BAER5EA AND WANDLE VALLEY CIRCUIT Charity Registration number- 1185469 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2022
BAThERSEA AND WANDLE VALLEY CIRCUIT Charity Registration number- 1185469 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2022 TABLE OF CONTENTS PAGE Charity Information Trust88s Report 2to6 Auditor's Report 7t010 Statement of Financial Activities 11 Balance Sheet 12 Noteg to the Financial Stslements 13to24
BATTERSEA AND WANDLE VALLEY CIRCUIT Charity Registration number- 1185469 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31. AUGUST 2022 CHARITY INFORMATION Principal address 20-22, York Road Batters London. SWI13QE Bankers - LLOYDS BANK PLC 25, Gresham Strc¢t, London EC2V 7HN. CENTRAL FINANCE BOARD 9. Bonhill Street, London. EC2A 4PE Accountants and Auditors Adomako Basoah & Co. Chartered Certified Accountants Registered Auditors 45, Tindale Close Sanderstead South Croydon SUey. CR2 ORT page I
BAERsEA & WANDLE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2022 The Trustee5 present their report togèther with the Audited financial statements for the year ended 31 August 2022. BASIS OF ACCOUNTS PREPARATION The financial statements have been prepared in accordance with "Accounting and Reporting by Charitie5.' Statement of Retommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland l FRS 1021 (Second Edition)" and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland l FRS 1021 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from l January 2015. The financial statements have been prepared to give a "true and fair" view and have departed from the Charities l Accounts and Reports l Re8ulation 2008 only to the extent required to provide a "true and fair view" This departure has involved following "Accounting and Reporting by Charities = Statement of Recommended Practice applicable to charities preparing their accounts in accordancÈ with the Financial Reporting standard applicable in the UK and Republic of Ireland l FRS 1021 I Second Edition I rather than the Accounting and Reporting by Charities . Statement of Recommended Prartice effective from l. April 2005 which has since been withdrawn The disclosure above is necessary as the Charities l Accounts and Reports l Regulations 2008 have not been amended to permit the use of the SORP I FRS 1021. It IS recommended by the Charity Commission in section 8 of their publication "charity reporting and accounting: the e55entials' March 2015" which is available from their website. The financial Statement5 have been prepared in accordance with the accounting policies Set out in Note 2 to these accounts. and in accordance with the governing document of the Clrcuit GOVERNING DOCUMENT AND OBJEcfivE The governing document for the circuit is the Deed of Union119321 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: lal the Christian faith in accordance with the dortrinal Standards and discipline of the Methodist Church- Ibl any charitable purposes for the time being of any Connexional. district, Clrcuit, local or other organisation of The Methodist Church. Icl any charitable purpose for the time being of any society or institution subsldiary or ancillary to The Methodist Church. Idl any purpose for the time being of any charity subsidiary or ancillary to The Methodist Church. In Striving to achieve its objectives, the Trustees give careful consideration to the Charity Commission's general guidance on public benefit. Page 2
BAThER5EA AND WANDLE VALLEY CIRCUIT TRUSTEE5 REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2022 ( continued ) We confirm that the Circuit is a public benefit entity as defined by FRS 102. The Circuit Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Circuit should undertake. Mlssion Staternent Our mission is t0 5tirnulate and support Christian people in their life of faith and to build a lively and friendly Christian community which 15 committed to working with others in the neighbourhood and in the Boroughs of Wandsworth, Merton and Sutton in response to human needs and the building of a just society. As we faithfully listen to God in prayer we will seek to achieve the following-
To provide the structure for enabling worship, pastoral care and training to take place in and through out our circuit churche5. To enable and 5UPPOrt work directed outwards into our local communities in service and social action. To provide resources for church development and growth. To recognise and rejoice in the diverse social. ecumenical and inter-faith context which underlies all that we do. To provide the administrative support which will release and enable the members of our churche5 to live out their calling to worship. learning and rIng service and evangelism God has been, and is, our strength in times of challenges in our mission and in our journey. has and will continue to be our guide. We pray for His continued presence with us in all our endeavours. REFERENCE ANO ADMINISTRATIVE oAlLs OF THE CHARITY, ITS TRUSTEES AND ADVISORS The Circuit is managed on a day to day basis by the Superintendent Minister together with two other Ministers, paid support staff, and volunteers. The ManaBin8 Trustees meet from time to time to oversee the Circuit matters. Management Structure Superintendent Revd R053mund Hollingsworth Minister5 Revd Japhet Kabilu. Revd Rosamund Hollingsworth Revd. Saidu Kanu joined 08109120211 Clrcult Stewards Mr Edward Oppong Mr Kojo Amoah-Arko Mr Joe Nithianandan Ms Doreen Daley Mrsjoyce W Campbell Circuit Treasurer Mrstephen Hienno page 3
