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2023-08-31-accounts

Circuit Accruals Accounts 2022-2023

THE METHODIST CHURCH

REPORT AND ACCOUNTS

for the year ended 31 August 2023

Kingston Upon Thames Circuit 1163652 London District No/ Circuit No 35/38

Registered Charity - Registration number

Kingston upon Thames Circuit Trustees Annual Report

For the year ended 31 August 2023

Reference and administrative details

Full Name of Charity: Kingston upon Thames Methodist Circuit Registration Charity Number: 1163652 Date of registration: 18 September 2015 Main communication address (Circuit office): Surbiton Methodist Church 39 Ewell Road Surbiton Surrey KT6 6AF Circuit Ministers and officers Active Circuit Ministers: Rev Dr Stanley Brown (retired 31 August 2023) Rev Dr Karl Rutlidge Rev Dr Mark Wakelin Rev Vindra Maraj-Ogden (appointed 1 September 2023) Circuit Stewards: Ms Helen Lamb Mr John Harvey Ms Julie Haines Administrator: Mr Michael Axton Circuit Treasurer: Ms Bridget Russell Independent examiner: Simon Sturman Simply Accounts and Tax Limited Epsilon House Ransomes Europark Ipswich IP3 9FJ Bankers: Central Finance Board of the Methodist Church Trustees for Methodist Church Purposes Barclays Bank Plc

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Kingston upon Thames Circuit Trustees Annual Report

For the year ended 31 August 2023

Basis of preparation and legal framework

The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS102 – the Charities SORP (FRS102) and taking note of the Update Bulletin 1 issued in 2016. The members of the Kingston upon Thames Methodist Circuit meeting are the Charity Trustees, membership being made up of circuit office holders, ministers and representatives appointed by the local churches. Fully membership is shown as Appendix A to this report.

Aims and organisation

Mission Statement

To support and develop the Methodist congregations and communities of the circuit through offering oversight, leadership in mission, training and support services. The circuit’s policy is to encourage and enable growth in:

Aims and organisation

Charity objective is to act as a Resource provider within the area around Kingston upon Thames 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:

In addition

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Kingston upon Thames Circuit Trustees Annual Report

For the year ended 31 August 2023

Public Benefit

In setting objective and planning activities, the Trustees have given due consideration to general guidance published by the Charities Commission relating to public benefit, including the guidance “Public benefit running a charity (PB2) in exercising their powers or duties.

Structure, Governance and Management

The Kingston upon Thames Methodist Circuit links four Methodist churches which serve the diverse and growing communities of the Royal Borough of Kingston upon Thames. Each of our congregations is distinctive with its own style of worship and its own focus for mission and service, but we are held together by our common heritage of Methodism and a shared passion to worship and serve God within our local communities.

The governing document for the circuit is the Deed of Union (1932) and Methodist Church Act (1976).

Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD).

Day to day management of the circuit is undertaken by the Circuit Leadership team along with the Local Preachers meeting, the Circuit Finance and Property Committees.

Purposes of the Circuit

The purposes of a Methodist Circuit are defined by the standing orders of The Constitutional Practice and Discipline of the Methodist Church (CPD). They include: the effective deployment of the resources of ministry, which include people, property and finance as they relate to the Methodist churches in the Circuit, to churches of other denominations and to participation in the life of the communities served by the Circuit. (CPD: Standing Order 500).

The Circuit acts as Managing Trustees for the three residential manse properties occupied by its ministers and also for a fourth residential property formerly occupied as a manse but now let on a tenancy with the income supporting the core work of the charity. It supports and oversees the work of Church Councils who act as Managing Trustees for the local church properties and has an important role in providing scrutiny and permission giving for key decisions affecting the trusteeship of the local churches. Custodian trusteeship is provided by the Trustees for Methodist Church Purposes.

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 London District and is also accountable to the Methodist Conference. The following Methodist Churches are linked to the circuit Chessington Church, Kingston Church, New Malden Church and Surbiton Hill Church.

