Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
1
Accounting framework and accounting policies
i Accounting framework
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 the
Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective
from 1 January 2015) – (the Charities SORP (FRS 102) as amended by Update Bulletin 1) – in
replacement for the SORP’s 2005 version specified in its related 2008 Regulations and in
accordance with the “true and fair override” provision contained therein.
ii Public benefit entity
The Bedfordshire, Essex and Hertfordshire (BEH) District 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 note(s) below.
iii Basis
These accounts have been prepared on the basis of historical cost except that investments are
shown at their market value at the end of the year, on the accruals basis to show a true and fair
view of the District’s financial position and activities.
iv Content
The financial information presented is relevant, reliable, comparable and complete. Where
estimates are used these are based on experience, research and judgement. The accounts are
expressed in £Sterling, rounded to the nearest pound.
v FRS102 SORP2015 [applies to 2016-17 onwards]
This is the first year that the FRS102 SORP 2015 has applied to the District’s accounts. These
accounts are compliant with FRS102 and with the FRS102 SORP 2015. The comparative
figures from the previous year’s published accounts have been restated to be on the same
basis: details of the adjustments appear in Notes 3 and 20 below.
vi Going concern
Based on the monetary assets and human resources available at 31 August 2017, the trustees
believe that the District is a going concern.
vii Consolidation
The District oversees the work of ministers and lay workers in Churches and Circuits within the
District but does not have control over those Circuits or Churches, ministers or lay workers
except in extreme circumstances, none of which were applicable. For this reason, the financial
statements of the Churches and Circuits within the District are not consolidated into these
financial statements.
viii Income recognition
Income is brought into account when it is more likely than not that the economic benefit of the
income will accrue to BEH. No attempt is made to measure the value of services donated by
volunteers. Details of how the contribution to the cost of the District Chair has been determined
appears in Note 5. A similar figure appears in the Expenditure at Note 8.
Individual amounts categorised as Other income in the SOFA will be shown separately if they
are considered material.
10
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
The District acts as agent in four matters:
 the collection of quarterly assessments from circuits which are paid to the MCF
 the payment of expenses of delegates from the District to the Methodist Conference
 the collection taken at the spring synod on behalf of the Methodist Minsters’ Children’s
Relief Fund
 the cost of ministerial health checks recovered from Circuits
In all these matters the transactions are not reflected in the SOFA because there is no
obligation on the District to make up any shortfall in assessments from Circuits. Sums received
as Circuit assessments cannot be recognised as income in the District as they are the income
of the MCF.
In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised.
Further information on this matter is provided in the Trustees’ Annual Report.
ix Expenditure
This is recognised 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 District to pay out resources.
x Grants
[There are two options that are mutually exclusive: treasurers should adopt one of them:]
x a Grants are recognised annually only as and when any performance conditions* attaching to
the award are met, even when the award is for a recurrent grant over more than one year. All
grants awarded for payment in future financial years are conditional on the Grants Committee
being satisfied, on the basis of progress reports from the grantee, that the grant's achievements
to date justify the payment of further instalments of that grant. Such commitments are noted as
contingent liabilities and included within the District Advance Fund or other relevant designated
fund in these accounts.
x b Grants are recognised in full when the award is made once the District accepts that there is
a legal or constructive obligation to make the payment and that such payment is probable.
[*Where a condition remains within the control of the District, then the District retains the
discretion to avoid the grant expenditure and a liability is not recognised. Where a performance
condition of substance has been communicated to the grant recipient as part of the funding
agreement, then a constructive obligation is not considered to arise for payments relating to
periods subsequent to the review date. Where it becomes clear that a payment is possible, not
probable, then a liability for the commitment is not recognised and the funding commitment is
disclosed as a contingent liability.]
xi VAT
Since the District is not VAT registered, all input VAT is charged with the expenses to which it
refers.