BATfERSEA AND WANDLE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2022 ( Continued I 5fRUCTURE, GOVERNANCE AND MANAGEMENT The governing document for the circuit is the Deed of Union119321 and the Methodist Church Act119761. Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual Conference ICPDI. The Connexional office implements decisions made by conference and is also responsible for the stationing of Presbyters in individual Circuits. Connexional decisions are passed to the Chair of the District and appropriate officers of the District for Regional implementation. The District passes control down to Circuit level for local implementation by the superintendent Minlster. Ministerial staff and Circuit Stewards via the rnedium of the Circuit Meetings. Membership of the Circuit Meeting is laid down in the Constitutional Practices and Discipline of the Methodist Church. The members of the Circuit Meeting are the Trustees of the Circuit. During the year. Ms Marie Greenidge stepped down as senior Circuit Steward due to health reasons. She has been replaced by M5 Doreen Dalay. TRUSTEES The Trustees of the Circuit are selected from a given office holders of the Methodist Church Due to the number of individual churches in the circuit and the fact that the majority of the circuit meeting members are those elected by indivldual churche5, It is clear that the make- up of the Meeting is subject to frequent changes. It is therefore impractical to list all the name5 of those serving, but in summary, there were 33 trustees in the circuit as at 31, August 2022. A list of trustee5 is entered and updated on the Charity Commission website on regular ba51S. CHURCHES WITHIN THE CIRCUIT The Circuit is part of the London District, and is also accountable to the Methodist Conference. The following Methodist Churches are linked to the Circuit. Battersea Methodist Mission 8roomwood Methodist Church Mitcham Mèthodist Church St Heller Methodist Church St John's Methodist Church Tooting Methodist Church Upper Tooting Methodist Church ACHIEVEMENTS AND PERFORMANCE The Circuit has Placed emphasis on promoting and equlpping Lay preachers through the provision of training and development opportunities, and on identifying and promoting the gifts and skills ' among the people of our churches to meet the challenge of 'our calling,. To date, the Circuit has 21 accredited, l on note and 3 on trial Local preachers. AS50 identified are 4 worship leaders in training. page 4
BATfERSEA AND WANDLE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2022 1 Contlnued I FINANCIAL REVIEW The Circuit made a net income of £12,646 before gain5 on revaluation of investments in the year12021- £25,863 deficit I The Circuit assessment is the main backbone of the Circuit's income. The assessment income 15 supposed to be sufficient to ensure that the Circuit carries out its functional dutie5 of overseeing and supporting the local churches. Various factors are taken into account in arriving at the individual local churches, assessments, and it is felt that a fairer svstem of assessment is currently in place. Rental income of the Circuit plays a significant role in the Circuit's finances It is the intention of the Circuit to continue to rent out all its current four properties for the foreseeable future. fte5ee Poliry. The Trustees endeavour to maintain s1clent Reserves to ensure that the Circuit is on 'goin8 concern" ba51S at all times. The Circuit General Fund (Unrestricted general fijndl balance at the end of the year was £3,780,171 The value of the Circuit properties I both tangible fixed assets and fixed assets Investment I included in the general fund figure of £3,780171 is £3.712,315 Our reserves policy is to hold at least 6 month's expenditure. With the current level of annual expenditure of E287K, the experted level of Reserves should be £144K, compared to the actual readily available reseNes I Circuit General Fund balance less properties value I 1 £3,780K- £3,712 K l of £68K. The reserves are substantially less than the required level and the Trustee5 intend to take the approprfate measures to brlng the actual reserves in line with the expected level. The Sir Henry Holloway Trust IEndowment fund) balance at the end of the year was £5,862. Thi5 is a fund set up specifically to use part of the income to contribute towards the stipend C05t of a Deaconess employed by Upper Tooting Methodist Church and a payment to the Superintendent Minister of the Cirtuit which the Upper Tooting Methodist Church is part of. The net income earned in the year under review is £131. The same net amount1 £1311 wa5 transferred from the Endowment Fund to the main bank current account of the Circuit. Risk Analysi5 The Trustees continue to examine the principal areas of operations and consider what major risks that could arise in each of these areas. Appropriate resources and review systems are put in place to minimise such risk5 to an acceptable level wherever risks are identified. The Circuit Leadership Team has further introdLsced a risk register which is designed to control and monitor the risk activities of the Circuit. PLANS AND PAST AcfiviTIES. Revd Saidu Kar)u has now been welcomed into the Circuit. The position of the Circuit Administrator was made redundant in January 2022. as part of our cost tutting measures. All the five Investment properties of the Circuit available for renting are now fully rented out. page 5
BAThERSEA AND WANDLE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2022 { Contlnued I Going Concern After reviewing the'going concern" assessment document of the Circull. we have concluded that the going concern basis remains an appropriate basis of preparing these financial statements. ststement of Trustees, Responsibilities. The Iruslees are responsible for preparing the Trustees, report and financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable lo charities in England and Wales requir8s the trustees lo prepare accounts for each Financial year which give a Inje and fair view of Ihe stale of affairs of the Circuil and of the incoming resources and application of resources of the Circuit for that year. In preparing these accounts, the trustees are required lo.. select suitable accounting policies and then apply them consistenly. observe the methods and principles in the Charities SORP. make judgements and eslimales that are reasonable and prudent. state whether applicable accounting standards have been followed, Subject to any material departures disclosed and explained in the accounts,. and Prepare the accounts on a going concem basis unless it is inappropriate lo presume that the church will continue in operation. The trustees are r8sponsible for keeping sufficient accounting records that disc105e, with asonable accuracy at any lime, the financial position of the Church and that enable them to ensure that the accounts comply Mth the Charities Act of 2011. th6 appropriate Charity (Accounts and Reports) Regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Church and hence for taking reasonable steps for the prevention and detection of fraud and other irregulariti APPROVAL This Report was approved by the Circuit Iruslees on signed on its behaw by.. ..2025 and Ms Doreen Daley Senior Circult Steward page 6
INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF BAERsEA AND WANDLE VALLEY CIRCUIT REPORT ON THE FINANCIAL STATEMENTS QUAUFIED OPINION We have audited the financial statements of B3ttersea and Wandle Valley Circuit l The Circuit for the year ended 31, August 2022, which comprise of the Statement of Financial Activities, the Balance Sheet, and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation 15 applicable Law and United Kingdom Accounting Standards, including Financial Reportin8 Standard 102, The 'Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" l United Kingdom Generally Accepted Accounting Practice) In our opinion except for the effects of the matter described in the basi5 for qualified opinion section. the financial statements:
give a true and fair view of the Circuit's state of affair5 as at 31. August 2022 and of its incoming resources and application of resources for'the year then ended have been properly prepared in accord3nce with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. BASIS FOR QUALIFIED OPINION The values of the Circuit properties in these accoLJnts are at Methodist Insurance Company's 'insured values" The "insured values" are neither 'Original Costs" nor "fair values" arising froffl proper valuations of the properties. In5tea(J the 'insured values are the "replacement cost5" of the properties. The valuations do not separate the value of the Land from the value of the building5. Consequently, the valuations of the properties in these accounts do not conform to the United Kingdom Generally Accepted Accounting Practice l FRS 102 1 which requires properties to be shown in the accounts at either original c05t5 or'fair values" l FRS 1021 and the value of land to be separated from the value of the buildings. The same valuation basis was applied in the previous YEaS financial statements. Consequently the current year's financial statements and the opening balances of the Circuit's financial statements could contain errors and misstatements which materially Could affect the current year'5 financial statements. We condurted our audit in accordance with International Standards on Auditing l UK I IISAS IUKI and applicable law. Our responsibilitie5 under those standards are further described in the Auditor's responsibllities for the audit of the financial Statements section 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 UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibllities in accordance with these requirements. page 7
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BAERsEA AND WANDLE VALLEY CIRCUIT We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statements, we have concludetl that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertaintie5 relating to events or conditions that. individually or collectively, may tast Sl8nificant doubt on the Circuit's ability to continue as a goin8 concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going Concern are described in the relevant sections of the report. OTHER INFORMAnoN The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explititly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiatlon and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material mlsstatements, we are required to determine whethèr this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we Conclude that there is a material misstatement Df this other information, we are required to report that fact. We have nothing to report in this regard. mAERs ON WHICH WE ARE REQUIREO TO REPORT BY EXCEPTION EXpt for the matter described in the basis for qualified opinion of our report. we have nothing to report in respect of the following matters in relation to which the Charities IAccounts and Report l Regulations 2008 require us to report to you, if in our opinion
the information givèn in the trustees, report is inconsistent in any material respect wlth the financial statements,- or sufficient accounting records have not been kept,. or the financial Statements are not in agreement with the accounting records and returns: or We have not received all the information and explanations we required for our audit. RESPONSIBIUTIES OF THE TRUSTEES As explained more fully in the Trustees, Responsibilities Statement Set out on page 6 the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Circuit's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee5 either intend to liquidate the Circuit or as to cease operations, or have no realistic alternative but tg do so. page 8
INDEPENDENT AUDITOR'S REPQRTTOTHE TRUSTEES OF BAER5EA AND WANDLE VALLEY CIRCUIT ( continued ) AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OFTHE FINANCIALSTATEMENTS. We have been appointe(l as Auditors under Section 144 of the Charities Act 2011, and report in accordance with the Act and relevant regulation5 made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a £uarantee that an audit conducted in accordance with ISAS l UK I will always detect a material misstatement when it exists. Misstatement can arise from fraud or error and are considered material if, individually or in aggregate, they tould reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
