V4V HeAd pf CIRCUIT OF THE METHODIST CHURCH WEALD OF KENT METHODIST CIRCUIT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Registered Charity number 1155413
WEALD OF KENT METHODIST CIRCUIT CONTENTS Legal and administrative information Independent Auditors Report statement of financial activities 12 18 Balance Sheet 19 Notes to the financial statements 20 Appendix A 29 Page 2 of 29
WEALD OF KENT METHODIST CIRCUIT l_egal and administrative information Reglstered Charity number 1155413 South-East Dlstrlct No 36 Circuit No 18 Principal Office Address - Otford Methodlst Church, Hlgh Stree( Otford, Kent, TN14 SPH Trustees Ministers Rev Jane Braund Rev Dermot Thornberry Rev Kirsty McGhee Circult stewards Dr Helen 'chardson (retired 13th September 2023) Mr Rodney Stone (retired 23riJ October 2023) Mr lan Beavis Dr Nick Rowell (retired 18th September 2024) Mrs. Gillian Clayton (appointed 13th September 2023) Mrs. Kathy Walsh (appointed 13th September 2023) Circuit Treasurer Mr Christopher Towers Other Trustees Name Rev Jane Elizabeth Braund Carol Ann Oakley Alison Jane Farr Sue Wilkins John Archer Hugh Edward Taylor Mr Phil Smith Sally Elizabeth Anne Dagnall Julia Irene Bevis PeterAllan Crouch FCCA Rev Bryan Thomas Knapp BA Chris Towers Carl Andrew Warren BA Hons Reg Rummery Valerie Gwendoline Manser Rachel Mary Sheppard Kenneth John Barnes Rev Gerald Charles Gardiner BA Roi James Arden Rev John Mark Butt Ann Suaznabar Role Chair Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Date ofAppointment 01 September 2024 01 September 2019 01 September 2017 21 September 2016 21 September 2016 23 September 2015 23 September 2015 17 September 2014 20 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 Page 3 of 29
WEALD OF KENT METHODIST CIRCUIT Rev John Stuart Cumow MA, BA Michael John Richardson Pastor Henry George Edwards Trustee Trustee Trustee 10 January 2014 10 January 2014 10 January 2014 Bankers: HSBC Plc, 105 Mount Pleasant Road, TLJnbridge Wells, TN1 1QP Central Finance Board, 9 BonFiill Street, London, EC24 4PE Investment Bankers: Trustees for Methodist Church Purposes, Central Buildings, Oldham Street, Manchester, M1 1 JG Nash Harvey Group LLP. The Granary, Hermilage Court, Maidstone, ME16 9NT Warners, 16 South Park, Spvenoaks, TN13 1AN Auditors: Solicitors: Page 4 of 29
WEALD OF KENT METHODIST CIRCUIT REPORT OF THE TRUSTEES FOR YEAR ENDING 3191AUGUST 2024 The Trustees present their annual report and financial statements for the year ended 31 August 2024 Introductlon Included in the report are the aims of the Circuit and a commentary of the financial aspects of its work. The report has been prepared based on the activities and plans as they are known at the current time. The Circuit exists for the benefit of the six Methodist Churches, one joint Anglicanlmethodist Church, and one joint URCIMethodist Church, employing the Circuit staff and providing financial support for major projects. Circuit Mission Statement Led by the Spirit to work together to enable our churches to share the Good News of Jesus. This we do through , Leadershlp: to encourage, support and challenge each church to worship God, fulfil its own mission and spread God's word. Communication: to facilitate effective and relevant communication between churches and encourage two-way communication with wider Methodism. Maximising Resources: to ensure the most effective use of all resources across the Circuit and the development and use of our God-given gifts. Review of the Year Income Trends Circuit income is primarily drawn from the assessment paid by the Circuit churches. Expendlture Trends Stipend expenditure has increased each financial year in line with Conference approved increases. 200/0 of general fund expenditure is the Circuit contribution to the District and Connexion, of which a significant part is used to fund the work of the wider Methodist Church. Grants from the Model Trust Fund included two payments totalling £7.000 to support the Circuit churches. Significant TransaConS The Circuit has made grants to one of the churches for the major refurbishment of its premises. During the year a further £350,000 was paid out of the grant of £500,000 which was fully provided in the previous year. The refurbishment is expected to be completed in April/May 2025. The Circuit continues to incur costs relating to a redundant church property. Contracts for the sale of this property were exchanged on 4th July 2023 on the basis that completion will only take place wkien the purchaser has obtained planning permission. Formal notification of planning pemission was received after the year end but the purchaser requested a renegotiation of the sale price given a change in the commercial market. At present these negotiations have been agreed but legal documentation is not yet finalised. In these circumstances the Trustees consider it would be misleading to anticipate any potential proceeds in these accounts. Page 5 of 29
