LAMBETH CIRCUIT METHODIST CHURCH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31. AUGUST 2020 LAMBEfH CIRCUIT METHODIST CHURCH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2020 CHARITY INFORMATION Charity Reglstration number- 1175488 Principal address 118-120, London Road Mitcham London CR4 3LB HSBC PIC Wimbledon Hill Road Wimbledon LondoL SW19 7NF CETr￿RAL FINANCE BOARD 9, BoDbill StreeL London. EC2A 4PE Auditors Adomako Basoah & Co. 113 Parchmore Road, Thornton Heath. su￿eY. CR7 8LZ LAmB￿H CIRCUIT METHOD1￿ CHURCH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2020 TABLE OF coKfEwrs PAGE Truste68 Rowl Ito6 Auditorfs ReFK¥t 7t09 Ststement of Ananc4al Actlvlile$ io Balance Sheet li Notes to the Flnandal Statements 12to22 LAMBETH CIRCUIT METrIODIST CHURCH TRUSTEES REPORT AND AccouNfs FOR THE YEAR ENDED 31, AUGUST 2020 The Trustees present the￿ repc¥t lofv ¥Ath Ihe Audil&l finan￿1 stalemenls for the year ended 31, Aubwst 2020 BASIS OF ACCOUNTS PREPARATION The flnancial statements have been prepared In accordance with 'Accountlng and Reportlng by Charlties- Statement of Recommended Prartice appllcable to Charit￿s preparing their accounts in accordance wilh the Financial Reporting Standard applicable In the UK andRepublic of Ireland l FRS 1021 (Second Edltbonl" and the Financial Reportlng Standard appllcable In the United ￿ngdoM and Republlc of Ireland l FRS 102) and the Charltles Art 2011 and UK Generally Accepted Praalce a5 It applles from ljanuary 2015. The financlal statement5 have been prepared to gfve a'true and falrt view and have departed from the Charitles { Accounts and Rèports l Regulations 2008 onty to the extent required to provide a "true and fair view.. Thls departure has Involved following 'Accountlng and Reportlng by Charities . Ststement of Recommended Practce applicable to charitles preparing thelr accounts in accordance with the FSnanclal ReportinB Standard applicable in the UK and Republic of Ireland l FRS 1021 I Second Edltlon I. rather than the Accountin8 and Reportin8 by Charltles: Statement of Recommended Practice effective from l. April 2CQ5 which ha5 since been wlthdrawn.. The flnancial ststements have been prepa￿d In accordance with the accountln8 policies set out in Note 2 to these a¢counts. and In accordance with the goveming do¢urnent of the Circuit. GOVERNING DOCUMENT AND OBJECTIVE The governlng document for the clrcultls the Deed of Unlon (1932) and the Methodlst Church Act119761. The Purpose of the Methodist Churth are and shall be deemed to have been slnce the date of the unlon, the advancement ofr. lal the Christlan faith In acwdarKe with the doctrinal standards and d15dpllne of the Methodlst Church; Ib} any charStable purposes for the tlme being of any Connèxional. dlstrfct, arcuit, local or other organlsation of The Methodist Church; (cl any charitable purpose for the tlme bein8 of any sodety or Institution 5ubsldtary or ancillary to The Methodist Church: Idl any purpose for the time belng of ary charity subsidiary or anclllary to The Methodlst Church. In strivlng to achieve its objectives, the Trustees 8Trve careful consideratlon to the Charity Comm155ion'5 general guidance on public beneflt. We confirm that the Circult 15 a public benefft entty as defined by FRS 102, TRUSTEES The Trustees of the Circuit are selected from g￿en office holders of the Methodist Churth pa8e I LAMBETH CIRcuif METHODIST CHURCH TRUSTEES REPORT AND ACGOUNTS FOR THE YEAR ENDED 31, AUGUST 2020 { Contlnuad ) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CIRcurr. rrs TrUSTEES AND ADVISORS. The Circuit Is managed on day to day basls by the SuwlnterKlert minlsler. tho mSnlsler8 8rMI the C￿￿￿t Slewards. The Cirouil Meeting Members who we also Iruslees are: DlstrlGt Chalr Revd Dr JtxwJikaya Zlh 8uporlntendgnt Mlnlstw Revd Andrew Dwl Clrcult Mlnl$t•rn Revd Kristin Markay (from 1 Sepiernbw 20191 Revd Lena A Revd Dr Andrnw Ljv Mlnl8ter r•sldent In the Clrcult Supernumerary rnsldln9 In Clr¢ult Clr¢ult Stowards NarKyAcquaah Achola-omwa Dan￿1 SaGkey chts￿ne Annor torkg Odofin Ab￿all TaJ)8 Clrcult Treasurer AmoahArko Clrcult M•otlng Secrotsry Arabella Hyle Local Proa¢hors' Se¢retary Hugh Baln Prop•rty Group C￿ordInator Robert sM￿h SaI￿uardIng C￿OrdInatOr Sandra Taybr Youn9 Pgopl•s' Ropmèntatlvo Janel QppowDantelk Y¢)urvJ L¢¢al Church R•prns8ntstiv•s: Streatham Tlna Oblttey Cod Opar&Addo Tina Rs￿Ing5 Jacob hokaah LAMBETH CIRCUIT METHODIST CHURCH TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31. AUGUST 2020 { Contlnufjd I REFERENCE AND ADMINISTRATNE DETAILS OF THE CIRCUIT, IT8 TRUSTEES AND ADVISORS {COntinu￿.