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2020-08-31-accounts

REGISTERED CHARITY NUMBER: 1129520

Report of the Trustees and

Audited Financial Statements

for the Year Ended 31 August 2020

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Contents of the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2020

Page
Report of the Trustees 1 to 8
Report of the Independent Auditors 9 to 10
Statement of Financial Activities 11 to 12
Balance Sheet 13 to 14
Cash Flow Statement 15
Notes to the Cash Flow Statement 16
Notes to the Financial Statements 17 to 32

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

The trustees present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The aims and purposes of the North East Somerset & Bath Methodist Circuit are in accordance with the approved governing document issued by the Methodist Conference and defined in the Methodist Church Act 1976 namely:

The advancement of

a) the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church; b) any charitable purpose for the time being of any Connexional, District, circuit, local or other organisation of the Methodist Church;

c) any charitable purpose for the time being of any society or institution being a society or institution subsidiary or ancillary to the Methodist Church;

d) any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church.

Public benefit

We confirm the trustees have had regard to the Charity Commissioner's guidance on public benefit.

Grantmaking

Detailed applications are submitted to the Circuit Leadership team for consideration. A small scrutiny group of CLT members is appointed to review and discuss the submission with the applicants. This process is to ensure that the proposal is well founded and complies with the funding policy guidelines. Submissions may then be presented to the Circuit Meeting with recommendations for support.

Volunteers

The Trustees would like to acknowledge the work carried out across the Circuit by Local Preachers and Circuit Officers, for the work they do supporting and running the Circuit as well as in all of its congregations in leading worship, providing pastoral care and maintaining church premises.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

During the past year the circuit has continued to support local churches in their life of worship and mission and in responding to the needs of their local communities

Planning for the future direction and mission of the Circuit has continued. Two Circuit Ministers have been reinvited for 3 and 5 years respectively with effect from September 2020, and another Circuit Minister for 4 years with effect from September 2021. One Circuit Minister is leaving the Circuit in August 2021 and a new Superintendent Minister has been invited from September 2021, allowing the current Co-Superintendents to refocus their ministry.

Changes in layworker roles included the ending of the fixed-term Pioneer Community Worker role at Nexus, and the appointment of a new 1-year post of Mission Enabler and Community Developer for the six Bath Churches. Plans to recruit a new Community Outreach worker at Keynsham are on hold pending review as a result of the Covid-19 pandemic

The circuit has also overseen the ongoing implementation of GDPR and provision of Safeguarding training and updating of Safeguarding records.

Page 1

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENT AND PERFORMANCE

Covid-19

The trustees have considered the impact that the COVID-19 pandemic will have on the charity's current and future financial position. The charity is taking the following steps to mitigate the threats that Covid-19 may pose to the organisation:

The trustees consider that the charity will continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved having thoroughly reviewed the financial position.

The trustees therefore consider it appropriate to adopt the going concern basis of preparation of the accounts, as detailed in note 1 to the financial statements.

FINANCIAL REVIEW

Financial position

The annual budget set for 2019/20 showed an anticipated shortfall of £139,707. Consideration has been given to reducing budget shortfalls by reducing costs as well as maintaining and improving income.

The outturn for the year, after making use of reserves to fund exceptional costs and support new developing outreach, shows a reduction in general funds of £97,904. This has been partially offset by the release of £73,029 designated funds held for specific purposes which are no longer considered necessary. A further net transfer of £7,000 has been made from the Model Trust Fund in support of the post of Bath Student Chaplain (serving both Universities). The general fund balance at £75,859 is still healthy despite a similar continuing shortfall budget for 2020/21.

There were underspends against budget for travel expenses, manse maintenance costs with only one property requiring significant work and other expenditure where training costs fell well short of the budget allocation. The sale of a redundant church building was not completed as expected and insurance cover had to be extended. The sale is now expected to be completed in the next few months. Additional professional fees have been paid for a number of inspection reports relating to both property sales and purchases.

The pledged income from the churches has not kept pace with the impact of inflation on payroll and other costs. This represents a continuing challenge to the churches that are under pressure as the general trend is a decline in membership and income. It is a challenge to the Circuit to manage appropriate funding in the coming years. In the short term cash funds should be boosted by the sale of three further vacant church premises which should be completed in the 2020/21 year.

Page 2

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW

Investment policy and objectives

To comply with Methodist Standing Orders, monies for long term investment are lodged with the Trustees for Methodist Church Purposes (TMCP). TMCP acts as custodian trustee for all real estate held by Circuits and for all large (over £20K) bequests and for the proceeds of sale of any property formerly owned by the Circuit. These sums are invested in unitised investments or held on deposit. The investment returns are close to tracking the movements in the FTSE 100 index. The deposit income mirrors the deposit rates elsewhere. The Circuit's investment policy is aligned with that of the Central Finance Board (CFB) and TMCP because these organisations take into consideration the social, environmental and ethical considerations, both negatively and positively, that make investments suitable to the Methodist Church.

