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2020-08-31-accounts

TADCASTER METHODIST CIRCUIT

Registered charity number 1158403

FINANCIAL STATEMENTS

for the year ended 31 August 2020

TADCASTER METHODIST CIRCUIT

Trustees’ Report and Financial Statements

Contents Page
Reference and Administrative Details 1 - 2
Trustees’ Report 3 - 5
Independent Examiner’s Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 -14

TADCASTER METHODIST CIRCUIT

REFERENCE AND ADMINISTRATIVE DETAILS

Registered charity number

1158403

Principal address

2 Haweswater Close Wetherby West Yorkshire LS22 6FG

Trustees

The trustees who served the charity during the year were as follows:

Circuit Ministers:

Revd Ruth Parry (Acting Superintendent) Revd Mark Stennett Revd Steve Jakeman

Supernumerary Ministers:

Rev Ken Marshall Revd Gordon Shaw Revd Don Tuttell

Local Pastors

Mrs Heather Shipman Mr Donald Milne Mrs Eileen Clarkson

Student Presbyter

Mr Stephen Spain

Circuit Stewards

Mrs Janet Griffin Mrs Sue Jakeman Mr Neil Barron

Circuit Treasurer

Dr Roland Walker

Circuit Secretary

Mrs Fiona Milne

Circuit Administrator

Mrs Fiona Milne

Circuit Property Secretary

Mr Mike Shipman

Preachers and Worship Leaders Meeting Secretary

Mrs Unice Brierley

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TADCASTER METHODIST CIRCUIT

REFERENCE AND ADMINISTRATIVE DETAILS (continued) Trustees (continued)

Local Preacher representatives

Mr Andrew Marshall

MHA / Home Missions

Mrs Fiona Milne

Action for Children Co-ordinator

Mrs Hilary Marshall

World Church Treasurer

Mrs Fiona Milne

MWiB Representative

Mrs Joan Dyer

Church Representatives

Appleton Roebuck Mr William Kendall Mrs Joan Thomas Boston Spa Mrs Heather Grant Mrs Anne Hovell Church Fenton Mr Andrew Eddison Clifford Mr Michael Whaley Mrs Katheryn Whaley Collingham Mrs Ann Barker Mrs Sheila Burgess East Keswick Mr Christine Burton Mr Tony Page Tadcaster Mr Adrian Dixon Mr John Kimmer Mrs Joan Thomas Ulleskelf Mrs Janet Allman Mrs Mary Watson Wetherby Mrs Joan Wilson Mr Billy Normington Mrs Mavis Hall Mr Ifor Jones Mr Donald Milne

Independent Examiner

Mr Kenneth F Grimditch FCA 23 Fieldhead Paddock Boston Spa Wetherby LS23 6SA

Bankers

HSBC Bank plc 11 North Street Wetherby LS22 6NT

Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE

2

TADCASTER METHODIST CIRCUIT

Trustees’ Report

The trustees present their report and the financial statements of the charity for the year ended 31 August 2020.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The charity is unincorporated and is governed under the Deed of Union (1932) and the Methodist Church Act (1976). The trustees are appointed by local churches and existing trustees. Ministers and Circuit Stewards are automatically trustees.

Induction and training of trustees

A range of guidance is produced by Methodist Connexion and the leaflet ‘The Role of a Trustee in the Methodist Church’ is given to each trustee.

Structure

The Circuit is part of the Yorkshire North & East Methodist District and is accountable to the Methodist Conference,

Risks

Risks are considered by both the Circuit Meeting and individual Church Council who take professional advice as required. There is a regular review process. The Circuit has adopted a Safeguarding Policy and ensured it is rolled out to the churches,

OBJECTIVES AND ACTIVITIES

The purposes of the Methodist Church are and shall be deemed to have been since the Date of the Union the advancement of:

  1. The Christian faith in accordance with the doctrinal standards and discipline of the Methodist Church.

  2. Any charitable purpose for the time being of any Connexional, District, Circuit, local or other organisation of the Methodist Church.

  3. Any charitable purpose for the time being of any society or institution, subsidiary or ancillary to the Methodist Church.

  4. Any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church.

In all activities the trustees had regard to the Charity Commission’s guidance on public benefit.

