Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
**Charity number: 1206421**
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **UNAUDITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2025**
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **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|
|**Notes to the Financial Statements**|10 - 24|
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2025**
## **Trustees**
Rev A Oakley, Chair C Arnold (appointed 10 September 2024) M Glass (resigned 18 March 2025) Rev D Harding T Lloyd Rev A D McGougan Rev R Porter (appointed 1 September 2023) Rev L Sanders P M Scott Rev C J Wood-Archer
## **Charity registered number**
1206421
## **Principal office**
Doxford Place Methodist Church Doxford Place Cramlington Northumberland NE23 6DY
## **Accountants**
Kinnair Associates Limited Chartered Accountants Aston House Redburn Road Newcastle upon Tyne NE5 1NB
Page 1
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2025**
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 2025. 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 Charity's Trustees are the Superintendent Minister and members of the Circuit Meeting. This body meets two to 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.
Page 2
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **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 and circuit ministers meet as a Circuit Leadership Team 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.
Following the cessation of worship at Seghill Methodist Church the property is being disposed of as per the Trustees for Methodist Church Purposes' requirements. The anticipated completion of the sale is likely to take place in the 2025-26 connexional year. The congregation at Hauxley Methodist Church ceased worship at Easter 2025. The building in which the congregation met is not Trustees for Methodist Church Purposes property and has been returned to the care of the original owners.
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. The circuit leadership team has reduced in number over the year, but we are actively looking to recruit replacements.
## **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**
Excluding the transfer of £1,301,581 of funds from the South East Northumberland Ecumenical Area in the year ended 31st August 2024 there was a deficit on the net movement in unrestricted funds for 2024 of £290,357 which included a profit on disposal of land at Seghill and Ashington Manse amounting to £157,705. This compares to a comparable deficit in the year ended 31st August 2025 of £53,626. The deficits arose after charging depreciation of £9,395 (2024: £9,395). No grants were provided to churches in either year.
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.
Page 3
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **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.
## **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 £1,409,971 (2024: £1,456,876) of which £836,142 (2024: £845,537) relates to property. The remaining reserves comprise unrestricted £121,456 (2024: £165,687) and restricted £452,373 (2024: £445,652). 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.
Page 4
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **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:
1. Strategic and Reputational Risks
2. Financial Risks
3. Compliance Risk
4. 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 17 March 2026 and signed on their behalf by:
**Rev A Oakley** (Chair of Trustees)
Page 5
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2025**
## **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 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:
1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or
2. the accounts do not accord with those records; or
3. 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.
Page 6
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
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: 31 March 2026
Detlev Anderson FCA
**Kinnair Associates Limited** Chartered Accountants Aston House Redburn Road Newcastle upon Tyne NE5 1NB
Page 7
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2025**
|**Note**
**Income from:**
Donations and legacies
3
Investments
4
Other income
5
**Total income**
**Expenditure on:**
Charitable activities
7
**Total expenditure**
**Net income/(expenditure) before net**
**gains on investments**
Net gains on investments
**Net income/(expenditure)**
Transfers between funds
17
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2025**
**£**
**-**
**17,092**
**-**
**17,092**
**10,074**
**10,074**
**7,018**
**3**
**7,021**
**(300)**
**6,721**
**445,652**
**6,721**
**452,373**|**Unrestricted**
**funds**
**2025**
**£**
**254,000**
**18,479**
**709**
**273,188**
**327,114**
**327,114**
**(53,926)**
**-**
**(53,926)**
**300**
**(53,626)**
**1,011,224**
**(53,626)**
**957,598**|**Total**
**funds**
**2025**
**£**
**254,000**
**35,571**
**709**
**290,280**
**337,188**
**337,188**
**(46,908)**
**3**
**(46,905)**
**-**
**(46,905)**
**1,456,876**
**(46,905)**
**1,409,971**|_Total_
_funds_
_2024_
_£_
_1,778,323_
_16,877_
_157,915_|
|---|---|---|---|---|
|||||_1,953,115_|
|||||_496,375_|
|||||_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 10 to 24 form part of these financial statements.
Page 8
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **BALANCE SHEET AS AT 31 AUGUST 2025**
|**Note**
**Fixed assets**
Tangible assets
12
**Current assets**
Debtors
13
Investments
14
Cash at bank and in hand
**Current liabilities**
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**|**24,409**
**214,998**
**342,752**
**582,159**
**(8,330)**|**2025**
**£**
**836,142**
**836,142**
**573,829**
**1,409,971**
**1,409,971**
**1,409,971**
**452,373**
**957,598**
**1,409,971**|_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 17 March 2026 and signed on their behalf by:
## **Rev A Oakley**
The notes on pages 10 to 24 form part of these financial statements.
