BATfERSEA AND WANDIE VAIIEY CIRCUIT Chaflty Relstration number- 1185469 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2021
BATfERSEA AND WANDLE VALLEY CIRcurr Charlty Registration number- 1185469 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31. AUGUST 2021 TABLE OF colENTS PAGE Charfty I1orMatiOn TNste85 Report 2to Auditorf5 Re[rt 7t010 alanco Slwl 12 Notes to ts Fin(81 Stateme 13to24
BATTERSEA AND WANDLE VALLEY CIRCUIT Charity Registration number- 1185469 FINANaAL STATEMENTS FOR THE YEAR ENDED 31. AUGUST 2021 CHA INFOIIMATION Principal athlress 20-22, York Road Battersea [K)nd0 SWI 13QE LLOYDS BANK PLC 25, Gresham Street, London EC2V 7HN. CENTRAL FINANCE BOARD 9, Bonhill Street, LA)ndon. EC2A 4PE Accountants and Auditors Adomako Basoab & Co. 45, Tindale Close Sanderst¢ad South Croydon SuTrey. CR2 ORT page I
AThERSEA & WAPIDLE VAiLEY ORCUIT TRUSTEES REPORT ANDACCOUNTS FOR THE YEAR ENDÉD 31, AUGUST 2021 The Trustees psent their report togethér wlth the Audited financlal statements forthe year ended 31 August 2021. BASIS OF ACCOUNTS PREPARATION The financial 5tstements have been prepared in accordance with"Accounting and Reporting by Charrt*s: Statement of Recommerbded Practice applicable to charitFes preparing their accounts Trn accoidano wlth the Financial Reporting Standard applicable in the UK and Republic of Ireland l FRS 1021 Isecond Edrtionl" and the Financial Rewrtlng Stsndard applicable in the United Klngdom and Republlc of Ireland l FRS 1021 aTrJ the Charitie5 Act 2011 and UK Generally A(pted Prn¢ti¢e a5 it applies from l January 2015. The financial staternents have been prepared to give a 'true a+KI fal vlew and have departed from the Charitres { Accounts and Rewrts l Re8ulation 2(M18 only to the extent required to provide a 'true and fair view". This departure has involved followi 'Accounting and ReportirE by Charities: Ststement of Recommended Practlce applicabFe to charities pffeparingtheir accounts in accordance wfrh the Financial Reportlng Starnjard applicablè in the UK and Republic of Ireland l FRS 1021 { Second Edition I ratherthan the Accounting and Reporting by Charities .' Statement of Recommended practi effective from l. April 25 which has since been withdrawn" The disclosure above is necessary a5 the Charities l Accounts and Reports l Aegulatlons 2008 have not been amended to pemiit the use of the SORP I FR5 1021. It is retommended bythe Charity Commlssion In sectlon 8 of their publitation "charlty reporting and accountin[. the essentials, March 2015". which is available from their website. The financlal Statements have been prepared in accordance with the accounting wllcies set out in Note 2 to these accounts, and in accordance with the 8overninB document of the Clrcult GOVERNING DOCVMEKf AND OBJEcfivE The governin8 document for the arcutt15 the Deed of Union11932} and the Methodist Church Act119761. The Purposes of the Methodlst Church are and shall be deemed to have been since the date of the union, the advancement of.. la) the Christian faith in accordance with the doctrin31 standards and dsscipline of the methOdt Church: Ibl any charitable purpose5 forthe time tse1 of any Connexional, district, fjrcvlt. local or other oruanisation of The Methodist Church; Icl any ch3rltable purpose forthe time belng of any soclety or Instttutlon substdlary or anclllary to The Methodlst Church- Idl any purpose forthe time being of any charity subsidlary orancillary to The Methodist Church. Iri strNing to achieve its obiectives, the Trustees gNe careful conslderntion to the Chaiity Commlsslon's general guidan on public benefit. Page 2
BATfERSEAAND WAIIDLE VALLEY aRCUIT TRUSTEES REPORT AND ACCOUPITS FOR THE YEAR ENDED 31. AVGusf 2021 ( corrtlnued We confimi that the Circuit 15 a publlc benefit entty as defineil by FRS 102. The Corcuit Trustee5 have paid due regard to guidance issued by the Charity Commlsslon in deciding what activities the Circult should undertake. Missloft Statement Our mission Is to stimulate and support Chri5tran people in their life of faith and to build a lively and friendty Christian community which Is committed to working wlth others In the neighbourhood and in the Boroughs ofwandsworth, Merton and Sutton in reswnse to human needs and the building of a just society. As we faithfvlly Ilsten to God in prayer we will seek t4) achleve the followi..
