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2021-08-31-accounts

REGISTERED CHARITY NUMBER: 1129520

Report of the Trustees and

Audited Financial Statements for the Year Ended 31 August 2021

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Contents of the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2021

Page
Report of the Trustees 1 to 8
Report of the Independent Auditors 9 to 12
Statement of Financial Activities 13
Balance Sheet 14
Cash Flow Statement 15
Notes to the Cash Flow Statement 16
Notes to the Financial Statements 17 to 34

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

The trustees present their report with the financial statements of the charity for the year ended 31 August 2021. 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.

The Circuit Finance sub-committee produced a report during the year which highlighted the need to address the significant deficit budget which the Circuit is running each year. In light of this report the Circuit has ceased to provide grant funding for Circuit property projects, it has initiated a review of the current local church "pledge" system which currently shapes local church giving to the Circuit and it is undertaking a wider review of the Circuit staffing levels, both ministerial and lay personnel.

One Minister left the Circuit in August 2021 and was replaced by a new Superintendent Minister. Two Circuit Ministers will be leaving the Circuit in August 2022. Currently only one of these posts has been filled, with a new Minister starting in the Circuit in September 2022. Discussion continues over plans for the unfilled post with a decision pending on how best to cover this vacancy in the short and long term.

The Circuit continues to oversee 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 2021

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 2020/21 showed an anticipated shortfall of £159,760. 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 £26,098. This has been partially offset by the release of £40,000 from the Model Trust Fund. Further net transfers of £10,000 and £4,700 have been made from the Model Trust Fund and Southdown Partnership respectively in support of the post of Bath Student Chaplain (serving both Universities). The general fund balance at £49,761 is still healthy despite a similar continuing shortfall budget for 2021/22.

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. 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 sales of a further two vacant church premises which should be completed in the 2021/22 year.

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 between 0.45% and 0.10% during the year.

Page 2

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

FINANCIAL REVIEW

Reserves policy

Most churches seek to have six months expenditure in reserve to provide a working cash balance and extra funds to cover the eventuality of loss of income or emergency costs. Six months net costs based on an average of the 2018/19 and 2019/20 Annual Reports and Accounts would require £370,000 as the reserve figure for the Circuit. Any utilisation of this reserve must be approved by the Circuit Meeting.

When funds are held in excess of the reserve limit these should be used in a planned way over a period of time. A list is noted below of projects or activities which may be expected to access reserves subject to Circuit Meeting approval:

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.

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.

Page 3

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

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.

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.

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.

Page 4

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

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 2021

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 September 2020:

Ministers

Rev S Topping (Superintendent) (from 1/9/21) Rev D Winstanley Rev J Wilson Rev J Crane Rev R A Lansley Rev E Kirova (to 31/08/21) Rev D W Musgrave Rev S E Robinson Rev M J Slocombe Rev I Souter Rev J Tate Rev K Thomas (from 1/9/21) Deacon A Trembling Rev P Turner

Circuit Stewards

Miss M Cross (to 3/3/21) Mrs G Earley Mrs M Hatherell (from 3/3/21) Mrs Elspeth Rolls Mr I Sims

Representatives

Dr Michael Ainsworth Mrs J M Auckland (to 1/2/21) Mr Allan Bain Mr S R Barratt Mr S Beck Mrs S Bown Mrs D Bundey Miss E J Button Mr R Chapman Mrs E Church Mrs D J Cutlan Mr F Day Mrs C Edge Mrs M E Gibson Mrs M A Gilson (to 31/08/21) Miss H Green Rev D Harding Mrs G R I Hull Mrs A Hurford Dr E Jackson (1/2/21- 31/1/22) Mr G James (appointed 1/1/21) Mrs S Keevil (appointed 1/10/20) Mrs J Knight Mrs V Marsh (appointed 1/4/21) Mr M G Martin (to 31/1/22) Mrs C Midgley (appointed 3/3/21) 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 (to 1/5/21) Mrs K Smith (appointed 1/6/21) Mrs J Stiddard Mrs P L Turner (to 1/6/21) Mr P Udey Mrs W E Venn Mr H Warren Mr G Wilson Mr A Wright Mrs J Yates

Page 6

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

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

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

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

Page 7

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

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.

Approved by order of the board of trustees and signed on its behalf on 15 February 2022 by:

Rev S Topping – Superintendent Minister

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 2021 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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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's trade, customers, suppliers and wider economy. The Trustees' view on the impact of Covid-19 is disclosed in the Trustees' Report.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

Page 10

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

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

(i) We obtained an understanding of the legal and regulatory frameworks applicable to the charity and the sector in which it operates. We determined the following laws and regulations of most significance were: Charity SORP 2019 and UK GAAP.