WEALD OF KENT METHODIST CIRCUIT REPORT OF THE TRUSTEES FOR YE4R ENDING 315tAUGUST 2024 Gont'd Assuming there is a successful conclusion the Circuit can anticipate net proceeds of around £800.000 in the current year. Fund balances As of 31st August 2024 the net current assets on general fund of the Circuit were £128,525 giving approximately six months cover for general expenditure. There are substantial funds held in the Model Trust Fund which support the Circuit and individual churches, development plans. Plans for 2024- 2025 Circuit financial plans for the coming year have been prepared on the basis that there remains three ordained staff with the anticipated cost of living stipend increases combined with an increase in the assessment paid to the Distn'ct and the Connexion. The Circuit hopes to complete on the contract for the sale of the redundant church. Under the terms of the revised offer received completion will take place after the purchaser has resolved the funding required. At the year end the Circuit Model Trust Fund stood at £162,910 (£225,865). These funds are held to support future work of the Circuit and to cover any additional costs that may need to be incurred on the new development mentioned above. Basis of preparation and legal framework The Charity's annual financial statement for the year ended 31 st August 2024 have been prepared in accordance with the Charities Act 2011 and the Accounting and Reporting by Charities,. Statement of Recommended Practi 2015 as applicable to the Financial Reporting Standard 102. Full name of Charity Registration Number Date of Registration Main communication address: Weald of Kent Methodist Circuit 1155413 21 January 2014 Otford Methodist Church High Street otford, Sevenoaks TN14 SPH The members of the Weald of Kent Methodist Circuit meeting are the Charity Trustees, membership being made up of Circuit office holders, ministers and representatives appointed by the local churches. Full membership is shown as Appendix A to this report. Full list of Trustees: Name Rev Jane Elizabeth Braund Carol Ann Oakley Alison Jane Farr Sue Wilkins Role Chair Trustee Trustee Trustee Date ofAppointment 01 September 2024 01 September 2019 01 September 2017 21 September 2016 Page 6 of 29
WEALD OF KENT METHODIST CIRCUIT REPORT OF THE TRUSTEES FOR YEAR ENDING 3181AUGUST 2024 cont'd John Archer Hugh Edward Taylor Mr Phil Smith Sally Elizabeth Anne Dagnall Julia Irene Bevis PeterAllan Crouch FCCA Rev Bryan Thomas Knapp BA Chris Towers Carl Andrew Warren BA Hons Reg Rummery Valerie Gwendoline Manser Rachel Mary Sheppard Kenneth John Barnes Rev Gerald Charles Gardiner BA Roi James Arden Rev John Mark Butt Ann Suaznabar Rev John Stuart Curnow MA, BA Michael John Richardson Pastor Henry George Edwards Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee 21 September 2016 23 September 2015 23 September 2015 17 September 2014 20 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January2014 10 January 2014 10 January 2014 10 January2014 10 January2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 10 January 2014 Circuit Ministers and Officers Active Circuit Ministers Rev Jane Braund {appointed 1 sl September 2024) Rev John Rilson (retired 31st August 2024) Rev Sharon Lovelock (retired 31 St July 2023) Rev Dermot Thornberry Rev Kirsty McGhee Circuit Lay Workers Mr Philip Staddon (retired 3151 August 2024) Mr Richard Cannam Circuit Stewards Dr Helen Richardson (retired 13th September 2023) Mr Rodney Stone (retired 23rd October 2023) Mr lan Beavis Dr Nick Rowell (retired 18th September 2024) Gillian Clayton (appointed 13th September 2023) Kathy Walsh (appointed 13th September 2023) Administrator Ms Nicola Martin Mr Christopher Towers acted as the principal officer overseeing the day to day financial management and accounting for the Circuit during the year. Custodian Trustees Trustees for Methodist Church Purposes act as custodian trustees holding the Freehold Property and the Model Trust Funds of the Circuit. Page 7 of 29
WEALD OF KENT METHODIST CIRCUIT REPORT OF THE TRUSTEES FOR YEAR ENDING 31sIAUGUST 2024 cont'd Vol unteers The Circuit benefits from the time and experience of a number of the Trustees who perform tasks in a voluntary capacity. These tasks include maintaining the freehold properties, keeping the financial records, accepting preaching appointments at Circuit churches, and involvement with safeguarding matters. Where required the Circuit provides its volunteers with training to assist them in the performance of their tasks. Aims and organlsatlon Charity objective is to act as a resource provider within the area around Sevenoaks, Tonbridge and Tunbridge Wells for the Methodist Church. The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of: a) The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church,, b) Any