To provide the structure for enabllng worship. pastoral care aThJ training to take place in and through out our circuit churches. To enable and sUPPOrt work directed outwards Into our local communit5es in servi and social action. To provide resource5 for church development and growth. To recognise and rejoi in the diverse social, ecumenlcal and inter-falth Context which underlies all that we do. To provlde the adminlstratlve support which will release anfl enable the members of our churthesto lfve out theircalling to worship. learnlng and caring service and evangelism God has been. and i& our strength in times of challenges in our mission and in our joumeyi h•$ and will contrnue to be ourguide. We pray for His contlnued presence vath us In all our endeavours. REFERENCE A14D ADM11115fRATJVE DETAILS OF THE CHARITY, ITSTRUSTEES AND ADVISORS The Clrcult Is managed on a dayto day basls by the SupÈrintendent Mlnlstertogether with three other Ministers. paid support staff, and ¥olunteer5. The Managing Trustee5 rneet from time to time to oversee the Cir¢u5t matters. Revd R05amund Holling5WOrth Mlnlsters Revd Japhet Kabilu. Revd Patrick KarKJeh Revd George Quarni Revd Rosamund Hollingsworth Revd. Saldu Kanu Ilefto¥(X8120211 Ileft cWog120211 ined 08109120211 rcutt Stewards Ms Marie Genige MrEdward Oppong Mr Kop Amoah-Arko Mrjoe Nithlanandan Ms Doreen Daley Mrsjoyce W Campbell Orcult Treaswer Mrstephen Hlenno pa8e 3
BATfERSEA AND WANDLE VALLEY aRCUIT TRUSTEES REPORT AND ACCOUNT5 FOR THEYEAR ENDED 31. AUGUST 2021 { Cortlnued ) RucfuRE GOVERNANCE AND MANAGEMENT The Bovernlng document for the clrcult is the Deed of Unw)n119321 and the Methodist Church Act119761. Detailed governan arrangements are OLrtllned wlttdn the Constitutronal Practice and Disclpline of the Methodlst Church by order of the annual confen ICPDI. The Connexional office Impleme1 decision5 made by Conferen and 15 also responsible for the Ststionlng of Presbyters in individual Clrcuits. Connexional declslons are pa55ed to the Chair of the Dlstrltt and approwlate officers of the District fr)r Regional implementation. The District passes contn>l down to Circuit level for local Implementstion by the superintendent Minister, Mirti5terial stsff and Circuit Stewards via the medium of the Circuit Meetings. Membership of the fircuit Meeting is laid down in the Constitutional Practices and Discipline of the Methodist Churth. The member5 of the Circuit Meetlng are the Trustees of the Circvit. During the year. M5 Marie Greenidge stÈppÈd down as senror Clrcuitsteward due to health rea50n5. She has been replaced by Ms Doreen Dalay. TRuEE5 The TteeS of the Circurt are selected from 8 glven office holders of the Methodist Church Due to the number of indNidual churches In the circuit and the fact thatthe majority of the corajlt meeting members are those Èlected by individual chur¢he5, it is dear that the make- up of the Meetln8 is subject to frequent change& It is therefore imprdctical to list all the name5 of those ser¥in8, but in surnmary, the were 33 trustees in the cirlt as at 31. August 2021 A list of trustees Is entered and updated on the Charity Commission website on regular basi5. CHURCHES WIThIN THE aRCUIT The Circuit is part of the London District. and is also attountable to the Methodist Conference. The following Methodist Churches are linked to the Clrcuit. Battersea Methodist Mi$5ion 8roomwood MethDdi5t Churth Mitrham Methodlst Church st Heller Methodist Church StJohn's Methodlst Church Tooting Methodist Church Upper Tooting Methodist Church AaiiEVEMEiifs AND PERFORMANCE The Circuit has Plxed empha51s on promoting and equippi Lay preachers thro1 the provision of tTrlnlng and developmÈnt opportunities, and on identifying and promoting the gifts and Skills, among thè people of our churches to meet the challenge of 'our calling.. To datè, the Circuit has 21 a¢credited, 3 on note and 2 on trial Local preacher5. AJSO identified are two worshlp leaders In trdining. pa8e 4
BATTERSEA AND WANDLE VALLEY aRCUIT TRU5fEES REPORT AND ACCOUlIt5 FOR THE YEAR ENDED 31, AUGU5F 2021 { ContIed I ANANaAL REVIEW The Clrcuit made a net deficft of £25.863 before galns on revaluation of Investments In year12020- £19,462 surplus l . The Circuit 3sse55rnerrt is the main backbone of the CirtulV5 income. The assessment income 15 5UPP05ed to be sufficient to ensure that the Circuit carrles out its functional dutles of overseeing and supporting the local churches. Variou5 factors are tsken into account in arriving at the Individual l¢xal churches, a5sessmenty and It Is fett that è faIr system of assessment is currentty in place. Rental income of the Clrcult plays a sigrbtficant role in the Clrcuit's flnances tt is the Intention of the Circuit to continue to rent out all Its current four properties forthe foreseeable fure. The Twstees endeavourto maintsln sufficient Re5efves to enyjre that the Clrcutt is on "going concern. basis at all times. The Circuit General Fund IUnre5tritted general furKII balano at the end of the year was £3,767,524 The value of the Circuit propertres I both tsnbrible fixed a55ets and fixed a55ets Investment I InCIled in the general fund figure of£3.767.524 is £3.712,315 Our reserves pollcy Is to hold at least 6 month's expendlture. Irth the current level of annual expendlture of £302K. the expected level of ReseNe5 should be £151K, compared to the artual adIlY available reserves I Circuit General Fund balance less propertles value I 1 £3.767K- £3,712 K l of £55K The reser¥es are substsntially less than the requlred level and the Trustees Intend to tske the approprlate measures to brlng the actual reseryes In Ilne wtth the expected level. The Slr Henry Holloway TTUSt IEndowment fund) balance at the of the year was £6.063. This is a fuTrJ set up specitlcally to Ilse part of the Income to contribute towards the stipend cost of a Deaconess employed ty Upper Tooting Methodist Church and a payment to the Superinterent Minlster of the Circuit whith the Upper Tooting Methodist Church is part of. The net income earned in the year under revlew is £95. Rlsk Analysls The Twstees continue to examine the prinapal areas of operations and consider what major ri5k5 that could arise in each of these areas. Appropriate resources and review systems are put in place to minimise such risks to an atteptable level wherever risks are identified. PLANS AND PAST ACtIVlTIES. Revd. Patrick Kandeh leftthe Clrcuit at the end of the financial yearand hi5 farewell party was held on 03. August 2021. Revd. Japhet Kabilu has now fully settled in the Circuit, and Revd Saldu Xanu also Joined the Circuit on 08, September 2021.1 All the flve Investment propertbes of the Cirturt available for rentlnB are now fulty rented OUL page 5
