Bedfordshire, Essex and Hertfordshire District of the Methodist Church No 34

Year ended 31 August 2014

Notes to the Accounts

1Accounting framework and accounting policies

iAccounting 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 SORPs 2005 version specified in its related 2008 Regulations and in accordance with the true and fair override provision contained therein.

iiPublic 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.

iiiBasis

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 Districts financial position and activities.

ivContent

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.

vFRS102 SORP2015 [applies to 2016-17 onwards]

This is the first year that the FRS102 SORP 2015 has applied to the Districts accounts. These accounts are compliant with FRS102 and with the FRS102 SORP 2015. The comparative figures from the previous years 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.

viiConsolidation

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.

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 Childrens 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.

xGrants

[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.

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.

xiiiInvestments

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 Districts 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.

2Glossary 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

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

3Prior 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

stated

Prior year adjustment

As restated in

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

Safeguarding

9,334

-6,291

3,043

Professional fees

0

1,000

1,000

Total expenditure

280,522

0

280,522

3.2 Comparative SOFA from previous years accounts, as now restated

General Fund

District Advance

Other Designated

Other Funds

Fund

Funds

(Restricted)

Total

Income and Endowments

Donations and legacies

521

521

Other trading activities

0

Income from investments

2,884

9,318

564

3,222

15,988

Assessments on Circuits

74,792

74,792

Contributions from Circuit Model Trust Funds

110,050

110,050

Connexional Advance & Priority Fund distribution

0

Grants received

25,983

5,000

30,983

Contribution to the cost of the Chair

0

Income from Charitable Activities

103,659

119,368

6,085

3,222

232,334

Other income

3,150

3,150

Total income and endowments

106,809

119,368

6,085

3,222

235,484

Expenditure

Salaries

70,257

70,257

Chair's manse

5,290

5,290

Office accommodation

16,651

16,651

Stationery, post, telephone, administration

3,500

997

20

224

4,741

Chair's expenses

3,929

3,929

Synods and Committees

6,681

6,681

Methodist Conference

686

686

Training

21,801

21,801

Insurance

1,097

1,097

Grants and donations

1,525

110,727

2,998

115,250

Benevolence

1,800

1,800

Provision for bad debt

4,516

4,516

New Communities (CCDO)

3,283

3,283

Other outgoings

-4,539

9,803

5,264

Ecumenical

15,235

15,235

Safeguarding

3,043

3,043

Professional fees

1,000

1,000

Total charitable expenditure

155,755

111,724

9,823

3,222

280,524

Net income before investment gains

-45,796

7,644

-3,788

-

-45,040

Inter-fund transfers

45,870

-35,200

-10,670

-

-

Investment gains/(losses)

8,191

8,191

Net income/(expenditure) for year

74

-27,556

-14,408

8,191

-36,849

3.3Balance Sheet at 31 August 2013

4Assessments on Circuits

The District is made up of the following Circuits:

34-1

North Bedfordshire

34-4

South Bedfordshire

34-6

Colchester

34-7

Tendring

34-9

Chelmsford

34-10Southend and Leigh

34-11South Essex

34-12Herts and Essex Border Ecumenical Area

34-13St Albans and Welwyn

34-14West Hertfordshire and Borders

34-15North Hertfordshire

34-18Bishops 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 Circuits 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.

5Cost 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, employers NIC and employers pension contributions of the Chair of District are paid by the Methodist Connexion. The Chairs 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 Chairs 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).

6Other income

The District does not undertake fundraising.

A sum of 10,000 was received from the Districts insurers in connection with the misappropriation (See Note 12 Misappropriation). None of the remaining individual amounts 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 Childrens Relief Association. The amount donated and paid over in the year was 482 (2012-13: 499).

7Grants and donations and related support costs

Grants and donations totalling 164,219 were made during the year (2012-13: 135,568).

2013-14

2012-13

From General Fund

19,359

From DAF (see Note 20(b))

126,348

From Rock Trust

3,009

To Ecumenical and New Communities

15,503

Total

164,219

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

For

Churches

69,667

Projects

1,600

Circuits

54,881

Ministry

141,748

Institutions

124,548

General

18,900

Individuals

1,800

Sub total

126.348

BEH District

35,900

Total

162,248

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.

8Salaries and associated costs

Gross salaries paid to four (2012-13: four) part time employees were as follows:

2013-14

2012-13

Gross pay

56,793

Employer's National Insurance contributions

4,423

Employer's pension contributions to defined contribution schemes

2,460

Total costs of 4 staff

63,676

70,257*

Cost of Chair (see Note 5)

36,259

35,653

Total staff costs

99,935

105.910

Total weekly contractual hours for 4 staff

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]

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.]

