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2023-08-31-accounts

REGISTERED CHARITY NUMBER: 1129520

Report of the Trustees and

Audited Financial Statements

for the Year Ended 31 August 2023

for

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Contents of the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2023

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 33

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2023

The trustees present their report with the financial statements of the charity for the year ended 31 August 2023. 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 and;

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 (CLT) 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.

Page 1

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2023

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Circuit has continued to provide leadership and support to local churches as they have developed and maintained their worship and mission over the past year. Two churches, Timsbury Methodist Church and Peasedown St John Methodist Church have merged during the course of the year, retaining the name "Peasedown St John Methodist Church" for the new church. The Circuit now has eleven churches working across fifteen church sites.

The Circuit manages two Circuit Mission Projects: the Southdown and Whiteway Church and Community Partnership which works to support low income and disadvantaged individuals and families through a range of services and the With You project which, under the oversight of the Circuit's Students' Chaplain provides chaplaincy ministry across the two universities of Bath. A growing aspect of the With You project focuses on strengthening the relationships between the student community and the local community.

At the end of the 22/23 financial year the Circuit will reduce its ministerial staff by one, from seven full time staff to six. This has required decisions during the year about the redistribution of the pastoral oversight of Circuit across the remaining Circuit staff. It is hoped that in the next financial year this reduction in staff will lead to a reduction in the annual deficit of the Circuit.

The Circuit Manses Strategy Group continues to consider the best use of those Circuit manses no longer used to house ministerial staff and decision about the renting or selling of these manses will be made during the course of the next financial year.

The Circuit Leadership Team will continue to consider appropriate staffing levels for the Circuit, in the light of Circuit mission strategy, and will bring proposals to the Circuit Meeting in September 2024.

The Circuit continues to oversee the ongoing implementation of GDPR and provision of Safeguarding training and updating of Safeguarding records.

Page 2

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2023

FINANCIAL REVIEW

Financial position

Expenditure decreased by 14% compared to last year. This reduction was driven by the CPF levies the Circuit had to pay on properties sold in the prior year. Excluding the CPF levies, expenditure increased by £104K due to the spend on properties and other costs generally. There was a significant budget overspend in 2022/23, which was financed by a release of Circuit Model Trust funds (shown as a transfer). The £130k overspend on the General Fund (prior to transfers) reflected £57k spend on an external grant to Trinity Methodist Church and other property refurbishment costs.

Income was down by approximately 31% compared to last year. This significant drop is due to the gifting of Trinity church, £290K, last year. Excluding the gifting, income was up 11% driven by grants (mainly for With You), increased rentals and investment income (resulting from the £290k held in TMCP and higher interest rates). Church pledges were down by 1%.

For the year 2022/23 the Circuit funds have net expenditure of £229k, with the bulk of this in the Circuit Model Trust Fund (CMTF) with net expenditure of £260k. The CMTF net expenditure was driven by the need to transfer funds to the CAF and CFB accounts to accommodate the deficit between income and expenditure in the General Fund. District assessment was up 15% and property costs were up 57% compared to last year.

The General fund sits at £57,835 and all other unrestricted and restricted accounts have a healthy balance.

The Circuit's grant funding for the year was £62,327.

There were no significant underspends against budget. Additional professional fees have been paid for a number of inspection reports relating to manse safety checks and property sales.

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.

The annual budget set for 2023/24 shows an anticipated shortfall of £ 137,000.

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 0.10% and 0.45% during the year.

Page 3

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2023

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 2019/20 and 2020/21 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:

Projects may be put forward by local churches, a group of local churches or by the CLT as a Circuit project.

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 4

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2023

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.

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 Bath Methodist Church Box Chew Stoke Farrington Gurney Keynsham (Queens Road & Victoria) Midsomer Norton Paulton Peasedown St John Timsbury Trinity - Radstock Trinity - Westfield

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 5

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2023

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 6

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2023

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 2022:

Ministers

Rev Dr S Topping (Superintendent) Rev D Winstanley Rev J Carne Rev C Coram (from 1/9/22) Rev J Hayes (from 1/9/22) Rev R A Lansley Rev D W Musgrave Rev M J Slocombe (to 31/8/23) Rev I Souter Rev J Tate Rev K Thomas Deacon A Trembling Rev P Turner