Short term deposits are lodged directly with the CFB and attract good rates of interest.

There are no bench marks for the expected returns or appreciation on investments at TMCP and CFB. It is the Circuit's policy to manage the cash and investment resources of the Circuit so that a rate of return on investment - both by way of dividend and capital appreciation is obtained at least as good as market rate considering the Circuits low appetite for risk. The interest rate achieved on CFB deposits has been at 0.72% for the year.

Reserves policy

The Reserves Policy for the Circuit is to hold a minimum sum equivalent to six months' average expenditure £370,173 (based on 2019 and 2020 accounts). This should be sufficient to meet any unforeseen item of major expenditure on manses or to be able to continue, in the short term, funding planned activities in the event of any shortfall in the promised income from the member churches.

The Reserves Policy also includes the intention, subject to Circuit Meeting approval, to use reserves in excess of the minimum over time for

Money and investments held are either:

FUTURE PLANS

During the coming year the trustees on the Circuit Leadership Team and Circuit Meeting will be working towards producing a Circuit Mission Strategy with a view to enabling the best use of our resources in terms of people, property and finances, to fulfil the mission of the circuit and its member churches.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

Page 3

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

The governing document for the Circuit is the Deed of Union (1932) and Methodist Church Act (1976).

Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD).

Day to day management of the Circuit is undertaken by the Circuit Stewards along with the Circuit Meeting and the Circuit Leadership Team.

Recruitment and appointment of new trustees

Only members of the Methodist Church may be appointed as trustees. Circuit trustees include the following:

a) the Superintendent Minister and other Ministers and Deacons appointed to the Circuit.

b) Supernumerary Ministers who reside in the Circuit are appointed as trustees if they inform the Superintendent Minister of their wish to be a member of the Circuit Meeting.

c) two or more Circuit Stewards are appointed annually by the Circuit meeting.

d) the secretary of the Circuit Meeting

e) the secretary of the Local Preachers' Meeting

f) from each Local Church one church steward and the church treasurer.

g) representatives elected by the Church Council of each Local Church from its own members in numbers specified by the Circuit Meeting.

h) such persons, if any, as the Circuit Meeting judges it appropriate to appoint from amongst those employed by the Circuit.

i) additional persons as the Circuit Meeting may desire to ensure that all areas of the life of the Circuit are adequately represented.

Organisational structure

The North East Somerset and Bath Methodist Circuit was formed in 2008 and covers both the City of Bath and the North Somerset Local Authorities, plus Box..

The Circuit forms a part of the Bristol District of the Methodist Church. The Circuit is the body which coordinates the activities of employed ministers and church workers throughout the member churches. The member churches are:

Bathampton Beechen Cliff, Bath Box
Chew Stoke Farrington Gurney Horizon, Bath
Keynsham (Queens Road &
Victoria) Midsomer Norton Nexus, Bath
Paulton Peasedown St John Timsbury
Trinity - Radstock Trinity - Westfield Weston, Bath

Decision making

The Circuit Meeting is the principal decision making body of the Circuit responsible for the affairs of the Circuit and the development of circuit policy. It exercises a combination of spiritual leadership with appropriate administrative support. The purpose is to act as the focal point of the working fellowship of the churches in the Circuit, overseeing their pastoral, training and evangelistic work.

A Circuit Meeting is held three or four times each year to plan and review the activity of the Circuit.

The Circuit Leadership Team which includes ministers and stewards is responsible for the spiritual and material wellbeing of the circuit and for upholding and acting upon the decisions of the Circuit Meeting.

The Circuit Leadership Team meets regularly to manage Circuit property, employment, finance and consider matters arising from their oversight of the local churches.

Page 4

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Induction and training of new trustees

Every trustee is provided with a copy of the document "The Role of A Trustee in the Methodist Church" published by the Trustees for Methodist Church Purposes in 2009.

Safeguarding

The Circuit, through our Safeguarding Officer and local Safeguarding Officers, continue to ensure there are robust safeguarding processes in place to protect children, young people and vulnerable adults from harm. This includes DBS checks and regular training opportunities for paid staff and volunteers.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The Circuit continues to assess risks in terms of finance, property and staffing and procedures have been introduced to manage these risks.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1129520

Principal address

c/o Midsomer Norton Methodist Church High Street Midsomer Norton Radstock BA3 2DR

Page 5

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

Trustees

The members of North East Somerset & Bath Methodist Circuit meeting are the Charity Trustees. Membership is made up from circuit office holders, ministers and representatives appointed by the local churches.

