Driffield-Hornsea Methodist Circuit Annual Report Year Ended 31°t August 2020
Registered Charity Number
1174599
Principal Address:-
C/O The Circuit Office
52 Westgate Driffield
East Yorkshire YO25 6TJ
Circuit Ministers
Rev Richard Teal (Superintendent) Rev Robert Amos
Circuit Stewards
Mr Alan Moir
Mr Geoff Ward Mr Peter Brown
Mrs Ann Bradshaw | Mrs Val Walker Mrs Rita Allinson Sarah Sellar
Mrs Angela Prescott (Finance)
Trustees: A full list of trustees is available from the circuit office.
Advisors:-
Bankers:
Natwest Bank PLC, 63 Market Place, Beverley, East Yorkshire. HU17 8AA Central Board of Finance of the Methodist Church, 9 Bonhill Street, London, EC2A 4PE
Investment Managers and Custodian Trustees
Trustees for Methodist Church Purposes, Central Buildings, Oldham Street, Manchester. M1 1JQ
STRUCTURE, GOVERNANCE AND MANAGEMENT
The charity is incorporated 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. The circuit is part of the Yorkshire North & East Methodist District and is accountable to the Methodist Conference. There are two presbyter ministers in the circuit and the superintendent minister has overall responsibility for the circuit. The ministers share the pastoral responsibility for the churches within the circuit. The ministers are supported with the day to day running of
the circuit by the Circuit Leadership Team (CLT) which is made up of the circuit stewards and circuit ministers. The CLT reports to the circuit meeting which is the governing body of the circuit.
The Methodist Church provides a range of guidance documents to assist circuits and local churches to manage any risks that may arise including, the care and maintenance of property and safeguarding of young people and vulnerable adults. These risks are considered by the circuit meeting or local church councils as appropriate. The circuit has adopted a safeguarding policy and the Circuit Safeguarding Officer supports local churches in adopting their own individual safeguarding policies and offers safeguarding training. The Charity Commission leaflet ‘The Role of the Trustee’ is available to all circuit trustees which outlines the responsibility of a trustee. Professional advice is taken as required, e.g. legal advice.
OBJECTIVES AND ACTIVITIES
The purposes of the Methodist Church are and shall be deemed to have been since the Deed of Union 1932, the advancement of:
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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 connexion, district, circuit, local or other organisation of the Methodist Church
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Any charitable purpose for the time being of any society or institution, subsidiary or ancillary to the Methodist church
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Any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church.
The circuit is responsible for producing a plan of preaching appointments to ensure regular public acts of worship take place at each of the churches in the circuit. Individual churches are responsible for organising its own activities for the communities in their area. The circuit encourages churches to engage in ecumenical relationships with other Christian denominations in their local area to enable the sharing of resources and to strengthen the growth of the Christian faith in each area. Ministers are instrumental in creating good relationships with fellow clergy.
In all activities the trustees have regard to the Charity Commission’s guidance on public benefit.
ACIEVEMENTS AND PERFORMANCE
The Driffield-Hornsea Methodist Circuit offers varied opportunities for faith and worship development in the thirteen churches within the circuit, including both village and town churches. The circuit aims to serve the local communities through the churches by providing fellowship, not only in the weekly services, but also in the form of mid-week spiritual activities, social activities, coffee mornings, lunches which bring people together for friendship and support. Everybody is welcome to participate in the church activities. The churches are assisted by the circuit ministers and local preachers.
The COVID 19 outbreak, resulting in the first lockdown in March 2020, saw the closure of churches for several months. Some churches did partially reopen in August. This had a negative impact on the financial resources of churches through reduced collections and rental income. The suspension of social activities also had a negative impact on the church communities and the area they serve. The ministers continued to support the church communities, offering pastoral support and alternative worship in the form of on-line services.