Circuit Stewards

Mrs G Earley Miss H Green (from 1/9/22) Mrs M Hatherell (to 15/3/23) Mr I Sims Mr T Purches (from 15/3/23) Mr P Keevill (from 1/9/22)

Representatives

Mr A Bain Mr M Barrow (from 1/9/22) Mr S Beck Mrs S Bown Miss E J Button Mrs E Church Mrs D J Cutlan Mr F Day Mrs C Edge Mrs M E Gibson (to 25/7/23) Mrs M Hatherell (from 15/3/23) Mrs R Horler (1/9/23) Mrs G R I Hull Mrs A Hurford Mr G James Mrs S Keevill Mr A J Knight Mrs J Knight Mrs V Marsh (to 31/9/23) Mrs J M Miners Mrs F Morris-Laventris (to 31/9/23) Mr D S Pendle Miss B J Phillips Mr R S J Pierce Mr N Quilter Mr S Selby (to 5/3/23) Mr A A Short (to 31/8/23) Miss K M Short Ms A Sims Mrs J Slade Mrs K Smith Mrs J Stiddard Ms S Tandy (from 1/9/22) Mrs W E Venn (to 31/8/23) Mr H Warren (to 5/3/23) Mrs J Yates

Auditors

Haines Watts Partnership (Bristol) Limited Chartered Accountants and Statutory Auditors Bath House 6-8 Bath Street Bristol BS1 6HL

Page 7

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2023

REFERENCE AND ADMINISTRATIVE DETAILS 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.

Approved by order of the board of trustees and signed on its behalf on 19 March 2024 by:

Rev S Topping - Superintendent

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 2023 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.

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 where the Charities (Accounts and Reports) Regulations 2008 requires 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 Chartered Accountants and Statutory Auditors Bath House 6-8 Bath Street Bristol BS1 6HL

20 March 2024

Page 12

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Statement of Financial Activities FOR THE YEAR ENDED 31 AUGUST 2023

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
With You project
Loss on disposal of fixed assets
Total
Net gains/(losses) on
investments
NET
INCOME/(EXPENDITURE)
Transfers between funds
21
Net movement in funds
RECONCILIATION OF
FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD		 Unrestricted
funds

£
27,980
367,440
80,315
27,560
5,281
508,576
591,502
45,661
24,639
57,000
43,929
-
762,731
(2,335)
(256,490)
18,548
(237,942)
6,430,146
**6,192,204 **		 Restricted
fund
£
25,697
-
-
-
-
25,697
-
-
-
-
-
-
-
-
25,697
(16,529)
9,168
5,250
14,418		 Endowment
funds
£
-
-
-
2,221
-
2,221
209
-
-
-
-
-
209
139
2,151
(2,019)
132
73,677
73,809		 2023
Total
funds
£
53,677
367,440
80,315
29,781
5,281
536,494
591,711
45,661
24,639
57,000
43,929
-
762,940
(2,196)
(228,642)
-
(228,642)
6,509,073
**6,280,431 **		 2022
Total
funds
£
319,253
372,117
68,213
6,672
6,132
772,387
730,830
37,286
16,459
58,000
15,823
23,849
882,247
1,940
(107,920)
-
(107,920)
6,616,993
6,509,073

The notes form part of these financial statements

Page 13

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Balance Sheet 31 AUGUST 2023

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
14
4,702,465
Investments
Investments
15
52,940
Investment property
16
690,000
5,445,405
CURRENT ASSETS
Debtors
17
26,034
Cash at bank
18
758,016
784,050
CREDITORS
Amounts falling due within one
year
19
(34,251)
NET CURRENT ASSETS
749,799
TOTAL ASSETS LESS
CURRENT LIABILITIES
6,195,204
CREDITORS
Amounts falling due after more
than one year
20
(3,000)
NET ASSETS
6,192,204
FUNDS
21
Unrestricted funds
Restricted funds
Endowment funds
TOTAL FUNDS
Restricted
fund
£
-
-
-
-
13,400
1,018
14,418
-
14,418
14,418
-
14,418
Endowment
funds
£
-
27,521
-
27,521
-
46,288
46,288
-
46,288
73,809
-
73,809		 2023

