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2021-08-31-accounts

Financial Tadcaster Methodist Circuit

Registered charity number 1158403

Financial Statements

for the year ended 31 August 2021

Tadcaster Methodist Circuit

Trustees’ Report and Financial Statements

Contents

Reference and Administrative Details ............................................................................... 2 Trustees’ Report ............................................................................................................... 4 Independent Examiner’s Report ........................................................................................ 7 Statement of Financial Activities ....................................................................................... 8 Balance Sheet ................................................................................................................... 9 Notes (forming part of the financial statements) ............................................................. 10

Tadcaster Methodist Circuit

Reference and Administrative Details

Principal address

2 Haweswater Close Wetherby West Yorkshire LS22 6FG

Registered charity number

1158403

Trustees

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

Circuit Ministers

Revd Ann Fox (Superintendent) Revd Steve Jakeman

Local Pastors

Mr Donald Milne Mrs Eileen Clarkson

Circuit Stewards

Mrs Janet Griffin Mrs Sue Jakeman Mr Neil Barron

Circuit Treasurer

Dr Roland Walker

Circuit Property & Manses Secretary

Mr Mike Shipman

Circuit Meeting Secretary / Circuit Administrator

Mrs Fiona Milne Employee - Mrs Catherine Cockeram

Local Preacher / Worship Leader Tutor

Dr Alan Bell

Local Preachers’ Secretary

Mrs Unice Brierley Mrs Penny Harrison

Circuit Safeguarding Officer

Mrs Marion Davies

Church Representatives Appleton Roebuck

Mr William Kendall Mrs Joan Thomas Mrs Judith Green

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Tadcaster Methodist Circuit

Boston Spa Mrs Heather Grant
Mrs Anne Hovell
Mr Les Kellett / Mrs Pauline O’Melia
Church Fenton Mrs Jean Mason
Mr Chris Horbury
Clifford Mrs Kathryn Whaley
Mr David Mountain
Mr Michael Whaley
Collingham Mrs Ann Barker
Mr Andrew Marshall
Mrs Sheila Burgess
East Keswick Mrs Penny Harrison
Mr Tony Page
Tadcaster Mrs Sally Hill
Mrs Joan Thomas
Mr Adrian Dixon
Ulleskelf Mrs Mary Watson
Mrs Janet Allman
Wetherby Mr Brian Rankin
Mr Derek Hollaway
Mrs Joan Wilson
Mrs Heather Shipman

Independent Examiner

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

Bankers

HSBC Bank plc Central Finance Board of the Methodist Church 11 North Street 9 Bonhill Street Wetherby London LS22 6NT EC2A 4PE

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Tadcaster Methodist Circuit

Trustees’ Report

Trustees’ Report

The trustees present their report and the financial statements of the charity for the year ended 31 August 2021.

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 (2009)’ 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 Councils who take professional advice as required. There is a regular review process. The Circuit has adopted a Safeguarding Policy and ensure 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

In September 2020, the arrival of the new Superintendent, Revd Ann Fox, added to the Circuit staff. The Circuit staff developed as a new team over the coming months, as regular meetings were reorganised. Monthly meetings were held with the Circuit Leadership Team (Presbyters and Circuit Stewards) and with the Ministerial Staff Team (Presbyters and Local Pastors). Both teams meet together once a quarter. This system of meeting is working well.

The Coronavirus pandemic raised a few issues and the Circuit rallied to the challenges that it brought. A Circuit working party was set up (‘the Risky Working Party’) to consider the guidance issued by the Government and the Methodist Church and to advise the churches on their risk assessments. The Risky Working Party continues to meet regularly and to give advice to the churches. In September, some of the churches gradually reopened, until local Council special Covid regulations and later lockdowns came into effect.

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Tadcaster Methodist Circuit

In October the Government announced the tier system and the Circuit agreed with the District’s advice that churches closed once they were placed in Tier 3 and preachers in Tier 3 were advised not to officiate in Tier 2. This meant that, when West Yorkshire went into Tier 3 in November, unfortunately the Circuit was split into two, with half of the Circuit being in North Yorkshire, which was in Tier 2, and the other half being in West Yorkshire, which was in Tier 3. Shortly afterwards we entered into national lockdown, which did make it easier to manage as it meant that the whole Circuit was placed in lockdown.