11
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
xii Tangible fixed assets
These are capitalised if they can be used for more than one year, and individually cost at least
£1,000. The freehold property is shown in the accounts at cost in 2006, of which the land
component is deemed to be £180,000. No depreciation is provided on the building because the
trustees consider the current residual fair value of the manse building (on the assumption that it
had reached the end of its useful economic life by the year-end) to be not less than its cost to
date. The property has been reviewed for impairment.
xiii Investments
The investments of BEH are held by the Trustees for Methodist Church Purposes (TMCP) as
custodian trustees. The valuations, at market value, are those provided by TMCP. The
unrealised gains arising on investments at the end of the year are shown in the SOFA and in
Note 22 below.
xiv Receivables and Payables; Bank and Cash
Debtors are stated at the amounts owed to the District or prepaid. Creditors are initially
recognised at settlement amount after any trade discounts, where normal credit terms apply, or
amount advanced to the District. Subsequently creditors that are current liabilities are
measured at the cash or other consideration expected to be paid. The liquid funds of bank
balances and deposit account balances are shown at the realisable values.
[xv Loans
Where concessionary loans (ie free of interest) are made to (or received by) the District to
further its charitable purposes, and are repayable after more than one year, they are initially
recognised at the amount paid [or received], with the carrying value adjusted in subsequent
years to reflect repayments and any accrued interest, adjusted for any impairment, if necessary.
Where there is objective evidence of impairment, an immediate impairment loss is recognised
in the Statement of Financial Activities. Subsequent reversals of an impairment loss that
objectively relate to an event occurring after the impairment loss was recognised, are
recognised immediately in the Statement of Financial Activities]
xvi Methodist Church Fund
The District acts as agent for the Methodist Church Fund (MCF) by collecting its assessments
on Circuits and does not, therefore, include the assessments in the SOFA. If a Circuit is late in
paying its MCF assessment to the District but such sum is received before the quarterly transfer
to the MCF, the amount paid late will be shown as a debtor in the District’s accounts.
xviii Transition to FRS 102
Other than the reclassification of expenditure between categories (Note 3), and restatement of
the comparative figure for opening funds of the prior year in respect of the change of accounting
policy by accrual of unpaid instalments of multi-year grants (Note 20), no restatement of items
has been required in making the transition to FRS 102 section 1A.
2
Glossary of terms
CFB: Central Finance Board of the Methodist Church manages a Common Deposit Fund and a
series of pooled investment funds for Methodist entities in Great Britain and provides
investment advice to those entities
Church: a group of members from fewer than 10 to more than 300
12
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
Circuit: a group of Methodist Churches near each other, typically between 10 and 30
CMTF: Circuit Model Trust Fund
Connexion: The Methodist Church in GB which includes the Head Office at Methodist Church
House, all Methodist Districts, Circuits and Churches in Great Britain
District: a group of contiguous Circuits, usually between 15 and 30
DAF: District Advance Fund
DPC: District Policy Committee
FRS: Financial Reporting Standard
MCF: Methodist Church Fund
MMPS: Methodist Ministers’ Pension Scheme
PASLEMC: Pensions and Assurance Scheme for Lay Employees of the Methodist Church
SOFA: Statement of Financial Activities
SORP: Statement of Recommended Practice
TMCP: Trustees for Methodist Church Purposes, the legal owner and Custodian Trustee of all
Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds
3
Prior year
3.1 Restatement of comparative figures
In preparing the accounts the trustees have considered where, in applying the accounting
policies required by the Charities SORP(FRS102), any comparative figures have needed
restatement. No restatements were required other than the reclassification between categories
of expenditure. A reconciliation of opening balances is therefore not required.
The following adjustments – exclusively to expenditure - show how the allocation of costs for
2012-13 has been restated so that the costs are shown on the same bases as the accounts for
2013-14.