The following were Managing Trustees from Sep 2019:

Ministers

Rev J Wilson (Joint Superintendent) Rev D Winstanley (Joint Superintendent) Rev J Crane Rev D A Hull (to 31/12/19) Rev R A Lansley Rev E Kirova Rev D W Musgrave Rev S E Robinson Rev M J Slocombe Rev I Souter Rev J Tate Deacon A Trembling Rev P Turner

Circuit Stewards

Mrs I H Arnold (to 17/9/19) Miss M Cross Mrs G Earley (appointed 1/9/20) Mrs Elspeth Rolls Mr I Sims Mr B Sykes (to 31/8/20) Mr I Withers (to 4/3/20)

Representatives

Dr Michael Ainsworth Mr P Arnold (appointed 1/9/20) Mrs J M Auckland Mr S R Barratt Mr S Beck (appointed 4/3/20) Mrs S Bown (appointed 29/7/20) Mrs D Bundey Miss E J Button Mr R Chapman Mrs E Church Mrs D J Cutlan Prof. M Danson (to 31/8/20) Mr F Day Mrs C Edge Mrs M E Gibson Mr A Gilson (to 31/8/20) Mrs M A Gilson Miss H Green Mrs M Hatherell Mrs G R I Hull Mrs A Hurford Mrs J Knight (appointed 1/9/19) Mr M G Martin Mrs P Mills Mrs J M Miners Mrs F Morris-Laventris Mr D S Pendle Miss B J Phillips Mr R S J Pierce Ms Karen Power (appointed 1/9/20) Mr N Quilter Mr M D Rumsey Mr A A Short Miss K M Short Mrs J Slade Mrs J Souter Mrs J Stiddard Mrs P L Turner Mrs A Twitchett (to 4/3/20) Mr P Udey Mrs W E Venn Mr H Warren Mr G Wilson (appointed 4/3/20) Mr A Wright Mrs J Yates

Page 6

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Haines Watts Partnership (Bristol) Limited Bath House 6-8 Bath Street Bristol BS1 6HL

Bankers and Investment Bankers

CAF Bank Limited 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ Central Finance Board of the Methodist Church 9 Bonhill Street, London, EC2A 4PE Trustees for Methodist Church Purposes Central Buildings Oldham Street, Manchester, M1 1JQ

Lloyds Bank Plc PO Box 1000, Andover, BX1 1LT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 7

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

Approved by order of the board of trustees and signed on 13 April 2021 on its behalf by:

Rev D Winstanley (Joint Superintendent) - Trustee

Rev J Wilson (Joint Superintendent) - Trustee

Page 8

Report of the Independent Auditors to the Trustees of North East Somerset & Bath Methodist Circuit

Opinion

We have audited the financial statements of North East Somerset & Bath Methodist Circuit (the 'charity') for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

However, not all future events or conditions can be predicted. The Covid-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charity. The Trustees' view on the impact of Covid-19 is disclosed in the accounting policies and in the Trustees' Report on page 2.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Page 9

Report of the Independent Auditors to the Trustees of North East Somerset & Bath Methodist Circuit

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Haines Watts Partnership (Bristol) Limited Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Bath House 6-8 Bath Street Bristol BS1 6HL

Date: 13 April 2021

Page 10

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Statement of Financial Activities FOR THE YEAR ENDED 31 AUGUST 2020

Notes
INCOME AND
ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
5
Management of the Circuit
Raising funds
3
Investment income
4
Other income
6
Total
EXPENDITURE ON
Charitable activities
7
Management of the Circuit
Southdown Church Centre
SWCCP
Circuit grants
Total
Net gains/(losses) on
investments
NET
INCOME/(EXPENDITURE)
Transfers between funds
21
Other recognised gains/(losses)
Gains/(losses) on revaluation of
fixed assets
Net movement in funds
RECONCILIATION OF
FUNDS
Total funds brought forward		 Unrestricted
funds

£
524,092
369,351
64,388
3,050
11,905
972,786
547,543
41,860
10,765
-
600,168
233,566
606,184
8,281
(15,000)
599,465
5,678,144		 Circuit
Model
Trust
Fund
£
-
-
-
2,238
-
2,238
21,198
-
-
-
21,198
-
(18,960)
(7,000)
-
(25,960)
374,303		 Endowment
funds
£
-
-
-
1,281
-
1,281
-
-
-
-
-
(2,663)
(1,382)
(1,281)
-
(2,663)
66,343		 2020
Total
funds
£
524,092
369,351
64,388
6,569
11,905
976,305
568,741
41,860
10,765
-
621,366
230,903
585,842
-
(15,000)
570,842
6,118,790		 2019
Total
funds
£
64,190
426,545
74,981
5,395
106,671
677,782
803,803
35,056
8,789
12,411
860,059
(2,350)
(184,627)
-
-
(184,627)
6,303,417

