OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-08-31-accounts

NOTTING HILL METHODIST CIRCUIT Registered Charity No. 1190847 (England and Wales)

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

Trustees Sonia Barnes
Wendy Chase
Stephen Duckworth
Stacey Gerald (resigned in May 2023)
Revd. Dr. Michael Long (Chair) (resigned in August 2023)
Pauline Mullings
Esther Samuels
Gladwyn Samuels
Elaine Spence
Secretary Wendy Chase
Charity number
 1190847
Registered office 240 Lancaster Road
London
W11 4AH
Auditors Banks & Co. Ltd
1 Carnegie Road
Newbury
Berkshire RG14 5DJ
Solicitors Colman Coyle LLP
80 Upper Street
London N1 0NU
Bankers CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill, Kent
ME19 4JQ

2

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The Trustees present their report with the financial statements of the charity for the year ended 31 August 2023. The Trustees have adopted the provisions of 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 (FRS 102) (effective 1 January 2019).

Aims and organisation

We parallel the priorities of the Circuit in accordance with the aims of Notting Hill Methodist Church. The calling of the Methodist Church is to respond to the gospel of God's love in Christ and to live out its discipleship in worship and mission. Notting Hill Methodist Church prioritises provision for:

  1. a regularly worshipping congregation,

  2. a fellowship of people learning and growing in Christian faith

  3. sharing its resources (including the building) with people in the neighbourhood.

  4. challenging injustice and meeting human need.

  5. speaking of God’s love to the wider world.

We thank God for all we have shared together in the 2022/23 year and look forward in trust to all that the forthcoming year will bring. The Circuit, in conjunction with Notting Hill Methodist Church, plans to continue the activities described in the latter’s annual report into the future, adapting and developing them to meet its priorities and future needs.

This year Notting Hill Circuit made a decision, in principle, to merge with Harlesden Methodist Circuit from September 2024. This will be the focus of the circuit for the coming months.

Review of the year

A review of progress and achievements is set out in the annual report of Notting Hill Methodist Church by Revd Paul Wood, Superintendent Minister and Chair of Trustees of the Circuit from September 2023.

Finance

Basis of accounts preparation

The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS102 — the Charities SORP (FRS102).

Income trends

Circuit income is primarily drawn from the Circuit assessment on Notting Hill Methodist Church and from manses net rental income. Total income amounted to £136,670 (2022 - £109,481).

3

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Expenditure trends

The major costs are for stipend, other staff costs and related expenditure, including expenditure on the minister‘s manse and another manse property. Total expenditure amounted to £150,990 (2022 - £123,801).

Fund balances and reserves policy

Total reserves as at the balance sheet date totalled £1,765,442. The Circuit considers its unrestricted general reserves to be £77,682 with the balance £1,687,760 being a reserve for the manse properties.

The agreed reserves policy is to retain from the unrestricted reserves available the equivalent of three months operating expenditure (approximately £40,000) to fund planned activities should normal earning be suspended.

The Circuit‘s reserve policy takes account of its net current assets as at the last balance sheet date, the budget for the current year (2023/24) and significantly known items of property expenditure to be incurred in the near future. By 31 August 2024, the Circuit‘s unrestricted reserves are expected to have continued to meet its reserves policy.

The policies adopted above broadly follow those detailed within the Notting Hill Methodist Church, the only church within the Circuit.

Structure, Governance and Management

Legal framework

The governing document for the Circuit is the Deed of Union (1932) and Methodist Church Act (1976). Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church (CPD), by order of the annual Methodist Church Conference.

The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of:

Reference and administrative details

Name of charity: Notting Hill Methodist Circuit Charity registration number: 1190847 Date of registration: 14 August 2020

4

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Governance

The members of the Notting Hill Methodist Circuit meeting are the Charity Trustees, membership being made up of Circuit and Church office holders, the Minister and up to eight representatives appointed by the Church at its Annual Church Meeting.

A range of guidance produced by the Methodist Connexion to support the effective running of the Circuit and the role of Trustees is given to the Circuit Trustees at various meetings and training sessions held throughout the year.