ACHIEVEMENTS AND PERFORMANCE

This year was a year of two halves. From September 2019 to March 2020 Revd Ruth Parry took over the responsibility for the Superintendency of the Circuit until the expected arrival of Revd Ann Fox in June 2020. Eileen Clarkson, as Local Pastor had oversight of East Keswick, Church Fenton, Appleton Roebuck and shared leadership of Tadcaster. Revd Uell Kennedy had pastoral care of Collingham and Ulleskelf. As Local Pastors Donald Milne had shared pastoral care of Boston Spa and Clifford and Heather Shipman had pastoral care of Wetherby. Revds Steve Jakeman and Ruth Parry shared pastoral charge of the churches in the circuit. There were some exciting initiatives happening throughout the Circuit and an exploration of how leadership might be arranged in the future taking care that it was shared between lay and ordained was begun. The history of lay leadership in the Methodist Church was explored and affirmed in its continued development within the circuit. A very successful event for the circuit charity, Candlelighters was held at Boston Spa. Preparations for the arrival of Revd Ann Fox were begun and a significant update of the facilities at the Wetherby Manse commenced.

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TADCASTER METHODIST CIRCUIT

Things changed significantly with the arrival of Coronavirus. Some plans were put on hold and others greatly changed. It was realised that Revd Ann Fox would not be able to join the Circuit until September 2020 and so Revd Ruth Parry agreed to continue as the Acting Superintendent of the Circuit until the end of July 2020. Work at the Wetherby manse was completed though the time scale was longer than expected. The most significant impact of Coronavirus on the life of the Circuit was in the closure of all churches and the development of on-line worship.

Weddings, funerals and baptisms were all impacted and had to be deferred for the remainder of the year. Funeral services took place with reduced numbers of mourners at the relevant crematoria. The impact of this on both mourners and the congregations who had lost significant members, was noted and various attempts, such as the creation of a memory book for families, were introduced to try to mitigate some of the distress.

One positive impact of the virus was the development of on-line worship provision. Many people took part in providing both Circuit services and reflections on a weekly basis. Worship, and a fun service for children called Tea Time church developed and there were numerous connexional services available. The BBC also provided a Sunday morning service. Many more people were found to be logging into on-line services than would have been expected to be present at a church service and this is something which will have considerable impact on worship provision in the circuit in the future.

Zoom became a part of the life of the circuit for both meetings, and a very successful Circuit Bible Study on the Book of Ruth was held using that medium. This too is something which will have a major effect on the way we work in the future.

Pastoral care, always of great importance in all our churches, shot to the top of the agenda as people felt isolated and our means of communicating with one another became greatly restricted. Newsletters containing reflections, sharing of celebratory events, jokes, quizzes, cartoons together with the distribution of the Methodist Church’s printed service became a part of our weekly provision. As often as possible distribution was by email but when not possible these were posted out. Phone calls were also made and people developed ‘buddy’ groups to prevent anyone feeling lonely and left out.

We welcomed Roland Walker as the new Circuit Treasurer and he began with the difficult task of working with Church Treasurers who were experiencing a decrease in revenue with the cancellation of all lettings.

Stephen Spain continued to serve as a Student Minister in the Circuit under the supervision of Ruth Parry.

Ecumenical relationships are good throughout the circuit though all churches are concentrating on their own worship initiatives and problems during this time.

The circuit continues to play a full part at District level and involves itself in Connexional activities wherever possible, particularly in discussing the report ‘God in Love Unites Us’.

At the end of the year churches were looking at drawing up risk assessments with a view to opening their buildings again. This proved to be a difficult process but hopefully a fruitful one. There was an air of anticipation that things would improve but also a fear that the pandemic had not yet run its course. It was therefore with both hope and caution that the year ended and we again reminded ourselves to trust in God and to do our best to serve both our virtual and physical congregations and the wider world in the best way we can.