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Kingston upon Thames Circuit Trustees Annual Report

For the year ended 31 August 2023

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 half yearly basis to detect trends as part of the risk management process to avoid unforeseen calls on reserves.

Safeguarding

Every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. 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 Kingston upon Thames Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the circuit and in the churches.

The Kingston upon Thames Circuit commits itself to the provision of support, advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable.

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Kingston upon Thames Circuit Trustees Annual Report

For the year ended 31 August 2023

Review of the year

Introduction

During the year of this report the circuit supported 2.5 (2022: 2.5) full time equivalent Methodist Presbyters and employed one part time administrator. This core staff team, however, only exists to support, encourage, enable and strengthen the ministry of our congregations and the majority of our activities – in worship, service and trusteeship - are led by volunteers.

Our local churches enjoy enriching relationships with partner churches through the various “Churches Together” groupings in the Borough and we actively support a number of borough wide initiatives including Street Pastors, Food Bank, Kingston Churches Action on Homelessness and the Oxygen youth work project.

Staffing

In August 2023 Rev Dr Stan Brown stood down from active ministry and we are delighted that the Rev Vindra Maraj-Ogden agreed to join the circuits staff as superintendent minister from September 2023. This coming August 2024, the Rev Dr Mark Wakelin will also stand down from active ministry at which stage the circuit will move to a two minister model. Plans are continuing apace as to what that will look like.

We were pleased to welcome back Hannah Chun as a Student Minister in the circuit during the course of the year. She is training for ordained ministry following a new Circuit Based Learning Pathway. Our circuit has been repeatedly used as a base for student placements over a number of years and we are pleased and proud to be able to offer these opportunities to those preparing for ordained ministry. Sadly for us, Hannah has been placed in another circuit from September 2023 to continue her training as a probationer minister. We wish her and her family all the best for the future.

The Circuit’s Part Time Administrator has continued to work effectively during the year supporting and enabling our administration and management. A new more flexible working pattern including home working has been introduced post COVID.

Developing New Patterns

The four churches of our circuit have emerged from the COVID crisis in a much stronger position than we had feared. Skills learned through the lock down periods have enabled new initiatives to take place. Online worship continues to be available alongside face to face worship in church, using a mixture of livestream and pre-recorded worship material around the circuit. Facilities have been created for hybrid meetings and this has enabled a greater participation in some key meetings for those whose work patterns or journeys make evening meeting particularly difficult.

Considerable work was done by the circuit through this reporting year to ensure that safeguarding training and processes have are kept up to date with the latest policies. This being the main focus of our training effort during the year.

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Kingston upon Thames Circuit Trustees Annual Report

For the year ended 31 August 2023

Finance

Reserves are held both by the individual churches and the circuit. Each church holds and reports on their reserves separately. Each individual church contributes as they are able to the running costs of the circuit and the stipends of the ministerial staff. The circuit held its circuit assessment to each church at the same value as in the previous two years. However, with effect from 1 September 2023 a rise in circuit assessment has been agreed. Apart from this action, it has not been necessary to call on the circuit reserves to support any of the local churches. Local church reserves have been regularly monitored with forward projections to indicate when each church might drop below the recommended reserve of six months expenditure.

Income trends

Circuit income is primarily drawn from the assessment paid by the circuit churches. The rental income relates to the rental of a manse in Kingston upon Thames.

Expenditure trends

Stipend expenditure has increased each financial year in line with conference approved increases. The other expenditure includes costs involved in the upkeep of other manse property within the Circuit.

Fund balances

As at 31 August 2023 the net current assets of the Circuit were £151,213 (2022: £183,092), giving sufficient cover for a year’s expenditure excluding provision for manse renewal costs. Plans for 2023/24 Circuit financial plans for the coming year have been prepared on the basis that there are 2.5 full time ordained staff with anticipated cost of living stipend increases combined with an increase in the assessment paid to the district. At the start of the 2024/25 year, the circuit will be down to two ministers and the budget preparation process has started to allow the circuit to return to a more stable financial footing.

