Fund (balance at 31 August 2025 of £25,993) and the CMTF (balance at 31 August 2025 of £1,000,318) 3.4 Collaborative arrangements with connected charities The Circuit s main Sour￿ of funding wss the assessments obtained from each church within the Circuit based on the membérship and ability to pay and this was used to defray some of the cost of administering the Circurt whsch amounted to £794,261 {2023-24.' £939,598). The Circuit holds no funds as custodian trustee. Trustees, responsibilities For each financial year ending on 31 August the Trustees are required to prepare financial statements that give a true and fair view of the Circuit's financial activities 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 wrth the Chanties SORP The Trustees 8re responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Circuit and enables them to ensure that the financial statements comply 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 i￿egUlar1ties. The Trustees are responsible for the maintenance and integrity of the corporate and financial Infomiation Included on the Circurt's wet)site Legislation in the United Kingdom governing the preparation and dissemination of financial statements may dtffer from legislation in other jurisdictions. 4.1 Risk The Circuit is largely risk averse. Risks are managed by being aware of them, quantfying their impact not only in cost terms bul in Possible reputational or structural damage. laying them off through an Insurer and minimising them by not taking them or by setting up control systems that report any signrficant change in the nsk. The four signtficant risks tha" have been identified are.. 1. Inability to appoint ministers and being wrthout presbyteral staff. This is managed by giving careful attention to future workforce planning, trying to ensure that we do not EAST SOLENT AND DOWNS MrfHODIST CIRCUIT Year ended 31 August 2025 have multiple vacancies in any one year, and by engaging in early conversation with the District Chair who has a significant role in statsoning decisions. 2. The Circuit's main source cf funding is the assessments levied on each chu", ch and there is an increasing risk that sorne churches may not have suffscient 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 Circuit policy is to adhere to the Methodist Church s policy on Saieguarding Children and Vulnerable Adults and to require all churches to comply with the Methodist Church s Safeguarding policy. The Circuit provides regular safeguarding training that can be accessed by churches wrthin the Circuit to support them in complying with the policy. 4. The Circurt's manses and church buildings are at risk from damage to property and theft which is minimised by all manses and church buildings being adequately covered by appropriate insurance policies witl) Methodist Insurance. Structure, governance and management The Circuit is Sn unincorporated association and is governed by the Methodist Church Act 1976. the Deed of Union and the Model Trust Deeds of the Methodist Church and was registered with the Chanty Commissioners on 2 August 2013. Structure The Circuit is the coordinating charty for local groups of Churches, some of whom are registered as independent charities and the balan￿ of whom are excepted charities. The Circuit pays the stipends of the ministers and employs lay staff to serve rts Churches; most decisions are made at or ratified by the Circuit Meeting. The Circurt is part of the Southampton District which is the coordinating charity for a group of contiguous Circuits. District decisions are made at tne half yearly synod to which the Circuit appoints both lay and ordained representatives. The Methodist Conference rneets once each year as the supreme denomin8tional body for all Methodist Churches. Overall regulatory authcrlty rests with the Methodist Conference. The Connexional Office implements decisions made by Conference and is also responsible for the stationing of presbyters and deacons (collectively known as ministers) in Individual Circurts. Connexional decisions are passed via DistrFCts to Circuits for local implementation by the Superintendent Minister. ministerial staff and Circurt Stewards, and authonty 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 authonty is then exercised by Church Councils 8s Managing Trustees of their charTty. 