> Tulso Hlll Chrisline Anr Kwddwo Asamoah-Boadu Emmanuel Bonlsl-Abban Carnien Gamet Rose Brlxton Hlll Janet Opky)tVJ Robert Smyth Eniey Taylor Yvonm Lesy Lynda-Anne GaThwod.Warren Mostyn Road Heien Erek￿lne Rallton Road Eunu Sheplwd Temilope Ta5ri Vthria ¢)drf Andy Kalamuso LMSM'S & Vauxhall Mls8lon Carollm LalrvJ Ada Balown J￿8￿ne Omara BANKERS AND AUDITORS Bankers HSBC Bank Centrd Flnan¢e Board of MeUN￿ls1 Churth Audltors Adomako Basoah & Co Chaflered Certrfled Accountants 113 Pafchmore Road Thomtorb Heath. Surrey. CR7 8LZ STRUCTURE. GOVERNANCE AND MANAGEMENT The Clrcu6t Is managed by a leadership team made up of the mini51ers. ￿ C￿111 stv•Rrd8 and local church representatives. The Cwcuil ensure¥ that inwning stewards are well equipped by arfanglng for them lo attend tralning 8rn1 semln8rs organised by the Dlstrkt and the CireJJit for that purpos8$. The Circu5t Leadership team meets p￿￿kalIY lo discus$ fThince. anof other matter5 pertainlng lo the lrfe of Ihe Circuit and lo make recommend8tion8 10 the Circuft Meeting. page 3 LAMBETH CIRCUIT MEfHODIST CHURCH TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGusf 2020 ( Contlnuad ) STRUCTURE, GOVERNANCE AND MANAGEMENT The Circuh Meeting also meels at least tsvke a year to consider Tecommendations and received reports from and to the Melhodisl Corrference. London Distri￿ Synod, the Cwf( L¢ader8hip Team and the Circuit Stewards. and corKlucis other business as apwwkite. FUN CTIONS OF THE CIRCUIT Ml$slon $tatgment The Circuifs mlsslon statement is lo be open to God, open lo Lrfe and open to the V•vdd'. The mwn function of the Circult is to provhje the supwrt mechanlsm to the local churches ￿thIft the CircuiL Careful consideration of the Charity Commi8sK>n's general gwklance on public benefll has been Ix*rng irb mind in reviewlng the functions of the Cwojit and In ￿nn1￿￿ Its acUvlli8s. The trust86s rA)n8ider the current actiwlies as (ietsiled wi this rewt dellver wblic ber*fiL The Circuit is reSpons￿e for the lollov•in To wovide ministerial oversight and pastoral care for the 6 kul thurths in the Clrcult To Support the ministerial leam of 4 presbyteral ministers. To rnainlain 4 manses and to manage 2 investment propertias. To support lo￿1 churches in WOVKling ￿a¢e for*Y>r5hlp MAIN GOALS FOR THE YEAR The main goals for Ihe year were.. To identify prioriues for further use and applK*in of fuThJs at the dlsposal of the Crujlt lo use its resources effectivety lo fvrther its lo develop ils work among thè ￿Ung paople to investigate ways of workir¥J together to aCh￿e ￿ obiedves of the dr￿11 The Trustees were able to achieve the gods as set at Ihe beglnrdng of the > ACHI￿EmENTs AND PERFORMANCE FINANCIAL REview Revlew ofpast performanGe In furtherance of ils goal8, the Circuit continued to develop the PrO￿¢t In pathership wlth the Acctnsion Trust. This resulted in the e51ablishmeni of the 6040 prolect %thi¢h takes pla¢e al Kings Acre church premisgs. 11 is G￿le￿ the 61HJ projeGt because In partnershlp the AccansK)n TrusL , the Clrcuil bear3 40Yo of costs. The project employ5 a youth wxkervkn) works with ￿ wn9 people in the circuit. During the year. the Clrculi continued lo mantain Ils maTr5es at thè levels rwjuired by the M¢thodl81 Church. pagg 4 LAMBETH CIRCUIT METHODIST CHURCH TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31. AUGUST 2020 ( Contlnued ) The Circuil recorded a deficil of £79,66412019- £159.105 } before revaluatlon gain8 for the year. The main reason was Ihe im￿1 of the District18vy on tho Model Trust FwNts- £58.737 { 201& £65.895). Resetves The balance of the unrestricted lunds al 31 August 2020 was £5,576,902 { 2019- £5,656,637) Thls Includes the value of the Fixed Assets of £4.552.135 thweby lea￿r￿j a net tsquid balance of £1.024,787 for the gener31 running of the Circuit. PLANS FOR THE FUTURE The Trustees ¢onlinued lo explore ways of WwkI￿ thryth olher nelghb(wrlng Crcutt. In thr8 regards il Inerged svith the Clapham Ciicxjil and fom)ed a Lambgth *i(ie drcult of the Methodl81 Churches thin the London Borou9h of Lambelh. The new CircuiLcalled Ihe Lamboth Cir￿¥1, was Inaugurabj on 1st Septetllber 2020. Reservg Policy The Tiusiees endeavour to maintain sufficient Reserves to ensure thèt the Clrcultls on a 'going concern" basls at all times. The Circuii General Fund Iunrestricted fund) balance at the end of the year was £5,576,90Z The value of the Circuit properties I both tsngible fixed a55ets and fixed assets Investment I Included in the general fund figufe of £5,576.90215 £4.552.135 Our reserves policy is to hold at least 6 month's expenditure. Wlth the current level of annual eKpenditure1 £350 Kl the expected level of Reserves should be £175K umpared to the actual readily available reserves I Circuit General Fund balance less properties values } of £1,025K. The curTent reserve5 are far in excess of the required level and the Trustees Intend to lake rhe appropriate measures to bring the actual reserves In line with the expected level. Rlsk Analysis The Trustees have examlned the principal areas of their operatlon8 and consldered wthal maN)r risks could arise in eaGh of these areas. In the opinion of the Trustees. resources and fevlaw systems have t)eeii established which. in the normal condilion8, should alltyw tho rfsks identified by them to be mlllgaled to an acceptable level in their day to day oparatw)n8. Golng Concecn and th* Impact of Covld-19 The truslges consider that ihe Circuit has &lequate flnancid resources to conlinue In operalton for the foreseeable future. The outbreak of Covid-19 viws across the world represented swJnrfkant event after Ihe ypar. The effect of the pandefflic was that mosl of ¢he Circuit's administrat￿n and the delivery of its obi&¢ts were dona on line. FinanLially a5 the chuiGhes were nol able lo meat in p8r8on, their atr￿11ty to meel annual assessmeiiis was severely curtailed. To reduce ihe