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TADCASTER METHODIST CIRCUIT

FINANCIAL REVIEW

The Circuit Accounts include:

The budget for 2019-20 was adjusted in-year to reflect additional expenditure on both property and staffing. Expenditure in the year exceeded income by over £33,000, but almost £28,000 came from funds reserved for manse repairs and village church projects. General Funds were reduced by around £5,700

RESERVES POLICY

The usual reserves policy for the Tadcaster Methodist Circuit is to hold a sum of up to 3 months average expenditure in the General Fund. In the current exceptional circumstances, it has been determined to start 2020-21 with slightly less than this but to review the situation in Spring, 2021, when the position of individual churches will be clearer. In the event of churches being unable to meet their contributions, the circuit will access its Model Trust Fund as is deemed necessary.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and regulations and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that 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, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

Signed on behalf of the trustees

Rev Ann Fox

Revd Ann Fox Superintendent Minister, Chair of Trustees

Dated: 23.11.2020

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TADCASTER METHODIST CIRCUIT

Independent Examiner’s Report To the trustees unaudited accounts of the Tadcaster Methodist Circuit

I report on the accounts for the year ended 31 August 2020 - set out on pages 6 to 14

Respective responsibilities of trustees and examiner

As described on page 5 the trustees are responsible for the preparation of the accounts, and they consider that an audit is not required for this year under section 144 (2) of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to examine the accounts under section 145 of the Charities Act, to follow the procedures laid down in the general directions given by the Charity Commission (under section 145 (5)(b) of the Charities Act), and to state whether particular matters have come to my attention.

Basis of independent examiner’s report

My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Circuit and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention;

  1. which gives me reasonable cause to believe that in any material respect the requirements

  2. to keep accounting records in accordance with section 130 of the Charities Act; and

  3. • to prepare accounts which accord with the accounting records and to comply with the requirements of the Charities Act have not been met; or

  4. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

K F Grimditch FCA

Kenneth F. Grimditch Chartered Accountant

23 Fieldhead Paddock Boston Spa LS23 6SA

Dated: 26.10.2020

6

TADCASTER METHODIST CIRCUIT

Statement of Financial Activities

for the year ended 31 August 2020

INCOME
Assessments on Churches (note 2)
Interest
Rental Income
Other income (note 3a)
Total income
EXPENDITURE ON CHARITABLE ACTIVITIES
Stipends, salaries and pension costs (note 4)
District assessment (note 8)
Methodist church fund
Telephone and travel (incl relocation costs)
Insurance, utilities etc (note 6)
Maintenance of manses (note 6)
Other expenditure (note 7)
Preaching and worship, incl. Local Pastors
Grants and donations (note 3b)
Contributions to district advance fund
Total expenditure
Net movement in funds
Total funds brought forward
Total funds carried forward
General
Fund
Unrestricted
£
157,750
518
7,409
1,795
167,472
76,267
5,353
26,295
7,782
8,059
26,289
7699
38,485
4,583
-
200,812
(33,340)
1,326,956
1,293,616
Circuit
Model Trust
Fund
Unrestricted
£
-
1,561
-
-
1,561
-
-
-
-
-
-
375
-
-
6,886
7,261
(5,700)
188,505
182,805

 Total
2019-20
£
157,750
2,079
7,409
1,795
169,033
76,267
5,353
26,295
7,782
8,059
26,289
8,074
38,485
4,583
6,886
208,073
(39,040)
1,515,468
1,476,421		 Total
2018-19
£
159,000
2,333
4,959
4,044
170,336
83,172
5,082
27,506
10,492
5,572
5,424
7,916
14,083
7,185
166,431
3,905
1,511,556
1,515,468

7

TADCASTER METHODIST CIRCUIT

Balance Sheet

at 31 August 2020

Tangible Fixed Assets
Circuit Manses
Current Assets
Debtors and prepayments
Trustees for Methodist purposes
Central finance board deposits
Cash at bank and in hand
Current liabilities
Creditors and accruals
Net Current Assets
Total Assets
Funds of the Circuit
General Fund (unrestricted)
Note
9
10
11
12
General Fund
Unrestricted
£
1,250,000
10,966
-
70,210
4,083
85,259
41,893
43,366
1,293,366
1,293,366
Circuit Model
Trust Fund
Unrestricted
£
-
790
182,015
-
-
182,805
-
182,805
182,805
182,805		 2020
£
1,250,000
11,756
182,015
70,210
4,083
268,064
41,893
226,171
1,476,171
1,476,171		 2019
£
1,250,000
22,263
187,715
86,296
14,657
310,931
45,470
265,461
1,515,461
1,515,461