5.2 Purpose of the Circuit The Circuit 15 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 Sin￿ the date of the union the advancement of.. EAST SOLENT AND DOWNS M￿HOD[ST CIRCUIT Year ended 31 August 2025 the Christian farth in accoraance with the doctrinal standards and the discipline of the Methodist Church. and any charitable purposes for the time being of any Connexional. Distnct, Circuit, local or other organisation of the Methodist Church, and any charrtable 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 charty 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 together and support each other by offering to Churches resourtss of personnel and expertise and occasionally finance The Circuit serves the Local Churcnes and the confe￿nce in the support. deployment and oversight of the various ministries of the Church. and in prograrnmes of training. 5.3 Govemance The Circuit operates within a statutory framework of regulation and seeks to ensure that it follows Methodist Standing Orders. It relies on the Connexional Office at Methodist Church House. 25, Tavistock Place: London WC1 H 9SF to provide guidance on changes that could affect the Circuit. The Circuit Meeting meets three times 3 year and is the decision-making body for the Circuit. Membership of the Circuit Meeting Is made up of Presbyters and De8cons who are stationed in the Circuit. Supemumerary Ministers stationed in the Circuit who Chose to be members, vo representatives from each 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 compnses 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 Circurt Meeting for approval that will advan￿ the Mission of the Circuit. There is a Circurt Finance and Property Group who meet when needed dunng the year 8nd 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 Circurt. 6.2 Charity registration number 1153209, registered in England and Wales EAST SOLENT AND DOWNS METhODIST CIRCUIT Year ended 31 Au8USt 2025 6.3 Principal Office 19121 High Street Emsworth Hampshire, P010 7AQ Telephone 01243 371806 6.4 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 2024-25 or were trustees at the time of this report being approved. Mr Mrs Mr Mrs Mrs Mrs Mrs Mrs Mrs Mr M Avis D Beesley D Beesley S Bond M Bowthorpe Brandon K Brown S Calvert M Carroll K Chilongo L Collins Comgan Revd D Coote N Cox Revd P Cnspin Mrs P Cuckow A Dabbs Mr T De Graft Eshun Mrs S Dewbery Mrs P Dey Miss P Dimmick Mr B Dyer Revd D Faulkner Revd E Goddess Revd R Goddess Mrs A Griffiths Mr P Gregory Dcn J Hacon Until Jan 25 JanseVanRensburg B Keefe Mann Martyn Mcaleer Minnell Mitchell H Murphy D Muskett H Nightingale A Painter Pannell C Parker N Parker Petter M Petter Rice D Rice G Richardson S Richardson Ross D Sales D Sawyer M Shepherd R Smith G Smithers R Standford A Steinhausen Mrs Mrs From Mar 25 Until 31108125 From Mar 25 Mrs From Mar 25 From Mar 25 Revd Until Oct 24 From 01109125 Until 31108125 Mrs From Mar 25 Revd Until 31108125 Until 31108125 Dcn From Mar 25 Until Jan 25 Mrs Mrs EAST SOLENT AND DOWNS METHODIST CIRCUIT Year ended 31 August 2025 Mr Mr Mrs Mrs Mr D Hall A Haynes S Haynes Hodges R Hollingbery Huntingdon-Thresher Revd J Illsley B James Revd M Stillwell E Strankalis D Thomas M Thomas M Travell M Wade M Wheeler C Wilkins From Mar 25 Until 31108125 From 01109125 Until Mar 25 Dr From 01109125 Mrs Mrs Mrs Until 31108125 No trustee claims exemption from disclosu￿ of his or her name here. 6.7 Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Central Finants 8oard of the Methodist Church 9 Bonhill Street London EC2A 4PE 6.8 Investment managers and custodian trust888 Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M11JQ 6.9 Auditors appointed 1 March 2016 Morris Crocker Chartered Accountants Station House North Street HAVANT P09 1QU Approval8 The Trustees, Report and the Financial St8tements were approved by the Circuit Leadership Team on behalf of the Trustees on 6 January 2026 Signed on behalf of the Circuit. as aLrthorised: Elize Goddess (signed) Mark Wade (signed) Revd Elize Goddess Circuit Superintendent Mark Wade Circuit Treasurer Date. 6 January 2026 Date. 6 January 2026 Name of Circurt East Solent and Downs Methodlst Circult Circuit No 26107 Statement of Financial Activities (SOFA) for