Reserves Policy

The Reserves Policy for the Circuit is to hold a minimum sum equivalent to six months’ average expenditure together with an amount of £20,000 to cover estimated future manse expenditure in maintaining them to a suitable standard. The circuit’s operating reserves policy applies to the general, unrestricted fund and not to the St James gift which is treated as a restricted fund in these accounts.

This should be sufficient to meet any unforeseen item of major expenditure on manses and 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.

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Kingston upon Thames Circuit Trustees Annual Report

For the year ended 31 August 2023

Property

The circuit has fulfilled its responsibility as managing trustees for the manse properties through the work of its manse stewards and has overseen the work of local managing trustees for the churches through the Circuit Meeting. There are nine Methodist Trust properties in the circuit and Quinquennial inspections are carried out by rotation with maintenance schedules being developed from these inspections. At the changeover of ministers it is customary to refresh the manse ready for the incoming minister. This year we refurbished the Surbiton Hill manse ready for the Rev Vindra Maraj-Ogden to take occupancy with effect from 1 September 2023.

Safeguarding

The circuit has a role in overseeing the safeguarding work of each local church. During the year our circuit safeguarding officer has worked hard with each local church to ensure that local safeguarding officers are in place and training provided to all relevant volunteers. Our safeguarding policy receives an annual review which was carried out by the Circuit Meeting. Safeguarding is of the highest importance across all our work and we are grateful for the care with which our volunteers ensure this responsibility is constantly kept before us.

Looking Forward

During the year the Circuit Leadership Team increasingly recognised that its role and the mission of the circuit needed to be reviewed in the light of the rapidly changing circumstances. The difficulty of ensuring full and proper consultation and conversations during a time of sporadic video conferencing was, however, recognised and significant discussion has been postponed until the situation improves.

Rev Vindra Maraj-Ogden

Superintendent Minister

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Circuit No 35/38

Kingston Upon Thames Circuit

Statement of Financial Activities (SOFA) for the year ended 31 August 2023

Notes to Notes to Circuit Model Designated
the General Fund Trust Funds Restricted Endowment Total
accounts (Unrestricted) (Unrestricted) (unrestricted) Funds Funds 2022-23
£ £ £ £ £ £
Income
1 Donations and legacies -
2 Income from monetary investments 2,739 2,333 309 5,381
3 Income from investment properties 15,645 15,645
4 Assessments on Churches 152,739 152,739
5 Capital Receipts -
6 Grants received 2,320 2,320
7 Other charitable income
8Total income 173,443 2,333 - 309 - 176,085
Expenditure
9 Grants and donations -
10 Salaries and associated costs 106,726 106,726
11 Property maintenance 49,326 49,326
12 Connexional assessment & model trust levy 212 310 522
13 District Assessment & Levy 34,471 1,862 36,333
14 Depreciation -
15 Office expenses 11,005 11,005
16 Other outgoings 4,053 4,053
17Total charitable expenditure 205,581 2,074 - 310 - 207,965
18 Gains/(losses) on monetary investments (1,097) (1,097)
19 Gains/(losses) on investment properties
20Net income/(expenditure) (32,138) 259 - (1,098) - (32,977)
21 Transfers between funds -
22 Other gains/(losses)
23Net movement in funds (32,138) 259 - (1,098) - (32,977)
24 Total funds brought forward 2,152,080 74,498 - 15,502 - 2,242,080
25 Total funds carried forward 2,119,942 74,757 - 14,404 - 2,209,103

