Wolverhampton and Shrewsbury District. Trustees Annual Report and Financial Statements

Transcription

1 The Methodist Church Wolverhampton and Shrewsbury District Registered Charity Number Trustees Annual Report and Financial Statements for the year ended 31st August 2016

2 Trustees Annual Report and Financial Statements for the year ended 31st August 2016 CONTENTS Pages Trustees' Annual Report 2-8 Statement of Financial Activities 9 Balance Sheet 10 Notes to the Accounts Declarations 22 Independent Examiner's Report

3 The Methodist Church Wolverhampton and Shrewsbury District Trustees' Annual Report for the year ended 31st August 2016 Reference and Administrative Information Registered charity name Wolverhampton and Shrewsbury Methodist District Registered charity number Trustees (members of the District Council) The members of the District Council at the date of this report and those who served during the year ended 31st August 2016 are as follows: Rev John Howard (until 31/8/16) - Chair Rev Rachel Parkinson (appointed 1/9/16) - Chair Rev David Lavender (Deputy Chair) Mrs Beatrice Cloke (Synod Secretary) Mr Christopher Reed (District Treasurer) Mr David Ashfield (until 19/10/16) Mr Leon Murray Rev Keith Beckingham Rev Edwin Myers (until 31/8/16) Rev Beverley Boden Mr Brian Oakley Mr Roy Cross Rev Christopher Parkes Mr Roy Evans (appointed 1/9/16) Rev Trevor Pratt (appointed 19/10/15) Rev John Davies (died 7/4/16) Mr Peter Prescott (appointed 1/9/16) Mrs Elizabeth Green Mrs Margaret Reynolds Rev Richard Hall (appointed 1/9/16) Rev Neil Richardson Miss Jacqueline Hill Mr David Robinson (until 31/8/16) Rev Philip Hoar Rev Pauline Salter (appointed 1/9/16) Rev Stephen Jackson (until 31/8/16) Miss Andrea Sheppick Rev Kevin Jones (appointed 1/9/16) Rev Mark Sherman Mrs Pamela Lavender Rev Seija Wallace Principal address District Office Beckminster Methodist Church Birches Barn Road Wolverhampton WV3 7BQ Telephone Website Independent examiner wsmethodist.org.uk Mr G.H. Tonks Chartered Accountant 46 Park Lane Shifnal TF11 9HD Bankers The Co-operative Bank PLC Central Finance Board of the PO Box 250 Methodist Church Delf House 9 Bonhill Street Southway London EC2A 4PE Skelmersdale WN8 6WT - 2 -

4 Wolverhampton and Shrewsbury District Trustees' Annual Report for the year ended 31st August 2016 The District Council presents its Trustees' Annual Report with the independently examined financial statements for the year ended 31st August The Report has been prepared 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 for Smaller Entities (the FRSSE) (effective 1 January 2015)" (the SORP). The reference and administrative details of the Wolverhampton and Shrewsbury District of the Methodist Church ("the District" or "the Charity"), its Trustees and advisers, are set out on page 2. Structure, Governance and Management The District, as part of the Methodist Church, is constituted under the terms of the Deed of Union of 1932, which was promulgated under the authority of legislation that is now found in the Methodist Church Act This Act provides the foundation on which all the remainder of the constitutional structure of the Church is raised. The governing body of the Methodist Church in Great Britain is the Conference. Under the authority of the Act and the Deed of Union, Conference makes and amends Standing Orders, which are published annually in the Constitutional Practice and Discipline of the Methodist Church. This in turn governs the activities of the District. This legal framework for governance of the Church is the basis on which each District acts as a member of the larger body, sharing in a wider life and subject to a common discipline and pattern of government. The authority of Conference has its theological basis in the understanding of the Church as a connexion of local churches, circuits and districts working together within the one framework. The District Synod is the principal body responsible for the affairs of the District and is constituted in accordance with the Deed of Union and Standing Orders. It is the church court for the District, serving as a link between the Conference and the Connexional Team on the one hand and the Circuits and Local Churches on the other. It has oversight of all District affairs. The Synod annually appoints the members of the District Council whose responsibilities include the formulation and promotion of policy and the supervision of the use of resources of personnel, property and finance. Under charity law the members of the District Council are treated as the Trustees of the Charity and the names of the Trustees who served during the year or have been appointed since are shown on page 2. The District Council nominates persons to the Synod for appointment as district officers and as members of the District Council and other district committees. In addition, the Chair of the District, the Secretary of the Synod and any member of the Methodist Council nominated by the Synod are ex-officio members of the District Council. The District is one of thirty-one Districts of the Methodist Church in Great Britain. The Wolverhampton and Shrewsbury District brings together the Chapels and Manses of twelve Circuits, based in the City of Wolverhampton, two West Midlands Metropolitan Boroughs, parts of Staffordshire and Worcestershire, most of Shropshire, about half of Herefordshire and parts of Wales. They can all be contacted through the principal address of the District. The Conference levies an assessment on the Circuits each year, which is collected through the District, for the general purposes of the Methodist Church Fund

