BAThERSEA AND WANDLE VALLEY CIRCUIT Charity Registration number- 1185469 FINANCIALSTATEMENTS FOR THE YEAR ENDED 31, AUGUST 2023
BArrERSEA AND WANDLE VALLEY CIRCUIT Charity Registration number- 1185469 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2023 TABLE OF CONTENTS PAGE Charity Infomiation Trustees Report 2to6 Auditorfs Rewt 7t010 Statement of Financial Activtties 11 Balance Sheet 12 Notes to the Financd Statemenls 13to24
BAThERSEA AND WANDLE VALLEY CIRCUIT Charity Registration number- 1185469 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2023 CHAIUTY INFORMATION Principal address 20-22, York Road Battersea London. SWI13QE Bankers - LLOYDS BANK PLC 25, Gresham Street, LA)ndon 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 pa8e I
BAERsEA & WANDLE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2023 The Trustees present their report together with the Audited financial statements for the year ended 31 August 2023. BASIS OF ACCOUNTS PREPARATION The financial statements have been prepared In accordance with "Accounting and Reporting by Charitie5'. 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 (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 ljanuary 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 Regulation 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 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and Reporting by Charities Statement of Recommended Practice effective from I, April 2005 which ha5 Since been withdrawn" The disclosure above is necessary as the Charities l Accounts and Reports l Regulations 2008 have not been amended to permit the use of the SORP I FRS 1021-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 "charitv reporting and accounting.. the essentials, March 2015", which is available from their webslte. The financial Statements 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 GOVERNING DOCUMENT AND OBJECTIVE The governing document for the circuit is the Deed of Union119321 and the Methodist Church Act {1976). The Purposes of the Methodist Church are and shall be deemed to have been Since the date of the union, the advancement of: {a} the Christian faith in accordance with the doctrinal standards and discipline of the Methodist Church- {bl any charitable purposes for the time being of any Connexional. district. Circuit. local or other or8anisation of The Methodist Church,. Icl any charitable purpose for the time being of any society or institutlon subsidiary or ancillary to The Methodist Church: Id) any purpose for the time being of any charity subsidlary or ancillary to The Methodist Church. In striving to achieve its objertives, the Trustees 8ive careful consideration to the Charitv Commission's general guidance on public benefit. Page 2
BAER5EA AND WANDLE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2023 1 contlnued ) We confirm that the CircuSt is a pijblic benefit entity as defined by FRS 102. The Circuit Trustees have paid due regard to guidante issued by the Charity Commission Sn deciding what activities the Circuit should undertake. Misslon Statement Our mi55ion is to stimulate and support Christian people In their life of faith and to build lively and friendly Christian community which is committed to working with others in the neighbourhood and in the Borough5 of Wandsworth, Merton and Sutton In response to human needs and the building of a just society. As we faithfully listen to God in prdyer we will seek to achieve the following:
To provide the structure for enablin8 worship, pastoral care and training to take place in and through out our circuit churches. To enable and 5UPPQrt work directed outwards into our local communities in seNlce 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 oll that we do. To provide the administrative 5UPPQrt which will release and enable the members of our churches to live out their calling to worship, learning and caring Service and evangelism God has been, and is. our strength in times of challenges in our mi55ion 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 AND ADMINisfRATIVE DEfAILS OF THE CHARITY, ITS TrUSTEES AND ADVISORS The Circuit is managed on a day to day basls by the Superintendent Minister together with two other Mlnlsters, paid 5UPPOrt staff, and volunteers. The Managing Trustees meet from time to time to oversee the Circuit matter5. Management Structu Superintendent Superlntendent Mlnlsters Revé Rosamund Hollingsworth I terminated 31108120251 Revd. Jannifer Matthews l joined 01109120251 Revd Japhet Kabilu. Revd. Saidu Kanu Clrcuit Stewards Mr Edward Oppong Mr Kojo Amoah-Arko Ms Doreen Daley Mrsjoyce W Campbell Cirtult Treasurer Mr Stephen Hienno page 3