Per 2012-13
as previously
Prior year
As restated in
stated
adjustment
2013-14
£
£
£
Salaries
38,766
31,491
70,257
Chair's manse
5,290
5,290
Office accommodation
16,651
16,651
Stationery, post, telephone
4,188
553
4,741
Chair's expenses
5,001
-1,072
3,929
Synods and Committees
6,681
6,681
Methodist Conference
686
686
Training
21,581
220
21,801
Insurance
1,097
1,097
Grants and donations
115,250
115,250
Benevolence
1,800
1,800
Provision for bad debt
4,516
4,516
New Communities (CCDO)
28,483
-25,200
3,283
Oher outgo
5,963
-701
5,262
Ecumenical
15,235
15,235
13
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
Safeguarding
Professional fees
Total expenditure
9,334
0
280,522
-6,291
1,000
0
3,043
1,000
280,522
3.2 Comparative SOFA from previous year’s accounts, as now restated
General
Fund
£
District
Advance
Fund
£
Other
Designated
Funds
£
Other Funds
(Restricted)
£
Income and Endowments
Donations and legacies
Other trading activities
Income from investments
Assessments on Circuits
Contributions from Circuit Model Trust
Funds
Connexional Advance & Priority Fund
distribution
Grants received
Contribution to the cost of the Chair
Income from Charitable Activities
Other income
103,659
3,150
119,368
6,085
3,222
Total income and endowments
106,809
119,368
6,085
3,222
Expenditure
Salaries
Chair's manse
Office accommodation
Stationery, post, telephone,
administration
Chair's expenses
Synods and Committees
Methodist Conference
Training
Insurance
Grants and donations
Benevolence
Provision for bad debt
New Communities (CCDO)
Other outgoings
Ecumenical
Safeguarding
Professional fees
Total charitable expenditure
521
2,884
74,792
9,318
564
3,222
110,050
25,983
Total
£
521
0
15,988
74,792
110,050
5,000
70,257
5,290
16,651
0
30,983
0
232,334
3,150
235,484
70,257
5,290
16,651
3,500
3,929
6,681
686
21,801
1,097
1,525
1,800
4,516
3,283
-4,539
15,235
3,043
1,000
155,755
997
20
110,727
224
2,998
9,803
111,724
14
9,823
3,222
4,741
3,929
6,681
686
21,801
1,097
115,250
1,800
4,516
3,283
5,264
15,235
3,043
1,000
280,524
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
Net income before investment gains
Inter-fund transfers
Investment gains/(losses)
Net income/(expenditure) for year
3.3
-45,796
45,870
7,644
-35,200
-3,788
-10,670
8,191
-45,040
8,191
74
-27,556
-14,408
8,191
-36,849
Balance Sheet at 31 August 2013
<TO BE INSERTED>
4
Assessments on Circuits
The District is made up of the following Circuits:
34-1
34-4
34-6
34-7
34-9
34-10
34-11
34-12
34-13
34-14
34-15
34-18
North Bedfordshire
South Bedfordshire
Colchester
Tendring
Chelmsford
Southend and Leigh
South Essex
Herts and Essex Border Ecumenical Area
St Albans and Welwyn
West Hertfordshire and Borders
North Hertfordshire
Bishop’s Stortford
All Circuits paid their assessments to the District and to the MCF during the year or shortly after
its end. An assessment on Circuits is annually determined by Districts by reference to the
number of staff in the Circuits and the number of Church members but may also take into
account a Circuit’s ability to pay.
Contributions to the Methodist Church Fund (MCF)
In addition to the assessments on the Circuits to help defray the costs of running the District, the
District acted as agent for the Methodist Church Fund which levied assessments on the Circuits
in this District totalling £524,112 (2012-13: £522,056) all of which were collected or shown as
debtors at the end of the year and paid over to the MCF in the year. No balance was held at the
end of the year; no fee is received for this service which is performed at nearly nil cost to the
District. These sums collected for and remitted to the MCF do not appear elsewhere in these
financial statements.
15
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
5
Cost of Chair and trustees
The Chair of District chairs meetings of the District Policy Committee (DPC). The members of
the DPC are the trustees of the District. The stipend, employer’s NIC and employer’s pension
contributions of the Chair of District are paid by the Methodist Connexion. The Chair’s other
costs are met mostly by the District.