The notes form part of these financial statements

Page 11

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Statement of Financial Activities FOR THE YEAR ENDED 31 AUGUST 2020

Notes
TOTAL FUNDS CARRIED
FORWARD		 Unrestricted
funds

£
6,277,609		 Circuit
Model
Trust
Fund
£
348,343		 Endowment
funds
£
63,680		 2020
Total
funds
£
**6,689,632 **		 2019
Total
funds
£
6,118,790

The notes form part of these financial statements

Page 12

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Balance Sheet 31 AUGUST 2020

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
14
4,797,465
Investments
Investments
15
49,321
Investment property
16
1,165,000
6,011,786
CURRENT ASSETS
Debtors
17
25,035
Cash at bank
18
288,318
313,353
CREDITORS
Amounts falling due within one
year
19
(47,530)
NET CURRENT ASSETS
265,823
TOTAL ASSETS LESS
CURRENT LIABILITIES
6,277,609
CREDITORS
Amounts falling due after more
than one year
20
-
NET ASSETS
6,277,609		 Circuit
Model

Trust
Fund
£
-
-
-
-
-
354,343
354,343
(3,000)
351,343
351,343
(3,000)
348,343		 Endowment
funds
£
-
17,392
-
17,392
-
46,288
46,288
-
46,288
63,680
-
63,680		 2020

Total
funds
£
4,797,465
66,713
1,165,000
6,029,178
25,035
688,949
713,984
(50,530)
663,454
6,692,632
(3,000)
6,689,632		 2019
Total
funds
£
5,266,225
74,000
-
5,340,225
20,856
830,167
851,023
(66,458)
784,565
6,124,790
(6,000)
6,118,790

The notes form part of these financial statements

continued...

Page 13

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Balance Sheet - continued 31 AUGUST 2020

FUNDS
21
Unrestricted funds
Endowment funds
TOTAL FUNDS		 6,625,952
63,680
**6,689,632 **		 6,052,447
66,343
6,118,790

The financial statements were approved by the Board of Trustees and authorised for issue and were signed on its behalf on 13April 2021 by:

Rev D Winstanley (Joint Superintendent) - Trustee

Rev J Wilson (Joint Superintendent) - Trustee

The notes form part of these financial statements

Page 14

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Cash Flow Statement FOR THE YEAR ENDED 31 AUGUST 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Sale of fixed asset investments
Interest received
Net cash provided by investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2020
£
(149,737)
(149,737)
-
-
1,950
6,569
8,519
(141,218)
830,167
688,949		 2019
£
(254,836)
(254,836)
(457,191)
1,020,008
-
5,395
568,212
313,376
516,791
830,167

The notes form part of these financial statements

Page 15

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Cash Flow Statement FOR THE YEAR ENDED 31 AUGUST 2020

1.
RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM
OPERATING ACTIVITIES
2020
£
Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
585,842
Adjustments for:
Depreciation charges
-
(Gain)/losses on investments
(230,903)
Profit on disposal of fixed assets
-
Interest received
(6,569)
Capital receipts
(475,000)
(Increase)/decrease in debtors
(4,179)
(Decrease)/increase in creditors
(18,928)
Net cash used in operations
(149,737)		 2019
£
(184,627)
138
2,350
(94,113)
(5,395)
-
7,915
18,896
(254,836)

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.19 Cash flow At 31.8.20
£ £ £
Net cash
Cash at bank 830,167 (141,218) 688,949
**830,167 ** (141,218) 688,949
Total **830,167 ** (141,218) 688,949

The notes form part of these financial statements

Page 16

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland 2015 (FRS 102) (effective 1 January 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared on the assumption that the charity is able to continue as a going concern. However, the Covid-19 pandemic is likely to have a profound impact on the global economy, and may in turn affect the charity. The Trustees have considered relevant information, including the annual budget and future cash flows in making their assessment and considered the impact of this issue on the charity's current and future financial position. The charity holds unrestricted, general reserves of £76,592, designated reserves that can be drawn down if necessary of £587,628.. The trustees consider that the charity has sufficient cash reserves to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.

Critical accounting judgements

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

Investments shown at fair value

Income

Income is brought into account when there is entitlement and the amount is reliably measurable once it is more than likely than not that the economic benefit of the income will be forthcoming.

Individual amounts categorised as Other Income in the SOFA will be shown separately if they are considered material.

Where the Circuit acts as agent in the collection from churches and payment over of their contributions to various funds controlled and administered by The Methodist Church -'Connexional Funds', the transactions are not reflected in the SOFA because they are the income of either the Connexion or churches as appropriate.

In accordance with the charities SORP (FRS102), the time of volunteers is not recognised.

continued...