charitable purpose for the time being of any Connexional, District, Circuit, local or other organisation of The Methodist Church., c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church; d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church The organisation and resourcing of regular public acts of worship open to members of the church and non-members alike. The teaching of Christianity through sermons, courses and small groups. The resourcing of pastoral work including visiting the sick and bereaved. Taking religious assemblies in local schools. Promotion of Christianity through the staging of events and services. Provision of chaplaincy services to the local university and other institutions. Public Benefit We confirm the trustees have had regard to the Charity Commission's guidance on public benefit. Structure, Governance and Management The goveming document for the Circuit is the Deed of Union (1932) and Methodist Church Act (1976) Detailed governance arrangements are outlined within the Constitutional Practi and Discipline of the Methodist Church by order of the annual confe nce (CPD) Day to day management of the Circuit is undertaken by the Circuit Leadership team along with the Local Preachers meeting and the Circuit Finance and Property Committee. Page 8 of 29
WEALD OF KENT METHODIST CIRCUIT REPORT OF THE TRUSTEES FOR YEAR ENDING 31StAUGUST 2024 cont'd Trustee Training A range of guidance produced by Methodist Connexion to support the effective running of the Circuit, specifically the leaflet 'The Role of a Trustee in The Methodist Church, is given to all new Circuit meeting members as induction to their role as trustees. Related Parties The Circuit is part of the South East District and is also accountable to the Methodist Conference. The following Methodist Churches are linked to the Circuit: 1. East Peckham 5. Paddock Wood (jointly with Church of England) 6. Sevenoaks 2. Hawkhurst 3. Horsmonden 7. Tonbridge 8. Tunbridge Wells (jointly with URC) 4. Olford Risk Management The major risks have been identified and recorded by the Circuit Finance and Property committee with professional advice taken as required. There is a regular annual review process undertaken and recorded. Income and Expenditure is being monitored in total and is compared with the approved annual budget on a regular basis to detect trends as part of the risk management process. Safeguarding Every person has a value and dignity which comes directly from the creation of male and female in God's image and likgness. Christians see this potential as fulfilled by God's re-creation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protect them from harm. Methodist Connexional practice outlines commitment to the following principles: The care and nurture of, and respectful pastoral ministry with, all children, young people and adults The safeguarding and protection of all children, young people and adults when they are vulnerable The establishing of safe, caring cotrimunities which provide a loving environment where there is informed vigilance as to the dangers of abuse. We will carefully select and train all those with any responsibility within the Church, in line with Safe Recruitment principles, including the use of criminal records disclosures and registration with the relevant vetting and barring schemes, Page 9 of 29
WEALD OF KENT METHODIST CIRCUIT REPORT OF THE TRUSTEES FOR YEAR ENDING 315IAUGUST 2024 cont'd We will respond without delay to every complaint made which suggests that an adult, child or young person may have been harmed, cooperating with the police and local aLrthority in any investigation. We will seek to work with anyone who has suffered abuse, developing with them an appropriate ministry of informed pastoral care, We will seek to challenge any abuse of power, especially by anyone in a position of trust. We will seek to offer pastoral care and support, including supervision and referral to the proper authorities, to any member of our church community known lo have offended against a child, young person or vulnerable adult. In all these principles we will follow legislation, guidance and recognised good practice. The Weald of Kent Methodist Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy. government legislation and safe practice in the Circuit and in the churches. The Weald of Kent Methodist Circuit commits itself to the provision of support, advice and training to lay and ordained people that will ensure people are clear and confident aboLrt their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable. Reserves Policy The reserves policy for the Circuit is to hold a minimum sum equivalent to 15°/o of the general fund annual expenditure budget plus twice the annual budget for manse repairs. This should be sufficient to meet any unforeseen item of major expenditure