the year ended 31 August 2025 IncorporatSng an Income and expenditure account I40t￿ lo Cir¢uit Model Designale(I G8neral Fund Trust Fund Funds EndoMn•nt Total acceunts IUnr•strlct•d) (Unr•8trt¢tèd) {Unr•strf¢tod) Funds 2024-25 Total 2023-24 Income and Endowrnents Income from inv¢strncnts Income from ¢harFtable activities Assessmepts on ¢hur¢h¢s C3pI131 retÉio Total from charitable a¢tivities Leitin9S Total charitable i￿orne Otrep incomè Total incomp and en+Jowments 11.353 50,9101 62263 377,832 3n.832 378,396 1 779.111 1.157,S071 377,832 98,079 487,264 3,0$8 490.3Z2 3n.832 98.079 538,174 3,058 541.232 50.910 1,336,770 44,032 1,380,802 50.910 Expendlturè Exp•ndltur• on charltsbla actMtIé8 G?nts and aoD.8tOlS Sbyids #nd assoeiated eosis M8;nt•nanc• on man Offic8 ayngas T8l•phonè and travel Insurancè and utrlty emts Du8lrict ass8swn•nt Methodist Churcm Fufid CMTF lavo8 paK Exp•ndrtL'r• on other propèrty Other outgoirsgs Total ¢harttable expèndithre 25.028 362.262 900 9.474 23.222 18.874 19,380 I02,3￿j a8,a66 24.000 11.550 344,352. 362.262, 42,497,, 9,474, Z3,2221 28,66Q 19,38Q 102,300 80,615 19.579 18,878 794,Z61 41.597 7,594 Z3.1711 30,QI8 16,860 89,184 330,35S 26,756 19,814 939,598 10 9.786 13 80.615 19.579 15.006 996.025 12,13 3.872 122.853 75,383 Net incomel(¢xponditur¢l ￿for# Investment gain%lloss•g Net 9ainWllossesl on Itwestrnents .105.703 -71.943 .75,383 -253,029 13 441,204 494 13.17 13 Net IncomWlexpfrnditurn} bvlonTr transf•rs -IOS,703 -71.943 -75.383 ij .253,016 441.698 Transfers le￿een fvnds Other gainslllossesl 14 -124240 37340 Net movem•nt In funds .18,703 -196,183 -38,143 13 -253,016 441,698 Total ftJn¢Js broughi toNard 3.708,409 1.196.5011 102.968 6.585 5,014.763 4,573,065 Total funds carri9d forwa 21-23 3.689,706 1.000.318 64,825 6,898 4.761.747 S.014.763 Name of Circuit East S¢l¢nt and Downs Methodlst Clrcurt Circuit No 26107 Balance Sheet as at 31 August 2025 G•npral Fund Iunrgstrktodl Circutl Modol Trust Funfl Iunrwrfetèd) D¢signatod Funds Totsl$ 2025 Totsl¥ 2024 Funts Flx•d A88•18 . Mansès Inve8lment¥ 15 1723 3.454.427 3.4y 427 t* a98 3 46", 325 3.454.427 e.898 6.898 Tot•1 ftx•d•s¥ets 1.454.427 2.41.31 yrrpnt A$￿ts Deblora ¥r¢ pr¥ga Lo¥ys b thg Cir¥¥'i', Inv¢3trngnt> vrttli TMCP ¥nl"Éil Li1)41n￿, 8oa!tt Dekv•its ash al 8ank and In har Totsl ¢urrvnl assets nts 16 16 17 18 18 24.448 9.262 4.011? 10.985 43 024 20 2G2 1.191.537 320 50-, 19.371 9.262 318 275.328 14 61A 1.334.'JS9 .318 220.833 Y.495 269.161 1.Cp30.318 65.480 Currort Ilabilitles Credrtots lrtije irt urt¢Jér 1 yèan Grants payatsie withii 1 w.xf Total ¢urrént 118bllftiè# Noi ¢urreni aststgiiatslhi08 15 20 33.8¥2 655 34.S37 41.250 33.882 235.27ts 655 64 825 34.S37 1 300 422 41 250 1.553.451 1.DOO.318 rol•l •ss•ts l•M ¢un¢nt liabilit￿$ 3,689 7C6 l.C•)0.318 64.825 6.898 4 761 747 S,014. 163 Nel assets 3.689.706 1.000.318 64.82S 6,898 4.761.747 5,014,763 Funds ot tho Clrcutt Unrtttriaèd.. Génera., Fund Pro Circuit Pjodel i ru51 Fund 21 1 21 1 21.2 21.3 235.279 3.4S4 427 235.279 3,4y.427 1.UUO.318 84.825 4754.849 6.89& 253.982 3&￿,427 1 1￿$07 102f68 5.007.878 1.ctsj 318 Dèsl aled Funds Totsl Unrvstrict•d Funds Endowmènt Furdi 64.825 22 23 6,8981 6.a98 Total Funds 3.689.706 1.000.318 64.82S 4,761.747 5.014,763 The Ilnandal statements approved on ofits 8oard ol 6th J￿L￿ry 2026 They w•rn S￿rbId on beham of the Bo¥rd gl Tr￿1¢¢$ w. Re¥0 E Gthjde Name of Circuit East so￿ftt and Downs PA•thodl8t Clrcult Cir¢uil No 26107 Statement of cash flows for the year ended: 31 August 2025 2025 2024 C*Èh IlcM& from owatiry.xtt¥iiw: 1 1307 4141 300.341 1307 4141 .341 l*t*r•& tnrn 81464 Nèt Gash pro¥ided_lry.It*ed inl irs¥estin9 adtvii*S 62.263 61.464 Ch•ng• in cash and cash ￿￿•¥al•ni8 in th• wwrting per￿￿ -245. 151 Cash and ush 0guivah)rt• •t tlw trylnnin9 01 the r¢portin9 1 $31415 1 149 G10 C•$h and u>h equiv•*nts ￿ the end gfih• rnp•rtln9 p•rf•d: 1286 264 I￿1415 1 Recon¢lliatkJn (4 ng1 in¢om81(•xy￿ditUrw} io nvt flNt tVf*ffl gP•rnllng •th1¥•8 202$ 24 N•t In¢•m￿(•%PondIWr1) for rnportirtg p•ritid la8 w tr 1253 0161 A(ljusimonts lor.. 113j 6?Ml 14.591 197131 lrtere* Ip tyi￿$ N•t pro￿4•¢ Oy lu••d jnj •P•f•¥tig •thltl•• ($7 97S1 3iKI.341 Accounting framework and accounting policies l Accounting framework The financial statements have been prepared in accordance wth the Charities SORP 24,. £2.312) to TMCP. the custodians of the Circurt u.odel Trust Fund (CMTF). This was levied at 0.3250/0 on the value of the funds at the end of the previous year {£1. 