Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
Charity number: 1206421
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
| CONTENTS | |
|---|---|
| Page | |
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 5 |
| Independent Examiner's Report | 6 - 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Statement of Cash Flows | 10 |
| Notes to the Financial Statements | 11 - 23 |
Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2024
Trustees
Rev A Oakley, Chair (appointed 1 September 2023) Rev A D McGougan (appointed 1 September 2023) Rev L Sanders (appointed 1 September 2023) P M Scott (appointed 1 September 2023) T Lloyd (appointed 1 September 2023) Rev C J Wood-Archer (appointed 1 September 2023) M Glass (appointed 1 September 2023) Rev D Harding (appointed 1 September 2023)
Charity registered number
1206421
Principal office
Doxford Place Methodist Church Doxford Place Northumberland NE23 6DY
Accountants
Kinnair Associates Limited Chartered Accountants Aston House Redburn Road Newcastle upon Tyne NE5 1NB
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2024
The Trustees present their annual report together with the independently examined financial statements of the South East Northumberland Circuit for the year ended 31 August 2024. This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities.
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity’s governing document, the Charities Act 2011 and the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Organisational structure
The Circuit was re-established on 1 September 2023 following the dissolution of the South East Northumberland Ecumenical Area, which had been formed in 2004 through the merger of Methodist Circuits 20/6 (South East Northumberland) and 20/7 (Morpeth), along with five churches from the Newcastle and Northumberland Districts of the United Reformed Church (URC).
The Circuit is governed by the Deed of Union (1932) and the Methodist Church Act 1976 as amended in March 2011. Overall control of the Circuit rests with the Methodist Conference. The Connexional Office implements decisions made by Conference and is also responsible for the stationing of ministers in individual Circuits. Connexional decisions are passed to the Chair of the District and the appropriate Officers of the District for regional implementation. The District passes the control down to Circuit level for local implementation by the Superintendent Ministers, ministerial staff and Circuit Stewards via the medium of the Circuit Meeting.
The appointment of the managing trustees is determined in accordance with the Standing Orders of the Methodist Church.
The Charities Trustees are the superintendent minister and members of the Circuit Meeting. This body meets three times a year with representatives from all churches in the Circuit.
The Circuit's daily management is handled by the circuit stewards and the church ministers, who meet every two months. The training of new Circuit Stewards is facilitated with the assistance of current Circuit Stewards.
In setting objectives and planning for activities, the Trustees have given consideration to general guidance published by the charities commission relating to public benefit.
Legal and administrative information
The governing bodies of the Circuit is the Annual Conference of the Methodist Church. The Methodist Church Act 1976 gives the authority under which the Methodist Church acts. The constitutional practice and discipline of the Methodist Church govern the activities of the Circuit, including the setting of ministerial stipends.
Following the dissolution of the Ecumenical Area, the South East Northumberland Circuit is now registered with the Charity Commission (Charity Number 1206421).
Objectives and activities
The Circuit is constituted to advance the effective deployment of the resources of ministry, which include people, property and finance, as they relate to the Methodist Church in the Circuit, to churches of other denominations and to participation in the life of the communities served by the Circuit and in ecumenical work in the Circuit.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
Activities for achieving objectives
Throughout the year, representatives from the Circuit have attended the local Methodist Synod to stay updated on the current situation within the denomination.
Each church within the Circuit has representatives on the Circuit meeting based on their membership. The Circuit meeting meets two or three times a year to deal with the business of the Circuit and that required by the Methodist governing body. The circuit stewards meet regularly for mutual support, training and to deal with any issues that arise between the Circuit meetings. With regards to worship, we currently have one local preacher in training, and we continue to seek out and nurture those people who may be able to follow that calling. This year, Seghill Methodist Church has ceased worship, and the property will be disposed of as per the Trustees for Methodist Church Purposes' requirements. The Circuit continues to think about Vision for the future especially considering its recent reconstitution, reducing congregation numbers & reducing income. Staff, local preachers, and worship leaders meet quarterly for support and training. In addition, staff meet weekly online via video conferencing for mutual support and take counsel together respecting the affairs of the Circuit; to confer, encourage and be accountable.
Review of Progress and Achievements
The Circuit continues to explore its calling to mission and ministry. The staff continue to explore new opportunities for mission and ministry, leading to growth in parts of the Circuit. In September 2023, the Circuit welcomed a probationer minister to its full-time staff. The circuit leadership team has reduced in number over the year, but we are actively looking to recruit replacements.
The sale of the plot of land, previously a chapel in Annitsford, has been completed.
