49. Managing Trustees of Methodist Publishing House Report ... · Trust information 1. mph enjoys charitable status within the Methodist Church as an excepted charity under Statutory

480 MethodistConferenceAgenda2009

49.ManagingTrusteesofMethodistPublishingHouseReportfortheperiodended14October2008

TheBoardoftheMethodistPublishingHouse(mph),asManagingTrustees,presenttheirReportandFinancialStatementsfortheperiodended14October2008.Althoughmphisnotaseparatecharity,thesedocumentshavebeenpreparedinaccordancewiththeprovisionsoftheCharitiesAct1993andtheCharities(AccountsandReports)Regulations2005.

Trustinformation

1. mphenjoyscharitablestatuswithintheMethodistChurchasanexceptedcharityunderStatutoryInstrument2002Number1598.ThegoverningbodyoftheMethodistChurchistheannualMethodistConference.ThelegalauthorityunderwhichConferenceactsisthe1976MethodistChurchAct.

Fortheperiodto20April2009theprincipalofficeofmphwasat4JohnWesleyRoad,Peterborough,PE46ZP.AtthatdatetheMethodistCouncilbecametheManagingTrustees.

1.1 mphisgovernedbyStandingOrder242(thiswaschangedatthe2008ConferencetoreflectthenewConnexionalTeamstructuresandthechangedrelationshipwiththeEpworthPress;pleasenotethatthe2007versionofthisStandingOrderisprintedbelow).StandingOrder243,concerningtheEpworthPress,waschangedbyConference2008toremoveresponsibilityforthatbodyfrommph.TheEpworthPressEditorialCommitteenowreportsdirectlytotheMethodistCouncil.

242MethodistPublishingHouse (1) There shall be a Methodist

Publishing House managed by a board appointed by the Conference.

Cl. 2l(ii) and (iii) of the Deed of Union (Book II, Part I) empower the Conference to continue or establish printing or publishing offices on behalf of the Church. This continues a long tradition of such activity, originally under the name of the Book Room.

(2) The board shall consist of: (i) a lay chair, who shall be

responsible to Conference for all matters within the responsibility of the board;

(ii) six persons at least four of whom are lay;

(iii) one circuit minister; (iv) one Co-ordinating secretary; (v) one representative of the Faith

and Order Committee; (vi) two members of the editorial

committee, nominated by the committee.

Therecruitmentprocessoftheboardis:TheCo-ordinatingSecretaryisnominatedbytheGeneralSecretaryoftheMethodistChurch,afterconsultationwiththeseveralCo-ordinatingSecretariesintheConnexionalTeam;TherepresentativeoftheFaithandOrderCommitteeisnominatedbythatCommittee;ThetwomembersoftheEditorialCommittee(itselfcomposedofmembersappointedbytheConference)arenominatedbythatcommittee;TheChairandothermembersarerecruited

MethodistConferenceAgenda2009 481


byadvertisementwithintheMethodistChurch,andareselectedthroughinterviewfornominationtotheConference.

(3) The board shall be responsible to the Conference for the production and distribution, in the name of the Church, of such books and other publications as the Conference may from time to time direct, including constitutional documents, connexional records, hymn books, orders of service and similar material and also, subject to any directions which the Conference may from time to time give, for:

(i) furnishing appropriate services to the Connexion generally;

(ii) publishing services undertaken on behalf of other conferences and churches;

(iii) other publishing services, as recommended by the editorial committee.

(4) The board shall be responsible for maintaining the Epworth Press imprint for books and other publications which contribute to the advance of theological, biblical, historical and related studies or are generally of an educational nature, and shall make adequate provision in the budget for the purpose.

(5) In order better to fulfil its responsibility the board shall have authority to enter into agreements with other publishing houses.

Thepresentincumbentsofthecategoriesin2(i)to(vi)aboveare:

(i) ProfessorPeterBrophy(Chair), (ii) MrRichardJArnold;MsAyodele

Ajose;MrEricJarvis;MrPeterCandlin;MsRuthMNason;theRevdDrAndrewPratt.

(iii) theRevdPeterSheasby. (iv) theRevdKennethGHowcroft. (v) MrLukeCurran. (vi) TheRevdMichaelJTownsend;

DrJocelynBryan.

DuringtheyeartheRevdDrJonathanHustlerretiredasatrusteeofmphandwasreplacedbyMrLukeCurran.

TherearecurrentlynoformalpoliciesfortheinductionofnewBoardmembers.ApplicantsforBoardmembershipwillbegivenbackgroundinformationaspartoftherecruitmentprocess.Onfirstappointment,newmemberswillnormallybegivenaninformal“on-the-ground”introductiontotheactivitiesandpersonnelofmph,andwillhaveaccesstopreviousBoardminutesandreports.ItshouldbenotedthatanynewBoardmemberswillcomefromaMethodistbackground,andcanbeexpectedtohaveanawarenessofthenatureandactivityofmph.

2. ThelawapplicabletocharitiesinEnglandandWalesrequiresthemanagingtrusteestopreparefinancialstatementsforeachfinancialperiodwhichgiveatrueandfairviewofthecharity’sfinancialactivitiesduringtheperiodandofitsfinancialpositionattheendoftheperiod.Inpreparingfinancialstatementsgivingatrue


andfairview,themanagingtrusteesshouldfollowbestpracticeand:

∞ selectsuitableaccountingpoliciesandapplythemconsistently;

∞ makejudgementsandestimatesthatarereasonableandprudent;

∞ statewhetherapplicableaccountingstandardsandtheStatementofRecommendedPracticeAccountingbyCharitieshavebeenfollowed;and

∞ preparefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethatactivitieswillcontinue.