(ii) We obtained an understanding of how the charity complies with those legal and regulatory frameworks by making inquiries of management. We corroborated our enquiries through our review of board minutes and other relevant meeting minutes.

(iii) We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Page 11

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

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 Bath House 6-8 Bath Street Bristol BS1 6HL

22 February 2022

Page 12

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Statement of Financial Activities FOR THE YEAR ENDED 31 AUGUST 2021

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 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
TOTAL FUNDS CARRIED
FORWARD		 Unrestricted
funds

£
30,094
378,295
50,525
2,768
27,910
489,592
629,505
31,281
14,439
5,000
680,225
97,696
(92,937)
668
-
(92,269)
6,625,952
6,533,683		 Restricted
fund
£
32,100
-
-
-
560
32,660
17,960
-
-
-
17,960
-
14,700
-
-
14,700
-
14,700		 Endowment
funds
£
-
-
-
827
-
827
127
-
-
-
127
4,898
5,598
(668)
-
4,930
63,680
68,610		 2021
Total
funds
£
62,194
378,295
50,525
3,595
28,470
523,079
647,592
31,281
14,439
5,000
698,312
102,594
(72,639)
-
-
(72,639)
6,689,632
6,616,993		 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
6,689,632

The notes form part of these financial statements

Page 13

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Balance Sheet 31 AUGUST 2021

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
14
4,482,465
Investments
Investments
15
58,427
Investment property
16
1,252,000
5,792,892
CURRENT ASSETS
Debtors
17
9,773
Cash at bank
18
788,472
798,245
CREDITORS
Amounts falling due within one
year
19
(54,454)
NET CURRENT ASSETS
743,791
TOTAL ASSETS LESS
CURRENT LIABILITIES
6,536,683
CREDITORS
Amounts falling due after more
than one year
20
(3,000)
NET ASSETS
6,533,683
FUNDS
21
Unrestricted funds
Restricted funds
Endowment funds
TOTAL FUNDS
Restricted
fund
£
-
-
-
-
-
14,700
14,700
-
14,700
14,700
-
14,700
Endowment
funds
£
-
22,290
-
22,290
-
46,320
46,320
-
46,320
68,610
-
68,610		 2021

Total
funds
£
4,482,465
80,717
1,252,000
5,815,182
9,773
849,492
859,265
(54,454)
804,811
6,619,993
(3,000)
6,616,993
6,533,683
14,700
68,610
6,616,993		 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
6,625,952
-
63,680
6,689,632

The financial statements were approved by the Board of Trustees and authorised for issue on 15 February 2022 on its behalf by:

Rev S Topping – Superintendent Minister

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 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash used in operating activities
Cash flows from investing activities
Sale of tangible fixed assets
Sale of fixed asset investments
Interest received
Net cash provided by investing activities
Cash flows from financing activities
Income attributable to endowment
Expenditure attributable to endowment
Net cash provided by financing 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		 2021
£
(175,101)
(175,101)
331,349
-
3,595
334,944
827
(127)
700
160,543
688,949
**849,492 **		 2020
£
(149,737)
(149,737)
-
1,950
6,569
8,519
-
-
-
(141,218)
830,167
688,949

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 2021

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES
2021 2020
£ £
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities) (72,639) 585,842
Adjustments for:
Gain on investments (101,004) (230,903)
Profit on disposal of fixed assets (16,349) -
Interest received (3,595) (6,569)
Income attributable to endowment (827) -
Expenditure attributable to endowment 127 -
Capital receipts - (475,000)
Decrease/(increase) in debtors 15,262 (4,179)
Increase/(decrease) in creditors 3,924 (18,928)
Net cash used in operations (175,101) (149,737)
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.9.20 Cash flow At 31.8.21
£ £ £
Net cash
Cash at bank 688,949 160,543 **849,492 **
688,949 160,543 **849,492 **
Total 688,949 160,543 **849,492 **

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 2021

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 and investment properties which are included at fair 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 £49,761, designated reserves that can be drawn down if necessary of £799,218. 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:

Investment properties 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 2021

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.

continued...