Page 9
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **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 Circuits’s policy with regard to grants is to support those churches which are in need of capital renewal (via the Circuit advance fund).
Investment income and interest and other income are accounted on an accruals basis.
Page 10
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **2. Accounting policies (continued)**
## **2.3 Income (continued)**
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
## **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 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.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
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 upon the completion of the relevant performance-related conditions. Other grants that are not subject to performance-related conditions are credited to the Statement of Financial Activities as the grant proceeds are received. Grants received prior to the revenue recognition criteria being satisfied are recognised as a liability.
## **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.
Page 11
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **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.
Page 12
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **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
Grants - assessments
**Total 2025**
**Donations**
Funds transferred from South East Northumberland
Ecumenical Area
Other donations
**Subtotal detailed disclosure**
Grants - assessments
Government grants - Ukraine family assistance
**Subtotal**
_Total 2024_|**Restricted**
**funds**
**2025**
**Unrestricted**
**funds**
**2025**
**£**
**£**
-
4,000
-
250,000
-
254,000
_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**
**2025**
**£**
**4,000**
**250,000**|
|---|---|---|
|||**254,000**|
|||_Total_
_funds_
_2024_
_£_
_1,485,245_
_4,000_|
|||_1,489,245_|
|||_286,878_
_2,200_|
|||_289,078_|
||||
|||_1,778,323_|
Page 13
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **4. Investment income**
|Rental income
Income from current asset investments and cash at bank
Rental income
Income from current asset investments and cash at bank|**Restricted**
**funds**
**2025**
**Unrestricted**
**funds**
**2025**
**£**
**£**
-
10,800
17,092
7,679
17,092
18,479
_Restricted_
_funds_
_2024_
_Unrestricted_
_funds_
_2024_
_£_
_£_
_-_
_4,500_
_9,240_
_3,137_
_9,240_
_7,637_|**Total**
**funds**
**2025**
**£**
**10,800**
**24,771**|
|---|---|---|
|||**35,571**|
|||_Total_
_funds_
_2024_
_£_
_4,500_
_12,377_|
|||_16,877_|
## **5. Other incoming resources**
|**Unrestricted**
**funds**
**2025**
**£**
Other incoming resources
709
_Unrestricted_
_funds_
_2024_
_£_
Other incoming resources
_210_
Gain on disposal of land and properties
_157,705_
_157,915_|**Total**
**funds**
**2025**
**£**
**709**
_Total_
_funds_
_2024_
_£_
_210_
_157,705_|
|---|---|
||_157,915_|
Page 14
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **6. Analysis of grants**
|URC Assessment
Payments to the Methodist District
URC Assessment
Payments to the Methodist District|**Grants to**
**Institutions**
**2025**
**£**
28,959
74,854
103,813
_Grants to_
_Institutions_
_2024_
_£_
_43,057_
_74,358_
_117,415_|**Total**
**funds**
**2025**
**£**
**28,959**
**74,854**|
|---|---|---|
|||**103,813**|
|||_Total_
_funds_
_2024_
_£_
_43,057_
_74,358_|
|||_117,415_|
## **7. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Support activities
URC Assessment
Payments to the Methodist District|**Restricted**
**funds**
**2025**
**Unrestricted**
**funds**
**2025**
**£**
**£**
10,074
223,301
-
28,959
-
74,854
10,074
327,114|**Total**
**2025**
**£**
**233,375**
**28,959**
**74,854**|
|---|---|---|
|||**337,188**|
Page 15
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **7. Analysis of expenditure on charitable activities (continued)**
## **Summary by fund type (continued)**
|Support activities
URC Assessment
Payments to the Methodist District|_Restricted_
_funds_
_2024_
_£_
_100,675_
_-_
_-_
_100,675_|_Unrestricted_
_funds_
_2024_
_£_
_278,285_
_43,057_