iinpacl caused by the pandemtc, the Circuit has rellad on its Investments at TMCP page 5 LAMBETH ¢IRcurr MEfHODIST CHURCH TRU8TEE8 REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2ty20 ( Contlnu•d ) The tru81ees therefore con￿er Ihat the 9)¥¥J c￿￿rn basls rem8tn• a reasonatAe b8818 for the propardl1c￿ of lh• ck￿jit aec4)unts. Polt BaSanc• Sheel Evonts Except for the effecf of the eovi&19 pandemk menlk>r*d abm. TNste88 We not awaro Lrf any po b8l£rKe sheel events vthlch Could matehdty affeol Iheae fIna￿J￿ Iktem￿ts. 8TATEMENT OF TRUSTEES AESPON31BILmE3 Tl* Tnjstees are re¥ponsNe f(Y prgpartro the Trustee& Report the Ilnandal 8tatement8 In ac(*)rdance ￿ 8pplic8bEe Lknv and Unlled knnllw Ststhds Iunlted Khwm G•r• AcLwlable knunting PraGke) Thelow applkable to ch8ritles in England & Wal•8 rwtres Tru8tae8 to prep8rn flnancaal &tatsmgnls for e¥h flnandal which GN8 a Irue and fatr vw af the 8tats of aff8k8 ofth8 ohadty and of the Ir￿￿MI￿ re8wr¢es and appll￿ ofre8wrc•8 dthg charltyfor that ￿. In preparfng Ihese slaltm¢nts kn Ttusiee8 w• requtred tr. 8el¢cl sullable acc<>untlno pdK4es and then appty tham ciY* > observ6 the matr￿$ aThJ Wir￿0￿49$ In Clwtkn SORP > make judgemènts and 8stimata8 th#18ro rea8tyth 8NI > state whether ap￿￿8￿e a¢xounUng starxlards b88n lolhyh￿, sUb￿t to any material doparture8 di¥closed aTrd explainod kn the fIn8r￿s￿ slatements > prepare Ihe flnandal statements on Ihe c¢Y¢em ba818 unl8881116 The trustees are respon51ble for keeplng 5ufflclent accountSn8 records that dlsdose wlth reasonable accuracy at any tlme the Hnanclal p051tton of Ihe cIr￿￿t and enable them to ensure that the accounts comply wlth the Charlttes Art of 2011. the approprfate Chartty (Accounts and Reports) Regulations and the provlsions of the trust deed. They are also responslble lor safeguarding the assets of the a(cuit and hen￿ for tskln8 reasonable Steps forthe prevention and detectlon of frdud and other IrregularltleL In 80 faras the trustees are hviar8,' > There Is relevant audit Infomatbn ofth ￿ cl￿￿3 audttorlg unawar8: and > the Iruslees have taken all sleps that W ujght to have to make th&nstho aware of ary relevanl audtt information 8ryJ to establE5h Ihi its &Klitor of that Infomiatlon. APPROVAL ThE8 Report wa8 approved tythe CIr￿￿Truste8$ on their IxhBlf by.. 31 ella Hwje Clrtult M•etlng Sgcrnlary page 6 INDEPENDENT AUDITOIiS' REpoirf TO THE TRusfEES OF LAMBEfH CIRcurr MEfHODIST CHURCH REPORT ON THE FINANCIAL sfATEMENTS QUAUFIED OPINION We have audited the flnanclal statements of Lambeth Clrcult Methodlst Church. l The arcult I for the year ended 31, August 2020. whlch comprise of the Statement of Financlal Actlvltles, the Balance Sheet. and the related notes to the financial Statement, Including a summary of 518nlflcant accountlng policies. The financlal reporting framework that has been applted In thelr preparatlon Is appllcable Law and Unlted Kingdom Acmuntlng Stsndards, including Flnancial Reportlng standard 102, 'Flnanclal Reportln8 standard applicable In the Unlted Kingdom and the Republlc of Ireland" l Unlted Kingdom Generally Accepied Accountlng Practlcel In our oplnlon, except for the effects of ihe mètter described In the basls for quallfied opinlon sertlon, the flnancial statements: give a true and falr vlew of the Circuit's State of aftslr5 as at 31, Au8U5t 2020 and of its incoming resources and appllcatlon of resources for the year then ended have been properly prepared In accordance wlth Unlted Kln8dom Generally Accepted Accountln8 Pracllce have been prepared in accordance wlth the requlrements of the Charttles Art 2011. BASIS FOR QUAUFIED OPINION The values of the Clrcult propertles In these accounts are at MethodSst Insurance Companvs "Insured values". The 'insured values. are neither'OrlBinal Costs. nor 'fair values. ari5in8 from proper valuatlons of the propertles. Instead the 'insured values. are the 'replacement costs. of the propertles. The valuatlons do not separate the value of the Land from the value of the buildlngs. Consequently, the valuatlons of the propertles in these accounts do not conform to the UnFted Kln8dom Generally Accepted AccountinE Prartlce l FRS 102 1 whlth requlres propertie5 to be shown in the account5 at either origlnal costs or.falr value5" { FRS 1021 and the value of land to be separated from the value of the bulldln8S. The same valuation basis wa5 applled in the previous yea¢s financial statements. Consequenly the current yearfs flnanclal statements and the opening balances of the Clrcult'5 financlal statements could contaln errors and m155tstements which materially could affect the current year's financlal statements. We conducted our audit In accordance with Intemational Standard5 on Auditing l UK I115A5 IUKI and appllcable law. Our responslbllltles under those standards are further described in the Auditor's respon5ibilitle$ for the audlt of the flnancval statements 5ectlon of our report. We are independent of the Circuit in accordance with the ethical requirements that are relevant to our audit of the financial statements In the UL includtn8 the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in èccordance with these requirements. We believe page 7 INDEPENDENT AUDrroRS' REPOtrr TO THE TRU5fEES OF LAMBEfH aRCUIT