Plans for the Future
Several congregations within the South East Northumberland Circuit have noted an increase in attendance on Sundays, while others have observed a continued decrease in worshipping numbers. Midweek services are consistently reporting growth as habits in worship attendance change. With changes in ministry in the future the Circuit leadership team are updating the Circuit mission plan & vision for the future.
Financial Review
The Income and Expenditure for the year on unrestricted funds was a deficit of £10,671 (2023: deficit £69,384). This deficit arose after charging depreciation of £9,395 (2023: £11,671) and providing grants to churches of £nil (2023: nil). Last year's result included a profit on disposal of land at Seghill and Ashington manse amounting to £157,705.
The Circuit's main source of income is from the churches within the Circuit's boundary and the risk of future decline in that income is associated with reducing church membership and hence the ability of churches to maintain their contribution to the Circuit. Trustees will have to constantly monitor this risk and as in the past adjust staffing levels to meet available funding.
Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Circuit has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
Other Activities
Trustees & Governance
The Charity Trustees (members of the Circuit Meeting including ministerial staff and individual Church representatives) who have served during the year and since the year end are set out in the reference and administrative details of the charity.
The principal address of the Circuit’s Independent Examiners who were reappointed during the year, and bankers are also set out in the reference and administrative details of the charity.
The Trustees are responsible for the detailed examination of the Financial Statements and for recommending their adoption by the Circuit meeting.
The Circuit comprises of fifteen churches. They are contactable via the principal address of the Circuit.
Funds are transferred to the Circuit on either a monthly or quarterly basis to meet the commitments to the Methodist District for the upkeep of the Circuit.
Internal financial controls
The Trustees have overall responsibility for ensuring that there is in place an appropriate system of controls, financial and otherwise, to provide reasonable confidence and assurance that:
-
the Circuit’s administration is operating effectively and efficiently
-
the assets of the Circuit are properly safeguarded against unauthorised loss or damages
-
proper records are maintained and information produced for management control, fiscal and statutory reasons
-
the Circuit complies with the relevant laws and guidelines.
Investment policy
Surplus funds of the Circuit are held in a Central Finance Board of the Methodist Church (CFB) deposit account. The Circuit Advance Fund is administered by the Trustees for Methodist Church purposes.
The policies and procedures adopted by the CFB are agreed by Conference.
Reserves policy
The reserves policy for the Circuit agreed by the Trustees is to hold the unrestricted reserves, excluding fixed assets, equivalent of the relevant annual expenditure plus an estimate of any known likely fluctuations this would amount to approximately £450,000.
Total reserves amount to £1,439,790 (2023: £1,482,000) of which £845,537 (2023: £1,048,000) relates to property. The remaining reserves comprise unrestricted £172,280 (2023: £250,000) and restricted £445,652 (2023: £184,000). The unrestricted reserves are therefore below the policy level and have deteriorated further during the year. It is unlikely that the position will improve in the future. The restricted reserves are available for property repairs and to support wage costs throughout the Circuit.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
Risk management
The Circuit’s risk management policy is designed to identify and analyse operational and other risks and ensure that it is controlled, monitored and steps taken to mitigate the risks. The Trustees have examined the main risks and are satisfied that proper controls are in place for monitoring and mitigating these risks. The main risks the Circuit faces can be categorised as follows:
-
Strategic and Reputational Risks
-
Financial Risks
-
Compliance Risk
-
Operational Risks.
The Trustees will monitor these risks and report regularly to the co ordinating group.
Statement of Trustees’ responsibilities
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
Select suitable accounting policies and then apply them consistently;
-
Observe the methods and principles in the Charities SORP (FRS102);
-
Make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by order of the members of the board of Trustees on 23 June 2025 and signed on their behalf by:
T Lloyd
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2024
Independent Examiner's Report to the Trustees of South East Northumberland Methodist Circuit ('the Charity')
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 August 2024.
My independent examination has taken place instead of an audit as a result of an audit dispensation granted under Regulation 34(3)(b) of the Charities (Accounts and Reports) Regulations 2008 by the Charity Commission on 1st May 2025.
Responsibilities and Basis of Report
As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').
I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent Examiner's Statement
Since the Charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024
This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.