on manses andlor to be able to continue, in the short term, funding planned activities in the event of any inability to raise the full Circuit Assessment from churches. The balance on General Fund at 31st August 2024 disregarding the value of land and buildings camplies with the Circuit Reserves Policy. Funds are retained in the Model Trust Funds to be available to meet grant and loan requests for expenditure from the Circuit and the churches in the Circuit falling within the categories approved by the Methodist Church. Trustees. Responsibilities In Relation to the Financlal Statements The trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The charity's trustees are responsible for preparing financial statements for each financial year that gives a true and fair view of the charity's incoming resources and application of resources during the period and of its state of affairs at the end of the year. In preparing the financial statements, the trustees are required to: Select suitable accounting policies and then apply them consistently. Observe the methods and principles in the Charities SORP. Make judgements and estimates that are reasonable and prudent. Page 10 of 29
WEALD OF KENT METHODIST CIRCUIT REPORT OF THE TRUSTEES FOR YEAR ENDING 31StAUGUST 2024 cont'd Prppare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements. The trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditors In accordance with the constitLrtion, a resolution to appoint Nash Harvey Group LLP as Auditors was approved by the Trustees. Statement of Disclosure of Information to Auditors There is no relevant audit information of which the charity's auditors are unaware; and the trustees have taken all steps to make themselves aware of any relevant information and to establish that the auditors are aware of that information. Page 11 of 29
WEALD OF KENT METHODIST CIRCUIT REPORT OF THE TRUSTEES FOR YEAR ENDING 31$1AUGUST 2024 cont'd Declarations: Treasurer I confirm that these accrual based accounts for the year ended 31 August 2024 have been prepared from the records of the Circuit and that they include all funds under the control of the Circuit Meeting. Signature of Treasurer 23 June 2025 Name of Treasurer Christopher Towers 40 Willow Park Otford Kent TN14 5NF Address Presentation to the Circult Meeting for approyal. I confirm that the annual report and accounts for the year ended 31 August 2024 were presented to the Circuit Meeting at its meeting on 13th March 2025 and were approved. Signature of the Chair of the Meeting Name of the Chair of the Meeting 23 June 2025 Rev Jane Braund Page 12 of 29
WEALD OF KENT METHODIST CIRCUIT INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF WEALD OF KENT CIRCUIT Oplnion We have audited the financial statements of Weald of Kent Methodist Circuit (the 'charity') for the year ended 31 sl August 2024 which comprise the statement of financial activities, the balance sheet, and the notes to the financial statements. including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charitys affairs as at 31 August 2024 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 Practi. 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 Auditor's 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 fvlfilled 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 charitys 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 SponSibl11t1eS of the trustees, with respect to going concern are described in the relevant sections of this report. Page 13 of 29
WEALD OF KENT METHODIST CIRCUIT INDEPENDENT AUDITORS REPORTTO THE TRUSTEES OF WEALD OF KENT CIRCUIT nt'd Other information The other information comprises the infomiation included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of the audit, or other+Nise appears to be materially misstated. If we identify such material inconsistencies or apparent material rnisstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 exceptlon In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: the information given in the financial statements is inconsistent in any material respect with the trustees, report; or sufficient accounting records have not been kept. or the financial statements are not in agreement with the accounting records., or we have not received all the information and explanations we require for our audit. Responsibilities of trustses As explained more fully in the statement of trustees, responsibilities, the trustees are responsible for the preparation of the financial statements and for being salisfied that they 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 cease operations, or have no realistic alternative but to do so. Page 14 of 29