Pastoral care to all church members and adherents is very important, and extra effort was made to ensure that communication across the Circuit was maintained during church closures. Weekly digital online worship (recorded or Zoom) was held, followed by ‘coffee chats’ by Zoom. We are very grateful to the Connexional team for providing the ‘Worship at Home’ sheets, which were circulated together with our weekly Circuit newsletter to all congregations, and to the District for providing monthly digital services.

The Circuit embraced the digital resources that were available, holding the Circuit Meeting and Leaders of Worship & Preachers Meeting by Zoom. Church Council meetings, Church Stewards meetings and various others, plus weekly prayer groups, and a Circuit Bible Study (on A Methodist Way of Life), were also held by Zoom.

In December, following the end of national lockdown, the Circuit returned to the Tier system, which left the Circuit split into two again, with West Yorkshire in Tier 3.

In January, we found some of the churches in the Circuit struggling with their finances, having used their financial reserves. Churches across the Circuit donated into a ‘pot’ to help those who were having difficulties, in line with the Circuit’s plea for churches to share resources (financial or otherwise) across the Circuit.

The Circuit was pleased to recommend Joseph Kwallah as a candidate for ministry and were delighted when he progressed through the District Candidates Committee. Following the Connexional Candidates Selection Committee interviews, we celebrated as Joseph was recommended for ministerial training, to commence in September 2021.

The Circuit Meeting and District approved the job descriptions and person specifications for two Local Pastors. A recruitment drive failed in November and was delayed until March (due to Circuit finances) and was again unsuccessful. Eileen Clarkson was appointed in July as the Local Pastor for one of the roles (in addition to her current role), with the other appointment currently on hold.

Cath Cockeram was employed in January as Circuit Administrator to replace Fiona Milne, the outgoing administrator.

In January 2021 a Circuit Mission & Growth strategy was launched. The staff took advantage of the various webinars and Zoom conferences that were available through the Connexion and shared the resources through a workshop with a Circuit Mission Team, made up of representatives from each of the churches. The Team has met regularly and a Circuit vision for Mission & Growth is developing.

Stephen Spain continued to serve as a Student Minister in the Circuit under the supervision of the Superintendent Minister, until he left at the end of June to prepare to enter into Circuit Ministry.

Churches began to reopen for worship gradually on the March–May Circuit Plan, some reopening at Easter, holding fortnightly services. Full Plan resumed in June, with one church reopening in July for the first time since March 2020, with monthly digital on-line services complementing the weekly onsite services (hybrid church).

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Tadcaster Methodist Circuit

Ecumenical relationships have been maintained throughout the year, meeting over Zoom, and the Churches Together groups across the Circuit have organised mission initiatives within their local communities.

The Circuit continues to play a part at District level, with Revd Ann Fox as Presbyteral Synod Secretary, Revd Steve Jakeman as District Ecumenical Officer, and both on District committees within those capacities. Local Pastor Eileen Clarkson was elected as a District Representative to Conference and attended Conference by Zoom.

Preparations are being made to bring Local Pastors into Reflective Supervision in the next Connexional year under the new structure.

Arrangements have been made for Heather Shipman to be seconded from the District Support Team to the Circuit, as Local Pastor from September to November. This is to support the Circuit staff team and Wetherby Methodist Church (181 members) whilst the Superintendent Minister is away due to ill health following a major operation and to assist as she is phased back into duties.

Revd Ann Fox Superintendent Minister 20 July 2021

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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 2021 - set out on pages 8 to 15

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

Dated: 01/11/21

23 Fieldhead Paddock Boston Spa LS23 6SA

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Tadcaster Methodist Circuit

Statement of Financial Activities

for the year ended 31 August 2021

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 fund
Net transferred between accounts
Increase in valuation (3 manses)
Total funds brought forward
Total funds carried forward
General
Fund
Unrestricted
£
150,800
77
8,243
12,092
171,212
72,976
5,872
26,936
3,803
8,559
4,457
11,370
30,161
3,494
-
167,628
3,584
54.970
125,000
1,293,116
1,476,670
Circuit
Model Trust
Fund
Unrestricted
£
-
530
-
-
530
-
-
-
-
-
-
1,154
-
-
6,601
7,755
(7,225)
(54,970)
-
182,805
120,610