Page 17

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES - continued

Income

Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable, where all conditions associated with the grant have been met. Where conditions exist which remain unsatisfied, the grant is treated as a liability until the conditions have been substantially met.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Connexional Priority Fund Levies, payable on the sale of most properties, are recognised at the point of sale of the property.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Governance costs

Governance costs comprise all costs involved in the public accountability of the charity and its compliance with regulation and good practice.

Tangible fixed assets

Properties held as functional assets comprise manses used for housing ministers and buildings let on a temporary basis or for community purposes.

From time to time, the Circuit may hold residential property (formerly manses) which is surplus to its normal staffing requirements. When the intention is to hold the property for capital appreciation or its rental income, the property is reclassified as investment property and carried at fair value.

Churches which are closed are transferred into the care of the Circuit from the Methodist Church and are valued at a deemed cost based on the valuation of an external valuer.

Fixed asset properties that were held at 1 September 2015 are included in the financial statements at deemed historic cost representing each property's gross carrying value as at 1 September 2015. The Circuit made use of the deemed cost transitional provisions of FRS 102 SORP 2015.

Manses purchased subsequent to 1 September 2015 are included at actual cost.

No depreciation is provided on manses and rental properties because the trustees consider the current residential fair value of the manses and rental properties (on the assumption that these have not reached the end of their useful economic life by the year end) to be not less than their cost to date. Any depreciation would not be material. The properties have been reviewed for impairment.

Office equipment is depreciated on a 25% straight line basis.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

continued...

Page 18

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES - continued

Investment property

Properties are recognised as investment properties when the intention is that they will be held for capital appreciation or rental income. Investment properties include buildings passed to the Circuit, and treated as capital receipts, where the intention is to sell the property.

Investment properties are revalued annually based on periodic professional valuations as adjusted by the trustees using suitable indices in the intervening periods with changes in fair value recognised in 'net gains / (losses) on investments' in the SOFA.

Taxation

The charity is exempt from tax on its charitable activities.

VAT

Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.

Fund accounting

Unrestricted funds are incoming resources receivable or generated for the objects of the District without further specified purpose. They are available as general funds and can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Expenditure which meets the criteria is charged to the fund together with a fair allocation of support costs where appropriate.

Endowment funds represent restricted gifts, the capital normally being unavailable for spending.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

Most ordained presbyters are members of the 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, the terms 'employer' and 'employee' are used as they would be in an employing body.

The scheme is a multi-employer scheme as described in Section 28 of FRS 102 as it is not possible to attribute the scheme's assets and liabilities to specific employers. This means that contributions are accounted for as if the scheme were a defined contribution scheme.

Lay employees are contractually employees of the Circuit and have the option of joining a multi-employer defined contribution scheme operated by TPT Retirement (formerly The Pensions Trust)

The Connexion accounts for MMPS 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.

Debtors

Debtors are measured on initial recognition at settlement amount after any amounts advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.

Debtors include the payment of the September stipend in advance in August.

continued...

Page 19

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES - continued

Debtors

Cash and short term investments

Cash at bank is held to meet short-term cash commitments as they fall due rather than for investment purposes and includes all cash equivalents. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

Creditors

The charity has creditors which are measured at settlement amounts.

Financial instruments

The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities are derecognised when, and only when, the charity's contractual obligations are discharged, cancelled, or they expire.

2. DONATIONS AND LEGACIES

Unrestricted
Endowment
funds
funds
£
£
Donations
16,698
-
Gift aid
1,394
-
Legacies
-
-
Grants
31,000
-
Capital receipts
475,000
-
524,092
-		 2020
Total
funds
£
16,698
1,394
-
31,000
475,000
524,092		 2019
Total
funds
£
13,726
1,364
19,100
30,000
-
64,190

continued...

Page 20

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

2. DONATIONS AND LEGACIES - continued

Grants received, included in the above, are as follows:

District Advance Fund
Connexion
3.
RAISING FUNDS
Unrestricted
Endowment
funds
funds
£
£
Fundraising events
490
-
Lettings
63,898
-
64,388
-
4.
INVESTMENT INCOME
Unrestricted
Endowment
funds
funds
£
£
Interest and investment income
5,288
1,281
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Assessment or share
Management of the Circuit
6.
OTHER INCOME
Unrestricted
Endowment
funds
funds
£
£
Gain on sale of tangible fixed assets
-
-
Other income
11,905
-
11,905
-		 2020
£
10,000
21,000
31,000
2020
Total
funds
£
490
63,898
64,388
2020
Total
funds
£
6,569
2020
£
369,351
2020
Total
funds
£
-
11,905
11,905

continued...