WEALD OF KENT METHODIST CIRCUIT INDEPENDENT AUDITORS REPORTTO THE TRUSTEES OF WEALD OF KENT CIRCUIT ont'd Auditor's responslbilitles for the audit of the financial statements We have been appointed as auditor 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assuran 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-complian with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. Extent to which the audit was considered capable of detecting irregularities Includlng fraud We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. Our approach to identrfying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: .the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non- compliance with applicable laws and regulations, •we identified the laws and regulations applicable to the charity through discussions with trustees and other management, and from our commercial knowledge and experience of the sector, "we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2011 , taxation legislation, data protection, anti-bribery, employment, environmental and heafth and safety legislation, •we assessed the extent of compliance with the laws and regulations identrfied above through making enquiries of management and inspecting legal correspondence, and Page 15 of 29
WEALD OF KENT METHODIST CIRCUIT INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF WEALD OF KENT CIRCUIT cont'd •identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the Charity's financial statements to material misstatement, including obtaining an understanding of how fraud rnight occur, by: •making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud, and •considering the intemal controls in place to mitigate risks of fraud and non- compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: 'performed analytical procedures to identify any unusual or unexpected relationships, .tested journal entries to identify unusual transactions, •assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias, and •investigated the rationale behind significant or unusual transactions. Audit response to risks identified In response to the risk of irregularities and non-compliance with laws and regulations, we designed proCedUS which included, but were not limited to: •agreeing financial ststement disclosures to underlying supporting documentation, "reading the minutes of meetings of those charged with governance. "enquiring of management as to actual and potential litigation and Glaims, and •reviewing correspondence with HMRC, relevant regulators, and the charity's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit ProdureS required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at: https."/lwww.frc.org.uklauditorsresponsibilities. This description forms part of our auditorfs report. Page 16 of 29
WEALD OF KENT METHODIST CIRCUIT INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF WEALD OF KENT CIRCUIT cont'd Use of our report This report is made solely to the charity's trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 fomied. Kate Francesca Sharp FCA (Senior Statutory Auditor) For and on behalf of Nash Harvey G'roup LLP 23 June 2025 Chartered Accountants statutory Auditor The Granary Hermitage Courl Hermitage Lane Maidstone Kent ME16 9NT Nash Harvey Group LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Page 17 of 29
WEALD OF KENT METHODIST CIRCUIT STATEMENT OF FINANCIALACTIVITIES TO YEAR ENDING 31 AUGUST 2024 Note General Fund £ Model Trust Fund £ Total Total 2023124 £ 2022123 £ Charitable activities: Assessments Investment income 237,718 4,679 237,718 33.327 213,764 27,672 28,648 other income 108,942 Total Income 242,397 28,648 271,045 350.378 Charitable Activities: Stipends and salaries District assessment Methodist Church Fund Telephone and travel Insurance and utilities Maintenance of manses Expenditure on circuit property other expenditure Grants and donations Provision for outstanding grants Contributions to Connexional Priority Fund Other Expenditure Audit fee 140,154 9,690 38,802 14,084 20,426 8,419 140,154 9,690 38,802 14,084 20,426 8,419 23,846 10,000 2,000 124,738 11,521 39,522 15,023 19,866 10,859 60,700 8,002 123,086 378,914 59,227 23,846 1,916 2,000 8,084 16 10 41 ,656 41 ,656 1,300 1,300 1,100 Expenditure on Charitable Activities Unrealised gainsllosses on investment assets 240,959 69,418 -315 310,377 -315 852,558 149 240,959 69,103 1,438 -40,455 22,500 -22,500 310,062 852,707 -39,017 -502,329 Net Income/Expenditure Transfers between funds Other recognised gainsllosses Gainsllosses on revaluation of fixed assets 642,075 642,075 182,405 Net movement in funds Reconciliation of Funds Total funds brought forward 666,013 -62,955 603,058 -319,924 2,407,715 225,865 2,633,580 2,953,504 Total funds carried forward 3,073,728 162,910 3,236,638 2,633,580 The statement of financial activities includes all gains and losses recognised in Ihe year. All income and expenditure derive from continuing activities. Page 18 of 29