8ATtERSEA AND WAN0 VALLEY aRCU TRusfEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AU6vsf2020 1 Continued ) Afier revE7 the'gENng concem. assessm&tt document of the havè conduded that the )ing concern basi8 remains an 8ppropYrate basis of preparation theSe ftnanthl slatements. Stmentof Trustees. Responslbililies. The Irustsès are responsible for preparing the Trustees. report and financ1 statherts in accordarr Wbth applicat4e law and United 'ngdoM AccountirvJ Standardy {United Kingdom Gènerally Accèpted The law apF4ica8 to cforrtrtt In ErrfJlaThJ and Wales requires the 1nths to prepare a]UnIS for Financtal year whKh gNe a true and fairmew of the stste of affairs of Ihe rircuit arKF of thè (rMing re8fwr¢e8 8nd appltcallon of resree9 of the CwtsJf( for that year. In wepaving these arrnunts. tho truste 8re wuired lo.. . 8elect Suitable wxounting pdldes and then apF4y them c#)nsk8tenly. - oLKserv8 the melh(xls and Ffflnclple5 in th8 Charlttes SORP. make judgem8nts ar esb'males that are reasOnae and prudenL ' state whether applicabJe aCUwntir slandards have been folkJw8d. subjgctto any materi depariure5 disdosed and 8xplaiwJ in the 8ccounts," and . Prepare thè accourts on a gThng concem ba$b unles5 it 15 inapprowiate to presume that fv ¢htJrth will continue in owation. The trustees ¥e reSnSite for keepirg suffiderrt actounting r{S that dlscbs4 wlth rèasonable acturacy at ary time, thèfinarri81 position of Ihe Chjrch and that 8nablè thgm lo eUre that the accounts o)mply with the charits Acl 012011. the appwriate Charity {A¢x(wnts aNI RepoTtsI Regulations and the prowsions of th8 trnst deed. They are also responsible for SafardIng th8 8SS8ts of the Church and hence frff tsklng reasonab steps for the prevention and detection of fraud and other irregritIes. APPROVAL Thi5 Rat vras approved byth? Circuit trustees on ... signed on rls behaw ty: 24aTr Ms Doreen Da Senior ¢JrruitSteward page 6
INDEPENDENT AUDOR's REPORT TO THE TRUSTEES OF BATTERSEA AND WANDLE VALLEY CIRCUIT REPOAT ON THE FINAPIQAL sfATEMENTS QUAUFIED IJPINION We have audited the financial statements of Battersea and Wandle Valley Circuit l The Csrcult I forthe yearended 3L August 2021, which comprise of the Ststement of Financlal Activities, the Balan Sheet and the related note5 to the financial 5tstements, including a sumFnary of significant accounting policies. The financial reporting framework that has been applied in their preparatlon Is applicable Law and United Kingdom Accounting Stsndard5, including Financial Reporting standard 102, Thè 'Finanoal Reporting Standard applicable in the United Kingdom and Republic of Ireland" l United Kingdom Generally Accepted Accounting Prarti1 In ouropinion except for the effects of the matter described in the basis for quallfted opinion Section, the financpl ststements..
give a true and fairview of the Circuit's State of thlrs as at 31, August 2021 and of its incomlng resources and appllcatlon of resources lorthe year then ended have been properl¥ preparèd in accordance with United Klngdom Genernlly Accepted AccountinE Prattice; and have been prepared in accordance with the requirements of the Charities Act 2011. BASIS FOR QUAUFIED OPINION The values of the CFrcuit propertses In these accounts a at Methodlst Insurance Company's "rn5ured values". The'lnsurèd values are nÈlthÈr"Original Costs" nor "fair values" arising from propervaluation5 of the pmperties. Instead the'insured values" are the.plaCement costs" of the properties. The valuations do not separate the value of the Land from the value of the bulldings. Consequently, the valuations of the propertle5 in these accounts do not conform to the United Kingdom Generalty Accepted Accountin8 PrdrtI l FRS 102 1 which require5 properties to be shown in the accounts at either original costs or"fairYdluÈs' l FRS 1021 the value of land to be separdtÈd from the value of the buildrn8S. The same valuation basis was applied in the previous yeavs financial statements. Con5equentty the current yea5 financial ststements ar the openirb8 balances of the Circuit'5 financial statements could contaln errors and mrsststements whlch materially could affect the current yearfs finanoal statements. We conducted our audft in atcordance wtth Intemational Standards on Auditing I UK I IISAS IUKI and applicable law. Our responsibilities under those standards are further described In the Auditor's responsibilities for the audit of the financlal ststements sertion of our report. We are Independent of the Clrcult in accordance with the ethital requirements that are relevant to our audit of the financial statements in the UK, including the FRC'5 Ethical Standard, and wè have fulfilled our other ethical responsibilities in accordan¢e with these requlrements. page 7
INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF BArrER5EAAND WANDLE VALIEY CIRCUIT We beIve that the audlt evldence we have obtained is sufflcient ar appropriate to provide a basis for our qualified opinion. CONCWSIIXS RELATING TOGOING C014CEffN In auditing the financlal ststements, we have concluded that the trustees, use uf the going concern basi5 of accounting in the preparation of the financial statements is appropriate. Based on the work we havÈ performed, we have not identified any material uncertainties relating to events or conditions that. indlvldually or colledively, may cast &8nificant doubt on the Circuit's ability to continue as a going concem for a pertod of at least twefve months from when the financial statements are authorised for issue. Our responsibilities and the responslbilttie5 of the trusteeswith respect to golng Concem are described in the relevant Sections of the POrL OTHER INFORMATION The other InforntiOn comprlses the Informath)n included in the annual report other than the fina[al statements and our auditor's report theon. The Trustees are resm)nsible for the other information contslned withift the annual report. Our opinion on the financial 5tstements does rnt coverthe other information and. except to the exterrt otherwise explicttly stated in our report, we do not express any form of a55urance conclusion thereon. Our responsibility is to read the other Infomiation and, In dolng so. conslderwhether the other infomiation is materially inconststent with the financial statements or our knowledge obtained In the course of the audit or otherwlse appears to be materialty misststed. If we identifysuch material Inconsi5tencles or apparent material mlsstatements, we are requlred to determlne whether this gives rlse to a material misstatement in the financlal statsments themselves. If. based on the work we have performed, we conclude that the Is a material mlsstatement of this other inforn)atlon. we are requlred to rep)rt that faa. We have nothing to report in th15 regard. MATfERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION Except for the matter described in the basis for qual[rd opinion of OLW report, we have thlng to report in respect of the following matters in relatlon to which the Chaiities (Accounts and Report l Regulations 2008 requlre u5 to report to you. if in ouroplnion .