As part of an audlt In accordance with ISAS IUKI, we exercise professional judgement and maintain professional scepticism throughout the audit. At the commencement of the audit, we obtained an understanding of the legal and regulatory framework applicable to the Circuit, and how the Circuit is complying Wlth that framework. We assessed the susceptibility of the Circuit's financial statements to material mi55tatemer)t. including how fraud might occur Our engagement principal's assessment of whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. all matters about non-compliance with laws and regulations and fraud which were detected by the engagement team were to be communicated to the engagement principal. Evaluate the overall presentation, structure and content of the financial statements, including the disc105ures, and whether the financial statements represent the underlyin8 transaction5 and events in a manner that achieves fair presentation. A further description of our SponSibl11t1eS for the audit of the financial statements is located on ihe Financial Reporting Council's website at '.https: /lwww.frc.org.uVauditorre5pon5ibilities. This description forms part of our auditor's report. USE OF OUR REPORT This report is made solely to the Circuit trustees, as a body, in accordance with Part 4 of the Charities l Accounts and Reports I regulations 2008. Our audit work has been undertaken so that we might State to the Circuit's trustees those matters we are required to state to them in an auditor's report and for ng other purpose. To the fullest extent permitted by law, we do page 9
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BAER5EA AND WANDLE VALLEY CIRCUIT I continued ) not accept or assume responsibility to anyone other than the Circuit and the Circuit tru5tee5 as a body, for our audit work, for this report, or for the opinions we have formed. 2025 Adomako Basoah & Co. Statutory Auditor 45, Tindale Close Sanderstead South Croydon Surrey. CR2 ORT ADOMAKO BASOAH & CO is eligible for appointment as Auditor of the Circuit by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. page 10
BAThERSEA AND WANDLE VALLEY CIRCUIT STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022 Note Unrestrlrted Restricted Endowment Total 2021 INCOMING RESOURCES Charitable Artivities 108,747 108.747 97,647 Investment income 184,011 147 184,158 177,302 Other Income 6.452 6,452 1,278 299,210 147 299,357 276,227 RESOURCES EXPENDED Expenditure on Raising Funds Eypenditure on Charitable Activities Others 36.394 258,004 -7.704 17 36,411 26,450 258,004 240,280 -7,704 35.360 4.2.3 TOTAL RESOURCES USED 286.694 17 286.711 302,090 Net income before investment gains in the year 12,516 130 12,646 -25,863 Gain5 on Revaluation of Investments 81 -381 940 NINcOmE 12.516 -251 12,265 -24.923 Transfer between Funds: -131 NETINCOME FOR THE YEAR 12.647 -382 12.265 .24,923 BALANCE BROUGHT FORWARD 2,336 3,775,923 3 800 846 BALANCE CARRIED FORWARD 3.780,171 2,336 5,681 3.788,188 3 775 923 Al aclivities are dgrived from continuing opgratlons Thare are no furthar recognis8d gainsl Ilossesl ¢)ther than the surplusl{deficill f(x the above finanaal year. The notes on pages 13 to 24 lorm an intwaral part of these financAal statemènts. page11
BArrERSEA AND WANOLE VALLEY CIRCUJT BALAMCE SHEET AS AT 31 AUGUST 2022 2022 2021 Ntfyte FIXED ASSETS Unr•8tr1ct Restrfcted EndoVMnt Total Tangle Assets Investments 936.220 2 776 095 936,220 2 776 095 936,2()2 Total Fixed A8¥•ts 1712,315 3712318 3 712.315 CURRENT ASSETS Irwestrnents Debtors Bank ¢X8h banceS 5.681 5.711 93.670 95,343 6.093 67,210 114.997 10 11 93,670 2,336 186,707 2,336 S,681 194.724 188 300 CREDITORS . Amounts 1811w due wlthln one y•ar 12 91.948 TOTAL NET CURRENT ASSETS 96.352 TOTAL ASSETS LESS CURRENT LIABILITIES 336 3 808.667 CREDITORS." Amounts falling du• after the next 12 rnonlh 13 32881 3 780 171 3 788 188 lllAL23 FUNDS Endont Funds Restricted Funds Unre51rided FuNI$ 14.1 14.2 14.3 5.681 5.881 2,336 2.336 LL171 3,767,524 3780 171 788 188 3.775.923 The notes on pages 13 to 24 fom an integral part of thes finan ial sl ments. Approved by the Circuit Trustees on .... their behalf by '. 2025 and signed on STEPHEN HIENNO REVD. JAPH I<ABILU Circuit Treasurer Adr*J Superfntendent hth"nlslef page 12
BArrERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGusf 2022 I. BASIS OF ACCOUNTING 1.1 The financial statements have been prepared in accordance with "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland l FRS 1021 Isecond Edition)" and the Financial Reporting Standard applicable in the United Kingdom and Republit of Ireland l FRS 1021 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from ljanuary 2015. The financial statements have been prepared to give a true and fair" view and have departed from the Charitie51 Accounts and Reports l Regulation 2008 only to the extent required to provide a "true and fair view". Thls departure has involved following "Accounting and Reporting by Charities . Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland l FRS 1021 I Second Edition I rather than the Accounting and Reporting by Charities . Statement of Recommended Practice effective from I, April 2C(J5 which has since been withdrawn" The disclosure above is necessary as the Charities l Accounts and Reports l Regulations 2tK)8 have not been amended to permit the use of the SORP I FRS 1021. It is recommended by the Charity Commission in section 8 of their publication "charity reporting and accounting.. the essentials, March 2015" which is available from their website. The financial Statement5 have been prepared in accordance with the accounting policies set out in Note 2 to these accounts, and in accordance with the governing document of the Circuit 1.2 The Circuit constitutes a public benefit entity a5 defined by FRS 102 1.3 No changes to accounting estimates have occurred in the reporting period. 1.4 No material prior year error have been identified in the reporting period. 2. ACCOUNTING POLICIES. INCOMING RESOURCES 2.1 Recognition of Income Income are recognised and included in the Statement of Financial Activities I SOFA I when.. The Circuit becomes entitled to the resources- It is more likely than not that the trustees will receive the resource , and
The monetary value can be measured with sufficient reliabillty. Circuit Assessment ir)come recognition is based on the Circuit's Budgeted assessment on each individual church in the Circuit Rental income is recognised on the basis of the rent as per the rental agreements. page 13.
BArrERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 20221 continued I 2.2 Offsetting There has been no offsetting of asset5 and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102 2.3 Grants and Donations Grants and Donations are only included in the SOFA when the general income recognition criteria as stated above are met. 2.4 Legacies Legacies are included in the SOFA when receipt is probable, that is, when there has been grant of probate, the Executors have established that there are sufficient as5et5 in the estate and any conditions attached to the legacy are either within the control of the charity or have been met. 2.5 Tax Reclaim on Donations and Gifts Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unle55 the donor or the terms of the appeal have specified otherwise. 2.6 Donated Goods Donated goods are measured at fair value,( the amount for which the asset could be exchanged l unless impractical to do so. Goods donated for on-going use by the Circuit are recognised a5 tangible fixed assets and included in the SOFA as incoming resources when receivable. Gifts in kind for use by the Circuit are included in the SOFA as income from donations when receivable 2.7 Donated Services and Facilities Donated services ar)d facilities are included in the SOFA when received at the value of the gift to the Circuit provided the value of the 8ift can be measured reliably. 2.8 Volunteer Help The value of any voluntary help received is not included in the accounts. 2.9 Settlement of Insurance Claims Insurance claims are only included in the SOFA when the general income recognition crlteria are met, and are included as an item of other income in the SOFA 2.10 Income from Interest, Royalties and Dividends This is included in the accounts when receipt is probable and the amount receivable can be measured reliably. 2.11 Investment gains and losses This includes any realised or unreallsed gains or1055es on the sale of investment5 and any gain or loss resulting from revaluin8 investments to market value at the end of the financial year. page 14
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTESTOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 20221 continued I APPLICATION OF RESOURCES. 2.12 Liability Recognition Liabilitie5 are reco8nised where it 15 more likely than not that there is a legal or constructive obligation committing the Circui( to pay out resources and the amount of the obligation can be measured with reasonable certainty. 2.13 Grants. Grants and donations are accounted for when paid. 2.14 Costs dlrectly related to the work of the clrcuit. The district assessment and ministerial stipend5 are accounted for when due. FIXED ASSETS. 2.15 Freehold land and buildings Freehold land and buildin8s are accounted for at original Cost or subsequent valuation ba515. Tanglble Fixed Assets These are the manse5 managed by the Circuit. The Circuit manages three Manses Fixed Asset Investments These are the properties managed by the Circuit with the view to generate income or for their investment potential. In the year under review. there were five such properties, including one closed-to-worship Church building. The freehold land and buildings mentioned above are shown in these accounts at deemed valuations, being that property's insurance reinstatement value, a5 notified by Methodist Insurance Company Plc. Changes in the values of the properties as notified by the Methodlst Insurance Company PIC are reflected in these accounts on five-year basis 2.16 CAPITALISATION All tangible Fixed Assets and Fixed Assets Investment5 whose costs are in excess of £1,000 in the year conterne(l are capitalised. Otherwise such costs are written off in the year of the expenditure. 2.17 DEPRECIATION. Depreciable tangible freehold building values are depreciated at a rate calculated to write off the cost, le55 residual value over their expected useful lives. No Depreciation 15 provided on freehold land. No Depreciation is provided on Fixed Assets Investment properties. Rate of Depreciation on tangible freehold buildin8s- 2.5% on straight line basis. OTHER ACCOUNTING POLICIES 2.18 Funds 2.18.1 Unrestricted funds represent funds which are expendable at the discretion of the Circuit in the furtherance of its objects and which have not been designated for other purposes. 2.18.2 Restricted funds can only be used for specified purposes. The purpose of any restricted fund 15 noted in the financial statements. page 15