9Property costs

2013-14

2012-13

District office, rent and services

16,422

16,651

Chairs manse

9,319

5,290

Total

25,741

21,941

10Office expenses (General fund)

2013-14

2012-13

Printing, postage and stationery

2,505

2,637

Telephone

1,507

1,551

Insurance

883

1,097

Safeguarding

2,942

3,043

Other

984

553

Total charged to General Fund

8,821

8,881

TMCP charges

1,204

1,241

Total

10,025

10,122

11Synods, Committees, Conference

2013-14

2012-13

Synods

2,473

2,838

Conference

139

686

Committees

3,449

3,843

Chairs travel

3,413

3,929

Total

9,474

11,296

12Other outgoings

2013-14

2012-13

Professional fees

11,413

1,000

Provision for bad debts

500

4,516

Sundry outgoings

0

4,021

Total charged to General Fund

11,913

9,537

Training (charged to Designated Fund)

12,236

21,801

Total

24,149

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.

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 perpetrators 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

13Investment management

During the year the District paid 1,204 to TMCP, the custodians of the Districts 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.

14Transfers 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.

15Manse and other property

The value of the District manse in Bishops 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 assets cost to date.

Plant and

Fixtures and

Assets under

Land

Buildings

machinery

fittings

construction

Total

Cost or valuation

Balance brought forward at

1 September, at cost

180,000

300,000

20,000

500,000

Additions in the year

Revaluations in the year

Less: Disposals in the year

Transfers between categories

Balance carried forward at

31 August 2014

180,000

300,000

20,000

500,000

16Debtors 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

2012-13

Trade debtors

Circuit assessments received late

5,641

New Communities donation received late

2,000

Ministers' health check reimbursements

1,162

468*

6,803

2,468

Prepayments and accrued income

Payments in advance

685

58

685

58

Other debtors

Debt arising from misappropriation

20,003

19,003

Less: Provision for doubtful debts

10,002

-9,501

Debtors net of provisions

10,001

9,502

Concessionary loans to individuals

630

2,850

Loans to churches

5,100

5,100*

Sundry

30

15,731

17,482

Total (net)

23,219

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.

18Central 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.

19Creditors and accrued expenses

2013-14

2012-13

Creditors:

Expenses reimbursement

4,125

630

Independent examinations

2,580

2,000

Publications

231

Total creditors

6,936

2,630

Accruals:

PAYE and pension contributions

1,333

1,535

Taxation and Social Security

1,333

1,535

Total

8,269

4,165

Maturity analysis of basic financial instruments

Accrued at

Accrual made

Accrued at

01-Sep-13

Paid in year

in year

31-Aug-14

Trade creditors

Expenses reimbursed

630

630

4,125

4,125

Independent examinations

2,000

580

2,580

Publications

231

231

Taxation and Social Security

1,535

1,535

1,333

1,333

Total

4,165

2,165

6,269

8,269

It is expected that all sums accrued at 31 August 2014 will be paid during the year to 31 August 2015.

20Grant 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 Districts 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 BEHs 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 308,289

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.

21Unrestricted Funds

21.1General 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.

21.2Other 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.

22Restricted 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 funds 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:

2014:

2013:

CFB Managed Mixed Fund

93,329

87,467

Trustees Interest Fund

32,720

32,720

Total

126,049

120,187

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.

23Summary of movements on significant individual funds

Balance at

Balance at

Fund

01-Sep-13

Income

Expenditure

Transfers

Gains/ Losses

31-Aug-14

General Fund

628,207

120,169

153,514

29,504

624,366

District Advance Fund (Designated)

162,545

151,836

127,290

-35,900

151,191

Manse

10,244

102

20

10,326

Benevolence (Designated)

13,758

11,089

14,348

6,150

16,649

Development

11,910

94

12,235

231

-

Training

475

13,143

-13,618

-

Community

2,477

18,300

22,641

1,864

-

Total other designated

38,864

42,728

49,244

-5,373

26,975

Total unrestricted funds

829,616

314,733

330,048

-11,769

0

802,532

Rock Trust

120,187

3,249

3,249

5,862

126,049

Benevolence (Restricted)

246

246

Training

-

-

246

13,633

13,387

Community

-

-

-

-1,864

-1,864

Total restricted

120,187

3,495

3,495

11,769-

5,862

137,818

Total Funds

949,803

318,228

333,543

0

5,862

940,350

[Note 24 is provided as it improves transparency.]

24Connected 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 Childrens 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

Payments

Adjustments

Donee: Methodist Church Fund

(524,112)

Donee: Methodist Ministers Childrens Relief Association

482

(482)

Donor: Circuits within BEH (assessments on Circuits}

596,914

(72,802)

Donor/Donee: Circuits within BEH (levies/grants)

146.496

(54,881)

(1800)

Donor/Donee:Churches within BEH (grants)

246

(69,667)

(246)

There were no related party transactions.

26Volunteer 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.

27Capital commitments and contingent liabilities

There were no capital commitments or contingent liabilities at the year end (2012-13: nil).

28Operating 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

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.]

29Independent 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

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