BArrERSEA AND WANDLE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31. AUGUST Z023 ( Contlnued I srRucfuRE. GOVERNANCE AND MANAGEMENT The 8overnin8 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 pa$5ed 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 Minister. Ministerial staff and Circuit Stewards via the medium of the Circuit Meetings. Membershlp of the C5rcult Meetlng is laid down in the Constitutional Practices and Dlsclpllne of the Methodist Church. The members of the Circuit Meeting are the Trustee5 of the Circuit. Ms Doreen Daley has fully taken over as the senior Circuit Steward and we thank Ms Marason Greenidge for her dedlcated and hard work during her tenure of office. Mr. Joe Nithianandan has decided to step down 35 a steward and a member of the Circuit Leadership team due to health asonS. TRUSTEES The Trustees of the Circuit are selected from a given office holders of the Methodist Church The members of the Circuit Meetin8 are the Managing Tru5tee5 of the Circuit. 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 individual churches, it is clear that the make- up of the Meeting 15 subject to frequent changes. It IS therefore impractical to list all the nome5 of those serving, but in summary, there were 33 trustees in the Circutt as at 31, August 2023. A list of trustees is entered and updated on the Charity Commlssion website on regular basis. CHURCHESWITHIN 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 Circult. Battersea Mèthodist Mission Broomwood Methodist Church Mitcham Methodist 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 equipping Lay preachers throuEh 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,. page 4
BArrERSEA AND WANDLE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2023 1 Contlnued ) To date, the Circuit has 21 accredited, l on note and 3 on trial Local preachers. Also identified are 4 worship leaders in training. The Circuit agreed to undertake massive refurbishment work at the property Situated at IS, Denham Crescent due to the dilapidated state of the Manse. FINANCIAL REVIEW The Circuit made è net Deficit of £15.76612022 - income of £12.6461 before a £241 deficit 12022 - £381 deficit l on the revaluation of TMCP trusts investments In the year . The overall result for the year was a deficit of £16.00712022 - income - £12.2651 The Circuit assessment 15 the main backbone of the Circuit'5 income. The assessment income IS SUPP05ed to be sufficient to ensure that the Circuit carries out its functional duties of overseeing and supporting the local churches. Various factors are taken into account in arriving at the individual local churthes, assessments, and it is felt that a fairer system of assessment is currently in pla. Rental income of the Clrcuit plays a significant role in the Circuit's finances It is the Intention of the Circuit to continue to rent out all Its current fNe propertie5 for the foreseeable future. Re-classlflc*ion of TMCP Twsts The TMCP trusts have hltherto been treated as Current Assets investments. The trustees have reviewed this position and has decided to reclassify such trusts a5 fixed assets investments because they consider these trust5 to be held for long term purposes (rather than short term l. These trust remain liquid, but they are held for their investment potential. The trusts are not held specifically for resale or expected to be realised within 12 months from the year-end {311081120231 date. Reserve Policy. The Trustees endeavour to maintain sufflclent Reserves to ensure that the Circuit is on a "going concern" basis at all times. The balance of the unrestricted funds at 31 August 2023 was £3.764,405 (2022- £3.480,171) This includgs the value of the Fixed Assets of £3,712,345 thereby leaving a net liqur(I balan of £52.060 for the general running of the Circuit. Our reserves policy is to hold at least 6 month's expenditure. With the current level of annual expenditure of £324K, the expetted level of Reserves should be £162K, compared to the actual readily avallable reserves { Circuit General Fund balance less properties value I 1 £3,764K- £3,712 K l of £52K. The reserves are substantially less than the required level and the Trustees intend to take the appropriate measures to brlng the actual resetves in line with the expected level. The Sir Henry Holloway Trust (Endowment fundl balance at the end of the year was £5,440. This Is a fund set up specifically to Use part of the income to contribute towards the stipend cost of a Deaconess employed by Upper Tooting Methodist Church and a payment to the Superintendent Minister of the Circuit which the Upper Tootin8 Methodist Church is part of. The net income earned in the year under revlew is £168. An amount £152 was transferred from the Endowment Fund to the main bank current account of the Circuit. page 5