The financial statements were approved by the Board of Trustees on 29th September 2020 and were signed on its behalf by:

Rev Ann Fox

Revd. Ann Fox Superintendent and Chair of the meeting

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TADCASTER METHODIST CIRCUIT

Notes

(forming part of the financial statements)

1 Accounting policies

Accounting convention

The financial statements are prepared under the historical cost convention in accordance with the requirements of the FRS102 SORP and the Charities Act 2011. The format of the SOFA and balance sheet takes advantage of the small charity concession set out in the SORP.

Funds

The funds 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.

Incoming resources

These are included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, the trustees are virtually certain they will receive the resources, and the monetary value can be measured with sufficient reliability.

Resources expended

Expenditure is recognised when a liability is incurred, or a constructive obligation arises that results in the payment being unavoidable.

Liability recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the Circuit to pay out resources. Future income has not been anticipated.

Tangible fixed assets for use by the Circuit

Tangible fixed assets are capitalised if they can be used for more than one year, and cost at least £1,000. They are valued at cost or a reasonable value on receipt. (Where cost is not available, the Circuit Meeting may provide a reasonable estimate of cost or of the buildings’ current value to the circuit. An estimate based on insurance value should take account of the fact that cover will be based on demolition and reinstating the current building and not the original cost less accumulated depreciation. Provision is made for depreciation where appropriate).

Debtors and prepayments

These amounts are owed to the Circuit and include payments made by the District for services yet to be received.

Creditors

These amounts are owed by the Circuit and include any amounts accrued as payable this year but will be paid in future years.

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TADCASTER METHODIST CIRCUIT

Notes

(forming part of the financial statements - continued )

2 Assessment on churches

Appleton Roebuck
Boston Spa
Church Fenton
Collingham
Clifford
East Keswick
Tadcaster
Ulleskelf
Wetherby		 2019-20
£
5,650
40,000
4,500
6,750
11,550
11,000
19,500
1,600
57,200
157,750
 2018-19
£
5,650
40,000
5,750
6,750
11,550
11,000
19,500
1,600
57,200
159,000

The circuit comprises 9 churches and each is assessed for a contribution to meet the overall net costs of the circuit. In making its assessment budgeted income from all sources is taken into account. The circuit aims to cover all its net costs from the assessments.

3 Village Redevelopment Fund

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TADCASTER METHODIST CIRCUIT

Notes

(forming part of the financial statements - continued)

4 Stipends, salaries and pension costs

Stipends were paid to 2 full-time presbyters. A third was seconded for 0.25 of the week from the District to be Acting Superintendent and a recharge was paid to the District (201 - 3). Total costs were as follows:

Stipends (incl. District charge)
National Insurance contributions
P11D NI
Pension fund contributions
Telephone
Travelling
Removal, stationing and relocation costs		 2019-20
£
58,388
4,509
-
13,370
76,267
1,117
4,890
1,775
84,049		 2018-19
£
61,325
5,595
-
16,252
83,172
1,896
8,595
-
93,663

The ordained presbyters are members of the Methodist Ministers' Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers are not employees of the church. For simplicity, however, when dealing with National Insurance contributions and pension contributions, the terms 'employer' and 'employee' are used as they would be in an employing body.

5 Cost of Superintendent, Presbyters and Trustees

The Superintendent of the circuit, the other presbyters and the remaining members of the circuit leadership team are considered as key management personnel. The Superintendent chairs meetings of the CLT and circuit meetings. The members of the circuit meeting are trustees of the circuit. The stipends, employers NIC and employers pension contributions and other expenses of the presbyters of the circuit are paid by the circuit.

The manses are provided by the circuit and the circuit maintains the property. The value of the council tax and water charges paid by the circuit are not disclosed here as HMRC does not regard these as a benefit in kind in the hands of the minister.

The circuit does not accrue for holiday pay cover as the remaining staff cover the holidays as needed and without extra pay.

With a reduction in presbyters in the circuit, it has moved to employ paid Local Pastors, who have shared responsibility with the presbyters for work throughout the circuit. Their costs are included in the expenditure under Preaching & Pastoral Care.