191,537) and is shown in the other outgoings line on the SOFA and in Note 12 above. The Circurt paid £80.615 (202>24.. £52,091) 8S Its annual contribution tc the District Advance Fund (DAF) of Southampton District which was levied on an asset value in the CMTF of £1,191,537 as at 31 August 2J24. The Circurt paid no Conftexional Priority Fund (CPF) Levies in 2024-25 as there were no Capital receipts into the CMTF. The amount of £13 (202>24. £494) on the net gainsl(losses) on investments line of the SOFA. represents the net unrealised gain In the Gane Bequest endowment fund. More information Gan be found at Notes 17 and 23. 14Transfers between funds The transfers between fvnds shown on the SOFA represents. transfers of budget amounts and transfers from the CMTF as agreed by the Trustees at Circuit Meeting. The net £87,000 transferred into the General Fund ss made up of.. £100.000 from the CMTF 8S 8 transfer from reserves to balance the 2024-25 budget plus £22.000 to fund the new Anna Chaplain post". less £35.000 to the Manse Fund fof manse repairs and insurance. The £124.240 out of the CMTF is made up of: £122,000 to the General Fund and £2 240 to the Manse Fund. The £37,240 Into the Manse Fund is made up of: £25.000 fo", Manse repairs budget and £10.000 for manse insurance budget from the General Fund. £2,240 from the CMTF for repairs to the cladding. soffits and guttering at Nicholson Way. 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 pur¢hase value W8s used. This amount has been split into one third land value and two thirds buildings value. The frozen valuation option has been adopted. There 15 no depreciation on the manses as the infomal review of the manses as carried out at the end of the year by the Circuit Stewards. confirnied 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 Building8 Total Balance brought forw8rd at 31 August 2024 Transfers behveen categones Balance carried forward at 31 August 2025 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 advan￿ at 1 September 2024 were for costs incurred during 2024-25. Similarly, it is expected that payments in advance at 1 September 2025 will be expensed in 2025-26. The unpaid church assessments 2023-24 'were paid in full in 2024-25 Debtors and prepayments were made up as follows, Debtors Contribution for Prayer handbooks Unpaid church assessments 202425 Unpaid church assessments 2023-24 Rent owed from 2023-24 Prepayments Ministers, stipends paid in advance 2025-26 manse Insuran￿ pa,,d 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 Total Loans by the Clrcult Bedhampton Methodist Church Havant Methodist Church Lee on the Solent Methodist Church Totsl Total Debtors 2024-25 2023-24 212 2,870 211 1.530 1,200 300 21,066 10.985 23,643 5,126 6.350 4.964 43.024 4000 39,433 9.000 5.000 6,262 20,262 63.286 4.000 5,262 9,262 48,695 17 Trustees for Methodist Church Purposes The CMTF is held by TMCP in a Trustees Interest Fund on which interest is credi'ed to the account each month. The Gane Bequest endowment 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-term investments. Market value As at 1 September 2024 Revaluation As at 31 August 2025 Net book value As at 31 August 2025 As at 31 August 2024 6.885 13 6.898 6,898 6.885 TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, including leg8cies, endowments and accumulated funds. Trust propety is held for and on behalf of local Managing Trustees who are responsible for the day-to-day management of trust property TMCP ensure that. through providing guidance and acting under their direction. the Nqanaging Trustees comply with charity law and Methodist law and policy as de'ermined by the Methodist Conference. 18 Central Finance Board and Cash at Bank The Circuit has one current account at CAF Bank Ltd. an authorised instrtution. The sums held on that account are immed',ately available. In addition. the Circuit has one deposit account at the Central Finance Board (CF8) a common deposit fund. Interest is eamed on this account and is credited monthly to the account.. the sums deposited can be withdrawn without notice and without loss of interest. These sums are viewed as being liquid. 