BAThERSEA AND WANDLE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2023 1 Contlnued ) Risk Analysis 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 system5 are put in place to minimise such risks to an acceptable level wherever ri5k5 are identified. The Circuit Leadership Team has further introduced a risk register which is designed to control and monitor the rlsk activities of the Circuit. PLANS AND PAST AcnviTIES. All the five investment properties of the Circuit available for renting are now fully rented out. Golng Concern After reviewing the "going concem" assessment document of the Circuit, we have concluded that the )ing COnM basis remains an appropriate basis of preparing these financial slatemenls. statement of Trnstees, Responslbllltles. The trustees are responsible for preparing the Trustees, report and financial statements in a¢¢ordance th applicable law and United KIn10M AccountlNJ Standards {Untted Klngdom Generally Accepted AccuntIng Practi). The law applicable to charities in England and Vvales requires th8 trustees to prepare accounts for each Financial year which gNe a true and fair view of the slate of affairs of tho circult and of the incoming resources and application of r8sources of the Circuit for that year. In preparing these accounts, the trustees are required to: select suitable accounllng policies and then apply them conslstenty. observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent. state whether applicable a¢wunting standards have been followed, subject to any material departures disclosed and explained in the acGounts,' and Prepare the accounts on a going concern basis unless it is inappropriate to presume that the church will continue in operation. The trustees are responsible for keeping Sufflent accounting records that disclose, with reasonable accuraty al any time, the financial position of the Church and that enable them to ensure that the accounts comply with the Charities Act of 2011. the appropriate Charity (Accounts and Reports) Regulats'ons and the provisions of the Injsl deed. They are also responsib for safeguarding the assets of the Church and hence for taking reasonable steps for the prevention and del8clion of fraud and other irregularities. APPROVAL This Resx)rt was approved by the Circuit trustees on ........ signed on ils behaw by 2025 and Ms Doreen Daley Senior Circuit Stewa page 6
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BAThERSEA AND WANDLE VALLEY CIRCUIT REPORT ON THE FINANCIAL STATEMENTS QUALIFIED OPINION We have audited the financial statements of Battersea and Wandle Valley Circuit l The Circuit I for the year ended 31, August 2023, which comprise of the Statement of Financial Activitie5, the Balance Sheet, and the related notes to the financial statement5. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable Low and United KinEdom Accounting Standards, includin8 Financial Reporting Standard 102, The 'Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" ( United Kingdom Generally Accepted Atcounting Practice) In our opinion except for the efferts of the matter described in the basis for qualrfied opinion section, the financial statements..
give a true and fair view of the Circuit's state of affairs as at 31, August 2023 and of its incoming resources and application of resources for the year then ended have been properly prepared in accordance with United Kingdom Generallv Accepted Accounting Prartice,. and have been prepared in accordance with the requirements of the Charities Act 2011. BASIS FOR QUAUFIED OPINION The values of the Circuit properties in these accounts are at Methodist Insurance Company's "insured values". The "insured values. are neither"Original Costs nor "fair values" arising from proper valuations of the properties. Instead the 'insured values" are the'replacement costs" of the properties. The valuation5 do not separate the value of the Land from the value of the buildings. Consequently, the valuation5 Of the properties in these account5 do not conform to the United Kingdom Generally Accepted Accounting Practice l FRS 102 1 which requlres propertie5 to be shown in the accounts at either original costs 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 prevlous year's financial statements. Consequently the current yearfs financial statement5 and the opening balance5 of the Circuit's financial statements could contain errors and misstatements which materially could affect the current year's financial statements. We conducted our audit in accordance with International Standards on Auditing l UK I IISAS {UKI and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities 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 statement5 in the UK. includinB the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requlrements. page 7