5 Wolverhampton and Shrewsbury District Trustees' Annual Report for the year ended 31st August 2016 Statement of Trustees Responsibilities Charity law requires the District Council (as 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 financial activities for that period, together with its assets and liabilities at the end of the period, and adequately distinguish any material special trust or other restricted fund of the Charity. In preparing those financial statements the District Council is required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - state whether the policies adopted are in accordance with the appropriate SORP and the Accounting Regulations and with applicable Accounting Standards, 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 District Council also has 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 District s administration is operating effectively and efficiently; - the assets of the District are properly safeguarded against unauthorised loss or damage; - proper records are maintained and information produced for management control, fiscal and statutory reasons; and - the District complies with the relevant laws and guidelines. Objectives and Activities The District is constituted to advance the mission of the Church in the Wolverhampton and Shrewsbury District by providing opportunities for Circuits to work together and support each other, by offering them resources and finance, personnel and expertise which may not be available locally, and by enabling them to engage with the wider society of the region as a whole and address its concerns. The District also serves the local Churches and Circuits in the support, deployment and oversight of the various ministries of the Church and in programmes of training. This has been the last year in which the District has been led by Revd John Howard as District Chair. As a result there have been a number of occasions where the District has looked back over the last eleven years in order to better prepare itself for the coming years. An example would be the Spring Synod in which the members of Synod were invited to share in two of ten focus groups looking at an aspect of District work and making suggestions as to how it might develop in the future. Throughout the year the District continued to engage in its usual programme of oversight, training and servicing its Circuits and Churches. For the last three years we have been working with the Bristol and Birmingham Districts forming a regional team for the Discipleship and Ministries Learning Network, within which the District this year has especially benefited from the work around Holy Habits led by Andrew Roberts. The District has continued to hold further meetings in its Focus on Growth series. It is likely that this will be the last year of this programme but it is hoped that a new way forward for the encouragement of Church and Circuit development might be undertaken. In the annual process of stationing ministers, the District created two probationers appointments, and welcomed one new Superintendent and five circuit ministers of whom one, Cleopas Sibanda, came from the Methodist Church of Zimbabwe. Two probationers in the District, Deacon Julie Morton and Presbyter Jemima Strain, were ordained at the London Conference on the first Sunday in July

6 Wolverhampton and Shrewsbury District Trustees' Annual Report for the year ended 31st August 2016 The District received a formal visit from the President and Vice-President of Conference, Revd Steve Wild and Mrs Jill Barber, and they attended a series of meetings across the District. Centrepiece for the visit was a series of speaking engagements in which the President led sessions upon Being Good News in which he helped people to understand how personal evangelism works. One of the sessions was filmed and we have created a resource of the same name for use across the District and beyond. The Joint Public Issues Team for the West Midlands, formed with the Baptist and United Reformed Churches and the Birmingham District of the Methodist Church, has reviewed its life in the light of three years of work. We were especially grateful to Michael Taylor, a former director of Christian Aid, who has been the Team s first chair. A wide range of work was overseen by the Unit for Church Life and the Unit for Church and Society, which included chaplaincy work at Wolverhampton University, the Black Country Urban Industrial Mission and in prisons, the further promotion of fairtrade throughout the District, ecumenical working and the District KOMERA Partnership. Prominent amongst this has been the continuing development of Borderlands Rural Chaplaincy, an ecumenical initiative with the Church of England s Diocese of Hereford, which is accounted for as a restricted fund of the District. KOMERA, the District's relationship with Rwanda, has continued to develop throughout the year. During the summer of 2015 a group of 13 people, 8 of them in the age group, went to Rwanda and shared in the life of the Methodist Church there. The leader of the Free Methodist Church of Rwanda, Bishop Samuel Kayinamura, visited the District during June. In November the Chair designate, Revd Rachel Parkinson, and the outgoing Chair shared a visit to Rwanda, enabling the partnership to be sustained in the life of the District. It was another busy and successful year. Public Benefit The District Council plans the work of the District so as to be of public benefit and has had regard to the guidance on public benefit issued by the Charity Commission. Achievements and Performance The work of the District is largely to support the Churches and Circuits within the geographical area of the Wolverhampton and Shrewsbury District. This was achieved with many of the activities and events indicated above. Some specific achievements last year included: - Approximately 400 people were trained on the safeguarding Foundation Module now being run in the circuits of the District by trainers equipped by the District Safeguarding Officer. - Some 50 people were trained on the more demanding Leadership Module of safeguarding training. - The Bristol and West Midlands Region of the Discipleship and Ministries Learning Network has continued to develop its work. - Ministerial Development Reviews were conducted for ministers in the District under the approved scheme. - The holding of a very successful District holiday for deprived children and young people, staffed by volunteers, giving a first rate holiday for some who otherwise would not have had one. - A Boycott Disinvestment and Sanctions roadshow was held at locations across the District raising ethical questions about the continued occupation of the West Bank by the State of Israel. This was in response to a paper sent from the Methodist Conference of Financial Review The above activities and achievements illustrate the work of the District and the attached accounts show how the financial resources necessary for that work have been raised and expended. The accounts are also the means by which members of the District Council, as trustees, account for their stewardship of those funds to the circuits, the membership of the churches within the District and the wider community