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 20221 continued ) 2.18.3 Permanent En(lowment Fund represents a gift of endowment where the trustees have no power to convert the capital into income. A permanent endowment fund must normally be indefinitely. 2.18.4 Expendable Endowment Fund represents a gift of endowment where trustees have the power to convert all or part of the endowment fund into income. 2.19 Consolidation The Circuit oversees the work of ministers and lay workers in churches within the Circuit, but does not have control over those churches, ministers, or the lay workers. For this reason, the financial statements of the churches within the Circuit are not consolidated into these financial statements. 2.20 Going Concern At the time of approving the financial statements, the Trustees have a reasonable expectation that the Circuit has adequate resources to continue in operational existence for the foreseeable future. Thus the Tru5tee5 have therefore continued to adopt the going concern basis in preparing the Circuit's financial statements. 2.21 Employment Benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. 2.22 Taxation In the opinion of the trustees, the Circuit is exempt from the United Kingdom Taxation on its incoming resources for the year. 2.23 Accounting estimates and judgements In the application of the Circuit'5 accounting policies, the trustees are required to make judgements, estimate5, and assumptions about carrying amount of assets and liabilitie5 that are not readily apparent from other resources. The estimates and a550Ciated assumptions are based on historic experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate 15 revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 2.24 Apportionment Of Costs Between Activities Governance and Other Costs are 3PPOrtioned between Charitable Activities and Expenditure to raise Funds on the basis of each activity's income in the year in relation to each other, excluding any exemptional items page 16
ATTERSEAANO WANDLEVALLEYCIRCUIt NOTESTOTHE FINANCIALSTATEMENTSFORIHEYEAP ENDED3I AUGUSTIV22iontlnued I S. INCOMING RESOURCES 3.1 Charftabl• Actkrfhw InEo R@Btrtt EréjyWt TOTAL End(rm•Tht Toi¥1 FuThl¥ FLJ> FL1 Fu Fw Fur 2D21 FL3 2022 101.747 108.747 97.647 97,e47 12 1¥•tr•nt In¢om Cwthl Flfft BoHrd Irrtwrt TK4CP Iriere Rgrtai 208 47 47 147 147 163.W3 17T,160 177,ieo 184.011 147 114158 177,207 177,302 3.3 OthefillCQrn• 4.943 lThsuranM Clai Olhers 0,452 549 9549 1278 OD1 27 4 RESOVRtsS EXPENDED 4.1 EXPElXJtTIJRE ON IWSING FU5 DIRECT 5PENPINS TMCP Ctr4fg95 PrVpgrt3 Repairs Mwrtwwn¢4 Propetty InsurAfi¢• napmert ¢hSW 17 17 14.382 10 10 14,382 2,827 3,6WJ 2,634 544 28 15 15 GOVERt4APKE AND OTHER ExPENTuRE itFèès AX¢¥JntatY Fees 2,708 1.548 1.476 1,478 OTHERS Tewone POBL Prim arSOnry SLb5cnpbon knJryExpBnÈ4S 2.997 2,997 3.020 931 fj45 2376 6,972 6,97 SUhlAiARY OF EXPEr[tURE TO IiAL8E FUND8 Dlr•¢tSF•fvJkng 17 15.222 4,258 Othèrs 972 45D 17 36A11 Z6,440 41.2 EXPENDtfuREONCHARITABLE ACTwrrEs 42.1 DIRECT SPENDING DistCt AssesEfflgnl StipwK1s. Penon¥rKINI¢ Sne54r0 NIC $9,324 116,74S 15,75D 9,052 59.324 119.e73 25.227 59,324 119.8n 26.227 116.745 15.780 9.052 1.895 TTrinbn9 4.659 4,20D 422 4.2 minitr$, YellIj 21 SUPPORT FOR CHARITABLE ACTIVITIE5 Pr4mlses Expvrffj RepalEto 422.1 25,650 2,636 13,563 25,656 2,636 13,563 11.991 2,504 4,9 11.991 2,4 Manse5Counrll Tax MAnses 21 429 1429 F•J• 17
BArrÉRSEAANDWAAWVALLEYCIRCVtt OWT DAllED$fAT£MET0F F¢NANCL4LAcfi¥iTIES FORIHE YL4JI ENDED3LAU6115T2U22 UnrBsMCt£dRe4rV TOTAL Ur(esbxod R95tsithd TOTAL Funds Fur¥J$ FuS Fu Funth Funds Fw 2022 2D21 422.2 GO¥¥nan¢tI ALII Fws 1.618 W24 924 42 2.3 Otherfy DAF COthbkIn APPnite51p T&eptr POSL Prknard5tst Subscnptw) 1.207 l.J75 253 27 1.287 1.875 2,D16 2.016 J13 513 327 423 SUMMARYCF EXPENDrtVRE (JN CLARITAtsLE ACTNlnES Dprttt spe1 210,455 forcharite 21ll.455 211,956 211.959 43,383 2.540 43.353 21,429 21.429 240 OTHERS 376 378 R8fflDY41 Expertsos Bad 06$ PSonrI) De5 OIherexp REVALUATION I DEF11GWNS 2D21 RoV8lwtEon of Inwstfflents Sir H2nry Hollowaf5 Gift 1.082 units 560.3 pence Fer unit1221) 1.082 units 525.1 ¢0 porunll12tr221 1r2 2021 FYi¥m Fd kntrFurtd H*)•oway5tnMt page 18