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BAThERSEA AND WANDLE VALLEY CIRCUIT We believe that the audit ewdence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statement5, we have concluded 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 uncertainties relating to events or condition5 that. individually or collectively, may cast significant doubt on the Circuit's ability to continue as a going concern for a period of at least twelve months from when the financial statement5 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 INFORMATION The other information tomprises the information included in the annual report other than the financial ststements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statement5 doe5 not cover the other information and, except to the extent otherwise e¥plicitly stated in our report, we do not expre55 any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so, consider whether the other information is materially incon5i5tent 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 incon515tencies or apparent material misstatements, we are required to determine whether thi5 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 of this other information, we are required to report that fact. We have nothing to report ill this regard. MATfERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION Except for the matter described in the basis for qualified opinion of our report, w8 have nothing to report in respect of the fr)Ilowing matters in relation to which the Charitie5 (Accounts and Report l Regulations 21XJ8 require us to report to you, if in our opinion
the information given in the trustees, report is incon515tent in any material respect with the financial statements- or sufficient accounting records hove not been kept: or the financial statements are not in agreement with the accountlng records and return5: or We have not received all the infom)atlon and explanations we required for our audit. RESPONSIBILITIES OF THE TRUSTEES A5 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 belng satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preporation of the financial statements that are free from material mi55tatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessin8 the Circuit's bility to continue as a going concern, disclosing. as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Circuit or as to cease operations, or have no realistic alternative but to do so. page 8
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BAThERSEA AND WANDLE VALLEY CIRCUIT ( contlnued > AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENT& We have been appointed as Auditors under Section 144 of the Charities Art 2011, and report in accordance with the Act and relevant regulations made or having effert thereunder. Our objectives are to obtain asOnable assurance about whether the financial statements as whole are free from material mi55tstement. 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 guarantee 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 could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statement5. The extent to which our procedure5 are capable of detecting irre8ularlties, Including fraud is detailed below.
As part of an audit in accordance wlth ISAS IUKI. we exercise professional judgement and malntaln 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 Circutt is complying with that framework. We assessed the susceptibility of the Circuit's financial statements to material misstatement, Includlng how fraud might occur Our engagement principal'5 a5ses5ment 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 financlal statements, including the disclosures, and whether the finantial statement5 represent the underlying transactions and events in a manner that achieves fair presentstion. A further description of our rèsponsibilities for the audr( of the financial statements is located on the Financial Reporting Council's website at '.https: //www.frc.org.uVauditorresponsibilities. 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 Report51 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 no other purpose. To the fullest extent permitted by law. we do page 9
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF 8ArrERSEA AND WANDLE VALLEY CIRCUIT ( contlnued ) not accept or assume responsibiltty to anyone other than the Circuit and the Circuit trustees as a body, for our audit work. for this report, or for the opinions we have formed. . 2025 Adomako 8asoah & Co. Statutory Auditor 45, Tindale Close Sanderstead South Croydon Surrey. CR2 ORT ADOMAKO BASOAH & CO 15 eligible for appointment a5 Auditor of the Circult by virtue of its eli8ibility for appointment as auditor of a company under section 1212 of the Companies Act 2C4)6. page 10
