BAThERSEA AND WANDLE VALLEY CIRCUIT Charity Registration number- 1185469 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2024
BAThERSEA AND WANDLE VALLEY CIRCUIT Charity Registration number- 1185469 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2024 TABLE OF CoNTEs PAGE Charity Information Trustees RekM)rt 2to6 Auditorfs Report 7t010 Statemenl of Financial Activities 11 Balance Sheet 12 Notes lo the Financial Statements 13to24
BAThERSEA AND WANDLE VALLEY CIRCUIT Charity Registration number- 1185469 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2024 CHARITY INFORMATION Principal address 20-22, York Road Battersea London. SWI13QE Bankers - LLOYDS BANK PLC 25, Gresham Street, London EC2V 7HN. CENTRAL FtNANCE BOARD 9. Bonhill Street, London. EC2A 4PE Accountants and Auditors Adomako Basoah & Co. Chartered Certified Accountants Registered Auditors 45, Tindale Close Sanderstead South Croydon Surrey. CR2 ORT page I
BAThERSEA & WANDLE VALLEY CIRCUIT TRUSTEE5 REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2024 The Trustees present their report together with the Audited financial statements for the year ended 31 August 2024 BASIS OF ACCOUNTS PREPARATION 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 Standèrd applicable in the UK and Republic of Ireland { FRS 1021 Isecond 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 frorn lJanuary2015. 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" 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 Statement of Recommended Practice effective from I, April 2(X)5 which has since been withdrawn" The disclosure above is necessary as the Charities l Accounts and Reports l Regulations 2008 have not been amended to permit the use of the SORP { FRS 1021.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 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 OBJEcfivE The governing document for the circuit is the Deed of Union119321 and the Methodist Church Act119761. The Purposes of the Methodist 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. Circuit, local or other organisation of The Methodist Church,. Icl any charitable purpose for the time being of any Society or institution 5ub5idiory 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 objettives. the Trustees give careful conslderatlon to the Charlty Commission's general guidance on publi¢ benefit. Page 2
BAER5EA AND WANDLE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31. AUGUST 2024 1 contlnued I We confirm that the Circuit is a public benefit entity as defined by FRS 102. The Circuit Tru5tee5 have paid due regard to guidance issued by the Charity Commission in deciding what artivitie5 the Circuit should undertake. Mi55ion Ststement Our mission is to stimulate and support Christian people in their life of faith and to build a lively and friendly Christian community which 15 committed to working with other5 in the neighbourhood and in the Borough5 of Wand5WOrth, 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 churches. To enable and support work directed outwards into our local communities in service and social artion. To provide resource5 for church development and growth. To reco8nise 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 churches to live out their calling to worship, learning and taring Service and evangelism God ha5 been. and is. our strength in times of challenges in our mission and in our journev, has and will continue to be our 8uide. We pray for HIS continued presence with u5 in all our endeavours. REFERENCE AND ADMINISTrATIVE DETAILS OF THE CHARITY, ITS TRusfEES AND ADVISORS The Circuit is managed on a day to day basis by the Superlntendent Minister together with two other Ministers, paid support staff. and volunteers. The Managing Trustees meet from tlme to tlme to oversee the Cirtuit matters. Management Strurture Superintendent Superintendent Mln15ters Revd Rosamund Hollingsworth I termlnated 31108120251 Revd. Jannlfer Matthews l Jolned 01109120251 Revd Japhet Kabilu. Revd. Saidu Kanu Circuit Stewards Mr Edward Oppong Mr Kojo Amoah-Arko Ms Doreen Daley Mrsjoyce W Campbell rcuit Treasurer Mr Stephen Hienno page 3