the inforniat5on glven in the trustees, rert is incon51stent in any materlal respect wlth the finandal sratement5: or sufficient accounting record5 have not been kept: or the financial statements are not in agreement with the accounting recorfis and returns; or We have not received all the infomiatton and explanations we required fr>r our audlL RESPOP151BIUTIES OFTHE TRU5fEES As explalned more fulty in the Trustees, Resp)nsibillties Statement set out on pages 6 and 7, the Trustees are responsible for the preparation of the financial statÈments and for being satisfied thatthey 8ive a true and fair vlew. and for such internal control as the trustees detem)Ine 55 necessaryto enable the preparation of the financial ststements that are free from material misstatement, whether due to fraud or error. In preparirkg the financial ststements, the trustees are responsible for assessing the Circ(tft's ability to continue as a going concern. dlsclosing, as applicable, mattets related to golng concern and using the 80ing concern basis of accouniing unless the trustees eithèr intend to Ilquidate the Circult or as to tease operations, or have no reallstlc alternatlve but to do so. page 8
INDEPENDENT AUDITOR'S REPORT TOTHE TRUSTEES OF BATfERSEA AND WANDLE VALLEY aRCUIT ( ¢ontlnued ) AUDITOR'S RESPONSIBILITIES FOR THE AUDITOF THE RNANOALSTATEMEf4T We have been appointed as Auditors under CtiOn 144 of the Charities Art Zoll, and report in accordan wrth the Act and relevant regulations made or havlng effect thereunder. Our objectives are to obtasn asonable assuran about whether the financial ststements as whole are free from material misstatement whether due to fraud oremr, and to Issue an audltols report that Includes our opinion. Reasonable assurance is a high level of assurance. but 15 not 4 guarantee that an audit condLKted in accordance with ISAS l UK I will always detect a material misstatement when fc exists. Mlsststement can arise from fraud or error and are considered material if, individualfy or in aggregate. they could reasonably be expected to infiuence the economic decisions of users tsken on the basis of these financial ststemenls. The extent to which our procedure5 are capable of detecting irregularities, including fraud is detailed below.
A5 part of an audit in accordance with ISA5 IUKI, we exera5e professional judgement and maintain professional scepticism throughout the audit. At the commencement of the audit, we obtsined an understandlng of the legal and regulatory framework appllcable to the fjrcuit. and how the Circuit is comptying wtth that framework. We assessed the 5usceptiblllty of the Clrculvs financkl Statements to material misstatsmen¢ induding how fraud mlght Dccur Our engagement prlnclpal'g assessment of whether the eagernet team ollectively had the appropriate competence and capabilities to Kientify or recognize non-compliance with laws and regulatlons. all matter5 about non-compliance with law5 and regulations and fraud whith were detected by the engagement team were to be communicated to the en8agemert prlnclpal. Evaluate the over411 presentstlon. Structure and content of the finaKlal Statements, induding the di5closurÈs, and whÈther the finantial ststsmonts represent the Undering transactions and events In a manner that achieves fair presentation. A further descripth)n of our responsibilities for the audit of the financial ststements is located on the Financial Reporting Council's website at .'https: l/www.froorg.uVauditorresponsibilrtie& This descrlptlon forms part of ouraudltor's report. USE OF OUR REpoffr This rewrr is made solely to the Circujtirustees, as a body, in accordancÈ with Part 4 of the Chaiitie5 { Accounts and Reports } regulation5 2CQ8. Our audtt work has been undertaken so that we might state tothe circlt'S trustees those matters we a required to state to them in ao auditoes report and for other purpose. To the fullest exteiit pemitted by law. we do page 9
INDEPENDEAUDITOR,s REPORT TO THE TRusfEES OF BATTERSEA AND WANDLE VAUEY aRCU I contlnued I not accept orassume re5ponslblllty io afbyone otherthan the fjrcuit and the Clrcuit trustees as a body, for our audit work, forthis report. orforthe opinions we have fornied. 024 Adomako ah&Co. statutory Audltor 45, Ttndak C105e Sanderstead South Croydon Surrey. CR2 ORT ADOMAKO BASOAH & CO is elig1b for appolntmentas Auditor ofthe fjrcuit byvirtue of Its eligibility for appointment a5 auditor of a wmpany under section 1212 of the Companies Att 21J)6. P38e 10
BATTERW4AND WAPIDIE VALLEYCIROJIT srATEMENfoF FIP4ANOALAcnvmESK THE YEARENDED 31AUGUST2021 Note Unrestritttd Restricted Endwnent IPICOMING RESOURCES Charitsble Act6vftles 97.647 97.647 Is381 Inve5trnent Income 177.207 95 177,302 104.720 Othtr Incorne L278 1,278 315 276,132 95 276.227 288.916 RESOURCES£XPENDED ExpendItUre Raisin8 Fund5 Expendlture on Charrtsble Actlvltles Others io 26AS0 20.634 240.280 242,961 35,360 5,859 240,280 35360 43 TOTAL RESOUR USED 301080 io 302,090 269.454 Ilèt income befor• investment 8ains rnthe year 125,9481 125.8631 19.462 Gain5 on Revzluatlon of Irwestrnents 940 -92 INcOmE I25.> 1025 Transferbthween Funrts.. 84 NINCOME FOR THEYEAR 125.8641 941 I249) 19.370 BALANCE BROUGHT FORWARD 3,793388 1336 5.122 3AI,846 3 78147 8AiANCECARNIED FORWARD 767J24 1336 61 4775.913 3146 Thwa no fuwllw wnsl 00) dhwthan the sUrU51(raI) ts th• the yèar. The n¢es on pagos 131024 fonn an knt•Jral olthese finandal pa98 11