7 Wolverhampton and Shrewsbury District Trustees' Annual Report for the year ended 31st August 2016 The finances of the District are organised into nine different funds to keep the various activities separate. This may be because money has been received for a specific purpose (restricted funds) or because a decision has been made to earmark certain amounts for particular activities (designated funds). The figures in the accounts consolidate the income, expenditure, assets and liabilities of the separate funds to give an overall view. At 31st August 2016 the total funds of the District amounted to 471,718 ( ,883) of which 265,000 was the book value of the District Chair's manse, leaving free reserves of 206,718 across all nine funds, represented by net current assets. The level of reserves on most funds was satisfactory and sufficient to ensure the sustainability of the work, but the District Advance Fund reserves were higher than intended and reflected a shortage of suitable applications for grants. The individual funds are described in notes 20 to 22 to the accounts, where there are details of the wideranging activities in which the District is involved and information on the purpose of each fund, its sources of income and movement during the year. A financial review of each fund for the year is as follows: District Expenses Fund (unrestricted) The outcome for the year was better than forecast in the budget, despite a significant increase in safeguarding costs reflecting an increase in the hours worked by the Safeguarding Officer from 14 to 20 hours per week to deal with the workload. Free reserves increased slightly to 64,286 ( ,128). District Training Fund (designated) Training costs increased from 11,297 to 16,000 while income fell as connexional grants came to an end, so that reserves were reduced to 12,564 ( ,764). Manses Fund (designated) More maintenance work was carried out on the District Chair's manse than usual because of the changeover of Chair and the reserve for that manse fell to 20,885 ( ,085). In addition, the residual reserve held to cover losses on the sale of the other manse was no longer required after the sale took place and the remaining balance of 13,900 was released to the District Expenses Fund. Education and Youth Fund (designated) This was an old, inactive fund with a balance brought forward of 1,074, which was used during the year and the fund closed. District Advance Fund (restricted) The balance on this fund went up during the year from 8,456 to 72,684. The income from connexional funds was similar to the previous year but there were far fewer applications for grants with only 67,733 being awarded ( ,359). This is a concern as the purpose of this fund is to make use of money recirculated from other parts of the connexion and the District Council will look for ways to address this in the coming year. Agricultural Chaplaincy Fund (restricted) The work of the Borderlands Rural Chaplaincy run in partnership with the Diocese of Hereford continues to expand and income and expenditure both increased during the year. The fund balance carried forward at the end of the year increased slightly to 25,455 ( ,137), which will ensure the chaplaincy's sustainability in the short-term. Children's Holiday Fund (restricted) Each year there is a struggle to raise the 13,000 needed to provide the holiday and once again last year there was a shortfall resulting in reserves falling to 6,453. Since the year-end the District has received a conditional offer of a grant of 9,990 from the Big Lottery Awards for All, which with other donations will secure the holiday for the next year or two

8 Wolverhampton and Shrewsbury District Trustees' Annual Report for the year ended 31st August 2016 Chair's Benevolent Fund (restricted) During the year donations fell slightly short of grants paid and the balance at the end of the year was 569 ( ). Komera Partnership Fund (restricted) Money raised to support the work of the District's Rwandan partners is paid over to them at appropriate intervals. None of it is used to finance visits to Rwanda, which are funded by the participants from their own resources and separate fundraising. At the year-end there was a balance of 3,822 left in the fund (2015 5,619) of which 3,000 was given by Action for Children for work at Amizero school and centre for people with disabilities, which has not yet been arranged. Reserves Policies The reserves policy for the District Expenses Fund is based on a target level of free reserves of 10% of total circuit assessments, to reflect the risk that circuits may not be able to meet their assessments in full. For 2016/17 circuit assessments are 587,282, giving a reserves target of 58,700. The actual level of free reserves at 31st August 2016 was 64,286 or 10.9% of circuit assessments (2015: 10.5%). The District Training Fund does not have a specific reserve requirement. It receives annual funding from circuit assessments which it uses to meet training grant applications. The Manses Fund requires reserves of up to 25,000 to cover major repairs to the Chair's manse in excess of the annual budget and that compares to the actual reserves of 20,885. The reserves in the District Advance Fund are already stated after taking into account future commitments and as the annual tranche of Circuit Model Trust Fund levies are received in September it is not necessary for this fund to have a target level of reserves at the year-end. The Agricultural Chaplaincy Fund held reserves of 25,455 at the end of the year, representing about seven months' expenditure at last year's rate. The scale and scope of the chaplaincy is being significantly expanded and future expenditure is therefore expected to be at a much higher rate. In these circumstances, reserves of up to one year's expenditure are considered appropriate to ensure the resilience of the project. A reserves policy of a half to one year's expenditure is also appropriate for the Children's Holiday Fund to ensure that the work is sustainable for at least a further year given the unpredictability of grant and donation income. At 31st August 2016 the reserves of 6,453 represented six months' expenditure. The Chair's Benevolent Fund and the Komera Partnership Fund are there to make grants to beneficiaries from the funds that have been raised for those purposes and thus do not require any specific target levels of reserves