BArrERSEA AND WANDLE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2024 1 Continued ) STrUCTURE. GOVERNANCE AND MANAGEMENT The governing docurnent 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 15 a150 responsible for the stationing of Pre5byter5 in individual Circuits. Connexional decisions are passed to the Chair of the District and appropriate officers of the District for Regional implementation. The Di5trirt passes contml down to Circuit level for local implementation by the superintendent Minister. Ministerial staff and Circuit stewards via the medium of the Circuit Meetings. Membership of the Circuit Meetin8 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. TRUSTEES The Trustees of the Circuit are selected from a given office holders of the Methodist Church The members of the Circuit Meeting are the Managing Trustees of the Circuit. Due to the number of individual churche5 in the circuit and the fatt that the majority of the Circuit meeting members are those elected by individual churches, it 15 clear that the make- up of the Meeting is subject to frequent change5. It is therefore ifflpractical to list all the names of those serving, but in summary. there were 33 tru5tee5 in the Circuit as at 31, August 2024. A list of trustees is entered and updated on the Charity Commission web51te on regular basis. 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 Broomwood Methodist Church Mitcham Methodist Church St Heller Methodist Churth 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 preacher5 through the provision of traininE and development opportunities, and on identifying and promoting the gifts and ski115 ' among the people of our churches to meet the challenge of 'our calling,. To date. the Circuit ha5 21 accredited. l on note and 3 on trial Local preachers. Also identified are 4 worship leaders in training. The Circuit made a grant of £26,(NX) to St. Heller Methodist Church towards the refurbishment of the church's cottage sltuated within the premises of the church. following an outbreak of fire to the premises. page 4
BAThERSEA AND WANDiE VALLEY CIRCUIT TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2024 ( Contlnued ) FINANCIAL REVIEW The Circuit made a net income of £72,24012023 - deficit of £15,766) before a £421 net 8ain 12023- £241 deficit l on the revaluation of TMCP trusts investments in the year. The overall result for the year was an income of £72,66112023- deficit- £16,IX)71 The Circuit assessment is the main backbone of the Circuit's income. The assessment income IS supposed to be sufficient to ensure that the Circuit carries out its functional dutie5 Qf overseeing and supporting the local churches. Various factors are taken into account in arriving at the individual local churches, assessments, and st is felt that a fairer system 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 five properties for the foreseeable future. Re-classrflGitlon of TMCP Trusts The TMCP trusts have hitherto been treated as Current Assets Investments. The trustees reviewed this position in 2023 and 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-end131/081120241 date. Transfer of TMCP trust funds to the Circuit The Southfield Methc#Yist Church ceased worship in 2019.. As part of the cessatK)n package of its TMCP trusts l Gladys Freshwater Bequest and Bgmi¢e Muriel Hiller bequest ) were transferred lo the Battersea and Wandle Vallay Circuit. The transfer process was completed in 2024. The balance on the 8emice Muriel Hiller bequest { £7.833.03 } was transferred into the Model Trust Fund {trust 340 1 during the year. The Gladys Freshwater trust retained ils 118me ané trust number, but ils management and ownership were changed from Southfield Methodist Church to 8atter5ea and Wandle valley Circult during the year. Resetve Policy. The Trustees endeavour to maintain sufficient ReseNes to ensure that the Circuit is on "going concem" basis at all times. The balance of the unrestricted fvnds al 31 August 2024 was £3,787.400 { 2023- £3.764.4051. This includes the value of the Fixed Assets of £3.720.468 thereby leaving a nel liquid balance of £66,932 for the general running of the Circuit. Our reserve5 policy 15 to hold at least 6 month'5 expenditure. With the current level of annual expenditure of £299K, the expected level of ReseeS should be £149K, comparèd t the actual readily available reserves I Circuit General Fund balante less properties value I 1 £3.787K- £3,720 K l of £67K. The re5erve5 are substantially less than the required level and the Trustees intend to take the appropriate measures to bring the actual reserves in line with the expected level. The Sir Henry Holloway Trust (Endowment fund) balance at the end of the year was £5,861. 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 Tooting Methodist Church is part of. The net income earned in the year under review is £164. An amount of £149 was transferred from the Endowment Fund to the main bank current account of the Circuit. page 5