Total
2020-21
£
150,800
607
8,243
12,092
171,742
72,976
5,872
26,936
3,803
8,559
4,457
12,524
30,161
3,494
6,601
175,353
(3,641)
-
125,000
1,475,921
1,597,280
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
1,475,921

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Tadcaster Methodist Circuit

Balance Sheet

at 31 August 2021

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
£
1,375,000
6,120
-
106,670
29,800
142,590
40,920
101,670
1,476,670
1,476,670
Circuit Model
Trust Fund
Unrestricted
£
-
-
120,610
-
-
120,610
-
120,610
120,610
120,610
2021
£
1,375,000
6,120
120,610
106,670
29,800
263,200
40,920
222,280
1,597,280
1,597,280
2020
£
1,250,000
11,756
182,015
70,210
4,083
268,064
41,893
226,171
1,476,171
1,476,171

The financial statements were approved by the Board of Trustees on 28th September 2021 and were signed on its behalf by:

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
2020-21
£
5,650
40,000
4,500
6,750
11,550
11,000
19,500
1,600
57,200
157,750
2019-20
£
5,650
40,000
4,500
6,750
11,550
11,000
19,500
1,600
57,200
157,750

The circuit comprises 9 churches and each makes a share contribution, according to their ability, to meet the overall net costs of the circuit. In the exceptional circumstances of the period since the start of the pandemic, with premises being closed and the subsequent loss of income for churches, it was decided to leave the share contributions unchanged and to meet any shortfall in the accounts from circuit reserves. In the event, two churches were unable to meet their payments giving a shortfall of £6,950 in contributions (See Note 3 below)

3

Village Redevelopment Fund / Covid Support Fund / Grants

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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. Total costs were as follows:

Stipends
National Insurance contributions
P11D NI
Pension fund contributions
Telephone
Travelling
Removal, stationing and relocation costs
2020-21
£
54,230
5,014
-
13,732
72,976
2,165
1,638
-
76,779
2019-20
£
58,388
4,509
-
13,370
76,267
1,117
4,890
1,775
84,049

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 employer’s 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)

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

2020-2021 2019-20
£ £
Postage, consumables, telephone and travel 6,486 8,597
Number of trustees who were paid expenses 5 7

The circuit is Managing Trustee for 3 manses, two usually occupied by a presbyter. 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
2020 totals
Council tax
£
3,022
2,178
-
-
5,200
4972
Property
Insurance
£
545
581
605
-
1,731
1,899
Central
Heating
Insurance
£
490
382
430
-33
1,269
1,286
Water
£
522
273
-
-436
359
730



Total
£
4,579
3,414
1,035
-469
8559
7,601
Repairs
£

2,031
2,967
-
-541
4,457
26,289

7 Office, administration & other costs

2020-21 2019-20
£ £
Quinquennial expenditure - 688
Administration 5,529 1,638
Printing, Postage and Consumables 2,683 2,590
Sundries 220 1,894
Training & Internship costs 706 889
One-off exceptional cost 1,702 -
Covid recovery costs 1,320 -
TMCP Administration fee 364 375
12,524 8,074

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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 2020
Appreciation
At 31 August 2021
Net Book Value
At 31 August 2021
at 31 August 2020
Manses
£
1,250,000
125,000

1,375,000
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 that, in line with house price rises in the area, the value of these properties as at 31st August 2021 to be 10% higher than the valuation on 31st August 2020.

10 Debtors

2020-21 2019-20
£ £
Sundry debtors - 2,840
Loans - -
Pre-payments 6,120 8,917
6,120 11,757

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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

2020-21 2019-20
£ £
Church assessments paid in advance 39,437 39,437
Other creditors 1,144 2,156
Accruals 339 300
40,920 41,893

13 Capital commitments and contingent liabilities

There were no capital commitments or contingent liabilities at the year-end (2020: £ nil).

14 Circuit Model Trust Fund

Balance as at 31 August

2020-21
£
120,610

2019-20
£
182,805

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. A loan of £29,970 was repaid into the CFB account, to be transferred to the Model Trust Fund at the start of the new financial year.

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