9 Wolverhampton and Shrewsbury District Trustees' Annual Report for the year ended 31st August 2016 Investment Policy Surplus monies of the District s Funds (other than the District Advance Fund) are held in an interest bearing deposit account with the Central Finance Board of the Methodist Church, which is a common deposit fund reporting directly to Conference. The District Advance Fund is held by the Trustees for Methodist Church Purposes as custodian trustees on behalf of the District, and this fund is also in an interest bearing account with the Central Finance Board. This report was approved by the District Council as Trustees on 9th March 2017 and signed on their behalf by: R Parkinson REV R.E. PARKINSON District Chair J Christopher Reed J.C. REED District Treasurer Trustees - 8 -

10 Statement of Financial Activities for the year ended 31st August 2016 District Expenses Fund Designated Funds District Advance Fund Other Restricted Funds (unrestricted) (unrestricted) (restricted) (restricted) Total Funds 2015/16 Total Funds 2014/15 Note Income Donations 3 50,554 50,554 47,470 Income from charitable activities Assessments on circuits 4 58,796 7,800 66,596 72,970 Grants from connexional funds - 4,000 Levies on circuit model trust funds 57,035 57,035 63,241 Distribution from Connexional Priority Fund 114, , ,354 Other charitable activities ,907 59,396 7, , , ,472 Other trading activities 2,343 2,343 2,422 Investment income 869 2, ,565 3,664 Other income 6 5, ,667 19,725 Total income 60,265 7, ,567 53, , ,753 Expenditure Raising funds ,341 1,632 Expenditure on charitable activities Management and administration of the District 10 46,908 1,010 47,918 32,820 Other charitable activities undertaken directly 11 52,857 15, , , ,663 Grant funding of charitable activities 12 4,885 67,733 6,492 79, , ,650 16,980 68,071 66, , ,041 Other expenditure ,841 Total expenditure 104,901 16,980 68,739 67, , ,514 Net income/(expenditure) (44,636) (9,180) 110,828 (14,177) 42,835 (57,761) Transfers between funds 14 48,794 (16,194) (46,600) 14, Net movement in funds 4,158 (25,374) 64,228 (177) 42,835 (57,761) Total funds brought forward 325,128 58,823 8,456 36, , ,644 Total funds carried forward 329,286 33,449 72,684 36, , ,

11 Balance Sheet as at 31st August 2016 District Expenses Fund Designated Funds District Advance Fund Other Restricted Funds (unrestricted) (unrestricted) (restricted) (restricted) Total Funds at 31 Aug 16 Total Funds at 31 Aug 15 Note Fixed assets Tangible assets , , ,000 Current assets Debtors 16 1, ,752 16,057 Cash on deposit: Trustees for Methodist Church Purposes 317, , ,335 Central Finance Board 67,324 33,477 31, , ,042 Cash at bank 483 1,118 4,545 6,146 18,032 Prepaid currency cards 2,663 2,663 3,107 71,806 35, ,138 37, , ,573 Liabilities Creditors due within 1 year: Creditors 17 7, , ,340 Grants payable 18 1, , , ,698 7,520 1, , , ,038 Net current assets 64,286 33, ,536 36, , ,535 Total assets less current liabilities 329,286 33, ,536 36, , ,535 Creditors due after 1 year: Grants payable , , ,652 Total net assets 329,286 33,449 72,684 36, , ,883 Represented by Unrestricted Funds: 21 District Expenses Fund 329, , ,128 Designated Funds: 21 District Training Fund 12,564 12,564 20,764 Manses Fund 20,885 20,885 36,985 Education and Youth Fund - 1,074 Restricted Funds: 22 District Advance Fund 72,684 72,684 8,456 Agricultural Chaplaincy Fund 25,455 25,455 22,137 Children's Holiday Fund 6,453 6,453 8,099 Chair's Benevolent Fund Komera Partnership Fund 3,822 3,822 5,619 Total funds 329,286 33,449 72,684 36, , ,883 R Parkinson The notes on pages 11 to 21 form part of these accounts The accounts were approved by the District Council as Trustees on 9th March 2017 and are signed on their behalf by: REV R.E. PARKINSON District Chair