BArrERSEA AND WANDLE VALLEY aRCUIT TRuEEs REPORT AND ACCOUNTS FOR THE YEAR ENDED 31, AUGUST 2024 { Continued ) Risk Analysis The Trustees continue to examine the principal area5 of operation5 and consider what major risks that could arise in each of these areas. Appropriate resources and review system5 are put in place to minimi5e such risks to an acceptable level wherever risks are identified. The Circuit Leadership Team has further introduced a risk register which is designed to control and monitor the risk activlties of the Circuit. PLANS AND PAsf ACTIVITIES. All the fNe investment properties of the Circuit available for renting are now fully rented out. Goln8 Concern After reviewing the "going concem" assessment of the Circult. we have concluded that the going ¢oncwn basi5 remains an appyopriate basis of weparing these financial statements. Statement of Trustees, Responsibilitles. trustees are responsible for preparing the Trustses, report and financial slal8ments in ac¢ordan¢e with applicable law and Uni18d Kingdom Accounlng Standards (United Kingdom Generdlly Accepted Accountir)g Praclicel. The law applicable to charities in England and Wales requires the trustees lo ppare aGGounts for each Financial year which give a true and fair view of the state of affairs of the circuit and of the incoming resources and applicab'on of resources of th8 Circuit for that year. In preparing these accounts. the trustees are required lo: select suitable accountlrKJ policies and then apply them consislenlly. observe the methods and principles in the Charities SORP. make judgements ané estimates that are reasonable a1 prudent. slate whether applicable awounling standards have been followed. subject to any material departures disclosed and explained in the aGcounls,' and Prepare the accounts on a going concern basis unless il is inappropriate lo presume that th8 church will continue in operation. The trustees are responsible for keeping suffKienl accountlng records that disdose, with reasonable accuracy at any tsme, the financial position of the Church and that enable them lo ensure that the accounts comply with the Charities Act of 2011, the appropriate Charity Ac(xJunts and Reports) Regulations and the provisions of the Irust deed. They are also responsible for safeguardlng the assets of the Church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. APPROVAL This Report was approved by the Circurt tnJsle8S On signed on it5 behalf by . IA -.2025 and Ms Doreen Daley Senior Clrcult Steward page 6
INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF BAThERSEA AND WANDLE VALLEY CIRCUIT REPORT ON THE FINANCIAL sfATEMENTS QUALIFIED OPINION We have audited the financial statements of Battersea and Wandle Valley Circuit l The Circuit I for the year ended 31, Au8USt 2024, which comprise of the Statement of Financial A¢tivitie5, the Balance Sheet, and the related notes to the financial statements, including a summary of signwricant accounting policies. The financial reporting framework that has been applied in their preparation is applicable Law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, The 'Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" { United Kingdom Generally Accepted Accounting Practice) In our opinion except for the effects of the matter described in the basls for qualified opinion section, the financial 5tatement5-
give a true and fair view of the Circuit's state of affairs as at 31, August 2024 and of its incoming resources and application of resources for the year then ended have been properly prepared in accordance wlth United Kingdom Generally Accepted Accounting Practice.. 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 nelther "Original Costs" nor "fair values arising from proper valuations of the properties. Instead the 'insUd values" are the "replacement Costs" of the properties. The valuations do not separate the value of the Land from the value of the buildings. Consequentlyi 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 costs or'fair value5"1 FRS 1021 and the value of land to be separated from the value of the buildings. The same valuation bas15 was applied In the previous year's financial statements. Consequently the current year's financial statements ènd the opening balances of the Clrcuit's financial Statements could contain errors and misstatements which materially could affect the current year's financial ststements. We conducted our audit in accordance wvth International Standards on Auditing l UK I IISAS IUKI and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements sertion of our pOrt. 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 responsibllltles in accordance with these requirements. pag8 7