BAER$EA AND WANDLE VALLEY CIRCUIT STATEMENT OF FINANCIALACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2023 Note Unrestrirte( Restrlrt Endowme Total 2022 INCOMING RESOURCES Charitable Activities 114,700 114,700 108,747 Investment income 194,043 194,211 184.158 Other Incorne 6,452 308,743 308,911 299,357 RESOURCES EXPENDED Expenditure on Raising Funds Expenditure on Charitable Activities Others 18,856 267,234 38,571 16 18,872 36,411 267,234 258,004 38.571 -7,704 4.2.3 TOTAL RESOURCES USED 324,661 16 324,677 286,711 Net income before investment Bains in the year 115,9181 152 115,7661 12,646 Gains on Revaluation of Investments -241 -241 -381 NET INCOME 115,9181 49 116,IYJ71 12.265 Transfer between Funds: 152 -152 Nrf INCOME FOR THE YEAR 115,7661 -241 116,1)071 12,265 BALANCE BROUGHT FORWARD 171 2,336 3,788,188 3 775 923 BALANCE CARRIED FORWARD 3.764,405 2.336 5.440 3.772.181 3 788 188 All 8clivlbes are derlved frcln continuing operations There are no further recogniSl gainsl Ilo&%esl other than the surpluslldefioll for the above financial year. The notes on pages 13 to 24 form an Integral part of these flnandal statements. P8ge11
2,781,565 |
2,781,806 |
|
|---|---|---|
3,717,785 |
3,718,008 |
|
_ |
||
100,294 |
100,294 |
|
86,083 |
88,419 |
|
3,798,428 |
3,806,204 |
|
3,764,405 |
3,788,170 |
|
5,440 |
||
2,336 |
||
3,764,405 |
3,764,405 |
|
3,764.405 |
3,788,188 |
BAER5EA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2023 I. BASIS OF ACCOUNTING 1.1 The financial Statements have been prepared in accordance with "Accounting and Reporting by Charities.. Ststement 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 (Second Edition)" and the Financial Reporting Stsndard 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 fairf, view and have departed from the Charities l 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 Attounting and Reporting by Charities = Statement of Recommended Practice effective from I, April 2(K15 which ha5 Since been wlthdrawn" The disclosure above 15 necessary as the Charities l Accounts and Reports l Regulations 2008 have not been amended to permit the use of the 50RP I FRS 1021. It IS recommended by the Charity Commission in section 8 of their publication "charlty porting and accounting: the e5sentials' March 2015 which 15 available from their website. The financial Statements 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 con5titute5 a public benefit entity a5 defined by FRS 102 1.3 No thange5 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 Circult become5 entitled to the resour5. It is more likely ihan not that the trustees will receive the resour . and The monetary value can be measured with suffitient reliability. Circuit Assessment incorne recognition Is based on the Circutt's Budgeted assessment on each individual church in the Circuit . Rental income is recognised on the basis of the nt as per the rental agreements. page 13.
BAERsEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGusf 2023 ( contlnued 2.2 Offsetting There ha5 been no offsetting of assets and Ilablllties, 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 a5 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 assets 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 glft and is treated as an addition to the same fund as the initial donatlon unless the donor or the term5 of the appeal have specified otherwise. 2.6 Donated Goods Donated 8oods 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 as tangible fixed assets and included in the SOFA a5 incoming resources when receivable. Gifts in kind for use by the Circuit are included in the SOFA as income from donation5 when receivable 2.7 Donated Services and Facilities Donated services and facilities are included in the SOFA when received at the value of the gift to the Circuit provided the value of the gift 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 Insuran claims are only included in the SOFA when the general income recognition criteria are met, and a Included as an item of other income in the SOFA 2.10 Income from Interest. Royalties and DNidends This is included in the accounts when recelpt is probable and the amount ceivable can be measured rellably. 2.11 Investment gains and losses This includes any realised or unrealised gains or1055es on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the financial year. page 14