Themanagingtrusteesareresponsibleforkeepingproperaccountingrecordswhichdisclose,withreasonableaccuracy,thefinancialpositionoftheMethodistPublishingHouseandEpworthPressandwhichwillenablethemtoensurethatthefinancialstatementscomplywiththeStandingOrdersoftheMethodistChurchandtheCharitiesAct1993.Theyarealsoresponsiblefortakingreasonablestepstosafeguardtheassetsofmphandtopreventanddetectfraudandotherirregularities.

BackgroundandtheRoleoftheBoard

3. mphisthelinealsuccessoroftheBookRoomsofthevarioustraditionswhichunitedin1932toformthepresentMethodistChurchinBritain.

4. The2008Conference,recognisingtheseverefinancialdifficultiesunderwhichmphwasoperatingandtheneedtorestructureandrefocuspublishing

activities,resolvedthat“mphshouldceasetoexistasaseparateentitywithintheConnexionalstructure,andthatstepsshouldnowbetakentoplaceresponsibilityforallaspectsofMethodistPublishingcentrallyintheConnexionalTeam”andthat“theprocessofintegrationbeginimmediatelywithaviewtoitbeingcompletedby31August2009”.BoththeBoardandtheConnexionalTeamhavebeenworkingtoachievetheseaimsduringthecurrentconnexionalyear(seeparagraphs15-24below).

5. TheBoard,throughitsChair,wasresponsibletotheConferencefortheworkofmphuntilthisprocesswascompleted.On20thApril2009aDeedofRetirement,AppointmentandRelease,formallyapprovedbyboththeBoardandtheMethodistCouncil,wasexecuted,transferringtheresponsibilities,assetsandliabilitiesofmphtotheCouncil.TheBoard’sremainingresponsibilityafterthisdatehasbeentoagreeandnowsubmitthisReporttotheConference.

6. ThefullmphBoardmetonthreeoccasionsduring2008-9,whileanImplementationGroupconsistingofBoardmembersandmembersoftheConnexionalTeammetfrequentlyduringtheyeartoprogressthe2008Conferenceresolutions.

7. AsreportedtotheConferencein2008,theBoardappointedanInterimChiefExecutive,initiallytotrytoreturnmphtoaprofitableenterpriseandlatterlytoassistinthetransferof



responsibilitiestotheConnexionalTeam,whilemaintainingtheessentialpartsofmph’sworkandasfaraspossiblereturningthemtoabreak-evenposition.MrNeilJoubertcontinuedasInterimChiefExecutiveuntilMarch2009andwillcontinueasaconsultanttotheMethodistCounciluntil31stAugust2009.

FinancialReport2008

8. TheBoardhasforsometimereportedonacalendaryearbasis.In2005(ReporttoConference2006),itreportedalossof£226,703againstatotalincomeof£2,096,681,andoutlinedstepswhichithopedwouldstemthecontinuingpatternoftradinglosses.Regrettably,thesituationdeterioratedmarkedlyin2006,withaheadlinelossof£889,731againstanincomeof£2,166,845,asreportedtothe2007Conference.Theaccountsfor2007showedafurtherverysignificantdeteriorationinthefinancialposition,withaheadlinelossof£727,784againstatotalincomeof£2,202,792(ReporttoConference2008).Asinthepreviousyear,partofthislossisduetonon-tradingmattersandspecialprovisions.

Theaccountsfortheperiodending14October2008againshowasignificantlossof£763,668againstatotalincomeof£948,720.Partofthelossistheresultoftherestructuringofmphundertakenduringtheperiodthathasresultedinadditionalnon-tradingmattersandspecialprovisions,asshownintheattachedAccounts.

TheBoardisconsciousofthefactthatthearrangementsforthehandlingofmaterialsfortheConnexionalTeamhavenotalwaysprovidedrealisticreturnstomph.Inanumberofcases,mphhashadtobearthetotalcostsofstockinganddistributingmaterialswhicharefreetothecustomer.ThisisoneofthereasonsfortheBoard’ssupportforchangeswhichwouldplacethefullrangeofresponsibilityfortheorigination,distributionandcostcontrolofpublicationswithintheConnexionalTeam.

TheBoardwasagainhamperedinitsoversightoftheactivitiesofmphduring2008byacontinuinglackofmeaningfulfinancialinformation,whichwaslargelytheresultofinaccuratefinancialrecords.Thiswasinpartcausedbycontinuingproblemsassociatedwiththeintroductionofnewcomputersystems,followingseriouserrorsinspecificationandimplementation,whichitwasnotpossibletorectify.TheBoardagreedthatthenewsystemsshouldbereplacedwithsimplerandmoreappropriateoneswhichwillbeusedfrom14October2008.Thecapitalcostofthischangewasreportedtothe2008Conference.

InanticipationofmphbeingbroughtunderthedirectmanagementoftheConnexionalTeam,theBoardagreedthatthereportingformphshouldbebroughtinlinewithotherconnexionalbodies.

Auditors



9. ThefirmofSafferyChampnesshascontinuedasauditorstomph.

Contingentliabilities

10. TheBoardagaindrawsattention,asinpreviousyears,tothecontingentliabilitiesonmphinrespectofitspreviouspremisesinWimbledon.Thepremisesconsistoftwoindustrialunits,theleasesofwhichbothexpiredinDecember2008.Withsub-tenantsinplaceinbothunits,thebulkoftherentalliabilitieswereprotectedfortheremainderoftheleaseperiod.