INDEPENDEThTh AUDITOR'S REPORTTO THE TRUSTEE5 OF BAThERSEA AND WANDLE VALLEY CIRcurr W8 believe that the audit evidence we have oblained is sufficient and appropriate lo provide a basis for our qualified opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statements, we have concluded that the trustees, use of the "going concern" basis of accounting in the preparation of the financlal statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions thal 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 statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with spert to "goin8 Concern" are described in the relevant sections of the report. OTHER INFORMATION 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 wlthin the annual report. Our oplnion on the financial statements doe5 not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infom)ation and, in doing so, consider whether the other information 15 materially inconsistent with the financial statement5 or our knowledge obtalned in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have performed, we conclude that there 15 a material misstatement of thi5 Other information, we are required to report that fact. We have nothing to report in this regard. MAThERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION Except 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 whith the Charities (Accounts and Report l Regulations 2008 require us to report to you, if in our opinion
the information given in the tru5tees' report is inconsistent in any material respect with the financial statements: or sufficient accounting records have not been kept; or the financial statements are not in agreement with the accountlng retord5 and retums; or We have not received all the information and explanations we required for our audit. RESPONSIBIUTIES OF THE TRUSTEES A5 explained more fully in the Trustees. Responsibilities Statement set out on page 6 the Trustees are re5pon5ible for the preparation of the financial statements and for being sat15fied that they give a true and fair view, and for such internal control as the trustee5 determine is necessary to enable the preparation of the financial statements that are free from material misstatement. whether due to fraud or error. In preparlnE the financial statements, the trustees are responsible for assessing the Circuit'5 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 trustees either intend to Ilquidate 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 BArrERSEA AND WANDLE VALLEY CIRCUIT I contlnued ) AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS. We have been appointed ès Auditors under Section 144 of the Charities Act 2011, and report in accordance wlth the Att and relevant regulations made or having effect thereunder. Our objertives 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 a55urance, but is not a guarantee that an audit conduded in accordance wlth 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 reasorbably be expected to influence the economic decisions of users taken on the ba515 of these financial statements. The extent to whlch our procedures are capable of detecting Irregularities, including fraud is detslled below.
A5 part of an audit in accordance wlth 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 with that framework. We assessed the susceptibility of the Circuit's financial statements to material misstatement, Including how fraud might occur Our engagemènt principal's assessment of whether the engagement teom collertively 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 statement5, includin8 the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council'5 webslte at .'https' l/www.frc.org.uVauditorresponsibilities. This description forms part of oijr auditor's report. USE OF OUR REPORT Thi5 report is made solely to the Circuit trustees, as a body. in accordance with Part 4 of the Charities l Accounts and Reports I re8ulation5 2008. Our audit work has been undertaken so that we might state to the Circult'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 AUDrroR'S REPORTTO THE TRUSTEES OF BAERsEA AND WANDLE VALLEY CIRCUIT ( contlnued ) not accept or assume responsibility 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 Adornako Basoah & Co. ststutory Auditor 45, Tindale Close Sanderstead South Croydon Surrey. CR2 QRT 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