2013-14
2012-13
£
£
Stipend of Chair of District, Rev Anne Brown
27,765
27,180
Employer's National Insurance contributions
2,519
2,689
Employer's pension contributions
5,975
5,784
Cash cost paid by the Connexion (see SOFA, line 6)
36,259
35,653
Notional estimate of cost of providing manse
19,000
18,300
Chair's expenses
3,412
n/a
Total cost
58,671
53,953
Since the stipend-related costs above (ie £36,259; 2012-13 £35,653) are borne by the
Connexion, they appear both in the Income of the District and the Expenditure of the District
(See Note 8). It should be noted that the chair is required to occupy the District manse. The
manse is provided by BEH District and the District maintains the property. The sum of £19,000
(2012-13: £18,300) was determined by enquiry of local letting agents and does not appear
elsewhere in these accounts. The Chair of District is the sole paid key management person but
is supported by members of the DPC.
No accrual is made for the Chair’s entitlement to a sabbatical as her functions are undertaken by
a Deputy Chair at minimal extra cost to the District.
Payments to trustees
It is District policy to offer to reimburse members of the District Policy Committee and others
involved in the administration of District affairs for expenditure properly incurred in carrying out
their duties. The Chair of the District undertakes the primary executive role within the District.
Apart from the Chair of District no member of the District Policy Committee was in receipt of any
payment for work undertaken on behalf of the District, although certain travelling and
administration costs were reimbursed whenever this was requested.
None of the trustees is an employee of the District. Travel expenses have been reimbursed to
some five (2012-13: five) trustees (members of the District Policy Committee (DPC)) who, in
aggregate, have received the cost of travel incurred in attending meetings of the DPC and this
amounted to £541 (2012-13: not available).
6
Other income
The District does not undertake fundraising.
A sum of £10,000 was received from the District’s insurers in connection with the
misappropriation (See Note 12 Misappropriation). None of the remaining individual amounts
16
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
categorised as Other income (£2,544) in the SOFA is considered material and none is listed
separately.
Each year the District Synod invites donations from the members of synod for the Methodist
Ministers’ Children’s Relief Association. The amount donated and paid over in the year was
£482 (2012-13: £499).
7
Grants and donations and related support costs
Grants and donations totalling £164,219 were made during the year (2012-13: £135,568).
2013-14
£
19,359
126,348
3,009
15,503
164,219
From General Fund
From DAF (see Note 20(b))
From Rock Trust
To Ecumenical and New Communities
Total
2012-13
£
135,568
Details of the recipients of grants paid by the District during the year may be found on the
District website, www.behdistrict.org.uk.
Expenditure on charitable activities through the District Advance Fund
This fund receives formulaically determined contributions from the Circuit Model Trust Funds
held by Circuits within the District and redistributes the monies to grantees in the District through
relevant grants as assessed by the District Grants Committee. During the year the following
grants were made:
To
Churches
Circuits
Institutions
Individuals
Sub total
BEH District
Total
£
69,667
For
Projects
£
1,600
54,881
124,548
1,800
126.348
35,900
162,248
Ministry
General
141,748
18,900
162,248
The income of the fund was £150,894 (net of costs) during the year, some £11,354 short of the
total paid out in grants in the year. This shortfall was drawn from reserves.
The Grants Committee is aware that grant applications must demonstrate public benefit.
The support costs for grant-funding to third parties are insignificant (principally because the
secretary of the Grants Committee is a volunteer and undertakes the vast majority of this work)
and are not separately disclosed.
17
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
8
Salaries and associated costs
Gross salaries paid to four (2012-13: four) part time employees were as follows:
Gross pay
Employer's National Insurance contributions
Employer's pension contributions to defined
contribution schemes
Total costs of 4 staff
Cost of Chair (see Note 5)
Total staff costs
Total weekly contractual hours for 4 staff
2013-14
£
56,793
4,423
2012-13
£
2,460
63,676
36,259
99,935
70,257*
35,653
105.910
68
88
No employees received employee benefits that totalled more than £60,000. There is no accrual
for holiday pay as it is immaterial; the holiday year ends on 31 August. All staff are paid at or
above the living wage.
One of the four part time employees was engaged exclusively in safeguarding matters, another
in representing denominations on discussions about new community developments and two
provided secretarial assistance at the District office.