19 Creditors, accrued expenses and deferred income 2024-25 2023-24 Creditors: Audit fee Expenses ￿1MbUrSed Accruals.. Accrued expenses Manse repairs owed Total creditors & accruals Deferred income: Ass8s8ments paid in advance Rent paid in advance Total deferred income Totsl Greditors 4.400 2.520 4.190 2.761 1,162 655 8,737 2.389 180 9,520 25.800 30.695 1.035 31,730 41,250 Released Deferred in year In year (30,695) 25,800 (1.035) (31,7301 25.800 25,800 34,537 Deferred 01-Sep-24 30,695 1.035 31,730 Deferred 31-Aug-25 25.800 Deferred Income Assessments paid In advance Rent paid in advance Total 25,800 Deferred income represents amounts received in advance of the relevant seNice delivery penod and is recognised as income in the SOFA as the associated obligations are fulfilled. 20 Grants payable within 1 year It 15 Circuit policy to recognise committed grants immediately as expenditure and thus accrue the unpaid amounts at the year-end as liabilities. The Circuit has no commitments to pay grants from any of its funds. 21 Unrestricted Funds 21.1 General Fund £3,708,409) balance £3,689,706 at 31 August 2025 (2024: The purpose of the fund is for use at the discretion of the trustees in the fvrther8nce of the general objectives of the Circuit and which have not been designated for other purposes. 93.6'A 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 £1,000,318 at 31 August 2025 (2024: £1,196,501) The CMTF is held by the TMCP. Note 17. and is where the majority of the reserve funds of the Circuit are held. These funds are not restricted by any document or deed lo a specific purpose. 21.3 Designated Funds £102,968) balance £64,825 at 31 August 2025 {2024: The designated funds of the Circuit are. the Manse Fund which is funds that have been set aside to meet the repasrs and mainteryance as deemed re￿ssary for the Circuit's manses. the Mission and Outreach Fund which was funded by the eqLivalent salary costs of 3 lay employees made redundant in 2016-17 until 2021-22 when no further transfets 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 restricted to that purpose alone by any document or deed. The balance at 31 August 2025 of £64.825 is made up of: £38,832 in the Manse Fund.. £25.993 in the Mission and Outreach 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 Circurt's CF8 deposit fund and are paid over to Gosport Methodist Church, by agreement of the trustees. 23 Movement in signlficant Sndividual funds Movement in funds for current yea., 12 months. Balance at 01-Sep-24 Income Gainsl Balance at Losses 31-Aug-25 Fund Expendtture Transfers General Fund Property Reserve Fund Circuit Model Trust Fund Manse Fund (Des) Mission & Outreach (Des) Totsl unrestricted funds Gane Bequest Total endowment funds Total funds 253.982 3 454,427 1.196,501 52 975 49,993 5,007,878 6,885 6,885 5,014,763 490,322 596.025 87,000 235,279 3,454,427 1,000,318 38,832 25,993 0 4,754,849 13 6,898 13 13 4,761.747 50,910 122.853 (124,240) 51.383 37.240 24.000 794.261 541,232 541,232 794 261 Comparatives for movement in funds for prior year 12 months.. Balance at 01-Sep-23 Income Gainsl Balance at Losses 31-Aug-24 Fund Expendrture Transfe General Fund Property Reserve Fund Circuit Model Trust Fund Manse Fund (Des) Mission & Outreach IDes) Total unrestricted 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 6.885 494 5,014.763 861,771 332.667 (153.812) 49.096 81,204 (7.045) 939.598 939,598 A current year 12 months and prior year 12 months combined posrtion is as follows.. Balance at 01-Sep-23 Income Gainsl Losses Balance at 31-Aug-25 Fund Expendrture Transfers General Fund 227.223 1,009,353 Property Reserve Fund 3.454.427 Circuit Model Trust Fund 821,209 Manse Fund (Des) 20.867 Mission & Outreach (Des) 42.948 Total unrestricted funds 4.566.674 1.922.034 Gane Bequest 6.391 Total endowment funds 6.391 Totsi funds 4 573 065 1.922 034 1.160,905 159,608 235.279 3.454.427 1.000.318 38.832 25.993 0 4.754.849 507 6.898 507 6,898 507 4,761,747 912,681 455.520 (278,052) 100,479 118,444 16,955 1.733.859 1733,859 24 Volunteer contributions Every entty (Connexion, Distnct. Circurt 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 comrnrttees 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 monetsry equivalent value on this. 25 Capital commitments and contingent liabilities There were no capital comrnitments or contingent liabilities at the year end. 26 Auditor An accrual has been made for the fee of the audttors in the surn of £4,400 for the year 2024-25 (2023-24 £4,190). 