12 Notes to the Accounts for the year ended 31st August Basis of accounting and accounting policies (a) Basis of preparation The accounts have been prepared 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 for Smaller Entities (the FRSSE) (effective 1 January 2015)", the FRSSE and the Charities Act The accounts have been prepared under the historical cost convention except for the use of an historical insured value for the District manse, and on the accruals basis to show a true and fair view of the District's financial position and activities. (b) Funds The District operates a District Expenses Fund, which is a general unrestricted fund that can be used for any District purposes and holds cash, other current assets and fixed assets. In addition there are designated funds holding cash and current assets designated for particular purposes but which may be used for other District purposes if so decided. There are also several restricted funds holding cash and current assets which can only be used for the specified purpose because of the terms on which their funding was received whether by grant, donation or fundraising. (c) Income recognition Income is recognised when the District becomes entitled to the economic benefit of the income, it is probable (i.e. more likely than not) that it will be received, and its monetary value can be measured reliably. No attempt is made to measure the considerable value of services or time donated by volunteers. The District acts as agent in the following matters: i) the collection of quarterly assessments from circuits for their contributions to the Methodist Church Fund, which are paid over to that fund quarterly; ii) collections taken at Synod for various charities, which are paid over to the respective charities shortly afterwards; and iii) payments received from the Methodist Church Fund to reimburse the District for the expenses of District representatives attending the Methodist Conference. The receipts and payments for the above matters are not income or expenditure of the District and are therefore not reflected in the Statement of Financial Activities. (d) Expenditure recognition Expenditure is recognised when there is a legal or constructive obligation committing the District to pay out resources, it is probable (i.e. more likely than not) that settlement will be required, and the amount of the obligation can be measured reliably. (e) Grants payable The District makes a significant number of grants to third parties in furtherance of its objects, sometimes as oneoff payments and sometimes as a series of periodic payments that may cover several years into the future. As soon as a grant is awarded to a third party they have a valid expectation that the District will discharge its obligation to make the payments whenever they are to become due. This creates a constructive obligation in respect of the total value of the award, payment of which thus becomes probable and accordingly the award is immediately recognised as expenditure and a liability for the future payments is recorded. (f) VAT Since the District is not registered for VAT, all input VAT is charged with the expense to which it relates

13 Notes to the Accounts for the year ended 31st August 2016 (g) Tangible fixed assets Tangible fixed assets are capitalised if they can be used for more than one year, and individually cost more than 1,000. They are valued at historical cost, except for the District Chair's manse, which is stated at deemed cost, being its insured value in The residual value of the manse has been reviewed and is not less than the value at which it is stated in the accounts; accordingly no depreciation has been provided. (h) Debtors and creditors Debtors are stated at the amount the District expects to receive or the amount it has paid in advance for goods or services. Creditors are stated at the amount the District expects to pay or the amount it has received as an advance payment for goods or services. (i) Pensions All employees of the District are invited to join a defined contribution pension scheme managed by The Pensions Trust. The District's contribution is set at 6% of salary and the District has no liability beyond making its contributions and paying over the deductions for the employees' contributions. There were no contributions outstanding at the year-end. 2 Prior year A comparative Statement of Financial Activities from the previous year's accounts is set out in note Donations Donations from churches Donations from individuals Grant from Shropshire & Marches Circuit Grant from Hereford Diocese Other donations and grants Received for: Agricultural Chaplaincy Fund (restricted) Children's Holiday Fund (restricted) Chair's Benevolent Fund (restricted) Komera Partnership Fund (restricted) District Expenses Fund (unrestricted) 2015/ /15 13,992 13,054 4,565 3,664 10,000 10,000 17,000 15,000 4,997 5,752 50,554 47,470 36,231 32,956 9,966 3, ,053 3,663 10, ,554 47,470 4 Assessments on circuits The District comprises twelve circuits, which are geographical groupings of local churches. The circuits contribute to the cost of the District's activities through a quarterly assessment based on a budget for District expenses that is allocated between circuits by agreement with the circuit treasurers. The amounts received were as follows: District Expenses Fund (unrestricted) District Training Fund (unrestricted but designated) 58,796 7,800 64,270 8,700 66,596 72,970 In addition the District, acting as agent, collected quarterly assessments from the circuits for the Methodist Church Fund amounting to 508,476 (2014/15 490,813). These amounts were paid over to the fund within a few days of being received each quarter and there were no outstanding amounts at the year-end. These receipts and payments are not income or expenditure of the District and are therefore not reflected in the Statement of Financial Activities

14 Notes to the Accounts for the year ended 31st August Other charitable activities Charges and fundraising for visit to Rwanda to support the District's Komera Partnership Other charges for courses and events - 20, ,907 The income from these activities is shown in the District Expenses Fund (unrestricted). 6 Other income Funds transferred from Children's Holiday Committee on their integration into the main District accounts Unspent grants repaid Compensation from bank for delayed payment Analysis by fund: Children's Holiday Fund (restricted) District Advance Fund (restricted) Komera Partnership Fund (restricted) - 16,225 5,567 3, ,667 19,725-16,225 5,567 3, ,667 19,725 7 Payments to trustees The members of the District Council are the trustees of the District and none of them received any remuneration for their role as trustee. Two of the trustees were paid for other roles within the District. Mrs Beatrice Cloke as Synod Secretary received the allowance authorised by the Methodist Conference and Mrs Margaret Reynolds as District Safeguarding Officer was paid under a contract of employment, as follows: Synod Secretary - allowance Safeguarding Officer: Salary Employer's national insurance contributions 1,143 1,132 13,349 9, In addition the District Chair was paid by the Connexion (the national organisation of the Methodist Church in Great Britain) a stipend of 37,548 and pension contributions of 6,149 (2014/15 not available), and was required to occupy the manse owned and maintained by the District at a cost of 11,756 (2014/15 4,178). During the year four (2014/15 five) trustees received reimbursement of expenses incurred in carrying out their duties: Cost of travel for District purposes Postage, telephone, stationery, hospitality and conferences 8 Independent examiner 7,567 7,422 1,957 1,206 9,524 8,628 The independent examiner did not charge a fee for reporting on the accounts (2014/15 Nil) and did not carry out any other work for the District during the year