8ALAJ4CE SHEET ASAT 31 AUGUST 2tr11 2021 2020 FIXED A88ETS TKJfdèAss Intments 936302 9XZOZ 1.231.e88 ITT6,113 LL27 Totsi Fix•dP41 712 315 3.n¥15 1711315 5.153 134.243 42.K27 10 11 87,210 67,210 114,997 182223 12 1.933 TOTAL CuRRASS8 I21.] TOTALASSEfs LESS CURRENT LL48IUTIES CREDrroRS.' Arthxthtsfalliry ¢Jotslhe n•t 12 m¢yths 13 744 FLWOS Funts 14.1 14.2 083 &122 Unr&sffictsJ FwKb 1800.84$ Thg notss on t•geB 13 to 24 furn an Integ part OtytheCtr thalr b8hdfby: /.... 202nd sign srEPH IENNO REV. ROS4AIUND HOLUNGSWORTh Cjrcutt Tre&wr SUPertt n[sI pggg 12
BATTERSEA AND WANDLE VALLEY aRCUIT NOTESTO ThE FINANaALSTATEMENTS FOR ThE YEAR ENDED 31, AU6UST2021 I. BASIS OF ACCOUNTING 1.1 The financial statements have been prepared In accordance with "Accounting and Reporting by Charitles.. Statement of Recommended Practice applicable to charitie5 preparing their accounts in accordance with the Finandal Reporting Standard applicable in the UK and Republic of Ireland l FRS 1021 (Second Edition)" and the Financial Reporting Standard applicable In the United Klngdom and Republic of Ireland l FRS 1021 arbd the Charities Act 2011 and UK Generally Accepted Practice as It applies from l January 2015. The financlal statements have been prepared to give a'true and fairf view and have departed from the Charitie51 Accounts and Reports l Regulation 2Lh)8 only to the extent required to provide a 'true and fair view,. This departure has involved following 'Accountlng and Reportlng by Charitles: Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland l FRS 102 I I Second Edition I rather than the Accounting and Reporting by Charitie5: Statement of Recommended Practice effective from L April 25 whlch ha5 Since been withdrawn.. The disclosure above is necessary as the Charitle51 Accounts and Reports l Regulatlons 2008 have not been amended to penmit the use of the SORP I FRS 1021. Itls recommended by the Charlty Commlssion In section 8 of their publication'charity reporting and accountlng.. the essentials, March 2015" whlch is avallable from their website. The financial Statements have been prepared in accordance with the accountlng policles set out In Note 2 to these accounts. and in accordance wth the governi document of the Clrcutt 1.2 The Circuit constitutes a public benefit entlty as defined by FRS 102 1.3 No changes to accounting estimates have occurred in the reFX)rtin8 period. IA No matertal prToryearerror have been identified in the reporting period. 2. ACCOUNllNG POUCIES. INCOMING RESOURCES 2.1 Rewgnwtion of Income Income are recogni5ed and Induded in St*ement of Financial ActNlties ( SOFA I when..
The Circuit becomes entitlÈd to the resources; ttls more likely than r)t that the trusiees will ceIve the resource: and The monetsryvalue can be measured with sufficient reliability. Circuit Assessment IrKome recognition is based on the Circuit'5 Buieted assessment on each individual church in the fjrcuit. Rental Income ts yegniSed on the basis of the rent as perthÈ rentsl agreements. page 13.
BATTEIIWI AND WANDLE VAiLEY CIRCUtT NOTE5 TO THE FINANaALSTATEMENTS FOR THEYEAR ENDED 31. AUGUST 20211 contlNed 2.2 Offsettir There has been no offsetting of assets and liabllities, or income and expenses. unless required or pemiitted by the FRS 102 SORP or FRS 102 2.3 Grants and Donations Grants and Dunations a only included In the SOFA when the general Income recognition criteria as ststed above are met. 2.4 Legacles Legacies are included in the SOFA when receipt is probable, that Is, when there has been grant of probate, the Execirtor5 have established that there are Sufficient assets in the estste and any conditions attached to the legacy are either wlthln the control of the charlty or have been met. 2.5 Tax Reclaim on Donatlons and Grfts Gift Aid receivable is included in income when there a valid declaration from the donor. Any Gift Ald amount recOVed on a donation is considered to be part of that gift and is treated as an addition to the same fijnd as the initial donation unlessthe donor orthe tern7s of the appeal have Spectrd otherw15e. 2.6 Donated Goods Donated good5 a measured at fairvalue.l the amount for which the asset could be exchanged l unles5 impractrcal to do so. Goods donated for on*olng use by the Circuit a recOgned as tangible fixed a55ets and Included in the SOFA as incominE resources when re1Vable. Gifts in kind for use by the Circuit a included in the SOFA as Income from donations when recelvable 2.7 Donated Services and Fa¢ilitie5 Dorbated Servi and facllities are included in the SOFA when re1ved at tt valLse of the gift to the Circuit provided the vaiue of the Efft can be measured reliably. 2.8 Volurrteer Help The value of any voluntary help ceiVed is not indwled In the attount5. 2.9 Settlement of Insurydn Claims Insurdno claims are only ir)duded in the SOFA when the general income recognition criteria are met and are Induded as an item of other income in the SOFA 2.10 Income from Interest, Royalties and Dlvldends This is Induded in the accounts when elpt is pmbable and the amount recelvable can be measured reliabty. 2.11 Investment gains and losses This includes3rbV realised or naliSed galns or losses on the sale of investments and any galn or loss resulting from revaluing investments to marketvalue at the end of the financial year. page 14