27 Related party disclosures There were no related paty transactions for the year ended 31 August 2025. 28 Post Balance Sheet events On 22 September 2025. the sale of Bridgemary Church building was completed 4ior £300,000. Net sales proceeds of £285,325 were received in the CMTF on 22 September 2025 and a CPF Levy of £90,130 taken. This transaction relates to the following financial year and has not been reflected in the 2024-25 financial statements. ## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF EAST SOLENT AND DOWNS METHODIST CIRCUIT** ## **Opinion** We have audited the financial statements of East Solent and Downs Methodist Circuit (the 'charity') for the year ended 31 August 2025 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 2025 and of its incoming resources 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 prepared in accordance with the requirements of the Charities 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 audit 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 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 financial statements, we have concluded that the trustees' use of the going concern 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 twelve months from when the financial statements 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 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 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements 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 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 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** We have nothing to report in respect of the following matters where the Charities Act 2011 requires 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 accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. 25 ## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF EAST SOLENT AND DOWNS METHODIST CIRCUIT** ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation 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 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. ## **Our responsibilities 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 assurance 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 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 financial statements. 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. To the extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. From discussion with management and those charged with governance information about the entity is documented to assess the activity within the organisation. We discuss management's assessment of risk in respect of irregularities, fraud and going concern. 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 materiality 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 determine the level of materiality. Our overall assessment of risk was used to determine performance materiality at an appropriate level. Substantive audit tests were designed after assessing and performing walkthrough tests. The walkthrough testing confirmed documented systems which have been designed to act as a preventative 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 identify 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 organisation is not exposed to material risk of error as a result of assessing laws and regulations that are appropriate to the organisation. Management assessed there is no going concern risk. The audit undertook a review of budgets, management accounts and the review of board minutes and came to the same conclusion as management. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. 26 ## **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 body, in accordance with Section 144 of the Charities Act 2011 and 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 report, or for the opinions we have formed. ## P J Underwood MC Audit Limited Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Lake House 2 Port Way Port Solent Portsmouth PO6 4TY Date: ...23 January 2026.......................................... 27