A list of senior lay employees is shown below:

Ken Asiedu - Facilities Manager

Management

Day to day management of the Circuit is undertaken by the Circuit Leadership team along with the Minister.

Superintendent Minister: Revd Dr Michael Long (resigned on 31 August 2023) Revd Paul Wood (appointed on 1 September 2023)

Senior Circuit Steward: Mrs Elaine Spence (resigned on 31 August 2023) Mrs Esther Samuels (appointed on 1 September 2023)

Elaine Spence acted as the principal officer overseeing the day to day financial management and accounting for the Circuit during the year.

Public benefit

The trustees have due regard to the public benefit guidance published by the Charity Commission in compliance with its duties under section 4 of the Charities Act 2011. This guidance sets out two key principles:

  1. The organisation must have an identifiable benefit.

  2. The benefit must be to the public or a section of the public.

The Circuit exists alongside Notting Hill Methodist Church to:

The trustees consider that for these reasons the charity meets these public benefit requirements.

Related parties

The Notting Hill Methodist Circuit consists of one church, Notting Hill Methodist Church. The Circuit receives annual assessments from the church.

5

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The Circuit itself is part of the London District and also accountable to the Methodist Conference.

Risk management

The Trustees are responsible for identifying and mitigating the level of risk faced by the charity, taking professional advice as required. An annual review process is undertaken, with documentation of the strategy to be employed for risk mitigation. A quinquennial report by a qualified surveyor was undertaken in 2020 to inform the Circuit’s plans for maintenance of its manses, most of which is now complete.

Safeguarding

The Methodist Church, along with the whole Christian community, believes each person has a value and dignity which comes directly from God‘s creation in God‘s own image and likeness. Christians see this as fulfilled by God’s re-creation of us in Christ. Among other things, this implies a duty to value all people as bearing the image of God and therefore to protect them from harm.

Nothing Hill Methodist Circuit is committed to the safeguarding and protection of all children, young people and adults and affirms that the needs of children or of people when they are vulnerable and at risk are paramount.

Notting Hill Methodist Circuit recognises that it has a particular care for all who are vulnerable whether as a result of disabilities or reduction in capacities or by their situation. It is recognised that this increased vulnerability may be temporary or permanent and may be visible or invisible, but that it does not diminish our humanity and our wish to affirm the gifts and graces of all God‘s people.

The Circuit‘s policy addresses the safeguarding of children, young people and vulnerable adults. It is intended to be a dynamic policy. It is intended to support the Church in being a safe supportive and caring community for children, young people, vulnerable adults, for survivors of abuse, for communities and for those affected by abuse.

Circuit Meeting Members‘ Responsibilities

The members of Circuit Meeting are responsible for preparing the annual report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Legislation requires the Meeting members to prepare financial statements for each financial year, which give a true and fair view of the Circuit’s state of affairs at the end of the year, and the result for the year then ended.

In preparing these financial statements, the Meeting members are required to:

6

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The Meeting members are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Church. They are also responsible for safeguarding the assets of the Church and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Circuit Meeting on 27 February 2024 and signed on their behalf by:

Revd Paul Wood Chair of Trustees

7

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NOTTING HILL METHODIST CIRCUIT

Opinion

We have audited the financial statements of Denbigh Methodist Housing Association (the ‘association’) for the year ended 31 August 2023 which comprise a statement of financial activity, balance sheet, and notes to the financial statements, including significant 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 UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the association 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 responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the board's 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 conditions that, individually or collectively, may cast significant doubt on the association'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 board with respect to going concern are described in the relevant sections of this 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 board are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly

8

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

stated in our report, we do not express 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 inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material 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 is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Co-operative and Community Benefit Act 2014 requires us to report to you if, in our opinion:

Responsibilities of the board

As explained more fully in the board's responsibilities statement set out on page 4, the board is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the board is responsible for assessing the association’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board either intends to liquidate the association or to cease operations, or has no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

9

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

10

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

Use of our report

This report is made solely to the association’s members, as a body, in accordance with section 87 of the Co-operative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the association’s members 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 not accept or assume responsibility to anyone other than the association and the association’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Banks & Co Limited, Statutory Auditor Chartered Certified Accountants