Pensions
Most ordained presbyters and deacons are members of the Methodist Ministers’ Pension
Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that
Methodist ministers (which term includes presbyters and deacons) are not employees of the
Church. For simplicity, however, when dealing with National Insurance Contributions and
pension contributions, the terms ‘employer’ and ‘employee’ are used as they would be in an
employing body.
On the other hand lay employees are contractually employees and have the option of joining
the Pension and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC),
The Pensions Trust or some other arrangement. PASLEMC is a defined benefit scheme and
the employing Churches and Circuits contribute as employers to this scheme.
The Connexion accounts for both the MMPS and PASLEMC pension schemes and shows the
figures in the annual Methodist Church in Great Britain accounts. The MMPS is in deficit but a
plan for removal of the deficit has been proposed and is being implemented. Details of the
deficits on these schemes can be found in the Annual Report and Accounts of The Methodist
Church at www.methodist.org.uk [COMPLETE THE LINK]
18
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
Additional pension liability
Subsequent to the year end trustees have settled a current and future liability to the Baptist
Union Pension Fund which is in deficit. A member of the fund was employed by BEH and by
one of its predecessor Districts, London North East, for some years. The member served the
New Communities initiative that was supported by other denominations and the East Anglia
District of the Methodist Church so the cost of the shortfall will be spread among four
denominations (seven entities). The total liability is £25,377, with the share underwritten by the
Beds, Essex and Herts District being about £7,000. No provision has been made for this sum in
the 2013-14 accounts . There can be no future claim relating to this member.
[Note to District Treasurers: A provision should have been made in 2013-14.]
9
Property costs
District office, rent and services
Chair’s manse
Total
10
2013-14
2012-13
£
£
16,422
9,319
25,741
Office expenses (General fund)
2013-14
£
Printing, postage and stationery
Telephone
Insurance
Safeguarding
Other
Total charged to General Fund
TMCP charges
Total
11
16,651
5,290
21,941
2012-13
£
2,505
1,507
883
2,942
984
8,821
1,204
10,025
2,637
1,551
1,097
3,043
553
8,881
1,241
10,122
2013-14
£
2,473
139
3,449
3,413
9,474
2012-13
£
2,838
686
3,843
3,929
11,296
Synods, Committees, Conference
Synods
Conference
Committees
Chair’s travel
Total
19
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
12
Other outgoings
2013-14
£
11,413
500
0
11,913
12,236
24,149
Professional fees
Provision for bad debts
Sundry outgoings
Total charged to General Fund
Training (charged to Designated Fund)
Total
2012-13
£
1,000
4,516
4,021
9,537
21,801
31,338
Misappropriation
During this financial year the District discovered that it had been subject to a misappropriation
of funds each year from 2007-08 to 2013-14. In order to determine the level of this
misappropriation it has been necessary to re-cast most of the accounts for these years and to
arrange for most of the years since the District was registered as a charity to be examined by
the newly appointed independent examiner. This has been a lengthy exercise which is
continuing.







13
A number of matters need emphasis:
whilst the aggregate sum (£20,003 at 31 August 2014) is considerable it has not put the future
of the District in jeopardy
there has been some tightening of financial control to reduce the prospect of further
misappropriations
no creditors are at risk of being unpaid
a civil case against the attorneys of the alleged perpetrator is still in progress. (A criminal case
cannot proceed as the alleged perpetrator lacks legal capacity and is unfit to plead.)
a debtor has been raised for the aggregate sum misappropriated at each balance sheet date
and a provision for bad debts of 50% of that sum has been made. During the year £1000 was
misappropriated and an additional provision of £500 has been made
because of the nature of this misappropriation and that the perpetrator’s attorneys have sought
to challenge the extent of the misappropriation it is inevitable that there is some uncertainty
about how much of the misappropriation will be recovered by the District
the lawyers’ costs have been written off as incurred
Investment management
During the year the District paid £1,204 to TMCP, the custodians of the District’s investments
(District Advance Fund, Manse Fund and Rock Trust (2013-14: £1,241). The sum of £1,204
was levied at 0.2% on the value of the funds at the end of the year and is shown as allocated to
the three groups of funds: £942, £22 and £240 at line 24 in the SOFA. See Note 10 above.