WEALD OF KENT METHODIST CIRCUIT BALANCE SHEET AT 31 AUGUST 2024 Note General Fund £ Model Trust Total 2024 Total 2023 Fund £ Tangible Fixed Assets Land and buildings Investments 11 12 2,945,203 2,945,203 2,303,128 4,170 3,855 4,170 Total Flxed Assets 2,945,203 4,170 2,949,373 2,306,983 Current Assets Debtors and prepayments Trustees for Methodist Church Purposes deposits Central Finance Board deposits Cash at bank 13 34,844 34,844 69,907 210,516 210,516 668,227 106,888 35,205 106,888 35,205 58,968 21,038 Total Current Assets Creditors, Accruals and Provlslons Due under 1 year Provision for outstanding grants 176,937 210,516 387,453 818,140 14 16 48,412 -17,862 -66,274 -102,629 -33,914 -33,914 -388,914 Net Current Assets 128,525 158,740 287,265 326,597 Net Assets 3,073,728 162,910 3,236,638 2,633,580 Funds of the Circuit General Fund unrestricted Model Trust Fund unrestricted 3,073,728 3,073,728 2,407,715 162,910 162,910 225,865 Total Funds 3,073,728 162,910 3,236,638 2,633,580 Registered Charity number 1155413 Approved by the trustees on 23rd June 2025 and signed on their behalf by: Rev. Jane Braund (Chair) Page 19 of 29
WEALD OF KENT METHODIST CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDING AUGUST 31°, 2024 1. Basis of preparatlon of financial stalements The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland {FRS 102) (effective 1 January 2015) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102) and the Companies Act 2008. Weald of Kent Methodist Circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1. Going Concern At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concem basis of accounting in preparing the financial statements. 2. Funds The fvnds held constitute. General Funds held for any purpose of the Circuit which are Unrestricted. The Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as unrestricted. There are no Restricted funds. Details of each material fund are disclosed in note 14 to these accounts. Any funds may be represented by more than just cash. 3. Accounting Policies 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 Circuit's financial position and activities. Income Recognition Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, the trustees are reasonably certain they will receive the resources and the monetary value can be measured with sufficient reliability. Page 20 of 29
WEALD OF KENT METHODIST CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDING AUGUST 31sI 2024 Gont'd Resources Expended 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 oufflow of economic benefrt is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources. Grants Grants made by the Circuit from its own funds are recognised in full at the time of agreement or when the Circuit accepts that there is a legal or operational obligation to make the payment. When the grant is recurrent over more than one year the balance payable in future years is treated as a provision for future commitments in the Balance Sheet against the appropriate fund, the provision being released in fLrture years as instalments are paid in accordance with the originally agreed terms. VAT Since the Circuit is not VAT registered all input VAT is charged with the expenses to which it refers. Tangible fixed assets for use by the Circuit The freehold property is held at depreciated replacement cost, determined based on sums insured, except where a sale is anticipated in the near future, in which case realisable value is used. The land component is not recognised in these figures. No depreciation has been provided for in the year, as the trustees consider the residual fair value of the manse buildings is not less than its carrying value. Any depreciation charge would be immaterial. The property has been reviewed for impairment with no adjustments deemed neGessary. Investments Investments are valued in the balance sheet at market value at the year end. Investment income is included in the accounts when re1vable and any gains or losses on revaluation at the year-end are shown in the SOFA. Debtors and Prepayments Debtors relate to the payment of the September stipend in August and other debtors and prepayments. Page 21 of 29
WEALD OF KENT METHODIST CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDING AUGUST 31st 2024 cont'd Credltors Creditors on General Fund include receipts in advance relating lo the 1 St quarter assessments received in advance. Creditors on Model Trust Fund include grants approved but not yet paid. Cash Flow Exemption The financial statements do not include a cash flow statement because, as a small charity, it has taken exemption for cash flow in accordance with FRS 102, update bulletin one, in preparation of these financial statements. Critical Accounting Estimates and judgements In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimated are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods. Critical judgements Impairm6nt Revlew Determine whether there are indicators of impairment of the charity's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future performance of the asset. Where indicators exist impairment reviews are carried OLrt on the charity's tangible assets. Key sources of estimation uncertainty Tangible Fixed Assets Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and their residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as age and future economic benefits are taken into account. Page 22 of 29