BATTEFISEA AND WANDLE VALLEY CIRCUIT STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31, AUGUST 2024. Note Unrestrictec Restricted Endowme Total 2023 INCOMING RESOURCES Charwtable Artivities 117,898 117.898 114,7CKI Investrnent income 196,468 164 196,632 194.211 Separate Materlal Item of Income 7,833 49,245 57,078 Other Income 99 99 322.298 49409 371.707 308.911 RESOURCES EXPENDED Expendlture on Raising Funds Expenditure on Charitable Activities Other5 30,369 252,911 16.171 16 30,385 18,872 252,911 267,234 16,171 38,571 4.2.3 TOTAL RESOURCES USED 299,451 16 299,467 324,677 Net income before investment gains in the year 22,847 49393 72,240 -15,766 Gains on Revaluation of Investments 421 421 -241 NET INCOME 22,847 49814 72.661 -16,007 Transfer between Funds.. 148 NET INCOME FOR THE YEAR 22,995 49,666 72,661 -16,007 BALANCE BROUGHT FORWARD 2,336 Q 3,772,181 3 788 188 BALANCE CARRIED FORWARD 3.787,400 2,336 55,106 3,844,842 3 772 181 All activities are derivgd from Gonlinuing operallons There are no further recognised gainsl (losses) other than the surpluslldeficil) for the above financial year. The notes on pages 13 to 24 form an integral part of these financial stalemenls. page11
2,784,348 |
2,781,565 |
|
|---|---|---|
86,930 |
86.930 |
|
3,823,205 |
3,880,647 |
|
3,787,400 |
3.844.842 |
|
55.106 |
||
2,336 |
||
3,787,400 |
3,787,400 |
|
3,787,400 |
3,844,842 |
3,772,181 |
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31. AUGusf 2024 I. BASIS OF ACCOUNTING 1.1 The financial statements have been prepared in accordance with"Accounting and Reporting by Charities.. Statement of Recommended Prartice applicable to charities preparing their accounts in accordarbce 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 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applie5 from l January 201S. The fir)ancial 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 Charitles = 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 Accountin8 and Reporting by Charities . Statement of Recommended Practice effective from I, April 2005 which has Sin been withdtawn.. The disclosure above is necessary as the Charities { Accounts and Reports l Regulations 2(KJ8 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 attounting: the essentials, March 2015" which is 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 constitutes a public benefit entity os defined by FRS 102 1.3 No changes to accounting estimates have occurred in the reportlng period. 1.4 No material prior year error have been identifled In the reporting period. 2. ACCOUNTING POLICIES. INCOMING RESOURCES 2.1 Recognition of Income Income are reco8nised and included in the Statement of Financial Activities I SOFA I when:
The Circuit become5 entitled to the resources: It is more likely than not that the trustees wlll receive the resource . and The monetary value can be measured with sufficient reliability. Circuit Assessment income recognition is based on the Circuit's Budgeted assessment on eath individual church in the Circuit as approved at a Circuit meeting. Rental intome 15 recognised on the basis of the rent as per the rental agreements. page 13.
BAThERSEA AND WANOLE VALLEY CIRCUIT NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31. AUGUST 2024 { continued ) 2.2 Offsetting There has been no offsetting of assets and liabilrties, 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 8eneral income reco8nition criteria as stated above are met. 2.4 Legacies Legacie5 are included in the SOFA when receipt IS Pfobable, that is, when there has been grant of probate. the Executors have established that there are sufficient a55ets in the estate and any condition5 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 15 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 Inltlal 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 ) unle55 impractical to do 50. Good5 donated for on-going use by the Circuit are reco8nised as tangible red assets and included in the SOFA as incoming resources when receivable. Gift5 in kind for use by the Clrcuit a included in the SOFA a5 income from donations when receivable 2.7 Donated Services and Facilitie5 Donated SeiCe5 and facilitles are included in the SOFA when recelved at the value of the gift to the Clrcuit provided the value of the gift can be measured reliablv. 2.8 Volunteer Help The value of any voluntsry help received is not included In the accounts. 2.9 Settlement of Insurance Claim5 Insurance claims are only included in the SOFA when the general income recognition criteria 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 receSvable can be measured reliably. 2.11 Investment gains and losses This includes any realised or unrealised gains orlosses 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 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2024 ( continued I APPUCATION OF RESOURCES. 2.12 Liability Recognition Liabilities a recogni5ed where it 15 more likely than not that there 15 a legal or construrtive obligation committing the Circuit to pay out resources and the omount of the obligation can be measured with reasonable certainty. 