_74,358_
_395,700_|_Total_
_2024_
_£_
_378,960_
_43,057_
_74,358_|
|---|---|---|---|
||||_496,375_|
## **8. Analysis of expenditure by activities**
|Support activities
URC Assessment
Payments to the Methodist District
Support activities
URC Assessment
Payments to the Methodist District|**Grant**
**funding of**
**activities**
**2025**
**£**
-
28,959
74,854
103,813
_Grant_
_funding of_
_activities_
_2024_
_£_
_-_
_43,057_
_74,358_
_117,415_|**Support**
**costs**
**2025**
**£**
233,375
-
-
233,375
_Support_
_costs_
_2024_
_£_
_378,960_
_-_
_-_
_378,960_|**Total**
**funds**
**2025**
**£**
**233,375**
**28,959**
**74,854**|
|---|---|---|---|
||||**337,188**|
||||_Total_
_funds_
_2024_
_£_
_378,960_
_43,057_
_74,358_|
||||_496,375_|
Page 16
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **8. Analysis of expenditure by activities (continued)**
## **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 property
Legal and professional costs
Governance costs
Quinquennial
Bank charges
Heat and light
Ukraine family support expenditure
Donation to URC
**9.**
**Independent examiner's remuneration**
Fees payable to the Charity's independent examiner for the independent
examination of the Charity's annual accounts|**Total**
**funds**
**2025**
**£**
**148,468**
**9,395**
**10,235**
**3,246**
**1,764**
**18,795**
**11,650**
**7,342**
**-**
**11,420**
**-**
**1,009**
**7,831**
**-**
**75**
**2,105**
**40**
**-**
**233,375**
**2025**
**£**
**2,310**|_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_|
|||_2024_
_£_
_2,675_|
Page 17
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **10. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2025**
**£**
**114,666**
**12,149**
**21,653**
**148,468**|_2024_
_£_
_122,407_
_10,194_
_21,441_|
|---|---|---|
||||
|||_154,042_|
The average number of persons employed by the Charity during the year was as follows:
||**2025**|_2024_|
|---|---|---|
||**No.**|_No._|
|Employees|**4**|_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 £145,422 in the year (2024: £141,765), 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 _(2024 - £NIL)_ .
Rev. A Oakley, Rev. C J Wood-Archer Rev. D Harding and Rev. R Porter, Trustees of South East Northumberland Methodist Circuit, received salary payments totalling £145,422 (2024: £141,765) (including employer's pension contributions) for their work as Methodist ministers. They also were reimbursed expenses totalling £8,735 (2024: £7,276) for provision of services as ministers. Rev. A D McGougan received reimbursed expenses totalling £2,490 (2024: £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 2025, no Trustee expenses have been incurred _(2024 - £NIL)_ .
Page 18
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
|**12.**
**Tangible fixed assets**
**Cost or valuation**
At 1 September 2024
At 31 August 2025
**Depreciation**
At 1 September 2024
Charge for the year
At 31 August 2025
**Net book value**
At 31 August 2025
_At 31 August 2024_
**13.**
**Debtors**
**Due within one year**
Other debtors
Prepayments and accrued income
Grants receivable|**2025**
**£**
**-**
**17,486**
**6,923**
**24,409**|**Freehold**
**property**
**£**
**854,932**|
|---|---|---|
|||**854,932**|
|||**9,395**
**9,395**|
|||**18,790**|
|||**836,142**|
|||_845,537_|
|||_2024_
_£_
_183,332_
_15,811_
_4,571_
_203,714_|
Page 19
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **14. Current asset investments**
|Listed investments
Unlisted investments (liquid)|**2025**
**£**
**1,899**
**213,099**
**214,998**|_2024_
_£_
_1,896_
_233,479_|
|---|---|---|
||||
|||_235,375_|
## **15. Creditors: Amounts falling due within one year**
|Trade creditors
Accruals and deferred income|**2025**
**£**
**580**
**7,750**
**8,330**|_2024_
_£_
_3,383_
_3,210_|
|---|---|---|
||||
|||_6,593_|
## **16. Financial instruments**
||**2025**|_2024_|
|---|---|---|
||**£**|_£_|
|**Financial assets**|||
|Financial assets measured at fair value through income and expenditure|**557,750**|_414,218_|
Financial assets measured at fair value through income and expenditure comprise bank balances and current investments.