BAThERSEA AND WANDLE VALLEY CIRCUIT OTES TO THE FINANaAL STATEMENT5 FOR THE YEAR ENDED 31, AUGUST 2023 ( contlnued ) APPLICATION OF RESOURCES. 2.12 Liability Recognition Liabilities are recognised where it 15 more likely than not that there is a legal or construrtive obligation committing the Circuit to pay out resources and the amount of the obligation can be measured with reasonable certainty. 2.13 Grants. Grant5 and donation5 are accounted for when paid. 2.14 Costs dirertly related to the work of the clrcutt. The district a55e55ment and ministerial stipends are accounted for when due. FIXED ASSET5. 2.15 Freehold land and buildings Freehold land and buildings are accounted for at original Cost or subsequent valuation basis. Tanglble Flxed Assets These are the manses managed by the Circuit. The Circuit manages three Manses Flxed Asset Investments These are the properties managed by the Circuit with the view to generate income or for their Investment potential plus the TMACP trusts. In the year under review. there were five such properties. includin8 one closed-to-worship church buildin& and two TMCP trusts. The freehold land and buildings mentioned above are shown in these accounts at deemed valuations, being that property's insurance reinstatement value. as notified by Methodist Insurance Company Plc. Changes in the values of the propertie5 as notified by the Methodist Insurance Company PIC are reflected in these accounts on fNe-year basis 2.16 CAPITALISATION All Fixed Assets whose cost5 are in exce55 of £l.000 in the year concemed are capltalised. Otherwise such costs a written off in the year of the expenditure. 2.17 DEPRECIAnON. Depreciable tangible freehold buildlng values are depreciated at a rate calculated to wrlte off the cost, less residual value over their expected useful lives. No Depreciation is provided on freehold land. No Depreciation is provided on Fixed Assets Investment properties. Rate of Depreciatlon on tangible freehold building5- 2.5% on straight line basis. OTHER ACCOUNTING POLICIES 2.18 Funds 2.18.1 Unrestricted funds represent fvnds which are expendable at the discretion of the Clrcult in the furtherance of its objects and which have not been des18nated for other purposes. 2.18.2 Restricted funds can only be used for Specified purposes. The purp05e of any restricted fund is noted in the financial statements. page 15
BATfERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2023 { continued ) 2.18.3 Permanent Endowment 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 powerto convert all or part ofthe endowmentfund 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, minister5, or the lay workers. For thls 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 flnancial statements, the Trustees have a reasonable expertation that the Circuit has adequate resources to continue in operational existence for the foreseeable future. Thu5 the Trustees have therefore continued to adopt the going concern basis in preparin8 the Circuit's financial statements. 2.21 Employment Benefits The cost of any unused hollday entitlement is recognised in the period In whith the employee's services are received. 2.22 Taxation In the opinion of the trustees. the Clrcuit is exempt from the Unlted Kingdom Taxation on its incoming resources for the year. 2.23 Accounting estimates and judgements In the application of the Circuit's accounting policie5. the trustees are required to make judgements, estimate5, and assumptions about carrying amount of assets and liabilities that are not readily apparent from other resources. The estimates and associated 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 on8oin8 basls. Revlslons to accounting estimate5 are reco8nised in the period in which the estlmate is revised where the revision affects only that period, or in the period of the revislon and future periods where the revision affects both current and future periods. 2.24 Apportionment Of Costs Between Activities Governance and Other Cost5 are apportioned between Charitable Activities and Expenditure to raise Funds on the basis of each activity's income in the year in relation to each other, excludin8 any exemptional items page 16
114,700 |
114,700 |
||
|---|---|---|---|
184,011 |
184,158 |
||
_ |
|||
_ |
|||
178,907 |
178,907 |
||
81,368 |
81.368 |
ERSEIANDWANDtEVALLEYCIRCUtt NOTESTOThEFINAThCIAL5TATEMENf5 FOR ThEVEARENQEDLAU6Ll5f1013lCathWd I UnRsh1ctaRèthiod EThlLWTnar TOTAL UnMstrfCtekncIed Endo4%Ther TOTAL Fund5 Fwd$ Fund FvThts Fynds Fur¥ls Fwd 2023 2022 4.222 60Mt ¢0 rtFe A¢wuttsrKyFee5 1.7 892 831 1,el8 924 1.616 924 4.2.2.3 othors DAF Conbibulty) ApwenUwNp Lvry Telepl 1,287 1.875 1.287 1.875 263 1.126 1,126 4.13 SUMM4RYOFEXPENTURE (W4 CFL4R1TABLEACvlTs tirKtSpeTh11 I78.7 forche 178.907 20T.1 0 207.156 61,388 61,388 43.383 2,732 43.383 2,n2 Q 34 25B 42 OTHERS Websrte sLdryE¥ W(hIp •J Prowwn Tr)kir4erwUld B•Y DAbts YoLth &¥per• 1.823 140 78S 1,823 140 785 376 376 4.9CIJ 34.953 870 53 To1 CthweX4erI1r8 REVALLTrATIOM I DEFicrr)1G9 2023 2022 Rwuation of Invg5lm8nts Sir Hry kbllc8%Yy"s Gmt I,(2 560.3 rer unitl 20221 -5.681 1.082 un8 502.8 per unltl 20231 TW4>ERS BEf4 FUP40S J23 2022 From EndowmerfFNrMI ID u5110dFllnd rHenry Holtyay5 tr 131 page 18