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2022 ( continued 7. FIXED ASSETS 7.1 TANGIBLE FIXED A55ETS COST OR VALUATION FREEHOLD LAND AND BUILDINGS Manses Balance as at I September 2021 and 31, August 2022 936 220 DEPRECIATION As at I Septefflber 2021 and 31, August 2022 NET BOOK VALUE As at 31 August 2022 936 220 As at 31 August 2021 936 220 7.2 FIXED ASSETS INVESTMENTS COST OR VALUATION FREEHOLD LANDAND BUILDINGS Balance as at I September 2021 and 31, August 2022 2 776 095 NE[ BOOK VALUE As at 31, AuEUSt 2022 2 776 095 As at 31, August 2021 2 776 095 11 The values placed on the above properties are those of the Methodist Insurance "Insured values" as at 16, November 2016. The "insured Values" are the expected insurance cost to replace these properties. The values are neither oriEinal Cost5 nor'fair values" 2} No depreciation has been provided in re5pert of the tangible fixed asset properties for the year as the trustees consider that the depreciable value is NIL. They are of the opinion that the Maintenance programmes to which these properties are subjected to ensure that the estimated residual values are not less than the stated values. 3} The Circuit did not have any Heritage A55et 8. INVESTMENTS 2022 2021 The followlng funds are held on behalf of the Circuit by TMCP Circuit Model Trust Fund Slr Henry Holloway Trust 30 30 5711 6093 page 19
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENT5 FOR THE YEAR ENDED 31, AUGUST 2022 { continued ) 9. INCOME FROM MATERIAL INVESTMENT HOLDINGS Value Asat at 31/0812022 2 776 095 183,803 Income Value Asat at 3110812021 2 776 095 Income Investment Properties 177.160 Trustees for Methodist Church Purposes TOTAL 10. DEBTORS Circuit Assessment Debtor- Due from Local Churches Prepayments Rent Debtor Other Debtors 147 2 781806 183 950 2 782 158 95 177 255 48,213 13,256 23,629 8572 43,524 15,172 6,151 Basic financial assets, including other debtors and prepayments are initially reGognis9d at transaction price. unless the aangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipt5 discounted at a market rate of interest. 11. BANK AND CASH BALANCES 2022 2021 Lloyds Bank Account Central Finance Board- Deposit 2,582 16,476 114 997 Cash and cash equivalent includes cash in hand, deposits held at call with banks, Other short- term liquid investments with original maturities of three months or less, and bank overdrafts. 8ank overdrafts are shown within borrowings in current liabilities. 12. CREDITORS: Amounts falllng due within one year 2022 2021 Local Churches Assessments recelved in advance Rent Received in Advance Other Creditors and Accruals 68,840 1,014 60.386 10.833 85970 Basic financial liabilities, including trade and other creditors, loans from third parties end loans from related parties are initially recognised at transaction price. unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently ¢arried at amortised cost using the effective interest melhod, less any impairment. 91948 13. CREDITORS . Amounts falling due after the nexi Iwelve months 2022 2021 Rent Deposit page 20
BAER5EA AND WANDIE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2022 { continued ) 14. FUNDS 14.1 ENDOWMENT FUND 2022 2021 Balance Brought Forward 0110912021 6,063 5.122 Incoming Resources 147 95 Recourses Expended -17 -10 Net IDeficitl /Gain on Investment Revaluatio -381 940 Transfers between Fund5 -131 Balance Carried Forward 3110812022 14.2 RESTRicfED FUNDS Balance Brought Forward 0110912021 2,336 2.336 Incoming Resources Resources Expended Balance Carrled Forward 3110812022 2336 2336 14.3 UNRESTRicfED FUNDS Balance Brought Forward 0110912021 3.767,524 3,793,388 Incoming Resources 299,210 276,132 Resources Expended -287,594 -302,080 Transfers between Funds Balance Carried Forward 3110812021 15. TRANSFERS BETWEEN FUNDS 131 84 3.779,271 3.767.524 Frorn Sir Henry Holloways to CFB 131 page 21
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2022 1 contlnued ) 16. COLLECTION TO PASS ON 2022 2021 Easter Offering Grenfell Tower 2,233 103 2,233 103 These are funds collected by the Circuit to be passed on to the third parties as named above. 17 DETAILS OF CERTAIN ITEMS OF EXPENDITURE 2022 2021 Audit Fees Accountancy charges 4,200 4,200 18 PAID EMPLOYEES Salaries and Wages National Insurance and Pension Contributions 9.547 25,170 Average Number ofemployees No employee received emoluments in excess of £60,000 per annum. The Circuit Administrator was made redundant during the year. 19. POST BAL4NCE SHEET EVENTS 19.1 The Trustees are not aware of any post balance sheet event which could materially affect these financial statements ZO. RELATED PARTY TRANSACTIONS 20.1 All the Ministers serving in the Circuit, and the Circuit Treasurer are members of the Circuit Trustees 20.2 No Trustee received any remuneration nor benefits 20.3 TRANSACTIONS WITH RELATED PARTIES During the year, three Ministers and the Circuit Treasurer who are also Trustees received stipends and expenses as follows: 2022 