WEALD OF KENT METHODIST CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDING AUGUST 31st 2024 cont'd Valuation of Freehold Property As described in the accounting policies of the financial statements, freehold property is stated at fair value. The Trustees, have assessed this and based on reference to current insurance valuations consider them to be stated at fair value. However, the rise in inlerest rates and inflation have caused significant disruption and uncertainty in the UK property market which has inevitably increased the degree of judgement in the property valuations at the balance sheet date. 4. Investment Income The income consists of interest of £28,534 from deposits with the Trustees for Methodist Church Purposes, £4,679 from deposits with the Central Finance Board of the Methodist Church and dividends of £114 from listed investments. S. Other Income The receipts on the Model Trust Fund for the previous year were as follows.. 2023 (£) 5,000 Non-refundable deposit Return of Levy 103,942 108942 6 Net movement in funds 2024 <£) 2023 (£) The net movement in funds is stated after charging: Fees payable for the audit of the charity's financial statements 1,300 Fees payable for the independent examination of the charity's financial statements 1,100 7. Taxation The charity is exempt from taxation on its activities because ils income is applied for charitable pury)oses. Page 23 of 29
WEALD OF KENT METHODIST CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDING AUGUST 315I 2024 cont'd 8. Payments to Trustees There were no payments for additional services to trustees for the current and previous year excluding the amounts reported under note 9 relating to stipends and salaries. 9. Stipends and Salarles The total amounts paid relating to stipends amounted to £94,537 {£88,724). staff costs for the year were: Expense 2024 {£) 2023 (£) Gross salaries 40,942 31,855 Pension costs 1,666 1,630 Employers National Insurance 2,420 1,999 Apprentice Scheme Levy 589 530 Total Average number of full time equivalent employees were 3 (2). There were no employees whose annual remuneration was more than £60,000. 10. Contributions to Connexional Prlorlty Fund As required by the Methodist Church contributions are made from propety sales to the Connexional Priority Fund. An annual levy is also required and the total paid over during the year amounted to £41,656 (£59,227). 11. Land and Buildings The total relates to the four manses held by the Circuit throughout the year. 2024 (£) 2,303,128 642,075 £2 945 203 Balance brought foNard Revaluation surplus Balance carried forward The historical cost of Ihe freehold properties included at the balance sheet date was £nil (2023 £nil) and the accumulated depreciation based on historical cost would be £nil (2023 £nil). When the circuit was established by a merger of circuits the then properties were passed over at no cost. During the Page 24 of 29
WEALD OF KENT METHODIST CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDING AUGUST 31s12024 cont'd year there was a revaluation of freehold property based on sums insured. In the opinion of the Trustees, this represents fair value of the property at the year-end. The revaluation surplus is disclosed above. 12. Investments The funds that support the Circuit Model Trust Fund and the Manses Fund are held by TMCP in Trustees Interest Funds on which interest is credited monthly. These are regarded as medium and long term investments. TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property. including Legacies, Endowments and Accumulated Funds. Trust property is held for and on behalf of local Managing Trustees who are responsible for the day to day management of trust propety. TMCP ensure that. through providing guidance and acting under their direction, the Managing Trustees comply with charity law and Methodist law and policy as determined by Methodist Conference. Analysis of investment movements 2024 (£) 3,855 Market value brought fomard Profit on revaluation 315 Market value carrled forward All investments are listed on a registered Stock Exchange and generated income of £114 (£117) for the year. 13. Analysis of current assets 2024 (£) 2023 (£) 8,627 7,823 Stipends in advance Other debtors and prepayments 26,217 62,084 Total 34 844 69 907 The bank balance is held at HSBC Plc. Other debtors include the balance due from the Model Trust Fund of £17,862 (2023: £57,303). Page 25 of 29