Signed:
Dated: 23 June 2025
Detlev Anderson FCA
Kinnair Associates Limited
Chartered Accountants Aston House Redburn Road Newcastle upon Tyne NE5 1NB
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024
| Note Income from: Donations and legacies 3 Investments 4 Other income 5 Total income Expenditure on: Raising funds 6 Charitable activities 7 Total expenditure Net income before net gains on investments Net gains on investments Net income Transfers between funds 17 Net movement in funds Reconciliation of funds: Net movement in funds Total funds carried forward |
Restricted funds 2024 £ 185,864 9,240 - 195,104 - 100,675 100,675 94,429 136 94,565 351,087 445,652 445,652 445,652 |
Unrestricted funds 2024 £ 1,592,459 7,637 157,915 1,758,011 117,415 278,285 395,700 1,362,311 - 1,362,311 (351,087) 1,011,224 1,011,224 1,011,224 |
Total funds 2024 £ 1,778,323 16,877 157,915 |
|---|---|---|---|
| 1,953,115 | |||
| 117,415 378,960 |
|||
| 496,375 | |||
| 1,456,740 136 |
|||
| 1,456,876 - |
|||
| 1,456,876 | |||
| 1,456,876 | |||
| 1,456,876 |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 11 to 23 form part of these financial statements.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
BALANCE SHEET AS AT 31 AUGUST 2024
| Note Fixed assets Tangible assets 12 Current assets Debtors 13 Investments 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Net assets excluding pension asset Total net assets Charity funds Restricted funds 17 Unrestricted funds 17 Total funds |
203,714 235,375 178,843 617,932 (6,593) |
2024 £ 845,537 |
|---|---|---|
| 845,537 611,339 |
||
| 1,456,876 | ||
| 1,456,876 | ||
| 1,456,876 | ||
| 445,652 1,011,224 |
||
| 1,456,876 |
The financial statements were approved and authorised for issue by the Trustees on 23 June 2025 and signed on their behalf by:
T Lloyd
The notes on pages 11 to 23 form part of these financial statements.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
| STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 |
|
|---|---|
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Proceeds from the sale of tangible fixed assets Purchase of investments Net cash provided by investing activities Cash flows from financing activities Cash transferred from South East Northumberland Ecumenical Area Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the end of the year The notes on pages 11 to 23 form part of these financial statements |
2024 £ (396,909) 17,013 351,086 (84,034) 284,065 291,687 291,687 178,843 178,843 |
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
1. General information
South East Northumberland Methodist Church is a registered charity (number 1206421). The address of the principal office is Doxford Place Methodist Church, Doxford Place, Northumberland, NE23 6DY.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
South East Northumberland Methodist Circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The accounts are presented in sterling and rounded to the nearest pound.
2.2 Going concern
After making appropriate enquiries the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Voluntary income is received by way of assessment income, donations, contributions and legacies and by receipt of grants.
Donations, contributions and legacies are accounted for on a receivable basis. In accordance with this policy, legacies are included when advice has been received from the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.
Incoming grants are accounted on a receivable basis. Expended grants are accounted on a payable basis. Grants payable are included in the Statement of Financial Activities when approved. The value of such grants unpaid at the end of the year is accrued.
The Area’s policy with regard to grants is to support those churches which are in need of capital renewal (via the Area advance fund).
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
2. Accounting policies (continued)
2.3 Income (continued)
Investment income and interest and other income are accounted on an accruals basis.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters.
All expenditure is inclusive of irrecoverable VAT.
2.5 Government grants
Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of Financial Activities as the related expenditure is incurred.
2.6 Tangible fixed assets and depreciation
Fixed assets are stated at the net book value on the date of transfer from the South East Northumberland Ecumenical Area on 1st September 2023.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. .
Depreciation is charged on the following bases:
Freehold property
- Depreciation is charged at 1% per annum of the original cost of the assets transferred on 1st September 2023 plus any additions.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
2. Accounting policies (continued)
2.7 Investments
Current asset investments are stated at market value less any provision for permanent diminution in value.
Realised and unrealised capital gains and losses on investments are dealt with in the Statement of Financial Activities in the year in which they arise, based on the brought forward valuations or cost of subsequent additions.
2.8 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.9 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.10 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
2.11 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.12 Pensions
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
2.13 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
2. Accounting policies (continued)
2.13 Fund accounting (continued)
Investment income, gains and losses are allocated to the appropriate fund.