Note17totheAccountsgivesdetailsofliabilitieswhichmightariseinrespectofthecostofrestoringdilapidationstooneoftheunits.Paragraph21ofthisReportnotesongoingnegotiationstakingplaceinrespectofdilapidationsetc,inthecurrent(2008-9)financialyearfollowingtheendofthelease.

Reserves

11. TheBoard’spolicyhasbeentoholdsufficientreservestomeetthecashflowrequirementsoftheoperationofmph(bearinginmindthatthereisasignificantseasonalelementtosomeofthework)andsufficienttocoverareasonablecontingency(judgedtoberoughlyoneyear’sturnover).Reservestocovercashflowarenormallyheldondeposit.Longer-termreservesareheldasinvestments.TheBoardhassoughttoreflectconnexionalpoliciesinrelationtoinvestedmoneys,

seekingareasonablereturnwithoutunduerisk.ThishasbeenachievedbyabroadbalanceofinvestmentswhileatthesametimereflectingtheethicalinvestmentpoliciesoftheChurch.ForthisreasonsuchmoneyshavebeenheldinamixofCentralFinanceBoardfundsassetoutinnote8totheAccounts.Aspartoftherestructuringprocessandbearinginmindthedeterioratingglobalfinancialsystem,duringtheperiodtheBoardtookthedecisiontosellallinvestmentsandholdthecashrealisedfromsaleondeposit.ThecurrentlevelofreservesissufficienttomeettheBoard’sknownandanticipatedcommitments.

Riskassessment

12. Inrecentyears,theBoardhasconsideredspecificrisksastheyhavebeenidentified.Forexample,itrecognisedin2005therisksofhavinginadequatemanagementaccounts,andauthorisedtheintroductionofnewreportingstandardsandnewsystemstomeetthisneed.In2006,itidentifiedtherisksassociatedwithcertainpoormanagementpractices,andappointedasub-grouptoworkwiththeChiefExecutiveandmanagerstotrytocorrectthese.InMarch2007,itidentifiedtherisksassociatedwiththelossoftheChiefExecutive,andestablishedacollectivemanagementofmphbytheSeniorManagersinassociationwiththeChairoftheBoard,andappointedoneoftheSeniorManagersasTeamLeadertocoordinatetheworkofthemanagementteam.



FromJanuary2008,theBoardhasbeenawareoftheseriousfinancialrisksofmphcontinuingtotradeonitstraditionalbasis,andtookthedecisiontodiscontinuecertainseriouslyunprofitablelinesofbusiness.Inconsideringtheproblemsfacingmph,theBoardconcludedthattheinterestsofpublishingwithintheMethodistChurchwouldbebestservedbybringingallsuchactivityundercentralmanagementwithintheConnexionalTeamandthatmphshouldceasetoexistasaseparateorganisation.

PublicationFund

13. ThePublicationFundwassetupsomeyearsagotoenablemphtoassistdepartmentswithintheConnexionalTeam(andpossiblyinthewiderConnexion)topublishmaterialwhichwouldotherwisebebeyondtheirbudgetaryresources.Applicationshavehadtobemadebytheintendingoriginatorofmaterialforpublication,andtobeapprovedbymanagementintheConnexionalTeam,uptoGeneralSecretarylevel.IthasbeenthepolicyoftheBoardtomeetsuchapprovedrequestsiffundsareavailable.

InanticipationofmphbeingbroughtunderthedirectmanagementoftheConnexionalTeamtheBoardhastakenthedecision,duringtheperiod,thatthisdesignatedfundisnolongerrequired.Therefore,thebalanceofthisfundhasbeentransferredtoOtherUnrestrictedCharitableFunds.

Relationshipswithothers

14. ThekeyrelationshipformphisthatitformspartoftheMethodistChurchandanswers,throughthisReport,totheConference.

mphhasbeenapartner,andaninitialinvestorbywayofaninterest-freeloan,(alongwiththeChurchofEngland,theUnitedReformedChurch,theSundaySchoolCouncilofWales,ChristianEducationandChurchesTogetherinBritainandIreland)inROOTSforChurchesLtd.ROOTSmagazinehasestablisheditselfastheleadinglectionaryresourceforworshipleadersandthoseworkingwithchildrenandyoungpeople.

WiththeUnitedMethodistChurch(basedintheUSA)mphhasactedasagentfortheDISCIPLEprogrammeforBritainandtheCommonwealth,andaspublisheranddistributoroftheUKeditionoftheUpperRoombiblereadingnotes.WhileitisintendedthatDISCIPLEwillcontinuewithinMethodistPublishing,theUpperRoombiblereadingnoteswillbepublishedbytheBibleReadingFellowship(BRF)fromJuly2009.

Nofulfilmentworkforexternalclientswasundertakenduring2008-9anditisnotanticipatedthatanywillbeundertakeninthefutureunderthenewarrangements.

Theworkofmph



15. mph’sincomecomesalmostexclusivelyfromsalesofgoodsandservicestotheMethodistChurchasanorganization,tootherChurchesandChurch-relatedbodiesandtoindividuals.

mphhasprovidedthefollowingmainservicestotheMethodistChurch:

(a) publicationofofficialdocumentsonbehalfoftheChurch,including:

∞ variousannualpublications(notablytheAgenda of the Conference,thePrayer Handbook,theMethodist Diary,theMinutes of the Conference and YearbookandConstitutional Practice and Discipline);

∞ arangeofofficialdocuments,literatureandrecords(suchasthe‘Safeguarding’policydocument,promotionalliterature,theannualmembershipticketandavarietyofformsandotherChurchrequisites);

∞ Faith & Worship-thetrainingcourseforLocalPreachers;

∞ the Methodist Worship Book;initsvariousprintedandelectroniceditions;and

∞ Hymns & Psalms.