Page 18

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

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 2021

1. ACCOUNTING POLICIES - continued

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

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
funds
£
Donations
12,231
Gift aid
1,302
Grants
16,561
Capital receipts
-
**30,094 **		 Restricted
Endowment
funds
funds
£
£
4,600
-
-
-
27,500
-
-
-
32,100
-		 2021
Total
funds
£
16,831
1,302
44,061
-
**62,194 **		 2020
Total
funds
£
16,698
1,394
31,000
475,000
524,092

Grants include CJRS Government grants of £3,611 (2020 - nil)

continued...

Page 20

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

2. DONATIONS AND LEGACIES - continued

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

District Advance Fund
Other
Connexion
RAISING FUNDS
Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Fundraising events
1,653
-
-
Lettings
48,872
-
-
50,525
-
-
INVESTMENT INCOME
Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Interest and investment
income
2,768
-
827		 2021
£
12,350
4,211
27,500
44,061
2021
Total
funds
£
1,653
48,872
50,525
2021
Total
funds
£
3,595		 2020
£
10,000
-
21,000
31,000
2020
Total
funds
£
490
63,898
64,388
2020
Total
funds
£
6,569

3. RAISING FUNDS

4. INVESTMENT INCOME

continued...

Page 21

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

5. INCOME FROM CHARITABLE ACTIVITIES

Activity
Assessment or share
Management of the Circuit
6.
OTHER INCOME
Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Gain on sale of tangible
fixed assets
16,349
-
-
Other income
11,561
560
-
27,910
560
-
7.
CHARITABLE ACTIVITIES COSTS
Grant
funding of
Direct
activities
Costs (see
(see note
note 8)
9)
£
£
Management of the Circuit
633,829
-
Southdown Church Centre
31,281
-
SWCCP
14,439
-
Circuit grants
-
5,000
679,549
5,000

continued...

Page 22

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

8. DIRECT COSTS OF CHARITABLE ACTIVITIES

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		 2021
£
368,688
84,528
92,540
17,826
-
18,994
49,632
20,309
12,756
8,600
5,676
679,549		 2020
£
361,743
88,416
-
21,198
81
18,012
49,936
15,197
28,064
22,393
4,561
609,601

9. GRANTS PAYABLE

GRANTS PAYABLE
2021 2020
£ £
SWCCP - 323
Circuit grants 5,000 -
5,000 323
The total grants paid to institutions during the year was as follows:
2021 2020
£ £
Peasedown Church and Family Worker 6,000 -
Other grants (reversal of grants previously committed) (1,000) 323
5,000 323

continued...

Page 23

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

10. SUPPORT COSTS

SUPPORT COSTS
Governance
costs
£
Management of the Circuit 13,763
Support costs, included in the above, are as follows:
Governance costs
2021 2020
Management
of the Total
Circuit activities
£ £
Auditors' remuneration 5,520 5,340
Other non-audit services 8,243 **6,102 **
13,763 11,442

11. TRUSTEES' REMUNERATION AND BENEFITS

The members of the Circuit Meeting are the trustees of the Circuit. One Superintendent (from 1 September 2021), two Co-superintendent Ministers (to 31 August 2021), 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 in their role as presbyters was £250,112 (2020 - £243,354). Expenses relating to travel, telephone, broadband and other costs of £5,610 (2020 - £15,542) were also paid to ministers.

Trustees' expenses

Trustee expenses of £103 was paid to 1 trustee for the year ended 31 August 2021 for mileage and stationery (2020 - £109).

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2021
£
290,480
22,449
55,759
368,688		 2020
£
288,231
20,849
52,663
361,743

continued...

Page 24

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

12. STAFF COSTS - continued

The average monthly number of employees during the year was as follows:

Ministers
Lay staff
No employees received emoluments in excess of £60,000.
13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
524,092
Charitable activities
Management of the Circuit
369,351
Raising funds
64,388
Investment income
5,288
Other income
11,905
Total
975,024
EXPENDITURE ON
Charitable activities
Management of the Circuit
568,741
Southdown Church Centre
41,860
SWCCP
10,765
Total
621,366
Net gains/(losses) on investments
233,566
NET INCOME/(EXPENDITURE)
587,224
Transfers between funds
1,281
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets
(15,000)
Net movement in funds
573,505		 Ministers
Lay staff
No employees received emoluments in excess of £60,000.
13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
524,092
Charitable activities
Management of the Circuit
369,351
Raising funds
64,388
Investment income
5,288
Other income
11,905
Total
975,024
EXPENDITURE ON
Charitable activities
Management of the Circuit
568,741
Southdown Church Centre
41,860
SWCCP
10,765
Total
621,366
Net gains/(losses) on investments
233,566
NET INCOME/(EXPENDITURE)
587,224
Transfers between funds
1,281
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets
(15,000)
Net movement in funds
573,505		 2021
7
9
16
Endowment
funds
£
-
-
-
1,281
-
1,281
-
-
-
-
(2,663)
(1,382)
(1,281)
-
(2,663)		 2020
7
9
16
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

Page 25

continued...