3. Income from donations and legacies
| Donations Funds transferred from South East Northumberland Ecumenical Area Other donations Donations Grants - assessments Government grants - Ukraine family assistance Subtotal |
Restricted funds 2024 Unrestricted funds 2024 £ £ 183,664 1,301,581 - 4,000 183,664 1,305,581 - 286,878 2,200 - 2,200 286,878 185,864 1,592,459 |
Total funds 2024 £ 1,485,245 4,000 |
|---|---|---|
| 1,489,245 | ||
| 286,878 2,200 |
||
| 289,078 | ||
| 1,778,323 |
4. Investment income
| Investment income Investment income - other foreign investments |
Restricted funds 2024 Unrestricted funds 2024 £ £ - 4,500 9,240 3,137 9,240 7,637 |
Total funds 2024 £ 4,500 12,377 |
|---|---|---|
| 16,877 |
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
5. Other incoming resources
| Unrestricted funds 2024 £ Other incoming resources 210 Gain on disposal of land and properties 157,705 157,915 |
Total funds 2024 £ 210 157,705 |
|---|---|
| 157,915 |
6. Expenditure on raising funds
Costs of raising voluntary income
| Unrestricted | Total | |
|---|---|---|
| funds | funds | |
| 2024 | 2024 | |
| £ | £ | |
| Assessments payable | 117,415 | 117,415 |
7. Analysis of expenditure on charitable activities
Summary by fund type
| Restricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | Total | |
| 2024 | 2024 | 2024 | |
| £ | £ | £ | |
| Support activities | 100,675 | 278,285 | 378,960 |
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
8. Analysis of expenditure by activities
| Support | Total | |
|---|---|---|
| costs | funds | |
| 2024 | 2024 | |
| £ | £ | |
| Support activities | 378,960 | 378,960 |
Analysis of support costs
| Staff costs Depreciation Travel and expenses Telephone Printing and stationery Repairs and furnishings Council Tax and water rates Insurance Donation Sundries Levy on sale of land and property Accountancy and bookkeeping fees Quinquennial Bank charges Heat and light Ukraine family support expenditure Donation to URC |
Activities 2024 £ 154,042 9,395 11,611 3,059 1,457 8,788 13,468 6,763 500 2,930 96,621 8,154 2,820 81 4,023 1,251 53,997 378,960 |
Total funds 2024 £ 154,042 9,395 11,611 3,059 1,457 8,788 13,468 6,763 500 2,930 96,621 8,154 2,820 81 4,023 1,251 53,997 |
|---|---|---|
| 378,960 |
During the year ended 31 August 2024, the charity incurred Independent Examination and accounts preparation fees of £3,210 including VAT.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
9. Independent examiner's remuneration
| 2024 | |
|---|---|
| £ | |
| Fees payable to the Charity's independent examiner for the preparation and independent | |
| examination of the Charity's annual accounts | 2,675 |
10. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2024 £ 122,407 10,194 21,441 |
|---|---|
| 154,042 |
Included in wages and salaries above is a settlement payment of £11,336.
The average number of persons employed by the Charity during the year was as follows:
| 2024 | |
|---|---|
| No. | |
| Employees | 4 |
No employee received remuneration amounting to more than £60,000 in either year.
The Trust's key management personnel are those persons having authority or responsibility for planning, directing and controlling the activities of the charity to whom the Trustees have delegated significant authority in the day-to-day running of the charity. The key management personnel include the Ecumenical Area’s four Methodist ministers who received remuneration and benefits (including employer's NI and pension contributions) of £141,765 in the year, together with the two United Reformed Church ministers, who are employed by the United Reformed Church and so are not remunerated by the Trust.
11. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
11. Trustees' remuneration and expenses (continued)
Rev. A Oakley, Rev. C J Wood-Archer and Rev. D Harding, Trustees of South East Northumberland Methodist Circuit, received salary payments totalling £95,247 (including employer's pension contributions) and reimbursed expenses totalling £7,276 for provision of services as ministers. Rev. A D McGougan received reimbursed expenses totalling £2,769 for provision of services as a minister but is employed by the United Reformed Church (see note 10 above).
During the year ended 31 August 2024, no Trustee expenses have been incurred.
12. Tangible fixed assets
| Freehold | |
|---|---|
| property | |
| £ | |
| Cost or valuation | |
| Additions | 1,048,313 |
| Disposals | (193,381) |
| At 31 August 2024 | 854,932 |
| Depreciation | |
| Charge for the year | 9,395 |
| At 31 August 2024 | 9,395 |
| Net book value | |
| At 31 August 2024 | 845,537 |
| Additions represent the net book value of assets transferred from South East Northumberland | |
| Ecumenical Area. |
13. Debtors
| Due within one year Other debtors Prepayments and accrued income Assessments, donations and grants receivable |
2024 £ 183,332 15,811 4,571 203,714 |
|---|---|
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
14. Current asset investments
| Listed investments Unlisted investments (liquid) |
2024 £ 1,896 233,479 |
|---|---|
| 235,375 |
The market value of the listed investments equates to historic cost.