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Circuit No 35/38

Kingston Upon Thames Circuit

Statement of Financial Activities (SOFA) for the year ended 31 August 2022

Notes to Notes to Circuit Model Designated
the General Fund Trust Funds Restricted
Endowment
Total
accounts (Unrestricted) (Unrestricted) (unrestricted) Funds Funds 2021-22
£ £ £ £ £ £
Income
1 Donations and legacies -
2 Income from monetary investments 559 559
3 Income from investment properties 23,715 23,715
4 Assessments on Churches 151,079 151,079
5 Capital Receipts -
6 Grants received -
7 Other charitable income
8Total income 174,794 559 - -
-
175,353
Expenditure
9 Grants and donations -
10 Salaries and associated costs 101,393 101,393
11 Property maintenance 5,585 1,965 7,539 15,089
12 Connexional assessment & model trust levy 369 369
13 District Assessment & Levy 36,523 36,523
14 Depreciation -
15 Office expenses 11,847 11,847
16 Other outgoings 1,979 1,979
17Total charitable expenditure 157,327 2,334 7,539 -
-
167,200
18 Gains/(losses) on monetary investments (2,656) (2,656)
19 Gains/(losses) on investment properties
20Net income/(expenditure) 17,467 (1,775) (10,195) -
-
5,497
21 Transfers between funds (15,502) 15,502 -
22 Other gains/(losses)
23Net movement in funds 17,467 (1,775) (25,697) 15,502
-
5,497
24 Total funds brought forward 2,134,613 76,273 25,697 -
-
2,236,583
25 Total funds carried forward 2,152,080 74,498 - 15,502
-
2,242,080

Circuit No 35/38

Kingston Upon Thames Circuit

Balance Sheet as at 31 August 2023

----- Start of picture text -----
General Fund Circuit Model Designated Restricted Endowment Totals Totals
(Unrestricted) Trusts Funds Funds Funds 2022/23 2021/22
Notes to the (Unrestricted) (Unrestricted)
Accounts £ £ £ £ £ £ £
Fixed Assets
Circuit Manses & Equipment 2,043,486 2,043,486 2,043,486
Investment properties - -
Investments 14,404 14,404 15,502
Total fixed assets 2,043,486 - - 14,404 - 2,057,890 2,058,988
Current Assets
Debtors - -
Loans by the Circuit - -
Investments with TMCP 74,757 74,757 74,498
Central Finance Board Deposits 68,341 68,341 99,389
Cash at Bank and in hand 19,459 19,459 9,205
Total current assets 87,800 74,757 - - - 162,557 183,092
Current liabilities
Creditors (due in under 1 year) 11,344 11,344 -
Grants payable within 2023-24 - -
Total current liabilities 11,344 - - - - 11,344 -
Net current assets/liabilities 76,456 74,757 - - - 151,213 183,092
Total assets less current liabilities 2,119,942 74,757 - 14,404 - 2,209,103 2,242,080
Long term liabilities
(due after more than one year)
Grants payable after 2021-22 - -
Loans to the Circuit - -
- -
Net assets 2,119,942 74,757 - 14,404 - 2,209,103 2,242,080
Funds of the Circuit
General Fund (Unrestricted) 2,119,942 2,119,942 2,152,080
Circuit Model Trust Fund (Unrestricted) 74,757 74,757 74,498
Designated Funds (Unrestricted) - - -
Total Unrestricted Funds 2,194,699 2,226,578
Restricted Funds 14,404 14,404 15,502
Endowment Funds - - -
Total Funds 2,119,942 74,757 - 14,404 - 2,209,103 2,242,080
----- End of picture text -----

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Circuit No

35/38

Kingston Upon Thames Circuit

Notes to the Accounts

1. Basis of accounting

The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS102 – the Charities SORP (FRS102) and taking note of the Update Bulletin 1 issued in 2016.

2. 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. Restricted funds which are held for a narrower purpose . There are no Endowment funds. Details of each material fund are disclosed in the final note 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.

Incoming Resources

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

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 outflow of economic benefit 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.

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

Tangible fixed assets are capitalised if they can be used for more than one year, and cost at least £500.

The freehold property is shown in the accounts at 2015 deemed values. No depreciation is provided on the building because the trustees consider the current residual fair value of the manse buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. Any depreciation would not be material. The property has been reviewed for impairment.

Investment Properties

Investment properties - no property is currently deemed to not be held for the long term purposes of the charity.