None of the remaining individual amounts – aggregated as ‘Other’ above - is considered
material and none is listed separately.
The sum of £5,861 (2012-13: £8,191) represents an unrealised gain in the invested funds of The
Rock Trust. More information can be found in Note 22 Restricted Fund.
20
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
14
Transfers between funds
During the year £35,900 was withdrawn from the District Advance Fund to contribute to the
funding of the following: ecumenical work, safeguarding, training and administrative assistance.
15
Manse and other property
The value of the District manse in Bishop’s Stortford is believed to be considerably greater than
its historical cost in 2006 shown in the accounts. There is no depreciation on the manse as the
impairment review at the end of the year confirmed that the current residual market value of the
building was greater than the carrying value of that part of the asset’s cost to date.
Buildings
£
Plant and
machinery
£
180,000
300,000
20,000
500,000
180,000
300,000
20,000
500,000
Land
£
Cost or valuation
Balance brought forward at
1 September, at cost
Additions in the year
Revaluations in the year
Less: Disposals in the year
Transfers between categories
Balance carried forward at
31 August 2014
16
Fixtures and
fittings
£
Assets under
construction
£
Total
£
Debtors and prepayments
With the exception of items marked thus (*) all sums shown as Debtors at 1 September 2013
were received during the following year. All sums paid in advance at 1 September 2013 were
for activities (principally deposits for training courses) that have been held during 2013-14.
Similarly, it is expected that payments in advance at 1 September 2014 will be expensed in
2014-15.
Debtors were made up as follows:
2013-14
£
Trade debtors
Circuit assessments received late
New Communities donation received late
Ministers' health check reimbursements
2012-13
£
5,641
Prepayments and accrued income
Payments in advance
21
1,162
6,803
2,000
468*
2,468
685
685
58
58
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
Other debtors
Debt arising from misappropriation
Less: Provision for doubtful debts
Debtors net of provisions
Concessionary loans to individuals
Loans to churches
Sundry
20,003
10,002
10,001
630
5,100
15,731
23,219
Total (net)
19,003
-9,501
9,502
2,850
5,100*
30
17,482
20,008
Concessionary loans are made by the District to further its charitable purposes. The loans to
individuals are free of interest and are being repaid by monthly standing order. The loan of
£5,100 is to one church that is currently unable to repay the sum involved. It is fully expected
that this amount will be recovered in due course and no provision is made for this as a doubtful
debt.
17
Trustees for Methodist Church Purposes
The funds that support the District Advance Fund and the Manses Fund are held by TMCP in
Trustees Interest Funds on which interest is credited to the accounts each month. These are
regarded as medium and long term investments.
TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, including
Legacies, Endowments and Accumulated Funds. Trust property is held for and on behalf of
local Managing Trustees who are responsible for the day to day management of trust
property. TMCP ensure that, through providing guidance and acting under their direction, the
Managing Trustees comply with charity law and Methodist law and policy as determined by the
Methodist Conference.
18
Central Finance Board (CFB) and Cash at Bank
The District has two current accounts at HSBC plc, an authorised institution. The sums held on
those accounts are immediately available. In addition the District has three deposit accounts at
CFB, a common deposit fund. Interest is earned on these accounts and credited monthly; the
sums deposited can be withdrawn without notice and without loss of interest. These sums are
viewed as being liquid.
19
Creditors and accrued expenses
2013-14
£
Creditors:
Expenses reimbursement
Independent examinations
4,125
2,580
22
2012-13
£
630
2,000
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
Publications
Total creditors
Accruals:
PAYE and pension contributions
Taxation and Social Security
Total
231
6,936
2,630
1,333
1,333
8,269
1,535
1,535
4,165
Maturity analysis of basic financial
instruments
Accrued at
01-Sep-13
Trade creditors
Expenses reimbursed
Independent examinations
Publications
Taxation and Social Security
Total
Accrual made
in year
Paid in year
630
2,000
630
1,535
4,165
1,535
2,165
Accrued at
31-Aug-14
4,125
580
231
1,333
6,269
4,125
2,580
231
1,333
8,269
It is expected that all sums accrued at 31 August 2014 will be paid during the year to 31 August 2015.