(b) amailorderservicecoveringitsownmaterialsandpublicationsand,untilrecently,arangeofthird-partyresources(mostlybooksbutalsootheritemssuchascrossesandcommunionware);

(c) atradedistributionserviceforpublicationsundermph’s

ownimprintsandsomeoftheresourcesproducedbytheConnexionalTeam;and

(d) distributingtheConnexionalLink(createdbytheConnexionalTeamandsenttoeveryMethodistChurch).

16. During2008-9mphcontinuedtomarketandsellcommercialtitlesalreadypublishedundertheInspireimprint,althoughnonewtitleswerepublishedandmarketing&distributionwillceaseon31stAugust2009.Inrecognitionofthevaluableworkundertakenbyitsauthors,mphuseditsbesteffortstohelpInspireauthorstosecurepublishingcontractswithotherChristianpublishers.

TheMethodist Publishing Houseimprintisonlyusedformaterialpublishedonbehalfof,andwiththeagreedauthorityof,aspecificallynamedpartoftheConnexion.

During2008thefollowingwerepublished:

∞ Methodist Diary 2009 - Interleaved

∞ Methodist Diary 2009 - Filofax® inserts

∞ Agenda of the Conference 2008 ∞ Minutes of the Conference 2008 ∞ Constitutional Practice and

Discipline of the Methodist Church 2008 vol2

∞ Living Fire: the Methodist Prayer Handbook 2008/09

17. Followingfurtherredundanciesamongmphstaff,theremaining



fivemembersofstafftransferredtoMethodistCouncilemploymentcontractson1stApril2009.TheyremainbasedinPeterboroughbutworkcloselywithstaffinLondon.

18. Itbecameclearduringtheperiodunderreviewthatthewarehouseandofficesat4JohnWesleyRoad,Peterboroughwerefartoolargeforthescaleoftheongoingcustomerservices,warehousing,salesanddistributionfunctions.Thepremiseswerethereforeofferedforsaleorlong-termleaseand,despitetheverydifficultcommercialpropertymarket,itisanticipatedthattheywillshortlybeletonafiveyearlease,withanoptiontobuy.Althoughtheoptionofpurchasingamuchsmallerwarehousewasactivelypursued,itbecameapparentthatthiswouldnotbeadvantageoustotheChurchandinsteadthePeterboroughoperationwillcontinuebyoutsourcingwarehousinganddistribution,whilerentingofficeaccommodationforthecustomerservicesandrelatedfinancial/managementactivity.Intakingthedecisiontoretaintheselatterfunctionsin-housetheImplementationGroupwasmindfuloftheneedtoprovidecustomerswithaservicestaffedbypeoplewithdetailedknowledgeoftheChurchanditsproductsandabletoprovideanempatheticserviceparticularlyforenquiriesreceivedbytelephone.Retainingtheexpertiseandexperienceofexistingstaffwasthereforeapriority.

19. New,andmuchsimpler,ITandfinancialsystemshavebeenputinplaceandworkisongoingtoensurethatdetailed,appropriate,integratedandtimelymanagementinformationonallaspectsofMethodistpublishingisavailabletothosechargedwithmanagingthisservice.

20. AtthefinalmeetingofthemphBoardon24thMarch2009aReportwasreceivedfromtheInterimChiefExecutiveshowingthat,onceextraordinaryitemswereremoved,mphwasnolongermakingaloss.Furthermore,itwasanticipatedthatthevalueoftheassets,includingthebuildingat4JohnWesleyRoad,whichwouldbetransferredtotheChurchwouldbeoftheorderof£2.5million,althoughthismightbereducedbyanyrequiredcontributiontothelaypensionschemeinrespectoffutureliabilitiesformph’semployees.

21. Followingtheendofthe35yearleaseformph’sformerpremisesinWimbledon,whichhadbeensub-let,negotiationshavetakenplacewiththelandlordandsub-tenantstoreachagreementonliabilitiesfordilapidations.Atthetimeofwritingthesenegotiationswerecontinuing.

22. Planningisunderwayforaservice,tobeheldinPeterboroughinautumn2009,tomarktheworkofmphandtogivethanksforallthosewhohavecontributedtoit,eitheraspaidstaff,asauthorsandeditorsorasmembersoftheBoard.ItishopedthatmembersoftheConferencewill



supportthisevent.

Implementationof‘MethodistPublishing’withintheConnexionalTeam

23. IthasbeenagreedthatinfuturethepublishingactivitiesoftheChurchwilltakeplacewithintheChristianCommunication,EvangelismandAdvocacyclusteroftheConnexionalTeam.TheImplementationGrouphasbeentakingactionthroughoutthecurrentconnexionalyeartoensureasmoothtransferofthework,assetsandliabilitiesofmphtotheConnexionalTeam.Thefollowingparagraphssummarisetheactionstaken.

24. MethodistPublishinghasbeencreatedasateamwithintheCommunicationssub-cluster.Theteamcomprisestheexisting‘Publications’teamwhowillmanagecommissioning,productionandprintingfromtheLondonofficeandthe5remainingPeterboroughstaffwhohavebeenfullyintegratedintotheteamandwillmanagecustomerservicesandtheoutsourcedwarehousingandfulfilmentprocess.TwonewpostshavebeencreatedinrecognitionofthecommercialandmarketingskillsrequiredtomakeMethodistPublishingmorecost-effective.ThesearetheMethodistPublishingManagerwhowillleadtheteamandaMarketingroletomarkettheproductsandgetabetterunderstandingofthetargetaudience.