8ATfERSEA AND WANDLE VALLEY CIRCUtr NOTESTO THE FINANCIALSTATEMENTS FOR THE YEAR ÈNDED 3& AUGUST 20211 continued ) APPUCATION OF RfSOURCE& 2.12 Ll8billty Recognitlon Llabilttre5 are recoBni5ed where it is MO Ilkely than not that there Is a legal or constructhTe obligation committing the Circuit to pay out resources and the amount of the obli8ation can be measured with reasonable rtainty. 2.13 Grants. Grants and donations are accounted for when paid. 2.14 Costs dlrertly related to the work ofthe dr¢uiL The district assessment and ministerlal stipends are accounted for when due. AXED ASSET& 2.15 Freehold land al Imildings Freehold land and bulldlngs are accounted for at or¥n31 Cost or subsequent ValltIon basis. T#Ible Flxed A$5ets These 3re the manses managed bythe CIKult. The Circuit manages four Manses Fixed Asset Inrnents These are the propertie5 managed bythe arcult with the view to generate Income orfor their investment potential. In the year under revlew. there were foursuch properties. Including one clos-to-wOrShIP churth building. The freehold land and burtdln8s mentioned above ale shown in these accounts at deemed valuations, being that property's insurance rèinstatement value, as notlfled by Methodlst Insurance Company Plc. Changes in the values of the properties as notified by the Methodist Insuran Company PIC a reflected in these accounts on fve-year basis 2.16 CApALISATION All tsngible Fixed Assets and fixed Assets Investments whose costs are in excess of £l.tXXJ In the year cortcemed are capitalised. Otherwrse such costs a written off in the year of the expenditure. 2.17 DEPRECIAnON. Depre¢i8ble tsngible freehold building values are depreciated at a rate cakvlated to wrlte off the c05t, less resrdual value over their expected useful lives. No Depreciation is provided on freehohj land. No Depreciatlon is provided on Fixed Assets Investment propertres. Rate of Depreciation on t3ible freehold building5- 2.5% on Straht line bas1S. OTHER ACCOUNTING laEs 2.18 Funds 2.18.1 Unre51ricted fijnds represent funds which are expendable at the discretton of the Circuit in the furtherance of tts objects and whiLth have not been deslgnated for other purpose5. 2.18.2 Restricted funds can onty be used for specified purpose5. The purpose of any restrlcted fvnd is noted in the financial statements. page IS
8AThERSEA AND WANDLE VALLEY aRallT P40TES TO THE FINANaALSTATEMEP4TS FOR THE YEAR ENDED 31. AUGUST2021 ( ¢onthued I 2.18.3 Permanent Endowment Fund represents a grft of endowment where the trustees have no power to convert the capital into income. A permanent endowment fund must nom)ally be Indefinitely. 2.18.4 Expendal)le Endowment Fund represents a gtftofendowment where ttee5 have the powerto convert all or part of the endowment fund into income. 2.19 Consolidation The Circuit oversees the work of ministers and lay Worke in churches withtn the Circuit, but does not have control over those churche5, ministers. or the lay worke15. For thi5 reason. the financial 5tstements of the churches within the Circuit are rt consolidated into these financial ststements. 2.20 Golng Concern At the time of apwoving the flnancial statements, the Trustees have a reasonable expectstion that the Circult has adequate resources to continue in tweratlonal existence for the foreseeable fvre. Thus the Trustees have therefore continued to adupt the going concem basi5 in preparing the Circult's finandal statements. 221 Employment BÈnÈfits Thè cost of any unused holiday entltjement is recognised in the period in which the employee's services are received. 2.22 Taxatlon In the opinion of the tnstee5. the Circultls exempt from the Unlted Kingdom Taxation on its Incomi resource5 for the year. 2.23 Accountlng e5tlmates and judgements It? the application of the Clrculvs accountlng policles. the trustees are required to make Judgements. estimates. and assumption5 about carryrn8 amount of assets and IE3knlities that are not readlly apparent from other reSours. The estlmates and associated assumptions are based on historic experien and other factors that are considered to be relevant. Actual result5 may differ from these estimates. The estlmates and underlwng assumptions are revlewed on an ongoing basis. Revisions to accountin8 estlmatÈ5 are recognised in the period in which the estimate is revis where the revlslon affects only that period, or in the period of the revision and futu perlods Whe the revision affets both CUTnt al future perfods. 2.24Apportlonrnevrt Of Costs Between ActNities Govemance and Other Costs are apportioned between Charitable Artlvltles and Expenditure to raise Funds on the basss of each activtty's income in the year in relatron to each other, excluding any exemptional items page 16