METHODIST CHURCH ( Contlnued ) that the audit evidence we have obtalned ts sufflclent and approprlate to provide a bas15 for our quallfied oplnlon. CONCLUSIONS RELATING TO GOING CONCERN We have nothin8 to report in respect of the following matters in relatlon to whlch the ISAS {UKI require us to report to you where . the trustees. use of the going concem basis of accounting In the proparation of Ihe linanclal slatemenls is not appropriate: or the trustees have not dis¢losed in the financial stalemenls any identified malerlal uncertalnties that may cast significant doubt about the Clrcuivs abllity lo conllnue to adopt the going wncem basis of a￿unting for Ihe period of at least Iwelve months from the date when the finandal Statsments are authorised for issue. OTHER INFORMATION The Trustees are responslble for the other inforniation. The other Inf0M￿tIOn comprises the Informatlon included In the Trustees, annual report other than the flnanclal statements and our audltor'5 report thereon. Our opinion on the financlal statements does not cover the other information and. extept to the extent otherwise explicitfy stated In our report. we do not express any form of assurance concluslon thereon. In eonnection with our audit of the flnanclal statements, our responslblllty is to read the other Information and, in dDln8 $0, ¢onslder whether the other information is materl3lly Inconslstent with the financial ststements or our knowledge obtained in the audit or otherwise appears to be matertally mlsstated. If we Identlfy such material Inconsistendes or apparant materlal mlsstatements. we are required to determine whether there is a materlal m155tstement in the flnanclal statements or a matedal mlsstatement of the other Information. If, based on the work we have performed, wt conclude that there Is a material misstatement of thls other Information. we are requlred to report that fact. We have nothing to report In thls regard. MAThERS Ohl WHICH WE ARE REQUIRED TO REPORT BY EXCEIryION Except for the matter described in the ba51s for qualtfied opinlon of our report, we have nothlng to report In respect of the followlng matters in relation to which the Charitles (Accounts and Report l Regulatlon 2CK)8 require us to report to you. Ff In our opinlon . > the Informatlon glven in the trustees, report Is inconsistent in any materlol respect with the financial statements., or > sufflclent accountlng records have not been kept; or > the financlal 5tstements are not in agreement with the accounting record5 and return5; or > We have not recelved all the infomiatlon and explanations we requlred for our audit. RESPONSIBILITIES OF THE TRUSTEES As explained more fully In the Trustees, Responslbilities Statement set out on page 6. the tm5tees are responslble for the preparation of the financial statements and for being satisfied that they glve a true and falr v￿w, and for such internal Control as the trustee5 determine is nece55ary to enable the preparatlon of the financial statements that are free from materfal mi5Statement, whether due to froud or error. In preparlng the flnanclal statements. the trustees are responsible for a55essing the Clrcult's abllity to continue as a 80ing concern, dlsclosin& a5 applicable, matter5 related to going concern page 8 INDEPENDEMf AUDITORS, REPORTTO THE TRusfEES OF LAMBETH ORcurr METHODIST CHURCH ( Contlnued ) nd using the 80ing concem basis of accounting unless the trustees elther Intend to liquldate the Clrcult or a5 to cease operdtlons. or have no reallstlc altemative bvt to do so. AUDtroR'S RESPONSIBIUTIES FOR THE AUDIT OF THE FINANCIAL STATEMENT5. We have been appolnted as Audltors under Section 144 of the Charltles Act 2011. and report In accordance with the Act arKI relevant regulations made or having effect thereunder. Our objectlves are to obtain reasonable assurance about whether the flnancial ststements as a whole are free from material misstatement, whether due to fraud or error. and to issue an audltor's report that include5 our oplnion. Reasonable assurance 15 a hi8h level of assurance. but 15 noi a 8uarantee that an audlt conducted in accordance wrth 15As l UK I will always detect a materlal mlsstatement when it exlsts. Mlsstatement can arise from fraud or errors and are consldered materlal if, indivldually or in aggregate. they could reasonably be expected to influence the economlc declslon of users taken on the basls of these financlal statements. Irregularlties, IncludlnB fraud, are Instances of non At the commencement of the audiL we obtalned an understsnding of the le8al and regulatory framework applicable to the arcult, and the arcuitls complying wlth that fromework. > We assessed the susceptiblltty of the Circuit's financtal 5tstements to material m155tatemenL Includlng how fraud mlght occur > Our engagement partne￿5 assessment of whether the engagement team collertively had the appropriate competence and capabilitles to Identify or recognize n0￿cOMplIance wlth laws and regulatlons. > all matters about non-compliance with laws and re8ulations and fraud which were detected by the engagement team were to be communlcated to the engagement partner A further descrlptlon of our responslbllities for the audit of the financlal statements Is Socated