Page 21

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

7. CHARITABLE ACTIVITIES COSTS

7.
CHARITABLE ACTIVITIES COSTS
Direct
Costs (see
note 8)
£
Management of the Circuit
557,299
Southdown Church Centre
41,860
SWCCP
10,442
609,601
8.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
District Assessment
Connexional Priority Fund levy
Contribution to District Advance Fund
Sundries
Administration costs
Insurance and utilities
Manse expenses
Expenditure on other property
Other expenses
SWCCP activities
Depreciation
9.
GRANTS PAYABLE
Management of the Circuit
SWCCP
Circuit grants		 Grant
funding of
activities
(see note
9)
£
-
-
323
323		 Support
costs (see
note 10)
£
11,442
-
-
11,442
2020
£
361,743
88,416
-
21,198
81
18,012
49,936
15,197
28,064
22,393
4,561
-
609,601
2020
£
-
323
-
323		 Totals
£
568,741
41,860
10,765
621,366
2019
£
375,877
84,756
181,299
1,872
-
26,309
55,669
34,957
22,364
24,780
3,887
138
811,908
2019
£
26,000
875
12,411
39,286

continued...

Page 22

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

9. GRANTS PAYABLE - continued

The total grants paid to institutions during the year was as follows:

Nexus Chapel House Project
Other grants
TMCP grants
Peasedown St John Methodist Church
Trinity Methodist Church		 2020
£
-
323
-
-
-
323		 2019
£
3,000
2,125
12,161
6,000
16,000
39,286

10. SUPPORT COSTS

Management of the Circuit

Governance costs £ 11,442

Support costs, included in the above, are as follows:

Governance costs

Governance costs
2020 2019
Management
of the Total
Circuit activities
£ £
Auditors' remuneration 5,340 5,265
Other non-audit services **6,102 ** 3,600
11,442 8,865

11. TRUSTEES' REMUNERATION AND BENEFITS

The members of the Circuit Meeting are the trustees of the Circuit. Two Co-superintendent Ministers, five Circuit Stewards and five other ministers form the Circuit leadership Team, have additional responsibilities and are considered as key management personnel. None of the Circuit Stewards received any remuneration or expenses.

The total remuneration paid to ministers was £243,354 (2019 - £234,143). Expenses relating to travel, telephone, broadband and other costs of £15,542 (2019 - £17,424) were also paid to ministers.

continued...

Page 23

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

11. TRUSTEES' REMUNERATION AND BENEFITS - continued

Trustees' expenses

Trustee expenses of £109 were paid to 1 trustee for the year ended 31 August 2019 for mileage (2019 - £159).

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Ministers
Lay staff		 2020
£
288,231
20,849
52,663
361,743
2020
7
9
16		 2019
£
301,139
21,548
53,190
375,877
2019
9
9
18

No employees received emoluments in excess of £60,000.

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Management of the Circuit
Raising funds
Investment income
Other income
Total
EXPENDITURE ON
Charitable activities
Management of the Circuit
Southdown Church Centre
SWCCP
Circuit grants		 Unrestricted
funds
£
64,190
426,545
74,981
3,213
12,558
581,487
595,632
35,056
8,789
250		 Circuit
Model
Trust
Fund
£
-
-
-
886
94,113
94,999
208,171
-
-
12,161		 Endowment
funds
£
-
-
-
1,296
-
1,296
-
-
-
-		 Total
funds
£
64,190
426,545
74,981
5,395
106,671
677,782
803,803
35,056
8,789
12,411

continued...

Page 24

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

Total
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
14.
TANGIBLE FIXED ASSETS
COST
At 1 September 2019
Impairments
Reclassification
At 31 August 2020
DEPRECIATION
At 1 September 2019 and 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019		 Unrestricted
funds
£
639,727
(756)
(58,996)
(423,410)
(482,406)
6,160,550
5,678,144		 Circuit
Model
Trust
Fund
£
220,332
-
(125,333)
424,706
299,373
74,930
374,303
Manses
and
church
properties
£
5,266,225
(15,000)
(453,760)
4,797,465
-
4,797,465
5,266,225		 Endowment
funds
£
-
(1,594)
(298)
(1,296)
(1,594)
67,937
66,343
Computer
equipment
£
949
-
-
949
949
-
-		 Total
funds
£
860,059
(2,350)
(184,627)
-
(184,627)
6,303,417
6,118,790
Totals
£
5,267,174
(15,000)
(453,760)
4,798,414
949
4,797,465
5,266,225

The Carlingcott property has been impaired by £15,000 to reflect the sale of the property between the year end and the date of the signing of the financial statements at £15,000 below the carrying value.

Page 25

continued...

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

15.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 September 2019
Disposals
Revaluations
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019
There were no investment assets outside the UK.
16.
INVESTMENT PROPERTY
FAIR VALUE
Additions
Revaluation
Reclassification
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019
17.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors
Prepayments and accrued income		 2020
£
1,139
23,896
25,035

Page 26

continued...