15. Creditors: Amounts falling due within one year
| Trade creditors Accruals and deferred income |
2024 £ 3,383 3,210 |
|---|---|
| 6,593 |
16. Financial instruments
| 2024 | |
|---|---|
| £ | |
| Financial assets | |
| Financial assets measured at fair value through income and expenditure | 414,218 |
Financial assets measured at fair value through income and expenditure comprise bank balances and current investments.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
17. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds Restricted funds Circuit Advance Fund Property Maintenance Fund Ukraine family assistance Total of funds |
Income £ Expenditure £ 1,758,011 (395,700) 160,580 (99,424) 30,165 - 4,495 (1,251) 195,240 (100,675) 1,953,251 (496,375) |
Transfers in/out £ (351,087) 361,082 (9,995) - 351,087 - |
Balance at 31 August 2024 £ 1,011,224 |
|---|---|---|---|
| 422,238 20,170 3,244 |
|||
| 445,652 | |||
| 1,456,876 |
Circuit Advance Fund
The Circuit Advance Fund represents funds arising from the sale or other disposition of land which is Area property. The authority to sanction schemes for the application of capital money in the fund rests with the Area meeting, subject to approval by the Synod.
Property Maintenance Fund
The funds are available to be used for the maintenance of the Ecumenical Area’s properties.
The transfer of funds from unrestricted to restricted funds represents sale proceeds of The Demesne, North Seaton, Ashington and land at Barras Gardens, Annitsford, net of levies.
The transfer of funds from restricted to unrestricted represents the cost of roof repairs at North Seaton, Ashington.
Ukraine family assistance
The "Ukraine Family Assistance" fund was set up to support a Ukrainian family hosted in the vacant Amble manse under the government scheme from December 2022. It was funded by donations from local individuals and organisations, and by monthly Government payments.
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
18. Summary of funds
Summary of funds - current year
| General funds Restricted funds |
Income £ Expenditure £ 1,758,011 (395,700) 195,240 (100,675) 1,953,251 (496,375) |
Transfers in/out £ (351,087) 351,087 - |
Balance at 31 August 2024 £ 1,011,224 445,652 |
|---|---|---|---|
| 1,456,876 |
19. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Tangible fixed assets Current assets Creditors due within one year Total |
Restricted funds 2024 Unrestricted funds 2024 £ £ - 845,537 445,652 172,280 - (6,593) 445,652 1,011,224 |
Total funds 2024 £ 845,537 617,932 (6,593) |
|---|---|---|
| 1,456,876 |
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
20. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income for the period (as per Statement of Financial Activities) Adjustments for: Depreciation charges Gains/(losses) on investments Dividends, interests and rents from investments Loss/(profit) on the sale of fixed assets Decrease/(increase) in debtors Increase/(decrease) in creditors Funds transferred from South East Northumberland Ecumenical Area Net cash provided by/(used in) operating activities |
2024 £ 1,456,876 |
|---|---|
| 9,395 (136) (17,013) (157,705) (187,694) (15,387) (1,485,245) |
|
| (396,909) |
| 21. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 22. Analysis of changes in net debt Cash at bank and in hand Liquid investments |
Cash flows £ (112,845) 84,171 (28,674) |
Funds transferred from South East Northumber land Ecume nical Area £ 291,688 151,204 442,892 |
2024 £ 178,843 |
|---|---|---|---|
| 178,843 | |||
| At 31 August 2024 £ 178,843 235,375 |
|||
| 414,218 |
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Docusign Envelope ID: 835D99AB-9C84-4DAA-8FAB-5A86308F925F
SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
23. Pension commitments
"The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £21,441.
24. Related party transactions
The related parties to the Area are the Methodist Churches of Alnmouth, Amble, Bedlington Colliery, Blyth Central, Cowpen, Cramlington – Doxford Place, Cramlington – Welcome, Hauxley, Morpeth, Pegswood, Stakeford and Widdrington, together with the Local Ecumenical Partnerships of the Methodist Church and United Reformed Church in Ashington, Bedlington, Newbiggin-by-the-Sea and Seaton Delaval. Each church contributes grants referred to as “Assessments” as agreed with the Area Treasurer and funds are contributed either monthly or quarterly.
The Ecumenical Area, on occasion, provides grants to churches within the Area to fund exceptional repair costs.
25. Controlling party
The Circuit is governed by the Deed of Union (1932) and the Methodist Church Act 1976 as amended March 2011. Overall control of the Circuit rests with the Methodist Conference.
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