WEALD OF KENT METHODIST CIRCUIT NOTES"ro THE FINANCIAL STATEMENTS FOR YEAR ENDING AUGUST 31" 2024 cont'd 14. Current Liabilities 2024 (£) 33,352 2023 {£) 36,852 Deferred income (15) Other creditors and accruals 32,922 65,777 Total 102 629 Other creditors for the Model Trust Fund include the balance due to the General Fund of £17,862 (2023 £57,303). There are no long-term liabilities. 15. Deferred Income 2024 (£) 33,352 2023 (£) 36,852 Arising from deferred income Deferred income is included in the financial statements as follows: 2024 {£) 36,852 2023 (£) 31,114 Balance at 1 September 2023 Deferred in year 33,352 36,852 Released in year Balance at 31 August 2024 Deferred income arises from church assessments paid in advance of the year-end which relate to the next accounting period. Page 26 of 29
WEALD OF KENT METHODIST CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDING AUGUST 31sI 2024 cont'd 16. Provision for Outstsnding Grants The amount of grants provided but unpaid at 81 August 2023 was £388,914. A total of £355,000 was paid during the year leaving a balance outstanding of £33,914 at 31 August 2024. It is anticipated that this balance will be paid within twelve months. An analysis of grants paid during the year is as follows: 2024 (£> 2023 (£) Refurbishment of a Circuit church building 350,000 116,086 Employment of Community Worker 355,000 121,086 Expensed through SOFA., Supporting worship at Circuit Church Total grants in year 357 000 123 086 17. Capital Commltments and Contingent Liabilities At 31st August 2024 the Circuit has no capital commitments. No contingent liabilities were identified at 31 sl August 2024 18. Detailed Analysis of Individual Fund Movements Unrestricted Funds General Fund Model Trust Fund Total (£) Opening balance Income 2,407,715 225,865 2,633,580 884,472 28,963 913,435 Expenditure Transfers -240,959 -69,418 -310,377 22,500 -22,500 Closing Balance £3073728 £ 162 910 £ 3 236 638 The purpose of the general fund is the administration of the Circuit. The purpose of the model trust fund is to make grants and loans to the Circuit churches and to improve the manses. The transfer between the funds related ta support from the Model Trust Fund for the ministry of the Circuit. Page 27 of 29
WEALD OF KENT METHODIST CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR YE4R ENDING AUGUST 31°, 2024 cont'd 19. Analysls of Net Assets between Funds Fund Tangible Fixed Assets (£) 2,945,203 4,170 2 949 373 Net Current Assets (£) 128,525 3,073,728 158,740 162,910 287 265 3 236 638 Total {£) General Fund Model Trust Fund Total 20. Sale of Redundant Church On 4th July 2023 the Circuit entered into a contract for the sale of the site of a redundant church subject to planning pemission being obtained. Subsequent to the year-end confirmation of planning pemission was received from the purchaser, The purchaser requested a re-negotiation of the purchase price given a change in the commercial market and revised terms have been agreed subject to legal documentation. Completion at the revised price is expected to produce a net benefit to the Circuit estimated at £800,000 after the levy that is due to the Connexional Priority Fund. The truslees consider it prudent to await completion before anticipating receipt of these funds. 21. Related Party Transactions The following schedule shows the related party transactions for the year and amounts outstanding at the year end. The Circuit churches and other Methodist organisations are considered related parties for the purpose of determining related party transactions. Circuit churches Assessment income Grants paid to the churches Grant from Connexion Assessments paid in advance Methodist church organisations District assessment Methodist Church Fund contribution Connexional Priority Fund contribution Deposit - Trustees for Methodist Church Deposit Central Finance Board 2024 {£) 237,718 357,000 2023( £) 213,764 123,086 103,942 36,852 33,352 9,690 38,802 41,656 210,516 106,888 11,521 39,522 59,227 668,227 58,968 22. Post Balance Sheet Events There are no post balance sheet events to report. Page 28 of 29
WEALD OF KENT METHODIST CIRCUIT Appendix A Circuit meeting membership - at 31 st August 2024 11 Alison Farr 12 Ann Su¢iznabar 13 Anne Stobo 14 Barbara Crosswell 15 Bryan Knapp 16 Carl Warren 17 Carol Bamett 18 Carol Oakley 19 Chris Towers 110 Demiot Thomberry 111 Elaine Coupe 112 Felicity Lusted 113 Gill Clayton 114 Helen Warmington 115 Henry Edwards 116 Hugh Taylor 117 lan Beavis 118 Jane Braund 119 John Archer 120 John Sansom 121 Julia Bevis 122 Kathy Walsh 123 Ken Barnes 124 Kirsty McGhee 125 Michael Richardson 126 Nick Rowell 127 Nicola Martin 128 Peter Crouch 129 Philip Smith 130 Rachel Sheppard 131 Reg Rummery 132 Richard Cannam 133 Roi Arden 134 Sally Dagnall 135 Sue Wilkins 136 Valerie Lovett 137 Valerie Manser Page 29 of 29