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

18. CASH AT BANK

Current accounts
Trustees for Methodist Church Purposes
deposits
Central Finance Board deposits
Total
Current accounts
Cash in hand
Trustees for Methodist Church Purposes
deposits
Central Finance Board deposits
Total
Current accounts
Cash in hand
Trustees for Methodist Church Purposes
deposits
Central Finance Board deposits
Total		 Circuit
Southdown
Arthur Heal
General
Model Trust
Church
Bequest
Fund
Fund
Centre Fund
Fund
£
£
£
£
51,305
-
11,390
-
-
354,343
21,957
16,688
47,049
-
35,554
-
98,354
354,343
68,901
16,688
John Guy
Clutton:
Heal
Sale of
Other
Bequest
Cottage
designated
Fund
Fund
SWCCP Fund
funds
£
£
£
£
-
-
9,516
-
-
-
122
-
30,825
34,917
-
3,876
-
-
25,119
-
30,825
34,917
34,757
3,876
2020
2019
Henry Perry
Other
Bequest
endowment
Total
Total
fund
funds
funds
funds
£
£
£
£
-
-
72,211
79,380
-
-
122
122
39,436
6,852
508,894
551,494
-
-
107,722
199,171
39,436
6,852
688,949
830,167

continued...

Page 27

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
Sundry creditors and accruals
Grants payable
Assessments advance
20.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE
Grants payable
21.
MOVEMENT IN FUNDS
At 1.9.19
£
Unrestricted funds
General Fund
91,054
Circuit Model Trust Fund
374,303
Southdown Church Centre Fund
82,667
Arthur Heal Bequest Fund
25,528
John Guy Heal Bequest Fund
72,992
Clutton: Sale of Cottage Fund
34,689
SWCCP Fund
27,139
Properties fund
5,266,225
Other designated funds
77,850
6,052,447
Endowment funds
Henry Perry Bequest fund
57,255
Other endowment funds
9,088
66,343
TOTAL FUNDS
6,118,790		 2020
£
7,211
1,657
12,114
4,000
25,548
50,530
THAN ONE YEAR
2020
£
3,000
Net
Transfers
movement
between
in funds
funds
£
£
(97,904)
82,709
(18,960)
(7,000)
(13,766)
-
(1,466)
(446)
209
(953)
228
-
7,618
-
696,240
-
25
(73,029)
572,224
1,281
(1,428)
(1,196)
46
(85)
(1,382)
(1,281)
570,842
-		 2019
£
2,321
1,138
11,708
20,000
31,291
66,458
2019
£
6,000
At
31.8.20
£
75,859
348,343
68,901
23,616
72,248
34,917
34,757
5,962,465
4,846
6,625,952
54,631
9,049
63,680
6,689,632

continued...

Page 28

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

21. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General Fund
Circuit Model Trust Fund
Southdown Church Centre Fund
Arthur Heal Bequest Fund
John Guy Heal Bequest Fund
Clutton: Sale of Cottage Fund
SWCCP Fund
Properties fund
Other designated funds
Endowment funds
Henry Perry Bequest fund
Other endowment funds
TOTAL FUNDS		 Incoming
resources
£
449,639
2,238
28,094
446
953
228
18,383
475,000
43
975,024
1,197
84
1,281
976,305		 Resources
expended
£
(547,543)
(21,198)
(41,860)
-
-
-
(10,765)
-
-
(621,366)
-
-
-
**(621,366) **		 Gains and
Movement
losses
in funds
£
£
-
(97,904)
-
(18,960)
-
(13,766)
(1,912)
(1,466)
(744)
209
-
228
-
7,618
221,240
696,240
(18)
25
218,566
572,224
(2,625)
(1,428)
(38)
46
(2,663)
(1,382)
215,903
570,842

continued...

Page 29

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

21. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General Fund
Circuit Model Trust Fund
Southdown Church Centre Fund
Arthur Heal Bequest Fund
John Guy Heal Bequest Fund
Clutton: Sale of Cottage Fund
SWCCP Fund
Properties fund
Other designated funds
Endowment funds
Henry Perry Bequest fund
Other endowment funds
TOTAL FUNDS		 At 1.9.18
£
152,024
74,930
59,806
27,006
72,496
34,487
21,783
5,734,930
58,018
6,235,480
58,877
9,060
67,937
6,303,417		 Net
movement
in funds
£
(95,797)
(125,333)
21,861
(1,026)
1,887
224
6,356
-
7,499
(184,329)
(433)
135
(298)
(184,627)		 Transfers
between
funds
£
34,827
424,706
1,000
(452)
(1,391)
(22)
(1,000)
(468,705)
12,333
1,296
(1,189)
(107)
(1,296)
-		 At
31.8.19
£
91,054
374,303
82,667
25,528
72,992
34,689
27,139
5,266,225
77,850
6,052,447
57,255
9,088
66,343
6,118,790