15 Notes to the Accounts for the year ended 31st August Staff costs During the year the District employed one full-time employee (2014/15 one) and five part-time employees (2014/15 five) at a cost as follows: Salaries Employer's national insurance contributions Employer's contributions to defined contribution pension scheme 68,299 57,161 5,240 3,808 2,198-75,737 60,969 Charged to: District Expenses Fund (unrestricted) Agricultural Chaplaincy Fund (restricted) 41,636 29,493 34,101 31,476 75,737 60,969 All staff are paid at a rate above the living wage and no employees received emoluments of more than 60,000. The full-time employee served as agricultural chaplain with Borderlands Rural Chaplaincy, a joint Methodist and Anglican initiative among rural communities in the Welsh borders, and the part-time staff included the safeguarding officer, the mission enabler and administrative posts. 10 Management and administration of the District Chair's travel and miscellaneous expenses Administration staff costs District office expenses Chair's manse expenses Synod expenses Meeting, travel and other administrative expenses Charged to: District Expenses Fund (unrestricted) District Training Fund (unrestricted but designated) 9,955 5,955 15,056 13,737 4,499 3,467 11,756 4,178 3,677 3,133 2,975 2,350 47,918 32,820 46,908 32, Education and Youth Fund (unrestricted but designated) ,918 32,

16 Notes to the Accounts for the year ended 31st August Other charitable activities undertaken directly Mission Enabler costs Safeguarding costs Industrial chaplaincy costs Agricultural chaplaincy costs Other District officers' costs Training and sundry expenses Children's holiday costs Visits to/from Rwanda for Komera Partnership Charged to: District Expenses Fund (unrestricted) District Training Fund (unrestricted but designated) District Advance Fund (restricted) Agricultural Chaplaincy Fund (restricted) Children's Holiday Fund (restricted) Chair's Benevolent Fund (restricted) Komera Partnership Fund (restricted) 12 Grant funding of charitable activities Grants paid in year: Local ecumenical organisations Wolverhampton Pioneer Ministries Grants to circuits and churches Grants to partners in Rwanda Other grants Grants awarded but unpaid at end of year Grants awarded but unpaid at start of year Charged to: District Expenses Fund (unrestricted) Education and Youth Fund (unrestricted but designated) District Advance Fund (restricted) Komera Partnership Fund (restricted) 12,569 5,878 17,916 11,514 17,963 16,121 46,020 37,535 3,374 3,599 17,751 13,857 12,808 11, , , ,663 52,857 51,888 15,970 11, ,254 46,020 37,535 12,808 11, , , ,663 7,885 9,259 13,690 13, , ,715 6,492 19, , , , , ,625 (326,625) (251,671) 79, ,558 4,885 6,200-1,100 67, ,359 6,492 19,899 79, ,558 All the above grants were made to institutions and none was made to an individual. The grants awarded during the year from the District Advance Fund are for personnel, ecumenical, outreach or property projects related to mission and ministry, predominantly within circuits or local churches. Personnel, ecumenical and outreach projects Property projects 65,858 1, ,749 15,610 67, ,359 The only grant of more than 20,000 awarded during the year was a grant of 34,500 to Walsall Circuit to support the appointment of a probationary minister, payable by instalments over three years

17 Notes to the Accounts for the year ended 31st August Grant funding of charitable activities (continued) The grants awarded during the year from the Komera Partnership Fund were to the Free Methodist Church of Rwanda and to the Peacebuilding Healing and Reconciliation Programme to continue to support various aspects of their work in Rwanda. 13 Other expenditure - sale of property The District owned two manses, one occupied by the District Chair and the other, at 187 Bushbury Road, Wolverhampton, formerly occupied by a university chaplain. On 26th February 2016 the chaplain's manse was sold at a price of 208,000; after expenses the net sale proceeds amounted to 201,749. The manse was originally purchased for 222,500 and with costs and improvement work done it had been standing in the accounts at a total cost of 229,231. An independent chartered surveyor, not involved in the sale, confirmed that the agreed sale price was a fair value for the property and advised the trustees to sell at that figure. The impairment charges together with other costs of maintaining the manse ready for sale have been written off to the Statement of Financial Activities each year and amount to 29,143 in total. The book value of the property was written down to 202,000 in 2014/15 and compared to the net proceeds of sale of 201,749 the shortfall remaining as a charge in these accounts is only 251. Impairment charge to further write-down the book value Expenses of sale 14 Transfers between funds To the District Expenses Fund (unrestricted): Mission Enabler Industrial chaplaincy Lay Chaplaincy Officer Lay Employees Support Officer To the Agricultural Chaplaincy Fund (restricted): Chaplaincy running costs Production of promotional film - 8, , ,841 A designated reserve had been built up in the Manses Fund over recent years to meet the anticipated loss on sale of the manse. Following the sale the remaining balance of this reserve, amounting to 13,900, is no longer required and has been transferred back to the District Expenses Fund. During the year grants were awarded from the District Advance Fund to support work being done within the District, as follows: 12,700 7,600 16,600 16,200 3,300 3,300-1,400 32,600 28,500 10,000 10,000 3,000-13,000 10,000 To the Children's Holiday Fund (restricted) running costs 1,000-46,600 38,500 Transfers were also made from the Manses Fund (unrestricted but designated) to the District Expenses Fund (unrestricted) of 13,900 (2014/15 Nil) to release the surplus reserve no longer required to cover the loss on sale of property (see Note 13 above) and 2,200 to cover the excess of manse maintenance costs over budget (2014/15 5,000 transferred to the Manses Fund from the underspend on manse maintenance compared to budget)