2021 Ministerial Stipends 107,196 119,673 Reimbursed Expenses- Ministers 3,250 2,422 Reimbursed Expenses- Circuit Treasurer 4,659 4,200 Althou8h the Circuit pays the ministerial stipends, the Ministers are not employed by the Circuit. Ministers are employed by Conference, but it is the responsibility of the Circuit to pay them. There were no other related parties transactions for the year ended 31, August 2022. Connected or8anisation5 include the Methodist Connexion. Churches within the Circuit, other Methodist District5 in Great Britain, CFB, and TMCP. All these entitie5 have their own trustees and autonomous adminlstratlon such that the Circuit has no significant influence over anv of them. nor they over the Circuit. They are, therefore not considered related parties. page 22
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2022 { continued ) 2022 2021 20.4 Average Number of Trustees receiving Stipends Allowances There were no other related party IransaGlions during the year. Although the Circuit pays the ministerial stipends, the Ministers are not employed by the Circuit. Minister5 are employed by Conference, but it is the responsibility of the Circuit to pay them. 21. RESERVE POLICY A balance is retained in the general fund to meet unanticipated expenditure and programmed work that can not be funded from a single year's budget. The policy of the Circuit is to maintain funds equivalent to at least 6 month's expenditure. 22. Volunteers Contribution Every wing of the Methodist Church l Local Churche5. Circuits. Districts, Connexion l in the United Kingdom is heavily reliant on volunteers who contribute their skills. time, money and their resources in the furtherance of the work of the circuit. Principally, this contribution is by serving on committees of the Circuit that deal with mission, manses, finance, policy. grants, training developments, etc etc. The contribution of volunteers is not included within the income of the Clrcuit. The Trustees are grateful to all of them for their help and commitments 23 Ministers, manse costs The Circuit is required to provide accommodation for each Minister and his/her family. The Circuit bears the costs of repairs, maintenance, building insurance, Council Tax and water charge5. These costs are not shown separately a5 benefit-in-kind for the Ministers as HMRC does not seek to tax these receipts in the hands of the Ministers. 24. FINANCIAL INSTRUMENTS All the Charity's financial instruments quallfy as basic financial instruments in accordance with section 11 of FRS 102 and are recogni5ed on the following basis . il Cash and cash equivalent represent bank balances and deposits held in Sterling ill Investments are measured at market value at the balance sheet date iiil Debtors are measured at the transaction price less any provision for doubtful debts iv) Creditors are measured at the transaction price. 25. The Wandle Valley Circuit and the Batter5ea Mission Circuit merged into one circuit on I, September 2014, to form the Battersea and Wandle valley Circuit. A property of the 8attersea Mission I the west wing I was sold in 2015, and the net Sale proceeds of £1,800,000 was paid into Battersea and Wandle Valley Circuit TMCP trust Account l Trust 219051 on 16, February 2015. An amount of £1,430,009 was transferred out of the £1,800,OCQ on I, August 2015 to open a new TMCP trust account I trust 21905A I in the name of Battersea and Wandle Valley Circuit. page 23
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2022 1 contlnued ) Although the new TMCP trust account121905 Al is in the name of the newly formed Circuit, it is holding the funds in the account 'on trust" for the Battersea Mission. The Circuit does not have any control over the TMCP trust 21905A account, and any transactions in the trust account are controlled and authorised by the Battersea Mission. The transaction5 in the TMCP trust account 21905A have not been reflected in these financial statements. 26. APPORTIONMENT OF SUPPORT COSTS AMONGST AcfiviTIES. EXPENDITURE ON CHARITABLE Totsl cost8 ACTIVITIES EXPENDITURE ON RAISING FUNDS Governancè Costs totsl Audit 4,200 1616 Accountsncy Fees 2.400 924 1476 Professional Fee$ Other8 500 192 308 Post, Print and Stationery 263 421 Telephone 4.872 1875 2997 Sundry Expenses 977 376 601 Governance and Other Costs are apportioned between Activities I Charitable and Expenditure to raise funds l on the basis of each activity's income in the year In relatlon to each other. This policy excludes any exceptional and non-recurring items. page 24