Total
funds
£
4,702,465
80,461
690,000
5,472,926
39,434
805,322
844,756
(34,251)
810,505
6,283,431
(3,000)
6,280,431
6,192,204
14,418
73,809
**6,280,431 **		 2022
Total
funds
£
4,702,465
82,657
690,000
5,475,122
24,468
1,054,406
1,078,874
(41,923)
1,036,951
6,512,073
(3,000)
6,509,073
6,430,146
5,250
73,677
6,509,073

The financial statements were approved by the Board of Trustees and authorised for issue on and were signed on its behalf on 19 March 2024 by:

Rev S Topping - Superintendent

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 2023

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 investment property
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		 2023
£
(280,877)
(280,877)
-
-
29,781
29,781
2,221
(209)
2,012
(249,084)
1,054,406
805,322		 2022
£
(409,713)
(409,713)
46,151
562,000
5,725
613,876
947
(196)
751
204,914
849,492
1,054,406

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 2023

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net expenditure for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Losses/(gain) on investments
Loss on disposal of fixed assets
Interest received
Income attributable to endowment
Expenditure attributable to endowment
Assets transferred from ceasing churches
Increase in debtors
Decrease in creditors
Net cash used in operations
2.
ANALYSIS OF CHANGES IN NET FUNDS
At 1.9.22
£
Net cash
Cash at bank
1,054,406
1,054,406
Total
1,054,406		 2023
£
(228,642)
2,196
-
(29,781)
(2,221)
209
-
(14,966)
(7,672)
(280,877)
Cash flow
£
(249,084)
(249,084)
(249,084)		 2022
£
(107,920)
(1,940)
23,849
(5,725)
(947)
196
(290,000)
(14,695)
(12,531)
(409,713)
At 31.8.23
£
805,322
805,322
805,322

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 2023

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

Going concern

The financial statements have been prepared on a going concern basis. 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.

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.

continued...

Page 17

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES - continued

Expenditure

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

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.

continued...

Page 18

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES - continued

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.

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.

continued...

Page 19

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES - continued

Cash and cash equivalents

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
21,838
Gift aid
1,330
Grants
4,812
Assets transferred from
ceasing churches
-
27,980		 Restricted
Endowment
funds
funds
£
£
519
-
378
-
24,800
-
-
-
25,697
-		 2023
Total
funds
£
22,357
1,708
29,612
-
53,677		 2022
Total
funds
£
16,417
2,036
10,800
290,000
319,253

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

District Advance Fund
Warm Spaces
Diocese of Bath and Wells
Bath Spa University
Other		 2023
£
14,712
500
8,400
5,000
1,000
29,612		 2022
£
-
-
6,300
-
4,500
10,800

continued...

Page 20

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

3. RAISING FUNDS

Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Fundraising events
4,491
-
-
Lettings
75,824
-
-
80,315
-
-
4.
INVESTMENT INCOME
Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Interest and investment
income
27,560
-
2,221
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Assessment or share
Management of the Circuit
6.
OTHER INCOME
Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Other income
5,281
-
-
7.
CHARITABLE ACTIVITIES COSTS
Grant
funding of
Direct
activities
Costs (see
(see note
note 8)
9)
£
£
Management of the Circuit
572,573
1,100
Southdown Church Centre
45,661
-
SWCCP
20,412
4,227
Circuit grants
-
57,000
With You project
43,929
-
682,575
62,327

continued...

Page 21

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

8. DIRECT COSTS OF CHARITABLE ACTIVITIES

Staff costs
Other ministry costs
District assessment and levy
CPF levy
Office and admin costs
Property costs
Letting and other fees
SCC property costs
SWCCP activities
9.
GRANTS PAYABLE
Management of the Circuit
SWCCP
Circuit grants
The total grants paid to institutions during the year was as follows:
Methodist Ministers' Pension Scheme Reserve
Nexus Chapel House Project
Peasedown Church and Family Worker
Trinity Methodist Church
Other grants		 2023
£
363,628
2,498
135,347
-
22,864
109,999
16,317
26,510
5,412
682,575
2023
£
1,100
4,227
57,000
62,327
2023
£
-
-
-
57,000
5,327
62,327		 2022
£
343,904
2,766
117,064
202,342
16,820
69,305
6,314
19,383
2,684		 2022
£
343,904
2,766
117,064
202,342
16,820
69,305
6,314
19,383
2,684
780,582
2022
£
-
4,119
58,000
62,119
2022
£
25,000
30,000
3,000
-
4,119
62,119

In addition, internal grants of £25,000 (2022 - £16,700) and £4,724 (2022 - £7,000) were made to support the roles of Student Chaplain and Southdown Layworker respectively. A contribution of £18,000 (2022 - £nil) was paid from the Southdown Partnership to Southdown Church Centre.

continued...