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General Fund
Circuit Model Trust Fund
Southdown Church Centre Fund
Arthur Heal Bequest Fund
John Guy Heal Bequest Fund
Clutton: Sale of Cottage Fund
SWCCP Fund
Other designated funds
Endowment funds
Henry Perry Bequest fund
Other endowment funds
TOTAL FUNDS		 Incoming
resources
£
470,567
94,999
56,917
258
1,371
224
15,145
37,005
676,486
1,189
107
1,296
677,782		 Resources
expended
£
(566,364)
(220,332)
(35,056)
-
-
-
(8,789)
(29,518)
(860,059)
-
-
-
(860,059)		 Gains and
Movement
losses
in funds
£
£
-
(95,797)
-
(125,333)
-
21,861
(1,284)
(1,026)
516
1,887
-
224
-
6,356
12
7,499
(756)
(184,329)
(1,622)
(433)
28
135
(1,594)
(298)
(2,350)
(184,627)

continued...

Page 30

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

21. MOVEMENT IN FUNDS - continued

General Fund

The purpose of this fund is for the use at the discretion of the trustees in the furtherance of general objectives of the Circuit and which have not been designated for other purposes.

Circuit Model Trust Fund (designated)

The purpose of this fund is for the use at the discretion of the trustees in the furtherance of general objectives of the Circuit. Its main source of income is legacies and contributions from the sale of manses and church buildings in the Circuit.

Properties fund (designated)

This fund reflects the value properties held by the Circuit. The fund comprises fixed asset properties held as functional assets of the Circuit (held at cost or deemed cost) and investment properties held for their rental income together with buildings transferred to the Circuit for disposal (held at fair value).

Southdown Church Centre (designated)

Southdown Methodist Church Centre is a Christian community offering affordable rooms and communal spaces to community groups and organisations including Horizon Methodist Church and the Community Partnership.

Southdown Whiteway Church and Community Partnership fund (designated)

This fund represents the charitable activity of supporting disadvantaged people and communities in Southdown, Twerton and Whiteway through lunch club, toddler group and support advice.

Sale of Cottage Fund (designated)

The fund represents sale proceeds set aside for general fund purposes.

Arthur Heal and John Guy Heal Bequest Funds (designated)

These funds reflect legacies where there is no restriction.

Henry Perry Bequest Fund and other endowment funds (endowment)

Funds represent legacies where the income is available for general fund purposes.

TRANSFERS BETWEEN FUNDS

During the year a net figure of £7,000 was transferred from the Circuit Model Trust Fund to the General fund being a contribution to the cost of the Bath Student Chaplain.

£73,029 was released from various designated funds to the General fund as the trustees considered it was no longer appropriate to hold such funds as designated.

continued...

Page 31

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

21. MOVEMENT IN FUNDS - continued

Comparative analysis of net funds between funds, are as follows:

Fund balances as at 31 August 2019 Unrestricted Restricted Total
funds funds funds
£ £ £
Fixed assets 5,318,219 22,006 5,408,306
Current assets 407,383 44,337 440,255
Current liabilities (47,458) (65,013)
Liabilities more than 1
year (6,000) (6,000)
Total net assets 6,052,447 66,343 6,118,790

22. EMPLOYEE BENEFIT OBLIGATIONS

Methodist ministers are members of the Methodist Minister’s Pension Scheme (MMPS). This is a defined benefit scheme.

Lay employees are contractually employees of the Circuit and belong to a multi-employer defined contribution scheme operated by TPT Retirement (formerly The Pensions Trust).

The Connexion accounts for both pension schemes and shows the figures in the annual accounts of the Methodist Church of Great Britain.

The cost of both schemes attributable to the Circuit for the year ended 31 August 2020 was £52,663 (2019 - £53,190). At the year end, £4,005 (2019 - £3,900) was prepaid in respect of the MMPS and £1,150 (2019 - nil) was payable in respect of the TPT scheme.

23. RELATED PARTY DISCLOSURES

The Circuit employs lay staff involved in both administration and mission work, some of whom are trustees by virtue of their position.

During the year, one employee was also a trustee and a second employee was a close family member of a trustee. They received total remuneration of £14,387 (2019 - £5,925) and other expenses of £213 (2019 - £253)

There were no further related party transactions for the year ended 31 August 2020 nor for the year ended 31 August 2019.

None of the Circuit trustees made donations direct to the Circuit during the year or the preceding year. All of the Circuit trustees are members of one or another church within the Circuit and may be trustees in their churches.

Connected organisations include the Methodist Connexion, Churches within the Circuit, other Methodist Districts in Great Britain, CFB and TMCP. All of these entities have their own trustees or directors and autonomous administration such that the Circuit has no significant influence over any of them, nor they over the Circuit. They are, therefore, not considered related parties.

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