20
Grant Commitments and the District Advance Fund
Expenditure on charitable activities: District Advance Fund
The trustees have this year decided to change their policy concerning future commitments on
DAF grants. Until last year, where grants were payable in annual instalments the commitment
for unpaid grant amounts as covered by the DAF was explained by way of Note in the accounts,
as it was necessary for the grantee to provide a satisfactory report on the achievements of
activities funded by previous instalments of the multi-year grant award before any further
instalments would be paid. It is now the District’s policy to recognise committed grants
immediately as expenditure out of this fund and thus accrue the unpaid amounts at the year-end
as liabilities.
The following analyses are available to explain the effect of this change of policy on the
comparative figure for BEH’s opening reserves as at 1 September 2012:
2011-12
£
End of year commitments to pay one-off grants
or the first instalment in a future year
115,537
Anticipated second or subsequent instalments
where the first instalment was paid in
2011-12 or earlier
192,752
Total anticipated commitment at 31 August 2012
308,289
Grants payable by future year as at 1 September 2012:
2012-13 (current liability)
208,115
2013-14 (long term liability)
84,674
2014-15 (long term liability)
15,500
100,174
Total anticipated commitment at 31 August 2012
23
308,289
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
This total of anticipated grants of £308,289 was comfortably within the balance of £498,390 in
the DAF as at 1 September 2012. In the following year and subsequent years, further sums
were and are expected to be credited to the DAF from the CMTF levies of those years.
The award of a grant by the District does not create a contractual relationship but does create
an operational liability if not made subject to performance conditions creating uncertainty as to
the probability of future years’ grant instalments being paid. It is now judged that such future
instalments of grant will probably be paid and so the amounts due are no longer classified as
Designated Reserves but instead are recognised as expenditure of the year when awarded.
No institution received grants of such materiality that they should be separately disclosed in
these accounts.
21
Unrestricted Funds
21.1
General Fund – balance £624,366 at 31 August 2014 (2013: £628,207)
The purpose of the fund is for use at the discretion of the trustees in the furtherance of the
general objectives of the District and which have not been designated for other purposes. About
80% of this fund is held as a freehold property, the District manse for the Chair of District.
During the year £2,427 was paid out as grants and donations from the General Fund.
21.2
Other Designated Funds – balance £26,975 at 31 August 2014 (2013:
£38,864, including two funds since reclassified as restricted)
These funds are to serve specific purposes but are not restricted by any document or deed to
that purpose alone. These funds comprise:
The Manse Fund – balance £10,326 (2013: £10,244) is available to meet major upgrades in the
accommodation at the District manse.
The Benevolence Fund – balance £16,649 (2013: £13,758) provides financial support to
ministers and lay people in the District in need of support. There is also a restricted fund for
benevolence and all of the income into that fund during 2013-14 was disbursed in the year.
22
Restricted Funds - balance £137,818 at 31 August 2014 (2013: £120,187)
The Rock Trust, a restricted fund, exists to support residential and other activities undertaken by
young people who currently live in the former London NE District of the Methodist Church. All
the fund’s assets are managed by TMCP and the net income (after charges) is paid direct to the
administrators of the Rock Trust. Grants are awarded by the trustees of the Rock Trust, being
the trustees of the District.
This is made up as follows:
CFB Managed Mixed Fund
Trustees Interest Fund
Total
2014: £
93,329
32,720
126,049
24
2013: £
87,467
32,720
120,187
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
The trustees have this year decided to reclassify two of the designated funds – the Training
Fund and the Community Fund – as restricted funds, since the funds receive income which must
be spent on the purposes of the funds.
The Training Fund – balance £13,387 (2013: £475) meets some of the costs of training
ministers and lay people in the district.