on the Financlal Reportlng Councll's webslte at :https: /lwww.froorg.uVaudltorresponslbllitles. Th15 descriptlon fomis part of our audltoV5 reporL USE OF OUR REPORT Thls report Is made 501ely to the Clrcuit Trustee5. as a ￿dy, in accordance with Port 4 of the Charitles l Accounts and Reports ) regulations 21x18. Our audit work ha5 been undertaken so that we ml8ht state to the Clrcult trustees those matters we are requlred to state to them in an audltorfs report ind for no other purpose. To the fullest extent permitted by law, we do not accept or a55 body, for e responsibillty to anyone other than the Clrcult and the Clrcur( trustees as It work, for th15 reporL or for the oplnlon we have fom)ed. Adoma Basoa Senlor Audltor 2022 113, archmore Road Thornton Heath Surrey. CR7 8LZ ADOMAXO BASOAH & CO Is eli8ible for appointment a5 Auditor of the Circuit by vlrtue of its eliglbillty for appolniment as audltor of a company under section 1212 of the Companies Act 2C#J6 pase 9 LAMBETh CIRCUIT METhODIST CHURCH srATEMENT OF HNANaAL AcnvmES FOR THEYEAR EP4DED 31 AUGUST 2020 INCOMING RESOURCES Charftsble Artlvlties Note Unrestrfcted Restrfcted Total 20 153,1 153,100 138.000 Inve5tmert Income 116,642 71 116.713 81.458 Other IrKome RESOURCES EXPENDED Expendlture on Ralslng Funds Expendlture on Charftable Activitles Others 12,8(X) 294340 42 9,999 359,248 42 4.2.3 294.940 42 TOTAL RESOURCE5 USED 46 Nrr DEFicrr FOR THE YEAR Before Reco8n15ed Galns BALANCE BROUGHT FORWARD (79,735} 71 (79.6641 1159,105) 5.656.637 7,061 5,663,698 5 BALANCE CAR￿ED FORWARD 5J76,902 7,132 5.584.034 page 10 2M• T•￿1t4• FtyAd A¥•l• &1 I.188￿57 Tot4 FIMdAM 8eo,742 881813 942 91,7KI 128A72 1077292 dts•wlthkn on• y•v Li 7J32 7m Unr•ststted Fwi 10J aNI SI￿VAth￿l*ha1lty: LAMBETh CIRCUIT METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2020 . BASIS OF ACCoU￿1NG 1.1 The flnandal ststements have been prepared In accordance wlth'kcountin8 and Reportln8 by Charlties: Statement of Recommended Pracuce appllcable to charIt￿$ preparlng thelr accounts In accordance wtth the Financial Reporting Stsndard appllcable In the UK andRepublic of Ireland l FRS 102) (Second Edltionl" and the Hnanclal Reportln8 Standard applScable in the United ￿nBdOM and Republic of Ireland l FRS 102) and the Charitles Act 2011 and UK Generalty Accepted Practice as tt applles from l January 2015. The flnanclal statements have been prepared to 8fve a ￿rue and folff vlew and have departed from the Charlties l Accounts and Reports } Re8ulations 21N)8 only to the extent requlred to provlde a 'true and falrvlew.. Thi5 departure ha5 Involved followl "Accountlng and Reporting by Chartties: Ststement of Recommended Prdctce appllcable to charltles preparln8 thelr accounts In accordance wlth the Flnanual Reportlng standard appllcable In the UK and Republic of Ireland l FRS 102) I Second Edltlon I" rather than the A¢countlr% and Reportlng by Charltles . Ststemert of Recommended Practlce effective from I, April 2LK15 whth has slnce been w6thdrown'. The finonclal Statements have been p￿payed In accordance wlth the accountln8 pollcies set out In Note 2 to these accounls, and In accordance with the goveming document of the Clrcuit. 1.2 The Clrcuit constitute5 a public beneflt entlty as defined by FRS 102 1.3 No changes to accountlng estimates have oecurred in the reporting perk>d. 1.4 No materlal prlor year errors have been Identified In the reporting per￿￿. 2. ACCOUNTING POLICIES. INCOMING RESOURCES 2.1 Reco8nltlon of Income Income are recognlsed and included In the Statement of Finandal Activltles { SOFA ) when: > The Clrcult becomes entttled to the resourtes; It is more Ilkely than not that the tntheès wlll recelve the resource . and > The monetsry value can be measured with Sufficient reliability. 2.2 Offsettln8 There has been no offsettln8 of assets and Ilabllrtles, or income and expenses, unless requlred or permitted by the FRS 102 SORP or FRS 102 2.3 Grant5 and Donatlons Grants and Donatlons are On￿ Included In the SOFA when the general Income recognition criterla a5 Stated above are met. 2.4 Legacies Legacles are Included in the SOFA when recelpt Is probable, that Is. when there has been grant of probate. the Executors have establlshed that there are sufficient assets In the estate and any condltions attached to the legacy are etther wlthln the control of the charlty or have been met. pa6e 12 LAIIBETH CIRCUIT MEfHODIST CHURCH NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31. AUGUST2020 1 contlnued I 2.5 Tax Reclalm on Donatlons and G1ft5 Glft Ald receivable is included In income when there is a valld declaratlon from the donor. Any Gtft Ald amount recovered on a donatlon Is consldered to be part of that gfft and Is treated a5 an addiilon to the same fund as the Inltlal donatlon unless the donor or the temis ofthe appeal have specffied otherwtse. 2.6 Donated Good5 Donated goods are measU￿d at falr value,( the amount for whlth the asset could be exchan8ed l unles5 impractical to do so. Goods donated for on-going Use by the Circuit are reco8nlsed as tsn8ible fixed assets and Included In the SOFA as incomlng resources when ￿ceIvable. Glfts In klnd for use by the Circuit are included In the SOFA as Income from donatlons when receivable 2.7 Donated Servkes aThl Facilitles Donated servlces and faclllties are Included in the SOFA when received at the value of the glft to the Clrcult provlded the value of the 81ft be meaSu￿d rellably. 