SRChavedirectedthatMethodistPublishingwillencompasseverythingpublishedinprintbytheConnexional

Teamandwillfocusonwhatwecan“uniquelyandbest”undertakeandinparticularpublicationsshould:

∞ reflectOur Calling and Priorities for the Methodist Church;

∞ beexplicitlyMethodistinappeal; ∞ highlightanddevelopthe

charismsofMethodism; ∞ ifalreadypublished,beableto

demonstratethattheyaresellingrelativelywell;

∞ supplycoreMethodistChurchneeds;

∞ meettherequirementsoftheConferenceortheagreedcommunicationsstrategy;

∞ beresourcesMethodistscannoteasilyacquireelsewhere.

Allnewpublicationswillbesubjecttoapre-evaluationtodeterminewhethertheymeettheabovecriteriaandtocalculatearobustandtransparentestimateofthenetcostorbenefittotheChurchbeforeproceeding.ThemostsignificantprojecttogothroughthisprocesssofaristheHymnCollection.TheresultsofthisevaluationarereportedinSinging the FaithinanotherpartofthisAgenda.

EverythingpublishedinprintbytheConnexionalTeamwillfallundertheMethodistPublishingimprintfromnowon.Examplesofproductsthathavealreadybeenproducedorareinthepipelineare:Governancepapers,DISCIPLE,theMethodistDiary,thePrayerHandbookandEpworthReview.

Anumberofmarketingprojectshavealsobeencompletedbythe



ConnexionalTeam.Forexample,thewebsitehasbeenupdatedandimproved,anewcataloguehasbeenissuedandwillbemoreactivelymarketedandthecampaigntopromoteLenttitlesresultedinanoticeableupliftinsales.

AuthoritytomanagecopyrightsforTMCPmaterialhaspassedbya

resolutionfromtheMethodistCouncilfromMethodistPublishingHousetotheConnexionalTeam.ThiswillbedelegatedtomembersoftheMethodistPublishingteamortotheappropriateofficeholdersforEpworthpress.

***RESOLUTIONS

49/1. TheConferenceadoptedtheReport.

49/2. TheConferenceadoptedtheAccounts.

49/3. TheConferenceamendedStandingOrdersbyrevokingthewholeoftheStandingOrder242anddeletingitem(vi)inStandingOrder102(1).

49/4. TheConferenceoffereditsheartfeltthankstothemanyindividualswhoovertheyearshavecontributedtothemissionofGodandthebuildingupoftheMethodistChurchthroughtheworkoftheMethodistPublishingHouse.Inparticular,theConferencethankedmembersoftheConnexionalTeamandthoseChairsofthemphBoardwhohavesteeredtheHousethroughitsrecenthardtimesandwhohaveimplementeddifficultdecisionswithdedicationandhumanity,namelyMsJanetMorley,MrEricJarvis,andProfessorPeterBrophy.

Statementofdisclosuretoauditor

(a)sofarasthetrusteesareaware,thereisnorelevantauditinformationofwhichmph’sauditorsareunaware;and

(b)theyhavetakenallstepsthattheyoughttohavetakeninordertomakethemselvesawareofanyrelevantauditinformationandtoestablishthatmph’sauditorsareawareofthatinformation.

Onbehalfofthemanagingtrustees PeterBrophy PeterCandlin 11May2009 11May2009



MethodistPublishingHouse

CharityInformation

Registeredoffice MethodistConnexionalFunds(Registered) 25MaryleboneRoad London NW15JR

Auditors SafferyChampness StuartHouse CityRoad Peterborough Cambridgeshire PE11QF

Businessaddress 4JohnWesleyRoad Werrington Peterborough PE46ZP

Bankers HSBCBankplc 250LincolnRoad Peterborough PE12NDSolicitors PothecaryWithamWeldSolicitors 70StGeorge’sSquare London SW1V3RD

GreenwoodsSolicitorsLLP MonkstoneHouse CityRoad Peterborough PE11JE



Independentauditors’reporttothemembersofMethodistPublishingHouse

Wehaveauditedthefinancialstatementsonpages14to25.Thesefinancialstatementshavebeenpreparedundertheaccountingpoliciessetouttherein.

Respectiveresponsibilitiesofthedirectorsandauditors

Asdescribedonpage3theTrusteesareresponsibleforthepreparationoftheannualreportandfinancialstatementsinaccordancewithapplicablelawandUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAcceptedAccountingPractice).

OurresponsibilityistoauditthefinancialstatementsinaccordancewithrelevantlegalandregulatoryrequirementsandInternationalStandardsonAuditing(UKandIreland).WehavebeenappointedasauditorsunderSection43oftheCharitiesAct1993andreportinaccordancewithregulationsmadeunderSection44ofthatAct.

Ourauditworkhasbeenundertakensothatwemightstatetothetrusteesthosematterswearerequiredtostatetotheminanauditors’reportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanthecharityandthetrusteesasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

Wereporttoyououropinionastowhetherthefinancialstatementsgiveatrueand

fairviewandhavebeenproperlypreparedinaccordancewiththeCharitiesAct1993andtheCharities(AccountsandReports)Regulations2005.Wealsoreporttoyouif,inouropinion,theTrustees’Reportisnotconsistentwiththefinancialstatements,ifthecharityhasnotkeptproperaccountingrecords,orifwehavenotreceivedalltheinformationandexplanationswerequireforouraudit.