During this financial year the Circuit has supported individual churches within the Circuit as follows:-
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Employed two Presbyter Ministers to assist churches with the ministry in their churches and communities
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Agreed financial aid to church projects in the form of grants e.g Driffield Family Worker
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The circuit became involved in a mission planning initiative, looking at ways in which the circuit can support the churches further by highlighting specific needs for each church and looking at funding opportunities to employ a local pastor to support the work of the ministers
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The Circuit Safeguarding Officer offers advice and training to local churches and assists churches to ensure they comply with current safeguarding regulations.
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The circuit employs an administrator to assist the ministers and churches with day to day administration. 6. The Circuit is currently in the process of obtaining outline planning permission to enhance the sale prospects of a closed chapel at Kelk.
As a Circuit we seek to make the best use of the resources of lay and ordained personnel, buildings and finance. There are challenges facing some of the smaller congregations with the on-going costs of maintaining buildings and falling numbers but the circuit is committed to supporting all churches through these challenging times.
FINANCIAL REVIEW
The circuit accounts include:-
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a) The General Fund, the main operating account through which the expenditure and revenue for both operational and strategic purposes is handled
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b) The Circuit Model Trust Fund, which is primarily funded through sale of redundant buildings no longer required within the circuit. Under Methodist Conference directions the fund can be used for capital projects and projects supporting the mission of the church. Applications have to be made to and agreed by the circuit meeting.
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c) Other TMCP Accounts including both restricted and unrestricted funds
The circuit meeting has agreed the following financial grants to churches’ refurbishment and mission projects. These will to be paid when the building work / project to due to start.
Nafferton Methodist Church refurbishment project - £50,000 Driffield Methodist Church — Family worker (£9000 over 3 year) The Bus Stop Project — Wetwang — Up to £7,000
Reserves Policy
The reserves policy for the Driffield-Hornsea Methodist Circuit is to hold a sum in reserve of 6 months average expenditure. This is felt to be prudent should any unforeseen expenditure arise requiring immediate payment and to cover short term expenditure in the event of an inability to raise the full circuit assessment from churches. It is necessary to ensure there are sufficient funds to cover the payment of stipends and expenses for ministers and lay workers and to pay the circuit contribution to the district. Funds in excess of the 6 month reserve are available to support church mission, building projects and general financial support to churches within the circuit, subject to circuit meeting approval.
Some funds are restricted. These funds include permanent endowments or gifts in memory where only the income from the trust can be used.
Principal Source of Funding
Individual churches pay assessments to the circuit. There is also rental income from 2 manses which are currently not occupied by ministers. Most of the expenditure is related to the pay and associated costs of presbyters and lay workers.
Approved by the Trustees on 24 March 2021 and signed gn their behalf by:
Rev Ron Hicks (Superinte ndhetinistor)
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Mrs Angela I Prescott (Circuit Steward —Finance)
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RESERVES POLICY of
Driffield-Hornsea Methodist Circuit
(*Church Councill_|/Circuit Meeting||/District{])
| 1. | General Funds held atY/E 31/08/2020 | [£210050.32 sid |
|---|---|---|
| 2. | Restricted Funds held | £ 98596.72 |
| 3. | EndowmentFundsheld | £9487.82 |
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Endowment Funds held
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Reserves policy for General Funds The circuit meeting is aware of the need to maintain a reasonable level of reserves, whilst at the same time guarding against holding funds in reserve which should otherwise be utilised for the charitable purposes of the organisation. The aim of the trustees is to set a target for general reserves of six months of general fund expenditure. Currently this would be £65092. The remaining funds are available to be used to support churches in their mission and to cover shortfall in annual budget. There is a sum of £9300 included in the general funds donated specifically towards Youth Work and £1610 donated specifically for The Bus Stop project. £27893.92 of the unrestricted funds are held at TMCP. 5. Policy for Restricted Funds At the 31.08.20 the total value of restricted funds, including the Circuit Model Trust fund and various bequests held at TMCP totalled £98596.72.The following grants have been approved by the Circuit meeting:- Nafferton redevelopment - £50,000, Wetwang Bus Stop Project - £7000 and Driffield Family worker - £9000