Investments

Investments are valued in the balance sheet at market value at the year end. Investment income is included in the accounts when receivable and any gains or losses on revaluation at the year end are shown in the SOFA.

Debtors and Prepayments

None

Creditors

Creditors include expenses that relate to recognised obligation due at the end of the accounting year.

4. Payment to Trustees

There were no payments made to trustees for additional services provided to the Circuit by agreement with the Circuit Meeting, this excludes stipends.

Trustee expenses

Number of Trustees
Total amount
2022/23
-
£
-
2021/22
-
£
-

5. Fees for examination or audit of the accounts

Independent examiner’s or auditors' fees for reporting on the accounts Other fees (eg: advice, accountancy services) paid to the independent examiner or auditor

----- Start of picture text -----
2022/23 2021/22
£ £
780 690
- -
----- End of picture text -----

6. Paid employees

Average number of full-time equivalent
employees in the year were:
Staff Costs paid during the year were:
Gross wages, salaries and benefits in kind
Employer’s National Insurance costs
Pension costs
Total staff costs
2022/23
£
81,807
8,526
16,192
106,525
4
2021/22
£
77,141
6,302
17,950
101,393
4

7. Capital Commitments and Contingent Liabilities

At the 31 st August 2023 there are no capital commitments. No Contingent liabilities were identified at 31st August 2023.

8. Tangible Fixed Assets

Cost or valuation

----- Start of picture text -----
Payments on
Fixtures,
Other account and
Land Manses fittings and Total
buildings assets under
equipment construction
£ £ £ £ £ £
Balance brought forward - 2,042,975 - 511 2,043,486
Additions - -
-
Revaluations (+/-)
-
Disposals (-)
-
Transfers * (+/-)
Balance carried forward - 2,042,975 - 511 - 2,043,486
Accumulated depreciation
- -
Balance brought forward
Balance carried forward - -
Net book value
Brought forward - 2,042,975 - 511 - 2,043,486
Carried forward - 2,042,975 - 511 - 2,043,486
----- End of picture text -----

9. Investment assets

The circuit has no Investment properties

Analysis of investment movements
Other investments
Change in investment values
Carrying value at beginning of year
Add: additions to investments at cost
Less: disposals at carrying value
Net gain /(loss) on revaluation
Carrying (market) value at year-end
2022/23
£
14,404
15,502
(1,098)
14,404
2021/22
£
15,502
18,158
-
(2,656)
15,502

11. Loans

The Circuit currently has no loans

12. Reserves

Restricted

These funds relate to the St James Gift held with TMCP which has been restricted by the donor for use with respect to the upkeep of the circuit manses.

No 35/38

Name of Circuit Kingston Upon Thames

Declarations and Scrutiny

I confirm that these accruals-based accounts for the year to 31 August 2023 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 B Russell Date 1 July 2024

Name treasurer: Ms B Russell

Presentation to the Circuit meeting

I confirm that the annual report and accounts for the year ended 31 August 2023 will be presented to the Circuit meeting held on 6 June 2024

Signature of the Chair of the meeting …………… D ate 7 July 2024

Name of the Chair of the meeting: Rev V Maraj-Ogden

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No 35/38

Name of Circuit Kingston Upon Thames

Independent Examiner’s Report to the Trustees of the

Kingston Upon Thames Circuit

Charity Number 1163652

Responsibilities and basis of report

I report to the trustees on my examination of the accounts of the Kingston Upon Thames Circuit for the year ended 31 August 2023 set out on pages one to fourteen. As the Circuit’s trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Circuit’s accounts carried out under section 145 of the Act and, in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent Examiner’s Statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination (other than that disclosed below) which give me cause to believe that in, any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

I have obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10,000 (ten thousand pounds) at the balance sheet date.

Signature of independent examiner

Name of independent examiner: Simon Sturman Relevant professional qualification of independent examiner: Registered Auditor Name of firm: Simply Accounts and Tax Limited Address: Epsilon House, Ransomes Europark, Ipswich, Suffolk, IP3 9FJ Date:

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