2.8 Volunteer Help The value of any voluntsry help recelved Is not Included in the accounts. 2.9 Setuement Df Insurance Clalm5 Insurance claims are On￿ Induded in the SOFA when the general Income reco8nStlon criterla are meL and are Induded è5 an item of other Income In the SOFA 2.10 Income from Interest. Royaltles and Dmdends Thls Is Included In the accounts when recelptls probable and the amount recelvable be measured rellabty. 2.11 Invertment galns and losses Thls Includes any realised or unreallsed galns or10s5e5 on the sale of Investments and any 8aln or Ios5 resultln8 fr(xn revaluln8 investments to market value at the end of the finandal year. 2.12 Rental Income Rentsl income are only Included In the SOFA when the general Income reco8nltlon criteria are met. APPUCATION OF RESOUR 2.13 Llabllity RecognStlon Llabllltles are re¢o8nised vthere It Is more likety than not that there 15 a legal or constructlve obll8atlon ¢ommlttlng the Clrcult to pay out resources and the amount of the obll8atlon can be Measured with rèasonable certalnty. 2.14 Grant$. Grants and donatlons are accounted for when paid. 2.15 Costs dlrectly related to ihe work of the drcult. The distrfrt a55es5ment and minlstertal stipend5 are accounted fDr when due. pa8e 13 LAMBETH CIRCUIT METHODIST CHURCH NOTES TO THE FINANaAL STATEMENTS FOR THE YEAR ENDED 31. AUGusf20201 contlnued ) FIXED ASSETS. 2.16 Freehold land and bulldln8S F￿ehOld land and bulldln8s are accounted for at orfglnal C05t or 5ub5equem valuation bas1& Yan¥lble Flxed Assets These are the manses mana8ed by the Clrcuft. The arcult manages four Manses Flxed Avet Investments These are the propertles managed by the Urcult wlth the vlew to generate Income. In the year under revlew. there wa5 one such property, and one ck)sed-tO-worshlp church bulldlng. The freehold land and bullding5 mentioned above are shown In these accounts at deemed valuatlons. belng that property'5 Insurance relnstatement value, as notffted by Methodlst Insurance Company Plc. Changes In the values of the properties as notffied by the Methodlst Insurance Company PIC are reflected in these accounts on fNe-year basls 2.17 G4prrALISATION All tangible Fixed Assets and Flxed Assets Investments whose costs are In excess of £i,cMI) In the year concerned are capitali5ed. otherwtse such costs are written off In the year of the expendlture. 2.18 DEPRECIATION. Depreclable tan8lble freehold bulldlng value5 a￿ depreclated at a rate calculated to wrlte off the cost. les5 residual value over thelr expected useful INe No Depreciatlon Is provlded on land value No Depreclatlon Is provlded on Investment propertle5 Rate of Depreaatlon on tsngible freehold buildings- 2.5% on 5tral8ht Ilne bas15. 2.18 Taft8lble Ilxtures, flttiny and offlce equlpments. All tanglble flxtures, fittlngs and Equlpments used by the clrcuit are wrltten off as and when Incurred. OThER ACCOUNTING POUCIES 2,19 Funds 2.19.1 Unrestrlcted funds represent funds whlch are expendable at the dlscretlon of the Clrcult In the furtherance of its objects and which have not been de51gnated for other purposes. 2.19.2 Restrlcted funds can only be used for speclfied purposek The purpose of any restrfcted fund is noted In the flnanctal statements. page 14 LAMBETH CIRCUIT MEfHODIST CHURCH NOTES TO THE FINANCIAL sfATEMENf5 F(%R THE YEAR ENDED 31, AUGUST 21)20 ( ¢ontlnued ) 2.20 Consolldation The Circult oversees the work of mlnlsters and lay workers in churche5 wlthin the Clrcult, but does not have control over those churches, ministers, or the lay workers. For thls reason, the flnanclal ststements of the churche5 wlthln the Clrcult are not tonsolldated Into these flnancial Statements. 2.21 Goln8 Concem At the tlme of approvlng the financlal Statements. the tTUStees have a reasonable e¥pectatlon that the Clrcult has adequate resources to continue In operational exlstence for the foreseeable future. Thus the trustees have therefore contlnued to adopt the 8olThd concern basls In p￿paring the Clrcuit's financial statemen 2.22 Employment Benefits The cost of any unused hollday entitlement Is recogn15ed in the perfod In whkh the employee's servlces are received. 2.23 Taxatlon In the opinion of the trustees, the Circult Is exempt from the Unlteil Kln8dom Taxatlon on Its Incomlng resource5 for the year. 2.24 Accountlng estlmates and Judgements In the appllcation of the Clrcult's accountlng pollcles. the trustees are requlred to make Judgements, estimates, and assumptlon5 about carrylng amount of assets and Ilablllties that are not readlly apparant from other resources. The estimate5 and assodated as5umptlon5 are based on historlc experlence and other fèctor5 that a￿ consldered to be relevant. Actual results mav dtffer from these estimates. The estimates and underlylng a5sumptlons are reviewed on an ongolng ba51s. Rev15ions to accountln8 estlmates are recognlsed In the period in whlch the estlmate Is revised where the revlslon affects only that period. or In the perbd of the revlslon and fvture periods where the vlslon affects both current and future pertodk The main as5umptlon concernlng the future of the Clrcvit Is that the assessment Inwme will contlnue to 5ufflclent to meet the cost5 of 5tlpends, salaries and manse malntenance. The annuèl budget, as approved bythe Circult meetln& Includes sums necessaryfor coverln8 these costs. This Is then allocated5 amon8 each church In the Clrcult, hence the Incomels dependent upon the Churche5' ablllty to meet the assessments. 