The circuit is committed to supporting churches in their future mission and property development. The circuit currently employs two full time ministers and the budget shortfall is covered by circuit reserves. The circuit covers a large geographical area and therefore requires a minimum of two ministers to cover the area
- Terms relating to Endowment Funds held
The permanent endowments held by the circuit allow for the interest from the investments to be applied to the unrestricted general funds. The capital value of the endowment is not expended. The interest is minimal due to current low interest rates
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This Reserves Policy has been approved by | Driffield-Hornsea
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(Church Councill_]/Circuit Meeting|]/District[])
a
Full name | Full Name
Angela Prescott | Rev Ron Hicks
Signature eo. yy :
Pract | “eed 47
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CIRCUIT RECEIPTS AND PAYMENTS ACCOUNTS
THE METHODIST CHURCH STANDARD FORM OF ACCOUNTS
Driffield Hornsea
Circuit
FOR THE YEAR ENDED 31 AUGUST 2020
Yorkshire North & East District 29/35 Registered Charity - Charity Registration number 1174599 If not a registered charity Her Majesty's Revenue and Customs Gift Aid number | | (The HMRC number is equivalent to a registered charity number in terms of evidence of charitable status and may be used to give to donors or grant funders wishing to see evidence of the organisation's charitable status. Methodist charities in England and Wales that are not registered charities are excepted from registration under Statutory Instrument 2014 No.242 ) Ministers: snnnnsnnnninaninaninnnanininnnnnnnaninnnnnnnnnindMCAMCA TOA causes ee ee eh re
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Treasurer: eliteste
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ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020
Driffield Hornsea
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circuit
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Un|-|Circuit|
|restricted|Model|Trust|Restricted|Totals|this|Totals|last|
|SECTIONA|Funds|Fund|Funds|year|year|
|RECEIPTS|||Note|||£|£|£|£|£|
|23||CapitalAssessment/Share receipts||a||109,100es-—|Tl|109,100|ee110,000|
|a4|Bank|and|CFB|interest|and|
|Investment income|1,242|759|306|2,307|2,781|
|as126 ||||GrantsOther receipts||,a|ee|||ee|229|,|373000|214|,|49|8|70|
|TOTAL RECEIPTS|141,715|||306|142,780 (a8)||139,248|
|SECTION|B|
|PAYMENTS|
|b2|Stipends,|salaries,|NIC,|Pension|and|
|travel|costs|71,833|71,833|83,677|
|b3|Manse=|costs|S||taza,|=||Sta|12,717|
|bs|[DistrictAdministration Assessment etc|||||asso}10,408|||25,092}10,628|9|| aati11,027|
|b6 |Grants & donations|PL|125,000|
|i|ee|ee|
|bs [other payments|ee|ee|||cs|er)|
|bo TOTAL PAYMENTS||L_|130,246]|2.439]|228]|[132,913]]|(n9)]| 281,858|
|SECTION|C|
|NET|RECEIPTS/PAYMENTS|FOR|
|c1||THE YEAR|(a7-b9)|(1,679)|78|9,867|(142,610|
|Total funds brought forward from|last|year|198,582|||90,315||19,554]|308,451 ||||450,700|
|Sub total|(c1|+c2)||210,051|88,636 ||49,6341|318,318|308,090|
|ca [Transfers and adjustments||||_atsty|183)|(e7)|
|TOTAL FUNDS ATEND OF YEAR|(c3+c4)| 210,051]|88,636]|19,449|308,451]|||
|SECTION|D|
|A FORthese INFORMATIONamounts|should ONLY:not MONEYbe|included RECEIVEDin|total ANDreceipts/payments PASSED ON T(above)|
|Balance|brought forward from|last year|||aa|
|Offerings/Gifts|- received for external organisations|fF|||
|laa| BALANCEOfferings/Gifts STILL- passed TO BE to PAID external (d1 organisations+ d2|- d3)|fF||i||fF|
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Driffield Hornsea
Circuit
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SUMMARY OF CIRCUIT ACCOUNTS AND INTERNAL ORGANISATION REPORTING TO THE CIRCUIT MEETING
SECTION E Please follow the Guidance Notes to complete this page
Summary of the Circuit accounts for the year ended 31 August 2020 and Internal Organisations reporting to the Circuit Meeting. Note that the funds of an
Internal Organisation would normally be Restricted funds unless it could be clearly shown that they could be used for any Methodist purpose. This
section must be completed to arrive at the gross receipts and payments totals of the Circuit. If gross income exceeds the Accruals threshold of £250,000,
then the Accruals method of accounting AND A DIFFERENT FORM must be used to report the accounts (see Methodist website). Please refer to the
guidance notes regarding transfers between the Circuit and connected Circuit Organisations.