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANaAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2023 ( cofttlnued ) 7. FIXED ASSErs 7.1 TANGIBLE FIXED ASSETS COST OR VALUATION FREEHOLD LAND A14D BUILDINGS Land and Buildings Unr8slriclgd Balance as at 1 September 2022 & 31. August 2023 DEPRECIATION As at 1 Saptsmber 2022 and 31. August 2023 NEf BOOK VALUE As at 31 August 2023 As at 31 August 2022 7.2 FIXED ASSEfs INvESTMErs cosr OR VALUATION Unrestricted Endowment TOTAL Land and Building As at I September 2022 and 31, August 2024 2 776 095 2 776 095 INVESTMENT As at I September 2022 30 5,681 5711 Additions Disposals 168 -409 169 -410 Balance as at 31, August 2023 30 5470 NEf BOOK VALUE As at 31 August 2023 2 776 125 2 781 565 As at 31 August 2022 2 776 125 2 781806 page 19
BAER5EA AND WANDiE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR ThE YEAR ENDED 31, AUGUST 2023 { contlnued ) 7.3 FIXED ASSETS I Continued I 11 The values placed on the above propertie5 are those of the Methodist Insurance "Insured values" as at 16, November 2016. The 'in5ured Values" are the expected insurance cost to place these properties. The values are neither original Costs nor'fair values" 21 No depreciation ha5 been provided in respect of the tangible fixed a55et 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 ensurè that the estimated residual values are not less than the stated values. 31 Re-classlficatlon of TMCP Trusts The TMCP trusts have hitherto been treated as Current Assets investments. The trustees have reviewed this position and has decided to reclassify such trusts as fixed assets investments because they consider these trusts to be held for long term purposes {rather than short term }. These trust remain liquid, but they are held for their investment potential. The trusts are not held specifically for resale or expected to be realised within 12 months from the year-end (31/08112023 > date. 41 The Circuit did not have any Heritage Asset 8. INVEsfMENTS 2023 2022 The following funds are held on behalf of the Circuit by TMCP Circuit Model Trust Fund Sir Henry Holloway Trust 30 30 5470 5711 9. INCOME FROfvI MATERIAL INVESThfjENT HOLDINGS Value A5at at 3110812023 Income Value 2023 As at at 3110812022 Income 2022 Investment Properties Trustees for Methodist Church Purposes TOTAL 10. DEBTORS Circuit Assessment Debtor- Due from Local Churches Prepayments Rent Debtor Other Debtors 2.776,095 191,416 2,776,095 183,803 169 147 2 781565 191585 2 781806 183 950 43,174 48,213 14,280 13,256.00 51,960 23,629 119 606 Basic financial assets, inciuding other debtors and prepayments are initially recognised at transaction price, unless the arrang8mant constitutes a financing transaction, wher8 the transaction is measured at th8 present value of the future reIpts discounted at a rnarket rate of interest. 11. BANK AND CASH BALANCES 2023 2022 Lloyds Bank Account Central Finan Board- Deposit 2,582 page 20
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2023 1 contlnued ) 11.1 BANK AND CASH BALANCES { Continued ) Cash and cash equivalent includes cash in hand, dep05its held at call with banks, other 5hort- term liquid investments with original maturwties of three months or less, and bank overdrdfts. Bank overdrafts are shown within borrowings in current liabilities. 12. CREDITORS: Amounts fallin8 due within one year 2023 2022 Bank Overdraft Local Churches Assessments received in advance Rent Received in Advance Other Creditor5 and Accruals 13,013 71,918 1,098 68,840 1.014 85970 Basic financial liabilitiés, including trade and other CditOrs. loans from third parties and loans from related parties are initially r8cognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present valua of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method. less any impairment. 13. CREDITORS . Amounts falling due after the next e1ve months 2023 2022 Rent D8POSIt The above account is a returnable rent deposit received from a tenant of the Circurt 34 023 Ll In accordance wth Ihe18ase, this deposit is lo be pul into a designated bank o¢wunt. Th8 balance and any interest accrued are to the benefit of the tenant. 14. FUNDS 14.1 ENDOWMENT FUND 2023 2022 Balance Brought Forward 0110912022 5,681 6,063 Incomin8 Resources 168 147 Recourses Expended -16 -17 Net IDeficitl /Gain on Investment Revaluatlon -241 -381 Transfers between Funds -152 -131 Balance Carried Fonvard 3110812023 page 21