2.25 Flnanclal Instruments The Clrcult only ha5 financlal assets and liabllities of a kind that quallfy a5 ba51c financial Instruments. Basic financial instruments are InStialty recognised at trangctlon value and subsequently measured at their settlement value. pa8e 15 LAMBETh CIRCUIT METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENI>£D3& AUGUST2020 1 Contlnued ) 3 INCOMING RESOURCES 3.1 Ch•rltsbh Acdvlues In¢omo UInsbk￿RaSlrfded TOTAL Unretrrcted Ro*rtcted Total FuThJ8 F¢JThJs Fund Fund Fund Fund 2019 32 Iniwtm•th Incom• centr￿ Flnm eoard Irrtewp8t TMCP Inter Renw IrK¢•n• 153 11x1 138 1380110 218 71 8.174 8174 3.3 Qtlw In¢ome Others 71 116 713 81458 413 4 RESOURCES EXPEt4DED 10 1 &xpeNDITURE ON RAISING FUND3 Pmpertt•8 Repalrs and Ma1rrtena￿4 F￿d Funds Funds 5.671 5.671 8.575 1.424 8575 1424 42 EXPENDITURE ON CHARrrABLE ACTMnES 1 DIRECT SPENDING 015trfrt Assessment Slipend8 Penslon and NIC 5alarles and NIC Trainln8 Gronts #nd OTh￿10 Mlnlster5' tr4vellln8 expenses 99 36.484 114,698 25.265 36W 35,257 114.698 108,127 25265 24.516 35.257 108,127 24,516 23.547 23.547 4.2,2 SUPPORT FOR CHARITABLE ACTIVITIES 4.22.1 Pr•mi8•$ Exp•nM¥ Re￿tr6 lo Manses MaN%es Utllltes Manse8 cre81￿ In6uTanc8 9.077 74.968 17A47 9,on 74,968 17,447 4.22.2 Gtsvernonc• co•ts Audlt Fo98 Awount8nGy F888 TMCP Cho Lffjal Fee other Prof88kn1 Char9eB 3600 3,240 2,075 933 3240 2.075 P¥9• 16 LAMBETH CIRcurr MEfHODIST CHURCH NOTE5TQTHEIIIIAIKIAL STATEMEK15 FOR ThEYEAR ENDtD3& AUfjIIST2m I Cwrtlnued ) F￿￿8 Fun 4223 1 DAF Contrlbvthjn Telephone Post. Prlnt and Stauonery y￿ ExperAes 58.n7 L664 2,750 58,737 65.695 1664 1694 2.750 4782 65,695 2.694 1,782 423 SUMMARY OF EXPENDITURE C*4 C￿Rrr￿ ACtMTIES N.6n w266 LZ66 Support for ¢h8rFtble a¢tMte5 Premtses Expenses 264 18264 93,015 12.428 93.015 12.428 Othws 42 OThER Sundry Expenses B￿ndry S•tUom•rt Cost Subsrllptl L401 L401 3142 375 4275 4275 pa8e 17 LAMBETH CIRCUIT METHODIST CHURCH NOTES TO ThE FINANOAL STATEMENTS FOR THE YEAR ENDED 31. AUGUST 2020 1 ￿TrtInUed ) 5. FIXED ASSETS 5.1 TANGIBLE FIXED ASSETS COST OR VALUATION FREEHOLD LAND AND BUILDING Balance at I, September 2019 1,488.557 Balance at 31, Au8u5t 2020 DEPREaATION As at 1 Septemljer 2019 OFKI 31. 2020 NET BOOK VALUE A8 at 31 August 2020 As*31 ￿$12019 5.2 FIXED ASSEfs INVESTMENTS COST OR VALUATION FREEHOLD LAND AND BUILDINGS 8alance at I, September 2019 3,063,578 B￿anCe a8 at 31, Augu8t 2020 NEf BOOK VALUE A8 at 31, Pw$t 2020 A8 at 31, Augu312019 5.3.11 The values placed on the above propertles are those of the Methodlst Insurance Compary's 'Insured Values" as at 31, Au8USt 2018. The 'lnsured Values. are the expetted insurance cost to place these propertle5. The values are nelther orlglnal Costs nor'falr values.. 5.3,21 No depreciation has been provlded in respect of the tangible fixed a55et propertles for the year as the Trustees consider that the depreclable value Ès NIL They a￿ of the oplnlon that the Malntenance pro8rammes to which these properties are Subjected to ensure that the estimated resldual values are not less than the ststed values. 5.3.31 The arcult dld not have any Heritage A5 pa8e 18 LAMBETH CIRCUIT METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2020 ( ¢ontlnu¢d ) 6. MATERIAL INVEsfMEKf HOLDINGS 6.1 The followlng funds are held on b•h•ll of the Clrcult by TMCP 2020 2019 Sale of Property. Tfust 15175 De-Bourcier Bequests- Trust 8976 De-Bourcler Bequests- 8976A De-Bourcler Beque5ts- 8976B Bernard Searle Bequest- Tnjst 17694 Clr¢ult Model Trust - Trust 22136 22.348 4,313 3,104 11,936 1,554 22.201 4.322 11,857 1,544 81 T M C P Investments are held at cost less accumulated impalnnent losses. &2 INCOME FROM MATERIAL INVEStMENT HOLDIPIGS Market value at 3111212020 Income for the year. Investment Property 3,063,678 108,856 Investments with TMCP 56 TOTAL 7. DEBTORS Clrcuil Assessment Debtor- Duè from Local Chiwches Loans to Local Churches Prep8yTrenls 2019 51.422 Ii.CKXJ 35 63.373 51,145 8aslc financlal assets, Includlng other debtor5 and prepayments ore inrtlally recogntsed at transartlon pilce, unless the arrangement constitutes a financiang transactlon, where the tran5actlon Is measured at the present value of the future receipts discounted at a market rate of Interest. Such a55ets are subsequently carried at amorttsed c05t usi￿& the effective Interest method, less any Impairment. 