INTERNALORGANISATIONS | escp Payments NetPayments Receipts/ meneAdjustments balancesOpening Closing balances
FR Oers re Os
FeefEEE
FO DResoere freee OsOs Osee
FR 0re Os Oe ee
ee rr
Sub total of Internal
Organisations funds
Circuit accounts (totals
brought forward from
e9 |page 2 - totals column) 142,780 9,867 (c7) 308,451 (c8)
OTAL CASH FUND
Continue on a separate TOTAL
sheet if necessary and bring | TOTAL RECEIPTS PAYMENTS
cnthe totals forwardA i SS ES CS SSIES ACS RS SS POE
SECTION F
STATEMENT OF ASSETS AND LIABILITIES
OPENING CLOSING
CIRCUIT - CASH FUNDS HELD at 31 August 2020 BALANCES BALANCES
Bank Current Account zz 18,586 24,317
Central Finance Board p | 152,735 157,839
Trustees for Methodist Church Purposes Po 137,129 135,978
ee | tT
Total funds held by Internal Organisations (the closing
balance totals above) (e12)
a SSS UNE EESoO
SECTION G At At
OTHER ASSETS and LIABILITIES 31 August 2019 31 August 2020
| Investments (include Endowments | |
Land and Buildings (see notes re Insurance value 4,040,472 {,5°3,38é
aa
a ae
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4 Include only Funds held at the Central Finance Board
f5 Include only CFB Funds held at Trustees for Methodist Church Purposes
g1 Include any other investments (not the cash element of TMCP trust accounts this is inserted in line f5)
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DECLARATIONS
Treasurer
| confirm that | have prepared the accounts from the records of the Circuit and that they include all funds under the control of the Circuit
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f\
Signature of Treasurer Date
Name Angela Prescott
Address Orchard Croft, 20 Eastgate, Driffield, E. Yorks, YO25 9TQ
Presentation to the Circuit Meeting for approval.
| confirm that the Accounts have been presented to the Circuit Meeting on 4& / O73 ) 207)
and were approved.
Signature: of the Chair of the meetina laitial;3 07 “FCs aeA)
Name of the Chair of the meetin4 Qpr~an2 17 Hictls,
Date ; op a
14/04/20 4
Independent Examiner’s Report to the Trustees of the
nigh, Be ; = Circuit
DeieltecD -— Hornsefl
This Report is on the Circuit Accounts for the year ended 31 August 2020
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Respective responsibilities of Trustees and Examiner
The charity's trustees are responsible for the preparation of the accounts. The charity's trustees conside is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an ir examination is needed.
It is my responsibility to:
- ° Examine the accounts under Section 145 of the Charities Act
e 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
e to state whether particular matters have come to my attention.
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Basis of Independent Examiner’s Report
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity 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 the 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 (other than that disclosed below’):
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(1) which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with section 130 of the Charities Act;
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met; or
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
- Please delete the words in the brackets if they do not apply appropriate
(3) | have/have not* obtained independent verification of all investments with the Trustees for Methodist Church Purposes ("TMCP") or held in other Trusts, Bank balances and Funds at the Central Finance Board of the Methodist Church ("CFB"), which are individually in excess of £10,000 (ten thousand pounds) at the balance sheet date.
* Please circle as appropnate
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Name t Eé. las ~)4
_
Relevant Professional qualification or body
Address IS theWY er 4Mit
DAIL)
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