Page 22

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

10. SUPPORT COSTS

SUPPORT COSTS
Governance
costs
£
Management of the Circuit 18,038

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

Governance costs

Governance costs
2023 2022
Management
of the Total
Circuit activities
£ £
Auditors' remuneration 5,960 5,520
Other non-audit services 12,078 10,177
18,038 15,697

11. TRUSTEES' REMUNERATION AND BENEFITS

The members of the Circuit Meeting are the trustees of the Circuit. One Superintendent, five Circuit Stewards and five other ministers form the Circuit leadership Team, have additional responsibilities and are considered as key management personnel.

Circuit Steward expenses of £289 was paid to one Circuit Steward for the year ended 31 August 2023 (2022 £289). None of the Circuit Stewards received any remuneration in the year.

The total remuneration paid to ministers in their role as presbyters was £261,308 (2022 - £249,485). Expenses relating to travel, training and other costs of £9,274 (2022 - £9,206) were also paid to ministers.

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2023
£
285,803
22,565
55,260
363,628		 2022
£
269,365
20,970
53,569
343,904

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

Ministers
Lay staff		 2023
7
8
15		 2022
7
8
15

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

continued...

Page 23

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
Endowment
funds
fund
funds
£
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
310,970
8,283
-
Charitable activities
Management of the Circuit
372,117
-
-
Raising funds
68,213
-
-
Investment income
5,725
-
947
Other income
6,132
-
-
Total
763,157
8,283
947
EXPENDITURE ON
Charitable activities
Management of the Circuit
707,651
22,983
196
Southdown Church Centre
37,286
-
-
SWCCP
16,459
-
-
Circuit grants
58,000
-
-
With You project
15,823
-
-
Loss on disposal of fixed assets
23,849
-
-
Total
859,068
22,983
196
Net gains/(losses) on investments
(3,152)
-
5,092
NET INCOME/(EXPENDITURE)
(99,063)
(14,700)
5,843
Transfers between funds
(4,474)
5,250
(776)
Net movement in funds
(103,537)
(9,450)
5,067
RECONCILIATION OF FUNDS
Total funds brought forward
6,533,683
14,700
68,610
TOTAL FUNDS CARRIED FORWARD
6,430,146
5,250
73,677		 Total
funds
£
319,253
372,117
68,213
6,672
6,132
772,387
730,830
37,286
16,459
58,000
15,823
23,849
882,247
1,940
(107,920)
-
(107,920)
6,616,993
6,509,073

continued...

Page 24

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

14. TANGIBLE FIXED ASSETS

14.
TANGIBLE FIXED ASSETS
COST
At 1 September 2022 and 31 August 2023
DEPRECIATION
At 1 September 2022 and 31 August 2023
NET BOOK VALUE
At 31 August 2023
At 31 August 2022
15.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 September 2022
Revaluations
At 31 August 2023
NET BOOK VALUE
At 31 August 2023
At 31 August 2022
There were no investment assets outside the UK.
16.
INVESTMENT PROPERTY
FAIR VALUE
At 1 September 2022
and 31 August 2023
NET BOOK VALUE
At 31 August 2023
At 31 August 2022		 Manses
and
church
properties
£
4,702,465
-
4,702,465
4,702,465		 Computer
equipment
£
949
949
-
-		 Totals
£
4,703,414
949
4,702,465
4,702,465
TMCP
£
82,657
(2,196)
80,461
80,461
82,657
£
690,000
690,000
690,000

The investment properties that are let were valued by the trustees at 31 August 2022 at a value of £690,000 based on post year end estimates made by the letting agents.

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.

Page 25

continued...