1 Carnegie Road Newbury Berkshire RG14 5DJ

………………………… 2024

11

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31[ST] AUGUST 2023

Notes
Income
Income from DMHA rentals
2
Assessments on Churches
3
Other income
Total Income

Expenditure
Salaries and associated costs
4
Property maintenance
Major Works
Connexional assessment & model trust levy
District Assessment & Levy
Depreciation
5
Office expenses
Other outgoings
Total charitable expenditure

Net deficit

Total funds brought forward
Total funds carried forward		 2023
£
53,120
83,532
18
136,670
80,554
682
15,712
9,656
2,020
14,320
23,787
4,259
150,990
(14,320)
1,779,762
1,765,442		 2022
£
52,686
56,795
-
109,481
73,243
3,636
-
7,300
1,529
14,320
20,151
3,622
**123,801 **
(14,320)
1,794,082
**1,779,762 **

The income and expenditure statement has been prepared on the basis that all operations are continuing operations.

There are no recognised gains and losses other than those passing through the income and expenditure statement.

12

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

BALANCE SHEET AS AT 31[ST] AUGUST 2023

Notes
Fixed Assets
Circuit Manses and equipment
5
Current Assets
Debtors
6
Cash at bank
Less Creditors: amounts falling due within one
year
Creditors
7
Total Current Assets Less Current
Liabilities
Total Assets less Current Liabilities
Funds
General fund		 2023
£
1,687,760
74,239
10,993
85,232
7,550
77,682
1,765,442
1,765,442		 2022
£
1,702,080

100,747
8,594

109,341
31,659

77,682

1,779,762

1,779,762

The financial statements were approved and authorised for issue.

………………………….. Chair ………………………….. Treasurer Date ………………………

13

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1. Accounting Policies

a) Basis for preparing the financial statements

These financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or in the notes to the financial statements.

They have also been prepared in compliance with FRS 102, ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland ‘, the Statement of Recommended practice applicable to charities preparing their accounts with the Financial Reporting Standard applicable to the UK and the Republic of Ireland (FRS102) (Charities SORP (FRS102)) and the Charities Act 2011. Notting Hill Methodist Circuit is a public benefit entity, as defined by FRS102.

The Trustees consider that there are no material uncertainties about the entity‘s ability to continue as a going concern other than those noted below. There were no significant areas of adjustment or key assumptions that effect items in the accounts.

b) Funds

The funds held constitute general funds held for any purpose of the Circuit, which are unrestricted.

c) Incoming resources

Incoming resources are included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to that income, and the trustees are reasonably certain they will receive the resources, and the amount can be quantified with reasonable accuracy.

d) Resources expended

Expenditure is recognised on an accruals basis when a liability is incurred or a constructive obligation arises that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources.

e) Taxation

Nothing Hill Methodist Circuit is exempt from income and corporation tax on income derived from its charitable activities because of its charitable status.

Since the Circuit is not VAT registered, all input VAT borne is charged with the expenses to which it refers.

f) Tangible fixed assets

The manses are legally owned by The Trustees for Methodist Church Purposes in its capacity as trustee or custodian Trustee

The manses have, from the accounting year 2016/17, been stated based on their insurance

14

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

valuations in 2017. These now represent their deemed cost under FRS 102. The building element of this for depreciation purposes is deemed to be 40% of the full value, given the high land costs in Kensington and Chelsea.

g) Depreciation

It is the Circuit’s policy to capitalise its non-building fixed assets, including vehicles, furniture and equipment assets, with costs over £5,000 and to charge depreciation on these.

Depreciation is charged as follows, on a straight-line basis, on building and non-building fixed assets:

Buildings over 50 years Vehicles, furniture and equipment assets over 4 years Computers and IT equipment over 3 years

h) Financial Instruments

Financial Assets carried at amortised cost

Financial assets comprise other debtors and cash at bank. Where the effect of discounting is material, financial assets are measured at amortised cost using the effective interest method.