WereadtheTrustees’Reportandconsidertheimplicationsforourreportifwebecomeawareofanyapparentmisstatementswithinitormaterialinconsistencieswiththefinancialstatements.

Basisofauditopinion

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UKandIreland)issuedbytheAuditingPracticesBoard.Anauditincludesexamination,onatestbasis,ofevidencerelevanttotheamountsanddisclosuresinthefinancialstatements.Italsoincludesanassessmentofthesignificantestimatesandjudgementsmadeinthepreparationofthefinancialstatements,andofwhethertheaccountingpoliciesareappropriatetothecharity’scircumstances,consistentlyappliedandadequatelydisclosed.

Weplannedandperformedourauditsoastoobtainalltheinformationandexplanationswhichweconsiderednecessaryinordertoprovideuswithsufficientevidencetogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,



whethercausedbyfraudorotherirregularityorerror.Informinganopinionwealsoevaluatedtheoveralladequacyofthepresentationofinformationinthefinancialstatements.

Opinion

Inouropinionthefinancialstatements

giveatrueandfairviewofthecharity’sstateofaffairsasat14October2008andofitsincomingresourcesandapplicationofresourcesintheyearthenendedandhavebeenproperlypreparedinaccordancewiththeCharitiesAct1993andtheCharities(AccountsandReports)Regulations2005.

SafferyChampness 11May2009

CharteredAccountants StuartHouse RegisteredAuditors CityRoad Peterborough Cambridgeshire PE11QF



Periodended Yearended 14October 31December 2008 2007 Unrestricted Unrestricted funds funds Notes £ £IncomingresourcesIncomingresourcesfromgeneratedfunds-Investmentincome 5 38,734 48,570Incomingresourcesfromcharitableactivities-Subsidiesforspecificpublications - 12,456-Othercharitableactivities 874,207 2,102,792Otherincomingresources 17 35,779 38,974

Totalincomingresources 948,720 2,202,792

Resourcesexpended

Charitableactivities-Othercharitableactivities 1,457,562 2,714,208Governancecosts 14,020 17,389Otherresourcesexpended 17 40,470 104,725Tangiblefixedassetsvaluationadjustment 7 200,336 94,254

Totalresourcesexpended 2 1,712,388 2,930,576

Netoutgoingresourcesbeforerevaluationsandinvestmentassetdisposals 4 (763,668) (727,784)Unrealisedgainsoninvestments - 46,370Realised(losses)/gainsoninvestments (188,069) 13,927

Netmovementinfunds (951,737) (667,487)Fundbalancesat1January2008 3,701,559 4,369,046

Fundbalancesat14October2008 2,749,822 3,701,559

Thestatementoffinancialactivitieshasbeenpreparedonthebasisthatalloperationsarecontinuingoperations

Statementoffinancialactivitiesfortheperiodended14October2008



2008 2007

Notes £ £ £ £

FixedassetsTangibleassets 7 1,402,707 1,643,446Investments 8 - 1,508,151

1,402,707 3,151,597

CurrentassetsStockandworkinprogress 9 174,616 454,752Debtors 10 242,402 398,764Cashondeposit 974,032 82,248Cashatbankandinhand 113,254 131,218

1,504,304 1,066,982

Creditors:amountsfallingduewithinoneyear 11 157,189 517,020

Netcurrentassets 1,347,115 549,962

Totalassetslesscurrentliabilities 2,749,822 3,701,559

CapitalandreservesRestrictedfunds - -Unrestrictedfunds-Designatedfunds 13 40,000 268,921-Othercharitablefunds 2,709,822 3,432,638 2,749,822 3,701,559

2,749,822 3,701,559

ThefinancialstatementswereauthorisedforissueandapprovedbytheBoardon11May2009

PeterBrophy PeterCandlin Chairman Trustee

Thenotesonpages491to500formpartofthesefinancialstatements.


Balancesheetasat14October2008


Notestothefinancialstatementsfortheperiodended14October2008

1 Accountingpolicies

1.1 Accountingconvention Thefinancialstatementsare

preparedunderthehistoricalcostconventionandinaccordancewiththeStatementofRecommendedPractice,“AccountingandReportingbyCharities”issuedinMarch2005.

1.2 Fundaccounting Generalfundsareunrestricted

fundswhichareavailableforuseatthediscretionofthetrusteesinfurtheranceofthegeneralobjectivesofthecharityandwhichhavenotbeendesignatedforotherpurposes.

Designatedfundscompriseunrestrictedfundsthathavebeensetasidebythetrusteesforparticularpurposes.

Restrictedfundsarefundswhicharetobeusedinaccordancewithspecificrestrictionsimposedbydonorsorwhichhavebeenraisedbythecharityforparticularpurposes.

1.3 IncomingresourcesIncomingresourcesareincludedintheStatementofFinancialActivitieswhenthecharityisentitledtotheincome.IncomingresourcesrepresentsamountsreceivableforgoodsandservicesnetofVATandtradediscounts,togetherwithinvestmentincomereceivableandrentalincomefromtheWimbledonproperty.

1.4 Tangiblefixedassetsanddepreciation

Tangiblefixedassetsotherthanfreeholdlandarestatedatcostorvaluationlessdepreciation.Depreciationisprovidedatratescalculatedtowriteoffthecostorvaluationlessestimatedresidualvalueofeachassetoveritsexpectedusefullife,asfollows:

oncost Freeholdproperty 2% Computerequipment 331/3% Plantandmachinery 20% Fixturesandfittings 20% Officeequipment 25%

1.5 Leasing Rentalspayableunderoperating

leasesarechargedagainstincomeonastraightlinebasisovertheleaseterm.