3.1 Clwrlt4bl• ArM••rtthT FL¥ FLMI FL410 Fw FUTh 4T 47 1ST 157 TAICPlnlTht 55 1fj3 ITf.1PIJ 1T7.1 101. 1O4A 177 177JD2 10U17 1¢47 Others 315 4RESOL41CES WENDED 1 EYPWThTUREOWRWIG FWID 10 10 10 ID LWF•J .147 147 L pnmom k 1 I1? 10 1245 4.11 IFENDWG 11*173 119,en 111470 Trnlrtr4 4JO ACTWMES 422.1 11.991 1564 6.512 lit FE 17
Futh Fw 20?) 2A62 10 10 4.12J Cth 2fv16 1.037 513 513 1.)5• 1.159 423 DbryctSpvdkn¥ 211 211.951 211W2 211 ,429 2D.784 Xl.744 43 OTHEPts a9r 3*7 rHDnryTrlJlMfsE4R 1.QJ2wth• @510.3pwwp•Tunrt 5.1 1,C02 LmtsQ481.9 2021
BATfERSEA AND WANDLEVALLEY aRCUIT NOTE5 TO THE RIIANaALSTATEMENTS FOR ThE YEAR ENDED 31, AUGUST2021 ( contlnued ) 7. FIXED ASSErs 7.1 TANGIBiE FIXED ASSETS cosroR VAWATION FREEHOLD tAND AND 8UILD114GS Manses Balance as at I September 2020 Transferto Fixed A55ets Investment Balance as at 31. Au8USt 2021 1.231,688 295 486 936 202 DEPREaATh?N As at 15eptember 2020 and 31. August 2021 NET BOOK VALUE As at 31 August 2021 As at 31 AuBiisi 2020 7.2 HXEO ASSEfs INVESTMENTS COST OR VALUATION FREEHOLD LAND AND BUIU)INGS Balance as at I September 2020 Transferred from Tangible Fixed Atsets Balance as at 31. August 2021 2A80,627 295 486 2T16113 NBoOKVALUE A5 at 3L Au8USt 2021 2 776 113 As at 3L August 2020 2 480 627 11 The values placed on the above properties are those of the Methodist InSuran"1nSured walue5" 05 at 16, November Z016. The'in5ured Values. are the expected insurance cost to pla these properties. Thevalues are neither origtnal Costs nor'fair Values" 21 No depreclatlon has been provided In re5pert of the tsn8ilJle fixed a55et properties for the yearas the trustees consider that the depreclable value is NIL. They are of the opinion that the Maintenance programmes to which these properties a sub5ected to ensure that the estbmated residual value5 are not less than the ststed value 31 During the year. the property sit{ted at I, Home pa Road was made avallable for renting •nd tonsequerbtty re-cla55ified as a fixed asset investment. The Nwlue of the property has been transferred from Tanwble Fixed asset to Fixed Assets Investment. 31 The Cirojlt did not have any Herita8e Asset page 19
8ATfERSEAAND WAIIDLE VALLEY CIRCUIT P40TE5 TO ThE FINANaAL STATEME14TS FOR THE YEAR ENDÉD 31. AU6UST2021 ( ¢imthiu•d I IVME5 2021 2020 The followlwfunds are held on beh3W ofthe amilt TMCp Circutt M¢)del Trust Fund Sir Henry Holloway Trnst 31 515 9. INCOME FROM MATERIAL INVESTMENT HOLDIMGS Value Income Asat at 3110812021 Value Asat at 3110812020 177.160 2 480 627 Income Investment Properties 104,460 Trustee5 for Methodist Church Purposes TOTAL 10. DEBTORS Circuit Assessment Debtor- Due from Local Churchès ppayMentS Rent Debtor Other Debtors 063 95 2 782 176 177 255 2 485 780 103 104 43,524 15.172 6.151 101.695 15.214 17.334 Baslc flnancial assets, induding other debtors and prepayments are Kiitially reoJgnis8d at transactK)n prlc8. unlass the arrangement constitut&8 a financtng tran8actK*n, whore the transaction is measured at the present valu8 of the future receipts discounted at a market rate of Interest. Such assets are subsequenlly carriéd at amortiwj $1 using the effe1¥9 interest method, less any impairment. 11. BANK AND CASH BALANCES 2021 2020 Uoyds Bank Account Central Flnance Board- Deposit 16.476 98.521 2.554 Cash and cash equivalent indudes cash In hand, deposits held at call wtth banks, Other short- term liquid investments with original maturities of three months or le55. and bank overdrafts. Bank overdrafts are stthvn wlthSn borrowings In current Ilabilitie5. 12. CREDITORS: Afflountsfalllwdue whhln one year 2021 2020 Local Churches Assessments receNed In advance Rent Received in Advan other Creditors and Accruals 60,386 10,833 729 12.896 33,967 60993 Basic financial liabilittes, including trade and other credorS, knans from third partles and loans from related partie5 are initialty recognised at transa(aion price, unless the arrangement conslitutes a financing transactk)n, where the debl instrument is Measu at the present valu8 of the future payments dtscounted at a market rate of interest. Such instruments are subsequently carrf at amortised Cost using the effe¢tfft intsrest method, less any impaimient. 13. CREDITORS . Amounts failirg due after the ngxt tWee months page 20
8ATfERSEAAND WANDLE VALLEY aRCU NOTESTO ThE FINAN(JAL STA7EMENTS FOR THE YEAR ENDEO 31. AUGU 2021 ( ntInUed I 2021 2020 Rent Deposit 699 14. FLINDS I ENDOWMENT FUND 20ZI 2020 Balan Brought Forward 01109/2020 5,122 5,214 Incoming ResoL1rS 95 103 Recour5e5 Expended -10 -10 Net (Deficltl /Gain on Irwestment Revaluatknn 940 -92 Transfers between Funds Balance corr Forward 3y0812021 142 RESTrICTED FUNDS Balance Brought Fonvard 0110912020 2.336 2.336 Incomirk8 Resources 2575 Resour Expended 8alance Carried F0Thrd 3VO812021 2336 143 UNRESTricfED FUMDS Balae Brought Fortvard 0110912020 3.793.388 3.773.926 Incomlng Resources 276.132 28&813 Resources Exed .302mO -269.444 Transfers between Fund5 83lance CarriÈd Forward 3110812021 15. TRANSFERS BEfwEEN FUNDS 93 3,767,524 3,793.388 Fnxn SlrHenry Hollty*ay5 to CFB page 21