A financial asset is derecognised when the contractual rights to the cash flows expire, or when the financial asset and all substantial risks and reward are transferred.

Financial liabilities carried at amortised cost

Financial liabilities include other creditors and accruals.

Liabilities which are classed as basic financial instruments are measured at amortised cost.

A financial liability is derecognised only when the contractual obligation is extinguished, that is, when the obligation is discharged, cancelled or expires.

2. Income from DMHA rentals

The Circuit leases its residential properties to Denbigh Methodist Housing Association (DMHA) to manage, with the expectation that for most of the properties social housing rent levels will be charged. The Circuit is required to charge a market rental under the 7- year lease to DMHA. The rental is based on the market rents established in 2018 of the properties, less an allowance for all the costs of management and maintenance other than major works and uplifted for inflation. The Circuit income from this source is related to the properties detailed in note 5 below.

3. Assessments on Churches

The income of £83,532 (2022 - £56,795) is from the charge borne by Notting Hill Methodist Church for ministry and manse expenses paid by the Circuit.

15

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

4. Stipends, salaries and associated costs

Minister and staff costs recharged to the Notting Hill Methodist Circuit by the Notting Hill Methodist Church during the year were £73,987 as set out below.

Gross Stipends, salaries and benefits in kind
Employer's National Insurance
Employer's pension costs		 2023
2022
58,411
60,409
5,889
4,961
9,687
7,873
73,987
73,243

The average number of staff employed by the Church and Circuit during the year were 2.6 (full time equivalents) (2022 – 3.6).

The Church provides and administers a money purchase pension arrangement for all staff with TPT Retirement Solutions.

No Trustees are remunerated through the payroll scheme. No employees are paid in excess of £60,000.

5. Tangible Fixed Assets

There are two manses included within the Circuit in St Quintin Avenue and Denbigh Road. These have a declared insurance value of £2,519,075. The St Quintin Avenue manse and the basement flat of the 9 Denbigh Road manse are managed by Denbigh Methodist Housing Association on behalf of the Circuit. The rest of the Denbigh Road manse is occupied by the Superintendent Minister.

Depreciation is shown in the Schedule below, charged on building and non-building fixed assets at the rates shown under Circuit Accounting Policies above.

16

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

Tangible Fixed assets
Cost brought forward at 1 September 2022
and carried forward at 31 August 2023
Depreciation brought forward at 1
September 2022
Depreciation charge for the year
Depreciation carried forward at 31 August
2023
Net book value brought forward
Net book value carried forward
6. Debtors
Amounts due from –
Notting Hill Methodist Church
Denbigh Methodist Housing Association
7. Creditors
Accruals
Minister’s stipend
Due to Denbigh Methodist Housing Association		 Manses
£
1,788,000
85,920
14,320
100,240
1,702,080
1,687,760

 Manses
£
1,788,000
85,920
14,320
100,240
1,702,080
1,687,760

 Fixtures,
fittings
and
equipment
Total
£
£
6,913
1,794,000
6,913
92,833
-
14,320
6,913
107,153
-
1,702,080
-
1,687,760
2023
2022
£
£
49,432
24,807
100,747
-
74,239
100,747
2023
2022
£
£
7,550
2,886
-
19,660
-
9,113
7,550
31,659		 Total
£
1,794,000
6,913
-		 92,833
14,320
6,913 107,153
- 1,702,080
- 1,687,760

2023
£
49,432
24,807
74,239
2023
£
7,550
-
-
7,550

8. Fees for the audit of the accounts

The independent auditors’ fee payable by Notting Hill Methodist Circuit is £3,000 (2022£2,400).

17

NOTTING HILL METHODIST CIRCUIT Circuit no.35/14

9. Related party transactions

During the year one Trustee was reimbursed a total of £3,640 (2022 - £1,274) by the Notting Hill Methodist Church on behalf of both the Notting Hill Methodist Circuit and Church.

The following trustee had a related interest during the year: Revd. Dr. Michael Long occupied one of the Circuit’s manses until August 2023.

10.Capital commitments and Contingent liabilities

The Circuit had no capital commitments or contingent liabilities at the year end.

18