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

16. INVESTMENT PROPERTY - continued

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Prepayments and accrued income		 2023
£
13,598
25,836
**39,434 **		 2022
£
440
24,028
24,468

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
With You
Fund -
external
funding
£
Current accounts
1,018
Cash in hand
-
Trustees for Methodist
Church Purposes deposits
-
Carried forward
1,018		 Circuit
Southdown
Arthur Heal
General
Model Trust
Church
Bequest
Fund
Fund
Centre Fund
Fund
£
£
£
£
44,148
-
11,284
-
-
502,441
22,671
16,798
16,645
-
30,881
-
60,793
502,441
64,836
16,798
John Guy
Clutton:
Heal
Sale of
Other
Bequest
Cottage
designated
Fund
Fund
SWCCP Fund
funds
£
£
£
£
-
-
9,041
-
-
-
140
-
30,826
36,054
-
4,073
-
-
33,014
-
30,826
36,054
42,195
4,073
2023
2022
Henry Perry
Other
Bequest
endowment
Total
Total
Fund
funds
funds
funds
£
£
£
£
-
-
65,491
57,880
-
-
140
110
39,436
6,852
659,151
936,082
39,436
6,852
724,782
994,072		 Circuit
Southdown
Arthur Heal
General
Model Trust
Church
Bequest
Fund
Fund
Centre Fund
Fund
£
£
£
£
44,148
-
11,284
-
-
502,441
22,671
16,798
16,645
-
30,881
-
60,793
502,441
64,836
16,798
John Guy
Clutton:
Heal
Sale of
Other
Bequest
Cottage
designated
Fund
Fund
SWCCP Fund
funds
£
£
£
£
-
-
9,041
-
-
-
140
-
30,826
36,054
-
4,073
-
-
33,014
-
30,826
36,054
42,195
4,073
2023
2022
Henry Perry
Other
Bequest
endowment
Total
Total
Fund
funds
funds
funds
£
£
£
£
-
-
65,491
57,880
-
-
140
110
39,436
6,852
659,151
936,082
39,436
6,852
724,782
994,072
16,798
Other
designated
funds
£
-
-
4,073
-
4,073
2022
Total
funds
£
57,880
110
936,082
994,072

Page 26

continued...

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

18. CASH AT BANK - continued

Brought forward
Central Finance Board
deposits
Total		 With You
Fund -
external
funding
£
1,018
-
1,018		 Henry Perry
Other
Bequest
endowment
Fund
funds
£
£
39,436
6,852
-
-
39,436
6,852		 2023

Total
funds
£
724,782
80,540
805,322		 2022
Total
funds
£
994,072
60,334
1,054,406

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
Sundry creditors and accruals
Grants payable
Assessments in advance		 2023
£
2,364
100
9,300
3,000
19,487
**34,251 **		 2022
£
5,916
984
9,536
6,000
19,487
41,923

20. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Grants payable 2023
£
3,000		 2022
£
3,000

continued...

Page 27

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

21. 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
With You Fund - internal funding
Restricted funds
With You Fund - external funding
Endowment funds
Henry Perry Bequest Fund
Other endowment funds
TOTAL FUNDS		 At 1.9.22
£
43,006
756,288
48,119
24,939
76,772
35,030
46,121
5,392,465
5,006
2,400
6,430,146
5,250
64,382
9,295
73,677
6,509,073		 Net
movement
in funds
£
(130,623)
(89,553)
(1,572)
522
163
1,024
7,380
-
98
(43,929)
(256,490)
25,697
1,990
161
2,151
(228,642)		 Transfers
between
funds
£
145,452
(170,294)
17,100
(749)
(2,114)
-
(12,376)
-
-
41,529
18,548
(16,529)
(1,748)
(271)
(2,019)
-		 At
31.8.23
£
57,835
496,441
63,647
24,712
74,821
36,054
41,125
5,392,465
5,104
-
6,192,204
14,418
64,624
9,185
73,809
**6,280,431 **

continued...

Page 28

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

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
Other designated funds
With You Fund - internal funding
Restricted funds
With You Fund - external funding
Endowment funds
Henry Perry Bequest Fund
Other endowment funds
TOTAL FUNDS		 Incoming
resources
£
407,793
19,520
44,089
931
2,333
1,124
32,628
158
-
508,576
25,697
1,931
290
2,221
**536,494 **		 Resources
expended
£
(538,416)
(109,073)
(45,661)
(71)
(219)
(100)
(25,248)
(14)
(43,929)
(762,731)
-
(183)
(26)
(209)
(762,940)		 Gains and
Movement
losses
in funds
£
£
-
(130,623)
-
(89,553)
-
(1,572)
(338)
522
(1,951)
163
-
1,024
-
7,380
(46)
98
-
(43,929)
(2,335)
(256,490)
-
25,697
242
1,990
(103)
161
139
2,151
(2,196)
(228,642)

continued...