18 Notes to the Accounts for the year ended 31st August Transfers between funds (continued) The Education and Youth Fund (unrestricted but designated) was closed with the transfer of the remaining balance of 94 to the District Expenses Fund (unrestricted) to be used towards the cost of a coach to 3Generate in Tangible fixed assets Cost or deemed cost Brought forward Disposal in year Balance carried forward Impairment provision Brought forward Disposal in year Balance carried forward Net book value Brought forward Balance carried forward District Chair's Other Manse Manse Total 265, , ,231 - (229,231) (229,231) 265, ,000-27,231 27,231 - (27,231) (27,231) , , , , ,000 The Chair's manse is stated at deemed cost being its insured value in The residual value of the manse has been reviewed and is not less than its book value and accordingly no depreciation has been provided. The other manse is stated at cost and was sold during the year; the net proceeds of sale amounted to 201,749 (see Note 13 above). 16 Debtors Debtors Agricultural Chaplaincy grant due from Diocese of Hereford Springdale Methodist Church for services provided Other debtors Prepayments Deposits for conference fees Air fares for trip to Rwanda in September 2016 Accrued income - gift aid refund receivable - 15, , ,048-1, ,752 16,

19 Notes to the Accounts for the year ended 31st August Creditors Loans Vale of Stour Circuit Shropshire and Marches Circuit Accrued expenses Reimbursement of employees' and volunteers' expenses Overtime pay accrued Accrued expenses due to third party suppliers Wolverhampton Circuit industrial chaplain costs Deferred income re trips to Rwanda in 2016/17 Other creditors - 150,000-80, ,000 1,793 3, ,547 1,520-4,173 9,340 3, , ,340 The loans from two of the circuits in the District were funding the second manse (see Note 15 above) and were interest-free and unsecured. As soon as the manse was sold the loans were repaid in full. 18 Grants payable Grants payable within one year: District Training Fund grants District Advance Fund grants Grants payable after more than one year: District Advance Fund grants: Payable in / / / /20 Total grant commitments 1, , , , , ,952 70,352 55,700 28,500 10,000 10,000 10, , , , , Connected organisations and related parties The ultimate controlling body of the District is the Conference of the Methodist Church in Great Britain. The national organisation of the church, known as the Connexion, is a connected organisation as are the thirty other regional Districts and all the local groupings of churches, known as Circuits, and all the individual Churches, as well as other Methodist Church bodies. Each of these entities has its own trustees and many of the District's trustees will also be trustees of some of these. However, the District has no significant influence over any of these entities nor, with the exception of the Methodist Conference, do they have significant influence over the District. They are therefore not considered related parties. Grants are received through the Connexion from Methodist Church funds and Circuit funds and the Circuits also pay an assessment to cover District expenses. Many Circuits and Churches make donations and provide personnel to support District activities. The District in turn makes grants to Circuits and Churches for personnel and property projects. The District also receives interest on funds deposited with the Central Finance Board of the Methodist Church, a common deposit fund, and with the Trustees for Methodist Church Purposes, which acts as custodian trustee for all property held on Methodist Model Trusts

20 Notes to the Accounts for the year ended 31st August Summary of fund movements Fund balances brought forward Income Expenditure Transfers between funds Fund balances carried forward (Note 14) Unrestricted funds: District Expenses Fund 325,128 60, ,901 48, ,286 District Training Fund 20,764 7,800 16,000-12,564 Manses Fund 36, (16,100) 20,885 Education and Youth Fund 1, (94) - 383,951 68, ,881 32, ,735 Restricted funds: District Advance Fund 8, ,567 68,739 (46,600) 72,684 Agricultural Chaplaincy Fund 22,137 36,338 46,020 13,000 25,455 Children's Holiday Fund 8,099 10,162 12,808 1,000 6,453 Chair's Benevolent Fund Komera Partnership Fund 5,619 5,953 7,750-3,822 44, , ,063 (32,600) 108,983 Total funds 428, , , , Unrestricted funds (a) District Expenses Fund This is the general fund used for running the District and has no restrictions. It is financed principally by circuit assessments and the fund balance includes the value of the District manse ( 265,000). (b) Designated funds These funds are designated for particular purposes by the District Council but they are not held on terms that prevent their use for other District purposes if the Council so resolve. The District Training Fund is financed by a levy on the number of ministers in each circuit and is used to fund ministerial and lay training. The Manses Fund is now used as a reserve to cover occasional heavy expenditure on maintenance of the District Chair's manse. Manse maintenance is charged to the District Expenses Fund but any underspend compared to budget is transferred to the Manses Fund and any overspend is covered by drawing on the Manses Fund. Previously this fund also covered anticipated losses on the other District manse, which was sold during the year (see Note 13). The Education and Youth Fund has for several years held a small residual balance, which has now been used and the fund closed