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2023 1 contlnued ) 14.2 RESTRICTED FUNDS 2023 2022 Balance as at 0110912022 and 3110812023 14.3 UNRESTRICTED FUNDS Balance Brought Forward OV0912022 3,780,171 3.767.524 Incoming Re50urce5 308,743 299.210 Resources Expended 424,661 -286,694 Transfers between Funds 152 131 Balance Carried Forward 3110812023 15. TRANSFERS BETWEEN FUNDS 3,764,405 3.780,171 From Slr Henry Holloway5 to CFB 152 131 16. DETAILED REsfRICTED FUNDS COLLEcfioN TO PASS ON 2023 2022 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 2023 2022 Audlt Fees Accountancy charges 4.800 4,2 18 PAID EMPLOYEES salaries ond Wages National Insurance and Penslon Contributions 5,807 9.547 Average Number of employees No employee receNed emoluments in exce55 OfE60,c per annum. 19. posr BALANCE SHEET EVENTS 19.1 The Trustees are not aware of any post balance sheet event which could materially affett these financial statements page 22
BArrERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANUAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2023 ( contlnued ) 20. RELATED PARTY TRANSAloN5 20.1 All the Ministers serving in the Circuit, and the Circuit Treasurer are member5 of the Cirtuit Trustees 20.2 No Trustee received any remuneration nor benefits 20.3 TRANSACTIONS WITH REL4TED PARTIES During the year, three Ministers and the Circuit Treasurer who are also Trustees received stipends and expenses as follows: 2023 2022 Ministerial Stipends 110.361 107,196 Reimbursed Expenses- Ministers 8,816 3.250 Reimbursed Expenses- Circuit Treasurer 800 4,659 Although the CircLJit 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. There were no other related parties transartions for the year ended 31, August 2023. Connected organlsatlons include the Methodist Connexion, Churches within the Circuit. other Methodist Districts in Great Britain, CFB, and TMCP. All these entities have their own trustees and autonomous administration such that the Clrcuit has no significant influence over any of them, nor they over the Circuit. They are, therefore not considered related partles. 2023 2022 20.4 Average Number of Trustees receiving Stipends Allowances There were no other related party transactions during the year. ZI. RESERVE POUCY A balance is retained in the general fund to meet unanticipated expenditure and programmed work that can not be funded from a sin8le year's budget. The policy of the Circuit is to maintain funds equivalent to at least 6 month's expenditu. 22. Volunteers Contrlbutlon Every wlng of the Methodlst Church l Local Churches, Clrcuits, 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 setving on committees of the Circuit that deal with mission, manses, finante, policy. grants, tralning developments, etc. The contribution of volunteers is not included within the income of the Circuit. The Trustees are grateful to all of them for their help and commitments pag8 23
BATfERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGusf 2023 ( contlnued } 23 Ministers. manse costs The Circuit is required to provide atcommodation for each Mlnister 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 as 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 qualify as basic financial instruments in accordance with section 11 of FRS 102 and are recognised 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 Oebtor5 are measured at the transartion price le55 any provision for doubtful debt5 iv) Creditors are measured at the transaction price. 25. The Wandle Valley Circuit and the Batter5ea Mission Circuit merged into one circuit on l. September 2014, to form the 8attersea and Wandle valley Circuit. A property of the Battersea Mission I the west wing I wa5 sold in 2015. and the net sale proceeds of £1,800,OQh) 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 £1,8,0() on I, August 2015 to open a new TMCP trust account I trust 21905A I in the name of Battersea and Wandle Valley Circuit. 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 Mi55ion. The transactions in the TMCP trust account 21905A have not been reflected in these financial statements. 26. APPORTIONMENT OF SUPPORT COSTS AMONGST AcfiviTIES. EXPENDITURE ON CHARITABLE Total costs ACTIVITIES EXPENDITURE ON RAISING FUNDS Governanca Costs Audit 4.800 1783 3017 Accountancy Fees 2,400 892 1508 Professional Fees Others 2,238 831 1407 Post. Print and Stationery 1,735 1090 Telephone 3,030 1126 1904 &Jndry Expenses 377 1410 237 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 relation to each other. This policy excludes any exceptional and non-recurring transactions. page 24