Page 29

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

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
With You Fund - internal funding
Restricted funds
With You Fund - external funding
Endowment funds
Henry Perry Bequest Fund
Other endowment funds
TOTAL FUNDS		 At 1.9.21
£
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		 Net
movement
in funds
£
(67,476)
(309,858)
(829)
255
(1,973)
65
6,616
290,000
(40)
(15,823)
(99,063)
(14,700)
5,939
(96)
5,843
(107,920)		 Transfers
between
funds
£
60,721
552,300
-
(257)
(1,111)
-
(2,350)
(632,000)
-
18,223
(4,474)
5,250
(714)
(62)
(776)
-		 At
31.8.22
£
43,006
756,288
48,119
24,939
76,772
35,030
46,121
5,392,465
5,006
2,400
6,430,146
5,250
64,382
9,295
73,677
6,509,073

continued...

Page 30

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

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
With You Fund - internal funding
Restricted funds
With You Fund - external funding
Endowment funds
Henry Perry Bequest Fund
Other endowment funds
TOTAL FUNDS		 Incoming
resources
£
408,234
3,521
36,457
325
1,335
164
23,075
290,000
46
-
763,157
8,283
852
95
947
772,387		 Resources
expended
£
(475,710)
(313,379)
(37,286)
(70)
(228)
(99)
(16,459)
-
(14)
(15,823)
(859,068)
(22,983)
(168)
(28)
(196)
(882,247)		 Gains and
Movement
losses
in funds
£
£
-
(67,476)
-
(309,858)
-
(829)
-
255
(3,080)
(1,973)
-
65
-
6,616
-
290,000
(72)
(40)
-
(15,823)
(3,152)
(99,063)
-
(14,700)
5,255
5,939
(163)
(96)
5,092
5,843
1,940
(107,920)

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 Bath Methodist Church and the Community Partnership.

continued...

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NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

21. MOVEMENT IN FUNDS - continued

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.

Clutton 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.

With You Fund - internal funding (designated)

This fund reflects funding earmarked by the trustees from the Circuit Model Trust Fund for the student chaplain position.

Henry Perry Bequest Fund and other endowment funds (endowment)

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

With You Fund - external funding (restricted)

This fund reflects funding received specifically for the student chaplain position from external donors.

TRANSFERS BETWEEN FUNDS

An internal grant of £25,000 was made from Model Trust Fund to the With You internal funding reflecting the Circuit contribution to the post of Student Chaplain. Transfers totalling £119,000 were made to the General Fund to finance necessary repairs of manse, legal work for the impending sale of a church and other costs.

Transfer of £16,529 was made from With You Fund -external funding and the With You Fund - internal funding to reflect the use of external grants and donations in the year.

In the prior year, £632,000 was released from the Property Fund to the Model Trust Fund being the carrying value of properties sold in the prior year.

In the prior year, a transfer of £50,000 was made from the Model Trust Fund to the General Fund as an internal grant to contribute to discounted assessments as a result of Covid-19 and stipends.

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

Fund balances as at 31 August 2022
Unrestricted
funds
£
Fixed assets
5,445,405
Current assets
784,050
Current liabilities
(34,251)
Liabilities more than 1
year
(3,000)
Total net assets
6,192,204		 Restricted Endowment
funds
funds
£
£
-
27,521
14,418
46,288
-
-
-
-
14,418
73,809		 Total
funds
£
5,472,926
844,756
(34,251)
(3,000)
6,280,431

continued...

Page 32

NORTH EAST SOMERSET & BATH METHODIST CIRCUIT

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

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 2023 was £55,260 (2022 - £53,569). At the year end, £nil (2022 - £nil) was prepaid in respect of the MMPS and £nil (2022 - £826) 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 £18,221 (2022 - £16,706) and other expenses of £44 (2022 - £38).

There were no further related party transactions for the year ended 31 August 2023 nor for the year ended 31 August 2022.

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.

Page 33