Payments to Trustees

It is generally not circuit policy to reimburse members of the CLT, circuit meeting and others involved in the administration of circuit affairs, other than presbyters and local pastors, for expenditure incurred in carrying out their duties.

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TADCASTER METHODIST CIRCUIT

Notes

(forming part of the financial statements - continued)

5 Payments to Trustees (continued)

Other payments made to trustees for additional services provided to the Circuit by agreement with the Circuit Meeting comprise postage, consumables, telephone and travel.

2019-2020 2018-19
£ £
Postage, consumables, telephone and travel 8,597 11,184
Number of trustees who were paid expenses 7 7

6 Property expenses

The circuit is Managing Trustee for 3 manses, two usually occupied by a presbyter. The Wetherby manse was unoccupied for 11 months, prior to the arrival of the new Superintendent. The Tadcaster manse was not occupied by a presbyter and was duly let on the open market. The circuit is responsible for the payment of council tax, water charges and insurance on all three manses. In addition, the cost of gas & electricity for the Wetherby manse was paid by the circuit to ensure it was maintained while it stood empty. This resulted in an exceptional cost of £458. The cost of ongoing maintenance to all properties is funded through the General Fund. Expenditure on manses was as follows:

Manse
Wetherby
Boston Spa
Tadcaster
Other
2018 totals
Council tax
£
2,888
2,084
-
-
4,972
3,295
Insurance
£
772
552
575
-
1,899
1,763		 Water
£
340
342
48
-
730
519		 Total
£
4,000
2,978
623
-
7,601
5,577




 Repairs
£
23,448
2,424
417
-
26,289
4,241

7 Office and administration costs

2019-20 2018-19
£ £
Quinquennial expenditure 688 2,415
Administration 1,638 1,294
Printing, Postage and Consumables 2,590 1,229
Sundries 1,894 2,491
Training 889 100
TMCP Administration fee 375 387
8,074 7.916

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TADCASTER METHODIST CIRCUIT

Notes

(forming part of the financial statements – continued)

8 District assessment and levy

The district assessment is calculated relative to the staffing of all circuits in the Yorkshire North & East District.

9 Tangible fixed assets - freehold property

At valuation
At 31 August 2019 and at
At 31 August 2020
Depreciation
At 31 August 2019 and at
At 31 August 2020
Net Book Value
At 31 August 2020
at 31 August 2019		 Manses
£
1,250,000
-
1,250,000
1,250,000

The Circuit owns three manses based at Wetherby, Boston Spa and Tadcaster. All are freehold and were professionally revalued at 31st August 2016 by Renton & Parr of Wetherby, Chartered Surveyors with experience of valuing similar properties, on an open market existing use basis in accordance with the RICS UK Valuation Standards 2014 and International Valuation Standards. The trustees consider the value of these properties as at 31st August 2020 to be the same as the valuation on 31st August 2019.

10 Debtors

2019-20 2018-19
£ £
Sundry debtors 2,840 790
Loans - 13,835
Pre-payments 8,917 7,638
11,757 22,263

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TADCASTER METHODIST CIRCUIT

Notes

(forming part of the financial statements - continued)

11 Trustees for Methodist purposes

The funds that support the Model Trust Fund are held by TMCP in Trustees Interest Funds on which interest is credited to the account each month. TMCP is the legal owner and custodian trustee of all Methodist model trust fund 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 property. TMCP ensure that, through providing guidance and acting under their direction, the managing trustees comply with charity law and Methodist law and policy is determined by the Methodist conference.

12 Creditors

2019-20 2018-19
£ £
Church assessments paid in advance 39,437 39,437
Other creditors 2,156 3,332
Accruals 300 2,701
41,893 45,470

13 Capital commitments and contingent liabilities

There were no capital commitments or contingent liabilities at the year-end (2019: £ nil).

14 Circuit Model Trust Fund

Balance as at 31 August

 2019-20
£
182,805

 2018-19
£
188,505

The purpose of the fund is for the use, at the discretion of the trustees, in the furtherance of the general objectives of the circuit. Its main source of income has been the contributions from the sale of church buildings in the circuit.

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