1.6 Investments Fixedassetinvestmentsarestated

atmarketvalue.ChangesinmarketvalueoffixedassetinvestmentsaretakentotheStatementofFinancialActivitiesasunrealisedgainsorlosses.

1.7 Stockandworkinprogress Stocksofgoodsforresalearestated

atthelowerofcostandnetrealisablevalueaftermakingallowanceforobsoleteandslowmovingitems,workinprogressisstatedatcost.

1.8 Pensions EmployeesofMethodistPublishing

HousearepartoftheMethodist



Churchmulti-employerdefinedbenefitscheme.However,theemployerisunabletoidentifyitsshareoftheunderlyingassetsandliabilities.InaccordancewithFRS17thecontributionstotheschemearedisclosedasifitwereadefinedcontributionscheme.

1.9 Grants GrantsfromthePublicationFund

areincludedintheStatementOfFinancialActivitieswhenapprovedbythemanagingtrustees.Thevalueofsuchgrantsunpaidattheyearendisaccrued.

1.10 Resourcesexpended Capitalpurchasesareincludedin

theaccountsatcost.Ade minimislevelof£1,000isappliedtoallcapitalitems,capitalpurchasesoflessthan£1,000beingexpensedinrepairs.

Allexpenditureotherthanthatwhichhasbeencapitalised,isincludedintheincomeandexpenditureaccount

andisaccountedforonanaccrualsbasis.

Charitableexpenditurerepresents

amountsexpendedforthespecificpurposesdesignatedbytheTrustees,asdirectedbytheobjectivesofthecharity.

Otherresourcesexpendedrepresent

costsincurredwiththerentaloftheWimbledonproperty.

Supportcostsrepresentcostsofageneralnatureincurredduringthedaytodayrunningofthecharity.Theseareallocatedbetweentheexpenditurecategoriesonadirectcostbasis.

1.11 Governancecosts Governancecostsincludethose

costsassociatedwithmeetingtheconstitutionalandstatutoryrequirementsofthecharityandincludetheauditfeeandcostslinkedtothestrategicmanagementofthecharity.




Notestothefinancialstatementsfortheperiodended14October2008

2Analysisoftotalresourcesexpended

Unrestricted Direct Support Audit Total £ £ £ £

Charitableactivities-Othercharitableactivities 970,755 486,807 - 1,457,562Governancecosts 6,020 - 8,000 14,020Otherresourcesexpended 26,953 13,517 - 40,470Tangiblefixedassetsvaluationadjustment 200,336 - - 200,336

1,204,064 500,324 8,000 1,712,388

Allsupportcostshavebeenallocatedbyactivityonthebasisofthedirectcosts.

Supportcosts £Salariesandstaffcosts 341,081Depreciation 34,137ITcosts 12,189Professionalfees 69,809Buildingcosts 19,014Insurancesandsundrycharges 24,094

500,324

3Totalresourcesexpended 2008 2007 £ £

Totalresourcesexpendedincludes:Operatingleaserentals-Otherassets 32,854 41,500Auditors’remuneration -Audit 8,000 7,000 -Nonaudit 29,295 63,975



4NetoutgoingresourcesThenetoutgoingresourcesfortheperiodhavebeengeneratedassetoutbelow: 2008 2007 £ £

MethodistPublishingHouse (716,331) (669,042)EpworthPress (47,337) (58,742)

(763,668) (727,784)5Investmentincome

Investmentincomerepresentsinterestreceivedfrom:

InvestmentwithCFBInvestments 23,866 14,868Bankinterest 44,074 4,496

38,734 48,5706Employees

Employmentcosts

Wagesandsalaries 289,503 465,807Socialsecuritycosts 27,045 45,311Otherpensioncosts 39,839 90,777Othercostsandredundancy 131,987 -

488,374 601,895EmployeenumbersManagementandadministration 7 10Sales 5 6Production 8 11

20 27Therewerenoemployeeswithemolumentsabove£50,000.NoManagingTrusteereceivedanyremunerationduringtheyear.



Notestothefinancialstatementsfortheperiodended14October2008(continued)7.Tangiblefixedassets Freehold Computer Plantand Fixtures Total property equipment machinery andfittings £ £ £ £ £

CostorvaluationAt1January2008 1,773,359 400,717 175,694 17,657 2,367,427Disposals - (376,114) (83,534) (1,120) (460,768)

At14October2008 1,773,359 24,603 92,160 16,537 1,906,659

DepreciationAt1January2008 160,214 382,018 166,264 15,485 723,981Revaluation 200,000 207 129 - 200,336Ondisposals - (370,495) (82,882) (1,125) (454,502)Chargefortheperiod 22,153 8,192 3,370 422 34,137

At14October2008 382,367 19,922 86,881 14,782 503,952

NetbookvalueAt14October2008 1,390,992 4,681 5,279 1,755 1,402,707

At31December2007 1,613,145 18,699 9,430 2,172 1,643,446

Thefreeholdpropertyrevaluationof£200,000relatestothereductionincarryingvaluetoestimatedcurrentmarketvalue,giventhedownturninthepropertymarket.

Theremainingrevaluationrelatestothewritedownofitemsofofficeequipmentthatwillnotbeutilisedoncethecompanymovestonewpremises.