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Endowment
funds
funds
£
£
RECONCILIATION OF FUNDS
Total funds brought forward
6,052,447
66,343
TOTAL FUNDS CARRIED FORWARD
6,625,952
63,680
14.
TANGIBLE FIXED ASSETS
Manses
and
church
Computer
properties
equipment
£
£
COST
At 1 September 2020
4,797,465
949
Disposals
(315,000)
-
At 31 August 2021
4,482,465
949
DEPRECIATION
At 1 September 2020 and 31 August 2021
-
949
NET BOOK VALUE
At 31 August 2021
4,482,465
-
At 31 August 2020
4,797,465
-
15.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 September 2020
Revaluations
At 31 August 2021
NET BOOK VALUE
At 31 August 2021
At 31 August 2020		 Total
funds
£
6,118,790
6,689,632
Totals
£
4,798,414
(315,000)
4,483,414
949
4,482,465
4,797,465
TMCP
£
66,713
14,004
80,717
80,717
66,713

There were no investment assets outside the UK.

Page 26

continued...

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

15. FIXED ASSET INVESTMENTS - continued

Cost or valuation at 31 August 2021 is represented by:

Valuation in 2021
16.
INVESTMENT PROPERTY
FAIR VALUE
At 1 September 2020
Revaluation
At 31 August 2021
NET BOOK VALUE
At 31 August 2021
At 31 August 2020		 TMCP
£
80,717
£
1,165,000
87,000		 TMCP
£
80,717
1,252,000
1,252,000
1,165,000

The investment properties that are let were valued by the trustees at 31August 2020 at a value of £690,000 based on post year end estimates made by the letting agents. The Claremont Chapel and premises was valued by the trustees based on Christophers Chartered Surveyors' valuation at 18 January 2021 of £475,000.

At the year end, the Claremont property was under offer and revalued by the trustees to the gross expected selling price of £562,000.

At the year end, an impairment review of the letting properties was carried out and the fair value is not considered to be materially misstated.

Fair value at 31 August 2021 is represented by:

Valuation in 2021
Valuation in 2020
Cost
1		 £
87,000
236,240
928,760
,252,000

continued...

Page 27

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Prepayments and accrued income		 2021
£
-
9,773
9,773		 2020
£
1,139
23,896
25,035

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
Student
Chaplain
Fund
£
Current accounts
14,700
Cash in hand
-
Trustees for Methodist
Church Purposes deposits
-
Central Finance Board
deposits
-
Total
14,700		 Circuit
Southdown
Arthur Heal
General
Model Trust
Church
Bequest
Fund
Fund
Centre Fund
Fund
£
£
£
£
66,014
-
8,369
-
-
525,846
21,984
16,689
19,428
-
18,595
-
85,442
525,846
48,948
16,689
John Guy
Clutton:
Heal
Sale of
Other
Bequest
Cottage
designated
Fund
Fund
SWCCP Fund
funds
£
£
£
£
-
-
16,061
-
-
-
110
-
30,830
34,965
-
3,897
-
-
25,684
-
30,830
34,965
41,855
3,897
2021
2020
Henry Perry
Other
Bequest
endowment
Total
Total
fund
funds
funds
funds
£
£
£
£
-
-
105,144
72,211
-
-
110
122
39,467
6,853
680,531
508,894
-
-
63,707
107,722
39,467
6,853
849,492
688,949		 Circuit
Southdown
Arthur Heal
General
Model Trust
Church
Bequest
Fund
Fund
Centre Fund
Fund
£
£
£
£
66,014
-
8,369
-
-
525,846
21,984
16,689
19,428
-
18,595
-
85,442
525,846
48,948
16,689
John Guy
Clutton:
Heal
Sale of
Other
Bequest
Cottage
designated
Fund
Fund
SWCCP Fund
funds
£
£
£
£
-
-
16,061
-
-
-
110
-
30,830
34,965
-
3,897
-
-
25,684
-
30,830
34,965
41,855
3,897
2021
2020
Henry Perry
Other
Bequest
endowment
Total
Total
fund
funds
funds
funds
£
£
£
£
-
-
105,144
72,211
-
-
110
122
39,467
6,853
680,531
508,894
-
-
63,707
107,722
39,467
6,853
849,492
688,949
16,689
Other
designated
funds
£
-
-
3,897
-
3,897
2020
Total
funds
£
72,211
122
508,894
107,722
688,949

continued...