8. BANK AND CASH BALANCES 37 HSBC Current Account Central Flnance Board- Deposlt 2020 37,337 2019 50,673 Cash and cash equlvalent Includes cash In hand. depostts held at call wlth banks. other short-temi Ilquld investments wlth orlginal maturities of three months or less. and bank overdrafts. Bank overdrafts are shown withln borrowings in current liabilFties. pa8e 19 LAMBETH CIRCUIT METhODIST CHURCH NOTE5 TO THE FINANQAL ￿ATEmENTS FOR THE YEAR ENDED 3& AUGUST 2020 1 contlnued ) 9. CREDITORS: Amounts frdlllng du• wlthln on• year Local Churches Assessments recelved In advance Rents recelved In Advace Due to other Methodlst Clrcult Accruals and other Creditors 2020 2019 4.370 27.262 4.110 21.873 Baslc flnancl81 liabllitles. Indudln8 trade and other Cfedltots, leans from thlrd partles and loans from related parties are Inltlally reco8nlsed at trnnsartlon prfce, unles5 the arran8ement constltutes a financlng transartlon. where the debt instnjment 15 measured at the present value cf the future payments dlscounted ot a market rate of Interest. Such Instrument5 are subsequently carried at amort15ed cost uslng the effectlve Interest method, less any Impalrment. 10 FUNDS 10.1 RESTRicfED FUND 2019 Balance Brou8ht Forward 0110912019 Incomlng Resources Resources Expended Balance Carrled Forward 3V0812020 7.061 71 7,061 10.2 DEfAILED REsfRICTED FUNDS Mlnlsterlal Circult Tralning 3enevolent Fund Fund Balance Brought Fwc 3,985 3.076 Incomlng Resources 47 24 Resources Expended Balance Carried Fwd 4 032 JL2 Total Mlnlsterlal Tralnlng Fund 3.985 Clrcuit Benevolent Fund 3,076 7,061 71 076 The Mlnlsterlal Tralnlng fund Is set up to provlde additlonal trainln8 to the Mln15ters in the Clrcuit. The Benevolent Fund relates to money ralsed for the rellef of poverty and di5tre55 In the Clrcult. 10.3. UNRESTRicfED FUNDS 2019 Balance Brou8ht Fonvard 0110912019 Incomlng Re50ur¢e5 Resources Expended 5,656.637 270,728 5,815,742 222,564 Balance Carried Forward 3V0812020 5 656 637 pa8e 20 LAMBETH CIRCUIT METHODIST CHURCH N()TE5 TO THE FINANaAL STATEMENTS FOR THE YEAR ENDEO 31. AUGUST 2020 ( ContInu￿ ) 11 DEfAILS OF CERTAIN rrEM8 OF ExpeNDITURE 2,020 2019 Audit Fees Accountancy Char8e 3600 3240 1,440 12 PAID EMPLOYEES Salaries and Wages Penslon Contrlbutlon Employer Natlonal Insurance contrfbutlons 22,08Q 1,325 1,860 21444 1287 1785 Average Number of employees No employee re￿]Ved emoluments In exce55 of £60.[K￿ per annum. 13. RELATED PAIITY TrANSAcfioNS TRVSTEES REMUNERATIQNS AND BENEFITS 25,265 24516 All the Mlnlsters 5eNlng In the Clrcuit are member5 (rfthe arcultTn No trustee recelved any remuneratlon nor beneffts TRAN5AcnoN wmi RELATED PARTIES Durlng the year. four Trustee5 recelved 5tlpends in the sum of £114,698 12019- £1018,1271, and experbse51 relatln8 to travel, telephone broadband and other costs l of £4.679 (2019- £7,766 }. There were no other related partle5 tran5aCtk>ns for the ytsr ended Yl. August 2020 Connected organisations Include the Methodlst Connexlon, Churthes wlthln the arcult, other Methodlst Dlstr6cts In Great Britaln. CFB. and TMCP. All these entitles have thelr own trustees and autonomous admlmnistration such that the Clrcult has no slgnificant Influence over any of them, northey overthe Clrcuit.They are, therefore not consldered ￿lated partle5. Although the Clrcult pays the mlnlsterial stipends. the Minlrters are not employed by the ClrculL Mlnlsters are employed by cOnfe￿nce. but It IS the responsibllity of the Circult to pay them. 14. POST BALANCE SHEET EVEfiT5 There has been no post balance sheet event which could materfally affert these finandal statements However, as a result of the Covl(k19 pandemlt. the churches attendance has gone down and the actlvltles of the churches tenants have also been drastlcalty reduced. Hence the churches. ?bllity to pay thelr respectlve fvture clrcuit assessments, arKI the tenants, abillty to meet their future rent payment obligatlon5 are in (ioubL page 21 LAMBETH CIRCUIT METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JI. AUGU5f 2020 ( ￿ntInUed ) However the'golng concern. of the clrcult Is not threatened. a5 the ¢ircuft has set up an Interlm Finance commlttee to monltor the finarKes of the Indlvidual churche5 to ensure that wherever posslble, there Is a sharln8 of resources amoun85t the thurches. In the short temi. the clrcuit Intends to rety on Its reser￿$ wtth the TMCP to meet Its immedlate finandal obl*ations. 15. RESERVE POUCY A balance13 retalned In the general fvnd to meet unanticlpated expendlture and programmed Work that can not be funded from a stn8le ￿a*S bud8eL It is the pollcy of the Circuft to hold reserves equfvalent to a minimum of 51x month's expendlture 16. Volunteer Contrl Every wln8 ofthe Methodlst Church l Lotsl Churthes, Clrcults, IX5trkts. Connexlon ) In the Unlted Kln8dom Is heavlly rellant on volunteers who contrlbute thelr skllls, tlme, montyand thelr resources In the furtheran￿ of the work of the church. Prfncipally, thls contrlbutlon Is by servlng on commlttees of the Clrcuit that deal with mlsslon, manse4 flnancel polkyi grants, tralnlng developments, etc ett. The contrlbution of volunteers Is not Included wtthln the Income of the arcult. We are 8rateful to all of them for thelr help and commltments 17 Mlnlsters, manx costs The Clrcuit is requlred to provide accommodatlon for each Mlnister and hlslher famity. The Clrcult bears the costs of repalrs, malntenance, bulldln8 insurance, Councll Tax and water charges on the propertles . These costs are not shown separately as benefft-ln-kind for the Minlsters as HMRC does not seek to tax these recelpts in the hands of the Minlsters. Slmllarty. these costs are not dlsclosed as related parties, transactlon5 In these accounts. page 22