8Investments

Number Cost ofShares £

ManagedEquityFundShares 64,083 518,169InflationLinkedFundShares 64,949 76,120ManagedFixedInterestFund 85,407 103,747

At1January2008 214,439 698,036

ManagedEquityFundShares (64,083) (518,169)InflationLinkedFundShares (64,949) (76,120)ManagedFixedInterestFund (85,407) (103,747)

Disposals (214,439) (698,036)

ManagedEquityFundShares - -InflationLinkedFundShares - -ManagedFixedInterestFund - -

At14October2008 - -

2008 2008 2007 2007 Number Market Number Market ofShares Value ofShares Value £ £

CentralFinanceBoard - - 64,083 1,214,757ManagedEquityFundShares

CentralFinanceBoard - - 64,949 152,046InflationLinkedFundShares

CentralFinanceBoard - - 85,407 141,348ManagedFixedInterestFund

- - 214,439 1,508,151


Notestothefinancialstatementsfortheperiodended14October2008(continued)

9Stockandworkinprogress

2008 2007 £ £

MethodistPublishingHouse 174,616 404,927EpworthPress - 49,825

174,616 454,752

10Debtors

2008 2007 £ £

Tradedebtors 157,331 198,558Otherdebtors 44,129 66,829Prepayments 31,222 51,304Accruedincome 9,720 82,073

242,402 398,764

Amountsfallingdueaftermorethanoneyearandincludedinthedebtorsaboveare:

2008 2007 £ £

Otherdebtors 35,000 45,000

11Creditors:amountsfallingduewithinoneyear

2008 2007 £ £

Tradecreditors 31,159 319,014Taxationandsocialsecurity 3,794 -Othercreditors 18,779 63,420Accruals 103,457 134,586

157,189 517,020



12Pensioncosts

Thepensionchargefortheyearwas£39,839(2007:£90,776).

Thecreditordueattheyearendwas£1,380(2007:£nil).

13AnalysisofDesignatedFunds Ecumenical Publication Total Fund Fund £ £ £

Balanceat1January2008 45,000 223,921 268,921TransferredtoOtherCharitableFunds - (223,921) (223,921)

45,000 - 45,000Loanrefunded (5,000) - (5,000)

Balanceat14October2008 40,000 - 40,000

PublicationFundThePublicationFundwassetuptoprovidematchedfundingtoenabletheChurchtoinvolveitselfinnew,excitinginitiativesofproclaimingthegospel.

Fundingprovidedtoinstitutionsduringtheyeartotalled£nil(2007-£nil).

IthasbeendecidedtotransferthePublicationFundtoOtherCharitableFundsasaresultoftheongoingrestructuringatMethodistPublishingHouse.

EcumenicalFundTheEcumenicalfundrepresentsanamountof£40,000(2007-£45,000)designatedtosupporttheprojectbeingundertakenbyRootsforChurchesLimited.

14Contingentliabilities

ContingentliabilitiesinrespectoftheWimbledonpropertyaredetailedfurtherinnote17.



Notestothefinancialstatementsfortheperiodended14October2008(continued)

15Financialcommitments

At14October2008thecompanyhadannualcommitmentsundernon-cancellableoperatingleasesasfollows: Landandbuildings 2008 2007 £ £

Expirydate:Withinoneyear 8,646 41,500

16EpworthPress

IncorporatedintheStatementofFinancialActivitiesarethefollowingtransactionsrelatingtoEpworthPress.

2008 2007 £ £

Sales 43,876 80,497Royaltiesreceived 81 1,916

43,957 82,413

Costofsales (39,591) (110,748)Administrationexpenses (1,878) (32,573)Stockwriteoff (49,825) -

(47,337) (60,908)Interestreceived - 2,166

(47,337) (58,742)



17WimbledonProperty

2008 2007 £ £

Rentalincomeandreimbursedcostsreceived 35,779 38,974Rentpaidandexpensesincurred (26,953) (82,586)Shareofallocatedsupportcosts (13,517) (8,783)

Netoutgoingresources (4,691) (52,395)

TheBoardhasconsistentlyreportedthatundertheheadleaseoftheWimbledonprop-erty,formerlyoccupiedbyMethodistPublishingHouse,thereexistsacontingentliabilityinrespectofrentdue.

Duringtheyeartenantsoccupiedbothunits1and2atWellingtonWorks,Wimbledon.Thereareunderleasesto24December2008atatotalannualrentof£33,630.Meth-odistPublishingHousecontinuestohaveresponsibilityfortheannualcurrentrentof£41,500until24December2008.

Theheadleaseforunits1and2expireson25December2008andafurthercontingentliabilityexistsinrespectofrepairsthatarerequiredtobeundertaken.Areviewofthenecessaryworkshasestimatedthecostat£160,000forunit2butafigureisnotyetavailableforunit1.Althoughtheagreementplacesthisliabilitywiththesub-tenantthereisscopefordisputeandanyfinalcosttothecharityisnotyetcertain.

18Relatedpartytransactions

BecauseofthespecialcircumstancesfacingtheMethodistPublishingHouse,trusteeswereinvolvedinmanymoremeetingsandotheractivitiesduring2008thaninnormalyears.

ThefollowingmanagingtrusteesofMethodistPublishingHousehavebeenreimbursedfortravellingexpensesincurredduringtheperiod:

MrEricJarvis,MrRichardJArnold,MsAyodeleAjose,MrPeterCandlin,RevMichaelJTownsend,MsRuthMNason,ProfessorPeterBrophy,theRevdDrAndrewPratt,theRevdJonathanHustler,theRevdPeterSheasby,theRevdDrNeilRichardsonandMrLukeCurran.

Theaggregateexpensespaidtotheaboveamountedto£9,659(2007:£7,434).


Documents

49. Managing Trustees of Methodist Publishing House Report ... · Trust information 1. mph enjoys charitable status within the Methodist Church as an excepted charity under Statutory