ATtERSEA ANO WANDLE VALLEY CIRCUIT NOTES TOTHE FIPIANaALSTATEMENTS FOR THE YEAR ENDED 31, AUGUST2021 1 wntlnued I 16. COLLEcfioN TO PASS ON 2021 2020 Easteroffering 2,233 2,233 Grenfell Tower 103 103 336 These are funds collected by the Circuit to be passed on to the thlrd partles as named above. 17 DEfAILS OF CERTAIN rtEMS OF EXPENDITURE 2021 2020 Audit Fees 4,200 4.2(Kl AccountarKy charges 18 PAID EMPLOYEES salaries and Wa8es 25.170 26,655 Natlonal Insurance and Pension Contrfbthitrns Number of employees No employee recewed emoluments In excess of £60.000 per annum. 19. POST BALANCE SHE EVENTS 19.1 The Trustee5 are not aware of any post bafance sheet event which could materially affeLt these financlal ststements 20.1 All the Minister5 serving in the Circuit. a1 the Cwcuit Tieasurerare members of the arcult Trustees 20.2 No Trustee received any remuneration nor beneffts 20.3 TRAN&4cnoN WITH RELATED PARTIES NAME RELATIONSHIP TOTHE CHARITY DESCRIPTION OF AMOUNTS TRANS4CnON Patrid( Kandeh Rosamund Hoifingsworfh George Quami J8phet Kabilu Japhet Kabilu Patric Kandeh Rosamund HollingsDrth Stephen Hien George Quarm S. Kanu Tnjstee StiperKI Trustee Stipend Trustee StipeNI Trusts• S15pwNJ Trustee Expenses Trust09 Expenses TfUSte8 Expenses £37.820 41.103 2,8 38.058 1,078 347 23 Trustee Expense5 Trustee expenses 373 Nll Nll page 22
BATfERSEA AMD WA14DLE VALLEY CIRCUIT NOTES TO THE FIIIANCIAL sfATEMENTS FOR THE YEAR E14DED 31. AUGUST2021 ( ntInUed ) 2021 2020 20.4 Average Numberol Trustees re1VIry8 Stlpends Allowances Th8re wwe no olhor r8lated paty transth$ duriro the w. Althou8h the Circuit pay5 the ministerial stipends, the Minlster5 are not employed by the Circuit. Mir*isters a employed by Conference. bLrt it rs the SPOnSIbl11ty of the arcuit to pay them. 21. RESERVE POUCY A balance is retslned in the general fvnd to meèt unarrtrcipated expenditure and programmed work that can not be funded from a single yeaT'S budget. The policy of the Circuit is to malntaln funds equivalent to at least 6 month's expenditu. 22. Volunteer5 Cortribution Every wlng of the Methodist Church l Locol Churches. Circuits. Districts, Connexlon } in the United K5ngdom is heavlly rellant on volunteers vtho contribute thelr skills, time, money and their re50ur¢es in the furthera of the work of the clrcuiL Princlpalfy, this contribution is by servlng on committees of the Circurt that deal with mission, manses, flnance. policv. grants. trainin8 developments. etcetL The contribution of volunteers is not included wlthin the income of the Circuit. The Trustees are grateful to all of them frjr their he and commitments 23 MIniste. manse costs The Circuit15 required to provlde accommodation foreaeh Minister and h1her famity. The Circuit bears the costs of repairs, maintenance, bullding insurance. Councll Tax arKI water charges. These costs are not shown separatety as benefit-ifvkind for the Mini5ter5 as HMRC does not seek to tax these reIpts In the hand5 of the Mlnlsters. 2& F114AfKIAL INSfRUMEP4TS AJI the Charity'5 financial InrUments qualify a5 baslc fin•ncial instruments in accordance with settion 11 of FR5 102 and are recogt7ised on the following basis: l) Qsh and cash equr¥alent represent bank balances and deposits held in Sterling 111 Investments a measured at market value at the balance sheet date iiil Debtors are measured at the transaction price less any provision for doubthjl debt5 Iv) Creditors are measured atthe tra115artlon price. 25. The WaTrJle Vallry Circult arKI the Battersea Mlssloffl Circult merged Into one circuit on l. September 2014, to fomi Battersea and Wandle valky CircutL A property of the Battersea Mi55•)n l the west wing I was sold Sn 2015, and the net sale prDceeds of £l.800.IXIO was pald into Battersea and Wandle Valley Circuit TMCP trust Account l Trust 219051 on 16. FeLvuary 2015. An amount of £1,430.tX)9 was transferred out ofthe £1.800,(W on I, August 2015 to open a new TMCP trust account l trust 21SA I In the name of Battea and Wandle Valley Circuit. pa8e 23
NOTESTOTHE FJIIAMaALsfATEME14TS FOR THE YEAR ENDED 3L AUGUST 2021 1 contlnu•d ) Athou8h the new TMCP trust account121905 Al is in the name ofthe newtyfomied Clrcul¢ Itls holding the fuThls in the account'on trust. for the Battersea Mlssion. The rcult does not have any control over the TMCP trust 21905A accounL and any arbsattmins in the trusta¢count are controlled and authorised by the 83ttetsea Mlsslon. The transaclion5 in the TMCP trust account 21905A have rK¥t been reflected in these financial statements. 26. AppoKnoNMENTOF SUPPORT COSTS AMONGST AcfMTIE& EXPENDITURE ON CHARrrABLE ACTIVITIES EXPENDITURE ON RAISING FUNDS dit 1492 ojntsw F8es 2,400 852 POSL Prfnt and sonery 573 937 4,684 305) sUbs(p0n SurKlry Expens 2,37T G¢WeMan and Other Costs are apportioned between Activltles I Charitable and Expenditure to raise funds ) on the basis of each artlvltys income in the year In relation to each other. Thi5 policy excludes any eXptIOnal and non-recurrin8 items. page 24