21 Notes to the Accounts for the year ended 31st August Restricted funds (a) District Advance Fund This fund is set up under Methodist standing orders and is funded by a levy on the end-of-year balances of the Circuit Model Trust Funds of the circuits in the District and by a distribution from the Connexional Priority Fund, as part of the process of moving money around the Connexion to enable it to best be used for the mission of the church. The fund is administered by the Resourcing Mission Committee who award grants in accordance with the fund policy to support personnel or property projects related to mission and ministry and to support outreach, evangelism and ecumenical work. (b) Other restricted funds The Agricultural Chaplaincy Fund finances the work of Borderlands Rural Chaplaincy, a joint Methodist and Anglican initiative among rural communities in the Welsh borders. Its income comes mainly from grants and donations from a range of Methodist and Anglican sources and it employs a full-time chaplain who is supported by a team of volunteers. The Children's Holiday Fund provides a holiday each year for 35 to 40 children aged 11 to 14 for whom there is a pressing need for a holiday. It is financed mainly by donations and grants from Methodist and third party sources. The Chair's Benevolent Fund provides modest sums from donations to allow the Chair to meet cases of personal need in a confidential way. The Komera Partnership Fund supports the District's partnership with the Free Methodist Church of Rwanda and the Peacebuilding Healing and Reconcilation Programme of Rwanda with funds from donations and fundraising activities

22 Notes to the Accounts for the year ended 31st August Comparative Statement of Financial Activities from previous year's accounts District Expenses Fund Designated Funds District Advance Fund Other Restricted Funds (unrestricted) (unrestricted) (restricted) (restricted) Total Funds 2014/15 Income Donations 2 47,468 47,470 Income from charitable activities Assessments on circuits 64,270 8,700 72,970 Grants from connexional funds 4,000 4,000 Levies on circuit model trust funds 63,241 63,241 Distribution from Connexional Priority Fund 108, ,354 Other charitable activities 20,907 20,907 85,177 12, , ,472 Other trading activities 363 2,059 2,422 Investment income 1,003 2, ,664 Other income 3,500 16,225 19,725 Total income 86,545 12, ,716 65, ,753 Expenditure Raising funds ,632 Expenditure on charitable activities Management and administration of the District 32,820 32,820 Other charitable activities undertaken directly 51,888 11,297 1,254 50, ,663 Grant funding of charitable activities 6,200 1, ,359 19, ,558 90,908 12, ,613 70, ,041 Other expenditure 9,841 9,841 Total expenditure 100,777 12, ,286 71, ,514 Net income/(expenditure) (14,232) 303 (38,570) (5,262) (57,761) Transfers between funds 16,240 3,900 (38,500) 18,360 - Net movement in funds 2,008 4,203 (77,070) 13,098 (57,761) Total funds brought forward 323,120 54,620 85,526 23, ,644 Total funds carried forward 325,128 58,823 8,456 36, ,

23 Accounts for the year ended 31st August 2016 DECLARATIONS Treasurer I confirm that these accruals-based accounts for the year ended 31st August 2016 have been prepared from the records of the District and that they include all funds under the control of the District Council. Signature of Treasurer J Christopher Reed Date 9th March 2017 Name J. Christopher Reed FCA TEP Address 3 Castlecroft Lane Wolverhampton WV3 8JX Approval by the District Council The trustees' annual report and accounts for the year ended 31st August 2016 were approved by the District Council as trustees on 9th March 2017 and are signed on their behalf by: Signature of Chair of the meeting R Parkinson Date 9th March 2017 Name of the Chair of the meeting Rev Rachel E. Parkinson

24 Accounts for the year ended 31st August 2016 Independent Examiner s Report to the Trustees of Wolverhampton and Shrewsbury Methodist District I report on the accounts of the District for the year ended 31 st August 2016, which are set out on pages 9 to 21. Respective responsibilities of Trustees and Examiner As Trustees, you, the members of the District Council, are responsible for the preparation of the accounts for the year ended 31st August The Trustees consider that an audit is not required for this year under Section 144(2) of the Charities Act 2011 ("the 2011 Act") and that an independent examination is needed. The District's gross income exceeded 250,000 and I am qualified to undertake the examination by being a member of the Institute of Chartered Accountants in England and Wales. It is my responsibility to: - examine the accounts under section 145(1)(a) of the 2011 Act; - follow the procedures laid down in the general Directions given by the Charity Commission under Section 145(5)(b) of the 2011 Act; and - state whether particular matters have come to my attention. Basis of Independent Examiner s Statement My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a true and fair view and the report is limited to those matters set out in the statement below. Independent Examiner s Statement In connection with my examination, no matter has come to my attention: (1) which gives me reasonable cause to believe that in any material respect the requirements: to keep accounting records in accordance with Section 130 of the 2011 Act; and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act have not been met; or (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Signature of Examiner GH Tonks Name of Examiner Relevant professional body Address of Examiner Date G.H. Tonks FCA The Institute of Chartered Accountants in England and Wales 46 Park Lane Shifnal TF11 9HD 9th March