The Community Fund – balance £(1,864) (2013: £2,477) is used to make representations to
developers about providing opportunities for a Christian presence.
In addition, a Benevolence Fund which is restricted has been created to recognise that some
donations are specifically for the Benevolence Fund. There is also a designated fund for
benevolence.
The market valuations for the Rock Trust have been provided by TMCP. The funds of the
Benevolence Fund, the Training Fund and the Community Fund are held on deposit at CFB.
23
Summary of movements on significant individual funds
Balance at
Fund
General Fund
District Advance Fund (Designated)
Manse
Benevolence (Designated)
Development
Training
Community
Total other designated
Total unrestricted funds
Rock Trust
Benevolence (Restricted)
Training
Community
Total restricted
Total Funds
01-Sep-13
£
628,207
162,545
10,244
13,758
11,910
475
2,477
38,864
829,616
120,187
Balance at
120,187
Income Expenditure Transfers
£
£
£
120,169
153,514
29,504
151,836
127,290
-35,900
102
20
11,089
14,348
6,150
94
12,235
231
13,143
-13,618
18,300
22,641
1,864
42,728
49,244
-5,373
314,733
330,048
-11,769
3,249
3,249
246
246
13,633
-1,864
3,495
3,495
11,769-
949,803
318,228
25
333,543
0
Gains/
Losses
£
5,862
31-Aug-14
£
624,366
151,191
10,326
16,649
26,975
802,532
126,049
246
13,387
-1,864
137,818
5,862
940,350
0
5,862
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
[Note 24 is provided as it improves transparency.]
24
Connected organisations and related parties
All of the District trustees are members of one or another Church and Circuit within the District
and may be trustees in their Churches and/or Circuits.
Connected organisations include the Methodist Connexion, Circuits and Churches within the
District, other Methodist Districts in Great Britain, the Methodist Ministers’ Children’s Relief
Association, CFB and TMCP, except as reported in Note 5. All of these entities have their own
trustees or directors and autonomous administration such that BEH has no significant influence
over any of them, nor they over BEH. They are, therefore, not considered related parties.
Names of Connected Organisations
Receipts
£
Donee: Methodist Church Fund
Payments
£
Adjustments
£
(524,112)
Donee: Methodist Ministers’ Children’s Relief Association
Donor: Circuits within BEH (assessments on Circuits}
Donor/Donee: Circuits within BEH (levies/grants)
482
(482)
596,914
(72,802)
146.496
(54,881)
(1800)
246
(69,667)
(246)
Donor/Donee: Churches within BEH (grants)
There were no related party transactions.
26
Volunteer contributions
Every entity (Connexion, District, Circuit, Church) within the Methodist Church in GB is heavily
reliant on volunteers who contribute their skills, time and money in the furtherance of the work of
the Church. Principally this contribution is by serving on committees of the District that deal with
mission, manses, finance, policy, grants, training, development. We are grateful to all of them
for their help and commitment.
27
Capital commitments and contingent liabilities
There were no capital commitments or contingent liabilities at the year end (2012-13: nil).
28
Operating Lease lessee-commitments
The District had commitments for the following:
 Office accommodation rental (six month periodic review tenancy) c.£4,500
In addition there are short term leasing obligations (within one year) as follows:
 Reprographic equipment at the District office c.£500
 Telephones at the District office and the District manse c.£300
 Security alarm system at the manse c.£100
 Membership of the local Residents’ Association c.£250
26
Bedfordshire, Essex and Hertfordshire District of the Methodist Church
No 34
Year ended 31 August 2014
Notes to the Accounts
Similar sums to the above applied at 31 August 2013.
[As a requirement not mentioned by the SORP, FRS102-20.16 says a lessee “shall [disclose] (a) the total
of future minimum lease payments under non-cancellable operating leases [(i) for the next] year, [(ii) for
years 2-5] and (iii) later than five years; and (b) lease payments recognised as an expense”.]
29
Independent examiner
An accrual has been made for the fee of the independent examiner in the sum of £600 for the
year (2012-13: £1,000). The independent examiner provided no additional services during the
year.
JGC
16th edition
20160327
27