Page 20
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **17. Statement of funds**
**Statement of funds - current year**
|**Balance at 1**
**September**
**2024**
**£**
**Unrestricted**
**funds**
General Funds
**1,011,224**
**Restricted**
**funds**
Circuit Advance
Fund
**422,238**
Property
Maintenance
Fund
**20,170**
Ukraine family
assistance
**3,244**
**445,652**
**Total of funds**
**1,456,876**|**Income**
**£**
**Expenditure**
**£**
**273,188**
**(327,114)**
**17,092**
**(10,034)**
**-**
**-**
**-**
**(40)**
**17,092**
**(10,074)**
**290,280**
**(337,188)**|**Transfers**
**in/out**
**£**
**300**
**(300)**
**-**
**-**
**(300)**
**-**|**Gains/**
**(Losses)**
**£**
**-**
**3**
**-**
**-**
**3**
**3**|**Balance at**
**31 August**
**2025**
**£**
**957,598**|
|---|---|---|---|---|
|||||**428,999**
**20,170**
**3,204**|
|||||**452,373**|
|||||**1,409,971**|
Page 21
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **17. Statement of funds (continued)**
## **Circuit Advance Fund**
The Circuit Advance Fund represents funds arising from the sale or other disposition of land which is Circuit property. The authority to sanction schemes for the application of capital money in the fund rests with the Circuit meeting, subject to approval by the Synod.
## **Property Maintenance Fund**
The funds are available to be used for the maintenance of the Ecumenical Circuit’s properties.
## **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.
**Statement of funds - prior year**
|**Unrestricted funds**
General Funds
**Restricted funds**
Circuit Advance Fund
Property Maintenance Fund
Ukraine family assistance
**Total of funds**|_Income_
_£_
_1,758,011_
_160,580_
_30,165_
_4,495_
_195,240_
_1,953,251_|_Expenditure_
_£_
_(395,700)_
_(99,424)_
_-_
_(1,251)_
_(100,675)_
_(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_|
Page 22
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **18. Summary of funds**
## **Summary of funds - current year**
|**Balance at 1**
**September**
**2024**
**£**
General funds
**1,011,224**
Restricted funds
**445,652**
**1,456,876**|**Income**
**£**
**Expenditure**
**£**
**273,188**
**(327,114)**
**17,092**
**(10,074)**
**290,280**
**(337,188)**
_Income_
_£_
_1,758,011_
_195,240_
_1,953,251_|**Transfers**
**in/out**
**£**
**300**
**(300)**
**-**
_Expenditure_
_£_
_(395,700)_
_(100,675)_
_(496,375)_|**Gains/**
**(Losses)**
**£**
**-**
**3**
**3**
_Transfers_
_in/out_
_£_
_(351,087)_
_351,087_
_-_|**Balance at**
**31 August**
**2025**
**£**
**957,598**
**452,373**|
|---|---|---|---|---|
|||||**1,409,971**|
|||||_Balance at_
_31 August_
_2024_
_£_
_1,011,224_
_445,652_|
|**Summary of funds - prior year**|||||
|General funds
Restricted funds|||||
|||||_1,456,876_|
## **19. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|Tangible fixed assets
Current assets
Creditors due within one year
**Total**|**Restricted**
**funds**
**2025**
**Unrestricted**
**funds**
**2025**
**£**
**£**
-
836,142
452,373
129,786
-
(8,330)
452,373
957,598|**Total**
**funds**
**2025**
**£**
**836,142**
**582,159**
**(8,330)**|
|---|---|---|
|||**1,409,971**|
Page 23
Docusign Envelope ID: DD4C4B30-2058-47FB-B0B2-C4E2D3FB7871
## **SOUTH EAST NORTHUMBERLAND METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **19. Analysis of net assets between funds (continued)**
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Current assets
Creditors due within one year
**Total**|_Restricted_
_funds_
_2024_
_£_
_-_
_445,652_
_-_
_445,652_|_Unrestricted_
_funds_
_2024_
_£_
_845,537_
_172,280_
_(6,593)_
_1,011,224_|_Total_
_funds_
_2024_
_£_
_845,537_
_617,932_
_(6,593)_
_1,456,876_|
|---|---|---|---|
## **20. 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 £21,653 (2024: £21,441).
## **21. Related party transactions**
The related parties to the Circuit are the Methodist Churches of Alnmouth, Amble, Bedlington Colliery, Blyth Central, Cowpen, Cramlington – Doxford Place, Cramlington – Welcome, Hauxley (closed May 2025), 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 Circuit Treasurer and funds are contributed either monthly or quarterly.
The Ecumenical Circuit, on occasion, provides grants to churches within the Circuita to fund exceptional repair costs.
## **22. Post balance sheet events**
In September 2025 the Circuit sold Seghill Methodist Church with a net gain on sale of £142,349 before paying an associated levy on sale of £32,940 to the Trustees for Methodist Church Purposes.
## **23. 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.
Page 24