2.13 Grants. Grants and donations are accounted for when paid. 2.14 Costs direcdy related to the work of the clrcult. The distrirt a55essment and ministerial stipends are accounted for when due. FIXED ASSETS. 2.15 Freehold land and buildings Freehold land and buildings are accounted for at original Cost or subsequent valuation basis. Tangible fixed Assets These are the manses managed bythe Circuit. The Circuit managesthree Manses Fixed 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. including one closed-to-worship church buildin& and three 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 notlfied by Methodist Insurance Company Plc. Changes in the values of the properties as notifled by the Methodist Insurance Company PIC are reflerted in these accounts on five-year basis 2.16 CAPITALISATION All Fixed Assets wh05e cost5 are in excess of £1,0 in the year concerned are capitslised. 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, less residual value over their expected useful lives. No Depreciation is provided on freehold land. No Depreciation is provided on Fixed A55ets Investment properties. Rate of Depreciation on tangible freehold buildings- 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 furtherante of its objects and which have not been designated for other purposes. 2.18.2 Restricted funds tan only be used for specified purposes. The purpose 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 20241 wntinued I 2.18.3 Permanent Endowment Fund represents a gift ofendowment where the trustees have no power to convert the capital into income. A pemianent endowment fund must normally be indefinitetv- 2.18.4 Expendable Endowment Fund represents a gift of endowment where trustees have the powerto convert all or part of the endowmentfund into income. 2.19 Consolidation The Circuit oversees the work of ministers and lay workers in churches wlthin the Circuit, but does not have control over those churches, ministers, or the lay workers. For this reason. the financial statements of the churche5 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 re50urce5 to continue in operational existence for the foreseeable future. Thu5 the Trustees have therefore continued to adopt the going concern basis in preparing the Circuit's financial ststements. 2.21 Employment Benefits The cost of any unused holiday entltlement is recognised in the period in which the employee's seNices are received. 2.22 Taxation In the opinion of the trustees. the Circuit is exempt from the United Kingdom Taxation on its incoming resource5 for the year. 2.23 Accounting estimates and Judgements In the application of the Circuit's actounting policies, the trustee5 are required to make judgements, estimates, and assumptions about carrying amount of assets and Ilabilities 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 estlmates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revislons to accounting estimates are recognised in the period In which the estimate is revlsed where the revision affect5 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 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
117,898 |
114,700 |
114,700 |
|---|---|---|
196,632 |
194,043 |
|
_ |
二 |
|
178,907 |
178,907 |
|
81,368 |
81,368 |
BATTEASFAANDWANDLÉVAiLEYORCUIT rioiE5TO ThEFIFIANOALSTATEMENVSFCIHEYEAA E14DEri3LAU6usfzoz41 Condnu) UNe5thcteRe5trktsd TOTAL UNethet&Restric Er TOTAL FutsJ$ Furth Fly Fw Fts$ Flmds Fd 2U24 AudllFees 1A03 1,B03 1.783 892 892 831 ér Pthwonalfe05 4.2.2.3 0lhDrs DAFContntth2n ApptBDtke5hyL 502 1,515 314 1315 314 1.126 1.126 POA. PdIrta[ Stalkniery 42.3 SUlma4RYOF EXPENTUREoN cFl4RA6LE ACTIVITIES Clt8p[WJl 207,186 O 107,186 178.7 17&7 81,368 81.3Sry 3.5( 4.3 OTHERS 1.823 140 785 1.823 140 Swdry Ew Wor5h> Bad Prv41slDn rw) Bad Deb Youth Grant to• lj¢thLwJistChth Tothi Thre4wvJitL -12.286 -12,286 34.953 870 953 870 REVALVAIION I DEFICmlGAIN$ Rov8iLL41h)n of Investments 421 Sir Henry Grft 1,082 unts @ 580.3 pancg pw untt120231 -&fj81 1,082 unlts 541.7 peno unrt120241 411 FromEndDwrnqnt Fundto Unwriu•d FwJ 5trHnry H01b)l$trU 1B
BAThERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL ATEmENTs FOR THE YEAR ENDED 31, AUGUST 2024 ( continued ) 7. FIXED ASSErs 7.1 TANGIBLE FIXED ASSETS COST OR VALUATION FREEHOLD LAND AND BUILDINGS Land and Buildings Unreslricled Balae as at 1 September 2023 & 31. August 204 DEPRECIATION A5 at I September 2023 and 31. August 2024 NET BOOK VALUE As al 31 August 2024 93 As at 31 August 2023 7.2 FIXED ASSETS INVESTMEMrs COST OR VALUATION Unrestricted Endowme TOTAL Land and Building As at I September 2023 and 31, August 2024 2 776 095 2776095 INVESTMENTS As at I September 2023 30 5,440 5470 Addition5 Disposals 8,224 49.830 -164 58054 -165 Balance as at 31, August 2024 8253 63359 NEf BOOK VALUE As at 31 August 2024 2 784 348 2 839 454 As at 31 August 2023 7.3 FIXED ASSETS 11 The values placed on the above properties are those of the Methodist Insurance "Insured value5" as at 16, November 2016. The "insured Values" are the expected insurance cost to replace these properties. The values are neither original Costs nor'fair values" 2 776 125 2 781565 page 19
BATfERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31. AUGUST 2024 ( continued I 7.3 FIXED ASSETS I Continued I 21 No depClatIon has been provided in respect of the tangible fixed asset properties for the year as the tru5tee5 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 le55 than the stated value5. 3) Re-classificatlon of TMCP Trusts The TMCP trusts have hitherto been treated as Current Assets investment5. The trustees reviewed this position in 2023 and has decided to reclassify such trusts as fixed assets investments because they consider these trusts to be held for long term purpose (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 experted to be realised within 12 months from the year-end131108//20241 date. 41 The Circuit did not have any Heritage Asset 8. INVESTMENTS The following funds are held on behalf of the Clrcult by TMCP Circuit Model Trust Fund Sir Henry Holloway Trust Gladys Freshwater Trust 2024 2023 8,252 6,861 30 5,440 5470 Transfer of TMCP trust funds to the Clrcuit The Southfield Melhodisl Church ceased worship in 2019.. As part of the cessation package of its TMCP trusts l Gladys Freshwater Bequest and Bemice Muriel Hiller bgquesl I were transferred lo the Battersea and Wandle Valley CircJJit. The transfer process was completed in 2024. The balance on the Bemice Muriel Hiller bequest1 £7,833.03) was transferred into the Model Trust Fund (trust 340 1 durtng the year. The Gladys Freshwater trust retained ils name and trust number, but its management and ownership were changed from Southfield Methodist Church to Battersea and Wandle valley Circuit during the year. 9. INCOME FROM MATERIAL INVESTMENT HOLDINGS Value Asat at 3110812024 Income 2024 Value Asat t 3110812023 Income 2023 Investment Properties Trustees for Methodist Church Purposes TOTAL 2,776,095 195,274 2.776,095 555 191416 169 191585 2 840 453 195 829 2 781565 10. DEBTORS Circuit Assessment Debtor- Due from Local Churches Prepayments Rent Debtor Other Debtor5 21,204 15,584 83,976 5700 126 464 Basic financial ass8ts, including other debtors and prepayThents are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of int8rest. pap 20 43.174 14,280 51,960
BArrERSEA AND WANDLE VALLEY CIRCUIT NOTES TO ThE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGUST 2024 1 continued I 11. BANK AND CASH BALANCES 2024 2023 Lloyds Bank Account Central Finance Board- Deposit 15.594 107 11.1 BANK AND CASH BALANCES Cash and cash equivalent includes cash in hand, deposits held at call with bank5. Other short- term liquid invesirnents with original maturities of three months or le55. and bank overdrafts. Bank overdrafts are shown within borrowin85 in current liabilities. 12. CREDITORS: Arnounts falllng due wlthin one year 2024 2023 Bank Overdraft Local Churches Assessments received in advance Rent Received in Advance Other Creditors and Accruals Accruals 13,013 71,918 1,098 7,017 7,248 100 294 Basic financial liabilities. including trade and other creditors, loans from third parties and loans frorn related parties are initially recognised at transa¢tion price. unless the arrangement constilutes a financing transaction, wh8re the debt instrument is measured at the pr8s8nt value of the futur8 payments discounted at a market rate of interest. Such instrurnent5 are subsequently carried at amortlsed cost using the effective intérest meth(Kl, less any impairment. 13. CREDITORS . Amounts falling due after the next twelve months 61,519 1,098 17,065 7,248 2024 2023 Rent Deposit The above acUnt is a returnable rent deposit received from a tenant of the Clrcuit In accordance wlth the lease, this dewstt is to be pul into a desNJnaled bank account. The balance and any interest awrued are lo the benefit of the tenant. 14. FUNDS 14.1 ENDOWMENT FUND 2024 2023 Balance Brought Forward 0110912021 5,440 5,681 Incoming Resources 49,409 168 Recourses Expended -16 -16 Net (Deficit) IGain on Investment Revaluation 421 -241 Transfers between Funds -148 -152 Balance Carried Forward 3110812024 page 21
BArrERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, AUGusf 2024 ( continued ) 14.2 RESTRICTED FUNDS 2024 2023 Balance at 0110912023 and 3110812024 14.3 UNRESTRicfED FUNDS Balance Brought Forward OV0912023 3,764,405 3.780.171 Incoming Resource5 322.298 308,743 Resources Expended -299.451 -324,661 Transfers between Funds 152 Balance Carried Forward 3110812024 15. TRANSFERS BETWEEN FUNDS 3,787,400 3,764,405 From Slr Henry Holloways to CFB 148 152 16. DETAILED RESTRicfED FUNDS COLLECTION TO PASS ON 2024 2023 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 narned above. 17 DETAILS OF CERTAIN ITEMS OF EXPENDITURE 2024 2023 Audit Fees Accountanry tharges 4,8 4,800 18 PAID EMPLOYEES Salaries and Wages National Insurance and Pension Contributlons 517 5,807 518 Average Number of employees No employee received emoluments in excess of £60,000 per annum. 19. posr BALANCE SHEET EVENTS 19.1 The Trustees are not aware of any post balance sheet event which could materially affect these financial statements page 22
BATTERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31, AUGUST 2024 1 continued ) 20. RELATED PARTY TRAN5AcfioNS 20.1 All the Minister5 serving in the Circuit. and the Circuit Treasurer are member5 of the Circuit Trustees 20.2 No Trustee received any remuneration nor benefrts 20.3 TRANSACTIONS WITH RELATED PARTIES Durln8 the year, three Ministers and the Circuit Treasurer who are also Trustee5 received stipends and expenses as follows: 2024 2023 Ministerial stipends 130.001 110.361 Reimbursed Expenses- Ministers 8,823 6,986 Reimbursed Expenses- Circuit Treasurer 1,425 800 Although 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 ft)r the year ended 31, August 2024. Connected organisation5 include the Methodist Connexion, Churches within the Circult, other Methodist Distrltts in Great Britain. CFB, and TMCP. All these entities have their own trustees and autonomous admlnlstration such that the Circuit has no significant influence over any of them, nor they over the Circuit. They are, therefore not consldered related parties. 2024 2023 20.4 Average Nvrnber of Trustees receivlng Stipend5 Allowances There were M other related party transactions during the year. 21. RESERVE POUCY 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 fund5 equivalent to at least 6 month's expenditure. 22. Volunteers Contrlbutlon Every wing of the Methodist Church l Local Churches. Circuit5. Districts, Connexion l in the Unlted Kingdom is heavily reliant on volunteer5 who contribute their skills, time, money and their resources in the furtherance of the work of the circult. Principally, this contribution is by serving on committee5 Of the Circuit that deal with mission. manses, finan¢e, policy. grants, trainin8 developmenls, 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 page 23
BATTERSEA AND WANDLE VALLEY CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31. AUGUST 2024 { continued ) 23 Ministers. manse costs The Circuit Is required to provide accommodation for each Minister and hlslher family. The Circuit bears the cost5 Of repair5, maintenance. building insurance, Council Tax and water charges. These costs are not shown separately as benefit-in-kind for the Ministers as HMRC does not seek to tax these receipts in the hand5 Qf the Ministers. 24. FINANCIAL INSTRUMENTS All the Charity's financial instruments qualify as basic financial instruments in accordance with section 11 of FRS 102 arsd are recognised on the following basis.. il Cash and c05h equivalent represent bank balances and deposit5 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) Creditor5 are measured at the transaction price. 25. The Wandle Valley Circuit and the 8attersea Mission Circuit merged Into one circuit on l. September 2014, to form the 8attersea and Wandle valley Clrcuit. A property of the Battersea 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 21905 l on 16. February 2015. An amount of £1,430,lJ19 was transferred out of the £1,800,000 on I, August 2015 to open a new TMCP trust account I trust 21905A } in the name of Battersea and Wandle Valley Circuit. Although the new TMCP trust account12190S AI is in the name of the newly formed Circuit, it is holding the fund5 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 cosrs AMONGST AcfiviTIES. EXPENOITURE ON CHARITABLE Total costs ACTivrriES EXPENDITURE ON RAISING FUNDS Gov•rnanG? Costs Audit 4.800 1803 2997 Accountancy F885 2.400 902 1498 Others Post. Print and Stationery 837 314 523 Telephone 4,032 1515 2517 Sundry Expenses 306 115 191 Governance and Other Costs are apportioned between Activities { 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 transactlons. page 24