Page 28

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

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 1.9.20
£
Unrestricted funds
General Fund
75,859
Circuit Model Trust Fund
348,343
Southdown Church Centre Fund
68,901
Arthur Heal Bequest Fund
23,616
John Guy Heal Bequest Fund
72,248
Clutton: Sale of Cottage Fund
34,917
SWCCP Fund
34,757
Properties fund
5,962,465
Other designated funds
4,846
6,625,952
Restricted funds
Student Chaplain Fund
-
Endowment funds
Henry Perry Bequest fund
54,631
Other endowment funds
9,049
63,680
TOTAL FUNDS
**6,689,632 **		 2021
£
3,195
1,136
9,712
9,000
31,411
54,454
THAN ONE YEAR
2021
£
3,000
Net
Transfers
movement
between
in funds
funds
£
£
(82,444)
56,346
(99,497)
265,000
(12,613)
(7,340)
1,584
(259)
8,327
(719)
48
-
4,458
2,640
87,000
(315,000)
200
-
(92,937)
668
14,700
-
5,150
(624)
448
(44)
5,598
(668)
(72,639)
-		 2020
£
7,211
1,657
12,114
4,000
25,548
50,530
2020
£
3,000
At
31.8.21
£
49,761
513,846
48,948
24,941
79,856
34,965
41,855
5,734,465
5,046
6,533,683
14,700
59,157
9,453
68,610
6,616,993

continued...

Page 29

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

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
Restricted funds
Student Chaplain Fund
Endowment funds
Henry Perry Bequest fund
Other endowment funds
TOTAL FUNDS		 Incoming
resources
£
435,186
17,577
17,337
309
868
117
18,167
-
31
489,592
32,660
764
63
827
523,079		 Resources
expended
£
(519,220)
(117,074)
(29,950)
(49)
(144)
(69)
(13,709)
-
(10)
(680,225)
(17,960)
(109)
(18)
(127)
(698,312)		 Gains and
Movement
losses
in funds
£
£
1,590
(82,444)
-
(99,497)
-
(12,613)
1,324
1,584
7,603
8,327
-
48
-
4,458
87,000
87,000
179
200
97,696
(92,937)
-
14,700
4,495
5,150
403
448
4,898
5,598
102,594
(72,639)

continued...

Page 30

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

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 1.9.19
£
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		 Net
movement
in funds
£
(97,904)
(18,960)
(13,766)
(1,466)
209
228
7,618
696,240
25
572,224
(1,428)
46
(1,382)
570,842		 Transfers
between
funds
£
82,709
(7,000)
-
(446)
(953)
-
-
-
(73,029)
1,281
(1,196)
(85)
(1,281)
-		 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 31

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

21. MOVEMENT IN FUNDS - continued

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
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

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.

continued...

Page 32

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

21. MOVEMENT IN FUNDS - continued

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.

Student Chaplain fund (restricted)

This fund is restricted for funding the student chaplain position.

TRANSFERS BETWEEN FUNDS

During the year, a transfer of £40,000 was made from the Model Trust Fund to the General Fund to finance the partial refund of pledges made in the prior year which was made to assist churches with the effects of Covid-19.

£315,000 was released from the Property Fund to the Model Trust Fund being the carrying value of properties sold in the year.

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

Fund balances as at 31 August 2020 Unrestricted Endowment Total
funds funds funds
£ £ £
Fixed assets 6,011,786 17,392 6,029,178
Current assets 667,696 46,288 713,984
Current liabilities (50,530) (50,530)
Liabilities more than 1
year (3,000) (63,000)
Total net assets 6,625,952 63,680 6,687,632

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 2021 was £55,759 (2020 - £52,663). At the year end, £nil (2020 - £4,005) was prepaid in respect of the MMPS and £1,108 (2020 - £1,150) was payable in respect of the TPT scheme.

continued...

Page 33

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2021

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 £16,452 (2020 - £14,387) and other expenses of £nil (2020 - £213)

There were no further related party transactions for the year ended 31 August 2021 nor for the year ended 31 August 2020.

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.

24. POST BALANCE SHEET EVENTS

Subsequent to the year end, two investment properties were sold yielding net income of £608,510 less Connexional Priority Fund levies payable of £202,342.

Page 34